According to McKinsey, teams with a powerful sense of connection are more productive and complete tasks faster. Social capital builds trust between colleagues and managers, motivates employees to go beyond their job duties, improves retention, and makes staff more likely to recommend their company as a great place to work. And HR has a key role to play in fostering these interpersonal relationships.

In this article, we will further unpack why strong interpersonal skills are important – now more than ever – and provide you with steps on how to develop social capital in your organization.

Contents
The need for interpersonal skills in the workplace
What is social capital?
The benefits of social capital
How HR can foster social capital in the workplace
1. Build strong relationships
2. Promote employee engagement
3. Drive innovation and creativity
4. Support organizational resilience

The need for interpersonal skills in the workplace

The world has seen significant shifts in the last few years — fast advancements in technology, changing ways of work, and rapid development and uptake of AI tools, coupled with volatile political, social, and global economic changes. It’s impacted the skills we need to do our jobs and how we connect with others. 

The World Economic Forum’s Future of Jobs report indicates a significant change in the skills needed for the future workforce. Out of the top ten skills expected to be in high demand by 2025, eight focus on human qualities like emotional intelligence, creativity, leadership, and social influence.

However, as McKinsey’s survey reveals, we connect with others less frequently, have smaller networks, and spend less time and effort building relationships.

For those in HR, this shows an important point: it’s essential to invest in people’s social skills and foster a work environment where everyone can work well together, innovate, and deliver business results.

What is social capital?

Social capital is about the connections, relationships, and trust built within organizations. These networks help us communicate well, work together, and solve problems. By prioritizing social capital, HR creates a positive environment where individuals and the organization thrive.

This approach is key to increasing employee satisfaction and engagement, sparking innovation, and strengthening the company’s ability to adapt and grow.

Relationships marked by conflict and mistrust will have the opposite effect. Strained relationships lead to limited collaboration, low morale, and higher turnover rates. This can negatively affect both employee and organizational performance.

Social capital is helpful in many ways. As an employee, having a good relationship with a more experienced colleague can mean getting helpful advice on doing their job better. On a group level, social capital makes it easier for different departments to work together to achieve a shared goal. In the broader community, social capital helps unite people around a common cause, leading to action that benefits everyone.

The benefits of social capital 

Social capital in the workplace brings many benefits, including increased employee engagement, innovation, and organizational resilience. Strong relationships and networks provide access to expertise, information, and resources. 

This boosts innovation, problem-solving, and productivity by tapping into employees’ collective intelligence and creativity. The idea exchange, collaboration, and experimentation that social capital encourages are key for creating new products, services, and processes, giving companies a competitive advantage.

Simply put, social capital improves organizational performance and competitiveness.

For HR, social capital links HR practices to organizational success. In Talent Acquisition, for example, tapping into employees’ networks—a form of social capital—facilitates access to top talent. In talent management, promoting social capital helps to create an inclusive environment where individuals feel valued and purposeful, which is crucial for retaining talent. Likewise, social interactions and informal networks are vital for knowledge-sharing and organizational learning.

How HR can foster social capital in the workplace

1. Build strong relationships

At its core, social capital is all about relationships — nurturing those that exist and building new ones. 

Stronger relationships have various benefits. When people get along better, they can work more efficiently, be more creative, and work together more cohesively. Open communication and collaboration lines help to establish a culture of trust and mutual respect. 

For HR teams, building stronger relationships involves creating opportunities and platforms that facilitate connections among employees. 

How HR can foster its own social capital

1. Build trust and credibility: HR professionals need to build their own trust and credibility to increase their social capital with others in the organization. This is done by openly sharing policies, decisions, and processes. It also involves demonstrating transparency, consistency, and fairness in their application.
2. Acting on employee feedback: Listen to what employees have to say and do something with their suggestions or worries. Feedback mechanisms could include employee suggestion programs, regular surveys, or open-door policies.
3. Implement DEIB practices: Lastly, it is essential to incorporate diversity and inclusion practices into HR strategies. Feeling included and being accepted for who you are strengthens social bonds and builds trust among colleagues. This not only helps to build trust in HR but also to increase social capital within the organization. 

Example: Relationship-building at Salesforce

Salesforce, a cloud-based software company, is an excellent example of how an organization can prioritize relationship building. The company has an Ohana culture that emphasizes inclusivity, trust, and collaboration. This culture encourages employees to support one another professionally and personally, fostering solid social connections and mutual respect. Furthermore, the company also promotes social capital through initiatives such as employee resource groups (ERGs) and volunteer programs. Such initiatives provide opportunities for employees to connect, share experiences, and give back to their communities.

2. Promote employee engagement

Strong social ties are a crucial driver of employee engagement. HR should play a role in creating an environment where employees are not just passively fulfilling a role but actively participating and contributing in meaningful ways. But also in developing a culture where people feel respected, trusted, and part of the team. 

When done well, employees feel more connected to their work and each other, leading to increased organizational social capital.

Boosting job satisfaction and morale is also key to building social capital in the workplace. Employees who are happy and fulfilled in their roles tend to form strong bonds with their colleagues and work together more effectively. High morale creates a sense of loyalty and commitment among employees. Happy employees are also more likely to participate in team activities and go the extra mile. This helps strengthen relationships and trust and ultimately builds strong organizational social capital.

How HR can foster its own social capital

Promoting employee engagement is also crucial to increase the social capital HR holds with others within the organization.

1. Make work meaningful: Listen to employees, support their career growth, and make their work meaningful. By doing so, HR improves the work experience and strengthens their own relationships with employees. 

Engaged employees are more likely to trust HR and their colleagues, work well with others, and help create a positive work culture – which is key to the company’s success.

Example: Zappos unique organizational culture fosters social capital

Zappos, an online shoe and clothing retailer, strongly emphasizes building social capital through its unique organizational culture. The company prioritizes employee relationships and engagement by fostering a sense of community and belonging. Zappos produced an annual “Culture Book” where employees contributed personal stories and insights about the company culture. Additionally, Zappos offers cultural immersion programs for new hires to integrate them into the organization’s values and practices.

3. Drive innovation and creativity

Social capital acts as a catalyst for creativity and the sharing of new and innovative ideas. It builds a foundation for strong, collaborative networks where individuals feel more comfortable and inspired to share their insights and breakthroughs within the team or organization — leading to more diverse perspectives and experiences.

These diverse perspectives can result in a richer pool of ideas, helping to challenge conventional thinking and explore innovative solutions. This enriches both HR’s and the organization’s social capital. When everyone feels welcome and valued, no matter their background, they’re more likely to share their ideas. Likewise, a culture where everyone is open and works together leads to more creativity and new ways of thinking.

How HR can foster its own social capital

1. Enhance HR’s own social capital: When HR works hard to create a place where new ideas are welcome, it improves relationships and teamwork across the organization. It also significantly enhances HR’s own social capital. 
2. Value employee contributions: By demonstrating a commitment to and trust in employees’ abilities and ideas, HR signals that it respects and values employee contributions. This, in turn, helps to enhance HR’s reputation and influence within the organization.
3. Build external social capital: Creating a place that values new ideas and creativity not only boosts HR’s image within the company but also helps to build external social capital. Innovative and creative cultures help attract top talent and enhance the organization’s reputation as a forward-thinking and dynamic workplace. This good reputation helps HR find more talented people and build stronger connections, making it even more successful both inside and outside the company.

Example: Google values innovation and collaboration

Google is known for its strong emphasis on fostering social capital in the workplace through various initiatives to drive innovation and collaboration. One notable example is its “20% time” policy, which allows employees to spend a portion of their workweek pursuing projects outside their core responsibilities. This policy encourages employee collaboration, creativity, and knowledge sharing, leading to innovations such as Gmail and Google Maps.

4. Support organizational resilience

Social capital becomes a vital resource for organizations during change and crises. Strong connections can be a source of support, information, and resources. 

The COVID pandemic showed just how crucial HR is in using social capital to keep things running smoothly. During this time, HR professionals across the globe served as the central point of contact for communication and coordination to ensure everyone knew what was going on and that work continued safely.

By tapping into the organization’s existing relationships, trust, and networks, social capital can help promote organizational resilience and drive successful change. 

How HR can foster its own social capital

Supporting organizational resilience enhances the social capital HR has within an organization. HR becomes a key source of stability, flexibility, and ongoing operation during changes or challenging times. Clear and direct communication, along with policies and practices that look after employees’ wellbeing, builds trust. This shows employees they are supported and valued.

When HR proactively contributes to building resilience, it not only aids the organization in navigating challenges but also strengthens the relationships, trust, and collaboration essential for social capital. Engaging employees in the change process, addressing their concerns, and providing the necessary training and resources reinforce HR’s role as a trusted advisor and change agent. 

Example: Patagonia prioritized employee health and safety

Known for its commitment to sustainability and employee wellbeing, Patagonia lived up to its reputation during the pandemic by prioritizing the health and safety of its employees. The company quickly adapted its operations, implementing safety measures in its warehouses and maintaining full pay and benefits for all employees, even those unable to work due to store closures. This level of support reinforced the trust and loyalty between Patagonia and its employees, crucial elements of the company’s strong organizational capital. 

How HR professionals can develop their own interpersonal skills

Developing interpersonal skills is not just advantageous but essential for those in HR, too. These skills help HR professionals navigate the complexities of the current work environment, spur innovation, and manage the balance between daily tasks and the overarching strategic objectives.

In the AIHR T-shaped HR Competency Model, the Execution Excellence competency is centered on creating meaningful connections and encouraging teamwork to achieve goals efficiently. A key strategy that HR can employ to achieve this is through cultivating social capital.

Final words

Social capital is crucial for organizational and HR success. It sets the foundation for creating an innovative, engaged, and resilient workforce. HR plays a critical role in building an environment rich in social capital, which helps organizations harness the collective potential of their human capital. 

In the digital future of work, it will not be our digital skills that will make us successful. Our ability to connect as human beings, leveraging social capital and authentically connecting with each other will be what makes the difference.

The post Social Capital in the Workplace: How HR Can Build Stronger Employee Connections  appeared first on AIHR.

This article introduces Execution Excellence, a Core Competency of AIHR’s T-Shaped HR Competency Model. We also propose tactics for you to adopt when developing this competency.

Contents
What is Execution Excellence?
1. Action Orientation
2. Problem Solving
3. Interpersonal Skills

What is Execution Excellence?

Execution Excellence refers to “how HR gets the job done.” It describes a set of behaviors that underpin the additional four Core Competencies of the T-Shaped HR Competency Model (Business Acumen, Data Literacy, Digital Ability, and People Advocacy). It is also key to enabling the Specialist and Leadership Competencies. 

Put simply, Execution Excellence guides HR professionals in how to execute and ensure that HR drives meaningful impact for all stakeholders. 

With increasing workplace complexity, it’s important for HR to become master problem-solvers and find new solutions to address organizational needs — all this while balancing long-term strategy with short-term operational responsibilities. Increasingly, we see HR professionals being asked to apply analytical thinking to drive informed and decisive action.

Execution Excellence is divided into three key dimensions that relate to the ability to work with different people, solve problems, and carry out plans to achieve desired results. These are: 

1. Action Orientation
2. Problem Solving
3. Interpersonal Skills

Mastering these skills can help you to be effective in your role and help your organization succeed.

For example: 

• Action Orientation skills are key to developing effective strategies or implementing change programs. 
• Problem Solving capabilities enable you to tackle complex challenges, such as how to adapt employee value propositions to the hybrid workforce. 
• Strong Interpersonal Skills are vital for communicating and building relationships to drive effective HR partnering. 

Below, we explore each of these dimensions and how you can develop these behaviors.

1. Action Orientation

The first dimension is called Action Orientation. Here, the focus is on managing resources and planning, adapting, and organizing activities to get the desired results. Being action-oriented helps HR drive the implementation of new projects, processes, and practices. In addition, it also enables you to be more resilient in dealing with changes and ambiguity in the environment.

Action-oriented behaviors include:

• Setting clear goals, planning tasks, and using time well
• Being responsible for reaching goals on time
• Adapting to and embracing changes
• Organizing and using resources well to achieve results. 

Developing Action Orientation: Strategies and techniques

You can use the following strategies and techniques to develop your Action Orientation: 

• Scenario planning: This entails thinking about different possible future situations and planning for them. Scenario planning helps to prepare for changes and surprises. 
• Project management methods: Methods like Agile, Scrum, or Waterfall can help improve the planning and execution of projects. 
• RACI charts: Responsible, Accountable, Consulted and Informed charts can help clarify who is responsible for what in a project and set clear deadlines. Several software options are available, as well as a free template from AIHR to help you create a RACI matrix for your projects. 
• SMART goals: Using SMART (Specific, Measurable, Achievable, Realistic, and Timebound) goals can help professionals turn vague goals into clear and achievable ones. Digital tools like Trello or Asana can help organize and keep track of these goals. 
• Change management: Developing your change management skills can help in becoming more adaptable when dealing with ambiguity. A good model to master is the Cynefin change model, which serves as a helpful guide when dealing with complex changes.

2. Problem Solving

The second dimension is Problem Solving. This refers to how an HR professional thinks about different issues to handle complex problems and situations. Solving problems is important for any job, but for HR professionals, this is really critical. You often have to deal with complicated and conflicting issues involving many different viewpoints and needs. 

Behaviors related to the problem-solving dimension include:

• Thinking analytically about situations or information to create a clear idea or plan
• Bringing people with different and often conflicting priorities together and moving them towards action
• Making smart, timely decisions based on facts and the situation.

Developing Problem Solving: Methods and techniques

Solving problems is not new for HR professionals, but the challenges are becoming more complex and nuanced. 

You can adopt the following methods and techniques to develop this dimension:

• Consensus-building techniques: These techniques include the Delphi method, Nominal Group, or Six Thinking Hats, which help groups work together to solve problems and meet goals.
• Problem analysis techniques: Problem solving techniques and digital tools like Miro or LucidSpark can help break down big ideas into smaller parts and see how they connect.
• Decision-making frameworks: There are many decision-making frameworks available, such as the SWOT analysis technique for strategy These frameworks help make balanced and strategic decisions, even when things are complex. 

3. Interpersonal Skills

The third dimension is Interpersonal Skills. HR has always required strong interpersonal skills, especially in communicating effectively, building relationships, and collaborating with others. Given the increasingly complex nature of the HR stakeholders landscape, HR is expected to apply these behaviors more frequently as they deal with internal and external stakeholders. 

Behaviors included in the Interpersonal Skills dimension are: 

• Building and maintaining good relationships with others and building effective networks
• Clearly and effectively sharing information to ensure a shared understanding
• Working with others to improve ideas and find solutions by collaborating effectively. 

Developing Interpersonal Skills: Tips and techniques

As AI and technology change our workplaces, good people skills become the cornerstone of what makes humans unique and indispensable. 

Here are some ways you can get better at these skills:

•  Regular check-ins: These can help to keep relationships strong and to understand others’ ongoing needs and challenges. Being consistent, reliable, and open can help to create and maintain trusting relationships. You can use a stakeholder playbook as a starting point to understand your stakeholder requirements.
• Impactful communication: Communicating with impact and using specific techniques to adopt different communication styles. 
• Group problem-solving: Using methods like brainstorming, mind mapping, and group agreement techniques helps set the stage for working well with others.

To wrap up

In today’s fast-changing workplaces, the role of HR goes far beyond traditional tasks. As businesses move towards a more digital and varied world, HR professionals need a strong mix of different skills and knowledge. That’s why it is so important for them to become T-shaped.

In the modern workplace, it is not just about doing your job well but also about positively impacting employees and the organization. Skills like understanding business and being able to understand data are non-negotiable, not just nice to have. But to make a difference in the company and its employees, HR professionals must master Execution Excellence. As the people who look after the company’s most important part—its employees—HR professionals should always strive to improve these skills.

How T-shaped are you? 

You can complete our T-Shaped HR Competency Assessment to gain deeper insight into your current strengths and development areas. This will also help you identify the right AIHR courses and resources to equip yourself with the tools you need to excel. 

The post Execution Excellence: Core HR Competency To Develop appeared first on AIHR.