5 Ways Progressive Companies are Changing Their HR Policies

5 Ways Progressive Companies are Changing Their HR Policies

Historically, human resources departments have been in charge of matters like training, recruitment, employee benefits, and other internal company affairs. These tasks are still the responsibility of HR departments in many companies, but many progressive companies are starting to change their HR policies to attract and retain top talent while keeping employees happy and engaged. These policies are aimed at providing benefits and better working conditions.

There’s been an important shift in the way employers think about their workers. These changes are altering how employees and employers view work and how it can be made more efficient and enjoyable for everyone involved. Here are some ways progressive companies are leading the way in modern HR policies.

1.     Financial well-being

A lot of companies talk about wanting to offer their employees opportunities for career growth, but very few talk about how they can financially support them. There’s no one-size-fits-all solution to financial well-being, but some progressive companies are supporting their employees in many ways. The first step in creating a good policy is to make sure that you have the right people on your team. This means hiring people who want to do more than just their job; they want to make a difference in the lives of others.

Formal education in human resource management (HRM) has grown by manifolds. Companies now wish to hire candidates for their HR team with at least a master of human resource management , which helps them align HRM with business strategy. These degrees also teach ways of encouraging a positive work culture and boosting performance by devising policies for flexibility and adaptability.

study by Aon suggested that 22% of the employees agree that their financial situation directly impacts their mental health and low salaries cause a drop in their productivity, hindering their performance at work.

Here are some suggestions to improve on this:

  • Retirement plans
  • Introducing money management apps
  • match employee contributions (up to a certain amount) to a 401(k)
  • connecting them with financial professionals to aid them in long-term and short-term planning
  • plan financial literacy workshops
  • paid sick, casual, and parental leaves

2.     Flexible work arrangements

Companies must embrace flexible work hours in a world where more people are working remotely. Besides increased productivity and improved retention, flexible hours improve morale and encourage employees to be their best selves by allowing them to pursue their passions outside of work. This might include spending time with family or engaging in a hobby.

Employers can keep track of hours worked and allow workers to work from home as needed. If it helps improve morale, it’s worth a try! After all, increasing retention makes an engaged workforce less likely to leave, saving you money in the long term. Keeping employees happy means they will be more motivated at work, which can mean better results overall.

3.     Mental health awareness and burnout policy

Employees are now more aware of mental health and its importance in the workplace. Awareness is one of the best ways to change HR policies at your organization, and it’s been proven to help with employee retention, productivity, and engagement. For example, according to a survey, about 83% of the US workers suffer from some form of stress-related illness each year. A study by the American Psychological Association (APA) at the end of 2021 said that the rate of anxiety and depression has increased by 4 times since 2019.

Many organizations have begun offering mental health benefits to address this issue, including flexible work arrangements and paid time off for prolonged illnesses or burnout. In August 2021, Nike gave an entire week off in their headquarters to destress due to the taxing work environment during the pandemic.

4.     Parental leave and benefits

The lack of paid family leave is one reason many people have children later in life, as they often can’t afford to take time off without pay earlier in their careers. A recent study from the Society for Human Resource Management found that 55% of employers offered paid maternity leave, 45% off paid paternity leave, and 35% provided extended family care leave. This shows improvement, but it still is far below the number of workers who need it.

Social media has been a great aid and has encouraged companies to offer new parents weeks or even months off with pay when they need it most. An increasing number of organizations also allow individuals to work remotely after returning from parental leave or provide flexible schedules that enable them to work at home part-time during those periods. Here are some examples from the best.

  • Netflix: Unlimited PTO for all employees, including new moms and dads, who’ve worked at least one year at Netflix; 16 weeks of paid maternity leave and 12 weeks of paid paternity leave
  • GoDaddy: 16 weeks of paid maternity/paternity leave. It even provides spaces for lactation mothers to breastfeed.
  • Apple: 20 weeks of paid maternity leave. Fathers can take six weeks of paid time off.
  • Spotify: 6 months paid parental leave.

5.     Commuter benefits

A recent study found that the average American spends an average of $2,000 a year on transportation-related expenses, which can be a huge burden on a worker with a long commute.

In response to this growing problem, some companies are offering financial incentives to help ease the load on their employees who have long commutes. These programs typically fall into two categories:

  • Subsidized transportationservices include public transportation subsidies and carpooling programs. Employers can subsidize public transportation costs by paying for monthly passes or offering tax-free transit benefits as part of an employee benefits package.
  • Carpooling programsprovide incentives such as discounted parking or free parking at designated locations for those who carpool with co-workers.

According to the United States Census Bureau, the average American spends 5 hours a week commuting to and from work. That time could be spent doing other things, like spending time with family or friends or exercising. What companies can do is offer flexibility and options of remote work to save this time for employees.


HR departments are changing, evolving, and adapting to the needs of today’s workforce. As they do, how employees interact and communicate with their HR teams will also change. Because of this, HR departments need to keep working hard to serve employees better and keep them engaged. By offering support, transparent policies, and clear communication lines, HR leaders are creating a more cohesive atmosphere within the office.



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