Your People and Planning for the Reset
There is an old African proverb called The Fable of the Lion and the Gazelle. To survive every day, the lion must catch the slowest gazelle. For the gazelle to survive, it must outrun the fastest lion. The message for both, “When the sun comes up, you’d better be running.” Regardless of industry and how positively or negatively positioned a company has been through the COVID-19 crisis, we face a new post-pandemic business normal to varying degrees. We defer to healthcare experts and government leaders as to timing, but as a business leader, you should be planning now for a successful restart of your company when the sun finally comes up. According to a recent article from McKinsey & Company, there are “five horizons” or 5 R’s that leaders and companies need to think about and act upon during this time and beyond: Resolve, Resilience, Return, Reimagination, and Reform. We are going through the Resolve and Resilience stages now (cutting costs, monitoring cash flow, retaining or transitioning employees, preparing to return, and planning to normalize operations). All of us have been inundated with content regarding the current situation. However, what about this new post-pandemic period applies to your people? As business leaders, our task is now to manage an efficient restart, a comeback in stages, and begin running toward a better future. The way to make that happen is to focus on your workforce through planning, communications, and deciding whom to bring back and when since it is your people who will determine the outcome. Planning for the Return In a recent survey by Fishbowl, 80% of workers across the country do not feel safe going back to work if their state were to reopen immediately. While the data varies by area, these are startling numbers that point out that there are still many unknowns relating to widespread testing and a vaccine. Regardless of the size of your company, you could also face litigation if any employment laws are broken. What is an employer to do? Returning after such an abrupt forced shutdown will be challenging, especially with a fearful and reluctant workforce. To overcome these hurdles, three areas of planning will be crucial: business and operational considerations, communications and timeline, and then a plan to return to the workplace. BUSINESS & OPERATIONAL CONSIDERATIONS Refer to plans that you may already have in place, such as your original business plan or strategic planning you may have engaged in before the pandemic to serve as a guide. Working with an HR consultant may help in developing Disaster Recovery and Infectious Disease Control Plans, as well as a plan for normalizing operations. Review your financials, develop a 13-week cash flow forecast, and determine your priorities by function and location. You may have previously had an annual 1-3-5 year plan for your business. Now, focus on a 30-60-90 day plan. If your HR Team has been working remotely, they will need to be one of the first back to the office to assist in staging the return of your workforce and ensuring compliance. COMMUNICATION & TIMELINE PLANNING Perhaps noted author, John Maxwell, put it best during a recent webinar addressing leadership during COVID-19: “The best thing we can do right now is not to do business, but just do relationships.” As a leader, continue to stay in touch with your people and keep them focused during this trying time. Communicating the return should be positive, but also respectful. In this phase, determine a timeline for bringing back teams in order of priority. Build a communication plan for employees returning onsite denoting the reasons why, work schedules, expectations, safety measures, and explore options for continued remote work if possible. While portions of your workforce may already be remote, or able to WFH, it will also be essential to address furloughed and laid-off employees. Each is a different category that requires a separate communication plan. Furloughed employees will be more accessible, as they never left your system. Laid-off employees you choose to bring back will have to be rehired, onboarded, and put back into your system. This period is also an excellent opportunity to top-grade your talent (more to follow). RETURN TO THE WORKPLACE & DAILY OPERATIONS Do you have the staffing to handle the process and administrative functions in your operation? This phase is where you can get detailed in terms of how your people will enter and exit the facility, temperature or other testing procedures (many mobile temperature check methods are available), having suitable PPE on hand, signs for social distancing, personal hygiene, and practices for overall facility cleanliness and sanitation. All are to reduce fear and meet new OSHA, CDC, and state requirements. Prior training and instruction on these new procedures will be crucial as your employees return. Reimagining the Future: Topgrading Your People The COVID-19 crisis will reveal problem areas in your business, but also opportunities to improve. Perhaps the most critical ingredient to a company’s success in this new era will be the people we surround ourselves with as we embark on this journey. Consequently, we have been provided a painful yet unique opportunity to improve the quality of talent driving our business forward. The wife of one of our BEST Stakeholders manages a retail store in a local mall. She had the unfortunate task of laying off her people during the shutdown, but she has kept in touch with her team and intends to bring most of them back when they reopen. However, there is one who will not be invited back due to poor performance and bad behavior. For others, she will promote and increase their hours when they reopen. She has been topgrading her people. Topgrading talent is an interviewing philosophy that seeks out the highest quality workforce by ensuring that acquisition and development focus on the most talented, well-rounded performers, as well as those with a cultural fit. Click here for a useful article on how to “Topgrade your people for post-pandemic success.” While this challenging time may appear to be an
The Rise of the Remote Workforce: Benefits, Behaviors and Best Practices
Once the domain of traveling sales and service people, this space is rapidly changing. In the last (5) years alone, remote work, or allowing professionals to work from home or outside the traditional office, has increased by 44% and shows no signs of slowing, especially in light of recent events. Currently, the number of remote workers is rising out of necessity, whether it be temporary or permanent decisions by companies to support a virtual workforce. With technology allowing us to take our lives with us anywhere we go, more people are requesting flexible working spaces. There are many reasons why remote working is increasing in popularity with both business leaders and their pool of labor. Not every company wants to allow employees to work from home. However, there are benefits of having a remote workforce. Not every person should work from home, thus, we will review the personal behaviors that best apply to this style of work and best practices for being a remote workforce manager and an efficient employee. The Benefits There are (4) key benefits to having a remote workforce: talent pool, cost reduction, happier work life, and health. Your talent pool becomes limitless. Hiring the right person comes with many challenges. The company needs to find a person with the right background, customer knowledge, behaviors, and nearby. By limiting the talent pool to around a 25-mile radius (about a 45-minute commute) a company is missing out on top talent. With remote workers, the world now becomes your talent pool. It saves the company and employees money. According to a ConnectSolutions survey, the average remote worker saves a company approximately $4,600 per year. Fuel, car maintenance, commuting time, parking, childcare, lunches are top employee considerations, and this is a good chunk of change most people would like to keep in their wallets. Having remote workers also reduces the amount of money the company has to spend on computers, phones, utilities, office supplies, and on real estate and office leases. A happier work-life balance leads to employee retention. According to Global Workplace Analytics, 72% of employers say remote work has a high impact on employee retention, and 90% of employees feel flexible work arrangements increase employee morale. It is no wonder then that 45% of remote workers have been in the same position for (5) years or more. Remote Workers are healthy. Even before many schools, companies, and even whole countries were put on lockdown in an attempt to stop the spread of COVID-19, research showed that remote workers on average take fewer sick days and can stay productive longer. It has become a lifestyle, with many companies such as Google, Microsoft, and Amazon encouraging work from home– as well as many others who are less tech-centered. Plus, in this new age of social distancing, it is much less likely that an employee will come in contact with any germs around the office. The Behaviors While remote work provides many benefits, both to the company and the employee, it doesn’t mean everyone in your company is ready for this lifestyle. On the contrary, this new work arrangement takes a person with a particular set of skills and behaviors. As we conduct candidate interviews for remote positions, we assess the following behaviors that make for a successful and productive remote worker. These are: Strong Connector and Communicator Enjoys sharing expertise and ideas proactively with other professionals. Prefers and enjoys team projects. Proactively taps into all available knowledge and support resources. A Go-Getter Confident and self-assured. Seeks independence and enjoys due recognition. Driven to high levels of accomplishment. Passionate High stamina and endurance— one who doesn’t count hours on the job. Maintains focus during work activities. Active hobbies and involvement. Integrity Honesty and integrity are hallmarks of how they conduct themselves in all they do. Refuses to cut corners or over-promise. Represents their company judiciously. Astute Skilled in self-appraisal. Quickly sorts the critical from the superfluous in prioritizing – street smart! Acts appropriately— is tactful and knows what NOT to say. The Best Practices As with any mode of work, there are managerial and work practices that lead to success. We have identified six key best practices for remote work: Communicate early and often. Because an employee is not working in the office, communication is one of the essential tools they can use. In a traditional office setting, it is easy to talk to an associate in person if questions or concerns arise. Efficient telecommunicators understand the importance of this trait and use it to work effectively with the rest of the team. Be proactive in your communication with your coworkers and clients. Managers also need to communicate effectively with daily calls or video chats. Daily routine and consistency are a big part of working from home. When working in a traditional office setting, this routine could consist of waking up around the same time each day, taking a shower, making coffee, and commuting to the office. A person who is taken out of the office should still try to do these same things each morning and to keep their regular office hours. This will set the tone for the day. Instead of feeling like you are just staying home, it will make it feel like you are getting ready for work. Managers should also set up routines and consistent check-ins (phone or video) with their remote teams. Set schedule and prioritize. Remote work provides more flexibility but has the potential for a lot less structure. Set a plan of action to make sure that time is productive. When working from home, utilize company calendars to stay updated on office events and meetings. Keep to your regular work schedule hours and agenda while holding yourself accountable to these, as your manager would. Create a separate workspace free from distraction. It is almost impossible to produce high-quality while household distractions abound. TV, walking the dog, and the laundry can wait until after work. Create a separate office area or room, similar to if you were working in an
Lessons from the Tank: Can Your Employees Be the Next Scrub Daddy?
One of the most popular and interesting reality TV shows today is Shark Tank. For over ten years, it has been the show where wealthy, mostly self-made, business professionals help a small business owner achieve their entrepreneurial dreams. There have been many successful products introduced to the consumer market after appearing on Shark Tank. Take the Scrub Daddy®, for example. The concept is simple (a smiley-faced, reusable sponge in which the texture and function change with water temperature), but it has sold over 10 million units, and the growth continues. To date, the Scrub Daddy® is one of the most successful products to ever appear on the show. But where would Scrub Daddy be today if it wasn’t for the investment from one of the Sharks, Lori Greiner? According to Forbes, before Scrub Daddy was introduced on Shark Tank, it struggled to make $100,000 in over 18 months. Scrub Daddy has now made over $75 million in sales thanks to a $200,000 investment from Lori Greiner, including her time and considerable marketing muscle. Since then, Scrub Daddy has dramatically expanded its facilities and released several new products. As business leaders, we talk a lot about investing in our people, especially in this age of low retention and high turnover. So, what happens when we invest in our employees (time and dollars) the same way the Sharks invest in these companies? We continue to see several recurring trends in today’s job market. For instance, a steady paycheck, bonus, and PTO are no longer enough to satisfy employees. Employees want to feel like they are a part of something bigger than just an office job, and something bigger than themselves. The feeling that they are a part of a team that values them as an individual and respects their ideas. They want someone to invest in them. As the Millennial and Gen Z generations continue to make their imprint on today’s workforce, the “job for life” mentality of their parents and grandparents is becoming non-existent. The younger generations are focused on the concept of belonging to a team that creates value, not merely working for a paycheck. When employees don’t feel challenged, or fully engaged in the work they are doing, employee turnover rates skyrocket. As Richard Branson, the CEO of Virgin Group, has popularly stated, “Clients do not come first. Employees come first. If you take care of your employees, they will take care of the clients.” The discussions around employee engagement have become so prevalent in recent years that you would think it’s second nature by now. It is also no coincidence that in study after study, increasing employee engagement is now the top priority of most CEOs. After all, research proves that investing in the talents and capabilities of your employees is one of the best and most cost-effective ways to increase employee engagement and instill loyalty. The same holds for the investors on Shark Tank. For example, when you look at something as simple as a sponge, you might not see much potential return. However, when you add a little ingenuity, time, and care, you can produce a multi-million-dollar product line. It is the same with your employees. Invest in them, and they will invest their time, energy, and passion back into the company and produce a higher return. When sourcing and interviewing for a new hire, you are putting the candidate in “The Tank.” The investors are Human Resources, Supervising Manager, Project Leader, and the Owner/CEO. The candidate’s resume is their pitch outline, showing a base overview of their strengths, skills, past experiences, and successes. Throughout the interview process, the candidate will begin showing you their behaviors and talk a little more in-depth about their past and what they aspire to in the future. Based on this pitch, the investor can decide if they want to invest in the candidate or keep looking for a “million-dollar candidate.” Investing in your employees also doesn’t have to be a Shark Tank-sized investment. In a study conducted by PricewaterhouseCoopers, the results showed that the top qualities that Millennials look for in a job are opportunities for career advancement and learning and development programs. With that in mind, employee engagement can be as simple as having an immersive and detailed onboarding program for new hires and continual training for existing employees. In a study conducted by Axonify, they noted that only 31% of employees receive formal job training. As Carol Leaman, the CEO of Axonify, states, “If employees don’t have the correct training to perform their jobs properly, they will disengage. This, in turn, will result in work quality, productivity, and customer satisfaction issues.” In the same study, 80% of workers state that it is vital to receive regular, frequent training, so they don’t forget the information, up from 73% in the previous year alone. “Training should not be a dull, isolated event, as employees loathe sitting in long, boring sessions and immediately tune out,” added Leaman. The one thing that all generations in today’s workforce can agree on is that people want training anywhere and at any time, but keep it short and offer rewards upon completion. Yes, more PTO and “fun stuff” are great additions to your workplace and may attract employees to apply, but to get them to stay and produce meaningful outcomes takes more. Views of work continue to evolve. The number of positions and companies that a person will work for in their lifetime is increasing. Investing in the capabilities of your employees by providing experiences and creating mobility ensures that they are building a lifelong career, not just a pit stop for some experience before they move on to bigger and better things. Move towards being bigger and be better by investing in your employees to increase retention, the same way Lori Greiner invested in the Scrub Daddy: provide them the resources, time, and support they need to achieve their dreams. Like the Scrub Daddy, they will, in turn, be flexible, grow, and provide you a high rate of return. SOURCES: wheniwork.com/blog/reduce-employee-turnover industryweek.com/onethird-of-us-employees-dont-receive-formal-job-training
Salary History? Don’t Ask and Don’t Tell
Last July, Illinois Governor J.B. Pritzker signed into law a bill that prohibits employers from asking a candidate for their previous job salary history. Illinois is not alone. In the U.S., there are currently 17 statewide bans and 19 local ordinances that have acted against discussing salary history. With more states adopting these practices in the next 6-12 months, the question of “why?” comes to mind. Some municipalities, like Philadelphia, are choosing not to follow this mandate, arguing that taking away this question was inhibiting an employer’s First Amendment right to free speech. The fact remains that asking a candidate for their salary history allows for discrimination and does not always provide the top-quality candidate that companies spend thousands of dollars trying to find. As business leaders, hiring managers, and recruiters, we have to ask ourselves— is knowing a candidate’s salary history all that important? After all, we have a set compensation range (low-mid-high) that we have budgeted for an open position. If a candidate meets and exceeds the requirements, qualifications, and behaviors for the role and fits within the compensation range, does it matter? After all, both the employer and candidate win. Maybe the employer doesn’t get the “deal” they wanted or lower their expenses by getting the candidate for less than the compensation range. The candidate may also get a lot more in compensation than they received in their last position. Is that an adverse outcome? Or could it have the effect of engaging and motivating the new employee to increase his or her performance? Think back to your last interview. You were probably a little nervous being the center of attention, knowing that one key answer could land you a job or send you back to the drawing board. You did your research on the role and knew the range a prototypical person in this position would make, but the company has not divulged their compensation range for the job. Then they ask the dreaded question, “How much are you currently making, or what did you previously make?” Most employers assume these guided questions are to measure compatibility between past and future positions. However, for many candidates, this question feels like a trap. If the current salary is too high, the candidate could be pushed aside for being overpriced or overqualified. Indicate a range that is too low, and the candidate might receive less than the value of the job. There are also ethical questions at work. Shift the Conversation When examining questions regarding salary history, there is an opportunity for labor compliance violations. This question allows for disparate impact, which unknowingly discriminates against a group of people, especially women when compared to men for the same position. According to Business Insider, a Hispanic woman makes 53% of what a white male makes in a given year. These statistics vary by state, as some have enacted policies to close the wage gap, but the average data shows that this gap is still very much alive. Assigning a salary based on past employment earnings continues errors of the past rather than righting a wrong and determining the adequate compensation based on the position and responsibilities it brings. By creating laws prohibiting employers from inquiring about salary history, many states feel they are taking a step toward complying with the Federal Equal Pay Act of 1963 and attempting to close the wage gap. How do we move forward and continue to find ways to make sure the candidate matches the role if salary history is now out of the equation? Carolyn Cowper, V.P. of Performance and Rewards with The Segal Group in New York City, advises, “Shift the conversation to the candidate’s salary expectations rather than salary history, then move on to focus on the candidate’s skill set and qualifications for the role.” Recruiters now feel it necessary to ask the candidate what they think they are worth — taking a net worth of all their talents, experience, and assets that they will bring to a new position. For example, one person could make twice the salary of another but only have half of the work ethic and drive. When you take a deep dive into the backend of the hiring process, we see that salary history tells us very little. In a study done by Workplace Culture, they reported that 86% of millennials would take a pay cut if it meant working at a company with a better company culture. Work-life balance, a culture of advancement, and education reimbursements are often more important than compensation to today’s candidates. As a business, it is in your best interest to find people that share similar values and goals to help grow the company into the future. The Market is Speaking Many states agree that it does not matter how much you made in your past job. You should, instead, be getting paid the market price of the current position. Candidates should take it upon themselves to research the standard salary rate before going to the interview, and employers should also monitor this as well to see if they’re competitive. There are many online sources for these statistics (Salary.com, Glassdoor, and PayScale). Company leaders, hiring managers, and recruiters should ask the question by taking a “Total Rewards” approach: What is your desired base salary? Bonus? Benefits? Vacation? Other rewards (for example, educational reimbursement) and then let the discussion progress from there. As record low unemployment continues, and there are less skilled workers available for more increasingly skilled open positions, there are already hiring and employment trends happening that would have been unthinkable just 5-years ago — retention bonuses, extraordinary counteroffers, and even limiting background checks. Even Non-Compete Agreements are on the block. They are already not enforceable in 4 states (including California), and resistance is growing with a Senate bill introduced last year looking for a nationwide ban. In such an environment, it stands to reason that asking for a candidate’s salary history and other employer-favored actions will become history. Be prepared.
Employee Engagement: “Did I Stutter?”
Poor Stanley. The lovable curmudgeon on the still popular TV Show “The Office” wants to be left alone so he can do his crossword puzzle in the middle of a company brainstorming meeting in peace. His boss, bumbling Michael Scott, tells him to put his game down and join the group. Stanley replies with a firm, “No.” Michael then says, “Stanley, we’re havin’ a little brainstorm session.” Stanley then proceeds to cut him off and says loudly and firmly enough so the whole room can hear it, “Did I stutter?” Michael becomes so embarrassed and flustered that he calls a quick end to the meeting so he can grab a glass of water. The episode continues with Michael and Stanley trying to come to an understanding and better define the boss and employee relationship. Do you think Stanley is engaged in his work? Do you think he is committed and connected to his organization? Do you think Michael may have something to do with that? According to SHRM, executives from around the world say that enhancing employee engagement is one of their top five global business goals. As a critical business driver in today’s highly competitive environment, employee engagement can have a significant impact on your company’s bottom line. According to The ISR Employee Engagement Report, “Companies with high levels of employee engagement improved 19.2% in operating income while companies with low levels of employee engagement declined 32.7% over the study period.” Is it any wonder that increasing employee engagement is a top-five global business goal? A highly engaged workforce is the key to retaining top talent within your organization, driving high levels of customer satisfaction and loyalty for sustained growth. However, how do you know if your workforce is engaged or not? Then once you identify low engagement as an issue, how can you address the problem before your bottom line starts to suffer? Is My Workforce Engaged? That is a good question because we often confuse job satisfaction and happiness with employee engagement. Therefore, the thought goes that if my people are happy, then they’re engaged. However, it is possible to have a happy and satisfied employee who is not actively involved in their work or committed to the company. According to Kevin Kruse, the author of Engagement 2.0, “Someone can be happy at work, but not ‘engaged.’ They might be happy because they are lazy and it’s a job with not much to do. They might be happy talking to all their work friends and enjoying the free cafeteria food. They might be happy to have a free company car. They might just be a happy person. But! Just because they’re happy doesn’t mean they are working hard on behalf of the company. They can be happy and unproductive.” Thus, happiness and job satisfaction are not useful indicators of employee engagement. It could be they have found a comfortable place to “hide” in your organization without the level of commitment and caring that could help propel your company to the next level. Gallup regularly conducts surveys on the topic of employee engagement, and they have found that nearly 70% of the workforce today is disengaged, causing employees and businesses to suffer dramatically due to increased turnover, low commitment, and reduced productivity. How to Address Low Engagement? Measure employee engagement each quarter to provide closer-to-real-time data about how your staff views the organization, their managers (who have a significant impact on their overall engagement), and their roles within the company. The powerful “heat map” it creates shows leaders exactly where problem areas exist as they slice and dice the data into targeted workforce segments (by the department, location, generation, tenure, and more). Scientifically based employee feedback surveys allow you to take a deeper dive into the company culture and pinpoint the root causes of disengagement. By collecting anonymous feedback regularly, it gives teams and leaders real-time insights from scientific data that can then be used to impact change quickly. If you’re looking to bring more meaning to your employees’ work experience and increase employee engagement and productivity, then start acting on a proven and predictive data format. We can help you build an action plan to drive high engagement and performance, which will impact your bottom line and your ability to compete better and win. In August 2019, close to 200 business executives met and issued a statement on “The Purpose of a Corporation,” radically stating that companies should no longer advance only the interests of shareholders but also invest in their employees. It could be a reaction to a changing economic environment and record low unemployment. It could also be that business leaders finally understand the importance of employee engagement. That’s right—Did I stutter? SOURCES: “Did I Stutter?” The Office, written by Brent Forrester & Justin Spitzer, directed by Randall Einhorn, 2008; Gallup Employee Engagement Poll, August 26, 2018; The ISR Employee Engagement Report by Towers Perrin; Engagement 2.0 by Kevin Kruse, Createspace Independent Pub, 2012.