Menu
This time of year, there are the usual surveys and articles about merit increases and executive pay increases.
For example, I saw a recent private company survey that said that more than 46% of organizations in the US plan to provide a more than 6% increase to the merit pool. Similarly, I have seen many articles commenting on the ‘astounding’ increases in executive pay.
However, you must be very wary of year over year comparisons, especially after a multi-year period where companies all took differing approaches to weathering the COVID hurricane. Because, as usual, there is no context given.
What is not said is: how many of the companies responding gave no increases during the pandemic; how many of those execs took significant pay cuts and no bonus during the pandemic; how many of those have just been restored to their pre-pandemic pay; how much of the pay ‘increase’ is really just due to rebounding stock value.
The practical reality is that there are several national surveys that have reached a general consensus on the merit pool increases being offered for 2023 – most have agreed this will be generally in the 4% range. While this materially lags the costs of living increases that employees have been experiencing, it is a focus on cost of labor, which is expected to increase by the 4% (it should be noted that merit pools have been at or above 3% for the last 4+ years despite inflation for several of those years being at 1% or less).
So when it comes to determining executive pay, we suggest you ignore the noise and focus on fundamentals. Are your salaries reasonable given the competitive market and the scope and complexity of your business? Is the bonus target and leverage appropriate? Are the metrics true drivers of value creation for stakeholders? Do your long-term incentives adequately align management with shareholders? Quality begins with these fundamentals, and if you can answer these questions in the affirmative, you do not need to pay attention to the media din around compensation.
But, if you find that you need assistance in answering these, then this is where we can help. With a range of long-term expertise in compensation strategy and pay philosophy, OrgShakers are able to help your company navigate the reality of executive pay increases so that it is a true reflection of the current economic context. To get in touch, either head over to our contact page or email me directly at chris@orgshakers.com
Chris Rainey’s latest HR Leaders podcasts featured Stephanie Murphy (People Analytics Leader at Dell Technologies), and together they discussed the topic of accountable leaders through the use of diversity, equity and inclusion (DEI) data.
In response to being asked some of the biggest challenges she is solving with DEI analytics, Stephanie answered, “I think the biggest thing has been accountability…it’s about making sure that if you bring people in they’re going to stay in.”
She goes on to outline how in the context of Dell, they added a separate category into their annual survey to be able to measure inclusivity in different teams, and then set up a system which would flag potential causes for concern if leaders scored below a certain point.
This completely aligned with our thinking and prompted us to consider the importance that accountability plays in the DEI space, and how holding oneself accountable can sometimes be a daunting thing, but inevitably is a strategic imperative.
In terms of leaders and line-managers, understanding the importance that their roles play in driving DEI throughout the company and holding themselves accountable for that can be the difference between a successful and non-successful business dynamic. There has to be zero tolerance for ignorance on DEI and the spotlight has to shine on awareness, education and training where the necessary leadership skills are weak or nonexistent entirely.
We turned our attention to a global report published by Lee Hecht Harrison which found that despite 72% of business leaders and HR professionals recognizing that leadership accountability is a critical business issue, only 31% are satisfied with the level of accountability they see from leaders in their organization.
There can be a number of reasons for this accountability gap, and one that we have noticed on numerous occasions both in the US and the UK is the fact that the DEI space is continuously expanding its parameters to include much more than it originally did a few decades ago.
While it is fantastic that more multidimensional diversity attributes are being addressed in DEI strategies, this does pose the potential risk of diversity efforts being diluted if organizations do not take into consideration the research conducted by Bailey Jackson, who was one of the first to identify that some differences matter more than others. Specifically, she found that the diversity attributes that make the biggest difference are ethnicity, gender, marital status (and children), race, sexual orientation, language, physical ability, socioeconomic status, religion and mental ability. From this perspective, it can be challenging to identify accountability when the scope of DEI feels like it is still being determined.
Another reason for this gap could be the fact that DEI can sometimes feel like a difficult / sensitive topic to discuss as a leader – especially if this leader is white and male. There is a tendency to stray away from uncomfortable conversations, as well as avoid topics that they may not have a deep understanding of and/or insights into. This can lead to avoidance of accountability, which can have a negative snowballing effect on the company culture as it perpetuates values that do not align with the organization.
This is why accountability is so important when it comes to DEI, and why Stephanie’s data-driven method of measuring this has been so successful for Dell. Executives must ensure they are being very clear with leaders and managers about their DEI responsibilities, and then find the best way of tracking and enforcing these practices for their company.
What we can conclude, therefore, is that there is no one-size-fits-all approach for cataloguing this, but we need to ensure as leaders we step up and hold ourselves and others accountable for acquiring, practicing and improving the grasp of new DEI competencies. By doing so, we can begin to perpetuate a culture of belonging at work and see true inclusion in action – one study even found that having a strong sense of belonging at a job was linked to a 56% increase in productivity, a 50% drop in turnover, and a 75% reduction in sick days.
At OrgShakers, we have a vast amount of skill and experience creating global DEI strategies across different sectors, and are able to help ensure that DEI is remaining a business priority.
We know that having a diverse workforce has been proven to improve profitability, and so establishing accountability for DEI in your organization is the first step towards embedding this into the fabric of your company and reaping its rewards (from an economic and environmental, social and governance perspective).
To continue this discussion around DEI, don’t hesitate to reach out to us us through our contact page!
Recently, I was out with a friend, and she mentioned how she hadn’t been into work that day. I asked her why she didn’t go, and she told me, “I just wasn’t having a good mental health day, so I called in sick.”
When I asked if she’d told them the truth about her mental health, she said she’d claimed a physical illness because she was embarrassed.
And this got me thinking. With almost 8 out of 10 organizations (79%) reporting that mental health is a major driver of workplace absence, how can employers take steps to tackle the issue if employees are lying about feeling mentally fit to work?
I started looking into whether other people were doing this, and the answers echoed that of my friend’s.
Slater and Gordon discovered that 55% of employees who took mental health days claimed to be physically unwell for fear of being judged, demoted, or sacked.
According to a global report published by Aetna International, more than half of employees (52%) diagnosed with mental health issues admitted to lying to their employer about taking a sick day. It also found that those with an undiagnosed mental health condition were more likely to lie about being sick due to stress (45%) and ‘feeling down’ (42%).
The pandemic brought the mental health crisis – and the real effects it had on business – to the forefront. With nearly 80% of workers saying that having access to mental health services would make them more productive, as well as 64% adding that they would be more attracted to a company that offered these, businesses have responded.
In the US, nearly 23% of workers say their employer has introduced new mental health support, and in the UK, YouGov found that 59% of large employers were offering mental health services.
All of which means that the challenge is now one of trust. Mental health can be a tricky discussion – but when employees are lying about it, there is no ‘discussion’ to be had.
So, if you are a business who would like to find out how the introduction of mental health support can drive employee performance and productivity, or how you can open up the conversation about mental health at work, you can get in touch with us here.
Copyright OrgShakers: The global HR consultancy for workplace transformation founded by David Fairhurst in 2020
Managers who know when to have a laugh and not take themselves too seriously tend to be some of the best. Their joie de vivre makes for a happy workplace and fosters healthy relationships with their team.
We will all have experienced occasions, however, when a manager has inappropriately bookended a far from light-hearted message with quiet chuckles. This is what is known as laughter padding – and it can be far from funny!
Laughter padding is a very common reflex that its perpetrators use without even realising they are doing it.
Much of the time, this innate need to smile or laugh can emerge in managers or executives who have to discuss something uncomfortable, deliver unfavourable news, or ask something of someone they suspect that individual will not want to do. And the problem with this tic is that it may undermine their authority.
Now, it is not uncommon for managers to feel a bit out of their depth. A recent study found that managers significantly lacked confidence in their ability to talk about potentially sensitive issues such as work flexibility and employee wellbeing. These are the situations when the laughter padding reflex can kick in.
In their subconscious they are trying to ‘soften the blow’ of their words by padding them with laughter – but to the person receiving the message this can easily be perceived as the manager failing to take the issue seriously; ‘This is no laughing matter!’
This can lead to a range of communication issues with a senior member of staff and their team. The urgency of a request, or the clarity of feedback, will be at risk of falling flat, and these problems that could have been avoided are now being given the opportunity to snowball.
So, what can a manager do to prevent this?
A lot of the time, a person doing this habitually will probably be nervous to some degree. The fear of having to speak publicly, known as glossophobia, is a very common one, with up to 75% of the population being affected by it. In this situation, a management coach would be able to help them improve their confidence by guiding them in understanding why this laughter padding response is being triggered.
Interestingly, the reflex is believed to stem from humans’ instinctive need to gasp for air to oxygenate the muscles. We take deep breaths to prepare for an emergency or in the face of danger, and in these scenarios the ‘danger’ would be the possible repercussions of telling someone off or speaking in a difficult circumstance.
To combat this, a coach might suggest that if the manager knows they are going to have to have a conversation that they suspect may not be well-received, they rehearse what they are going to say. Practicing it a couple of times will make it easier to approach the discussion.
As well as this, a coach will help them to distinguish when it is and isn’t appropriate to laughter pad. The reality is, laughter padding in the right context is a great tool to increase managerial approachability. But the key to this is chuckling when it is more genuine, and fits well with the tone of the conversation. This way, when they are having to have a more difficult discussion and are not padding it, the person listening will realise that this is a more serious situation.
It’s all about finding that balance, so if you think you or your managers might be laughter padders, you can reach out to our team of coaches for help in turning laughter into a leadership asset – not a derailer.
Copyright OrgShakers: The global HR consultancy for workplace transformation founded by David Fairhurst in 2020
Black History Month aims to recognize the achievements of Black people and their contributions made to history, and this year in the UK, the celebrations are centred around the contributions of black women, as well as coinciding with the 75th anniversary of the arrival of the Empire Windrush.
First celebrated in the UK in 1987, Black History Month has become a huge cultural and political event – especially in the wake of the 2020 Black Lives Matter protests that were sparked from the racially-motivated killings of George Floyd and Belly Mujinga.
Even as British society becomes more actively conscious of the value that Black Britons have brought and continue to bring to the UK, we can see that they are still faced with severe disparity – especially in the workplace.
Black workers only make up 1.8% of senior leadership positions in the UK, despite comprising of 3.2% of the working population, according to research from the Chartered Management Institute. In addition to this, less than half (47%) of respondents said their organization was taking active steps to increase the proportion of employees from diverse ethnic groups through its recruitment practices, and 67% said their company was not taking any action in relation to ethnicity pay gay reporting and action plans.
And this picture doesn’t get any better the further we zoom out – in the US, the first Black CEO of a Fortune 500 company was not promoted to this role until 1987. Now, if we fast forward to the 2021 research gathered by SHRM, there were only four new Black CEOs of Fortune 500 companies, two Black men and two Black women. This equates to 0.8% of Black people in a CEO position, compared with 86% of White men.
This is a stark realisation that in a month where we celebrate the value and contributions of Black people, they are still heavily undervalued in the corporate world.
That’s why I find it so important to remind people why we still celebrate Black History Month. Because we are still on the journey to equality and the eradication of prejudices. Therefore, it is crucial that employers are using this month to reflect on their diversity, equity and inclusion policies, as well as listening to the voices of their employees of colour, so that they can show they are continuously committed to changing for the better.
Racism is deeply, deeply rooted, and it is still very much present in many of our society’s systems and structures. The first thing most organizations can and should do is admit that, to some degree, there are biases and inequalities still present in their workplace culture. As these prejudices are systemic and subconscious, they can be easily overlooked due to being less overt. However, talking about disparity, shining a light on the fact that the experiences and opportunities for Black people are different and scarcer than their White counterparts, is a step all employers need to be taking to work towards achieving true equality.
Cultivating an inclusive environment at work that leverages differences is a continuous journey – it requires consistent work and dedication, but it produces real, beneficial results for your team and your company. Black History Month demonstrates all the incredible things that have been achieved by Black trailblazers over the course of history, and employers who are educating themselves and their people around this will better understand that the best innovations come from diversified perspectives.
To continue this discussion and look at how you can take advantage of all the opportunities that being inclusive has to offer, get in touch with me at marty@orgshakers.com
Copyright OrgShakers: The global HR consultancy for workplace transformation founded by David Fairhurst in 2020
As coaching continues to grow and many organizations are increasingly happy to invest in bringing in external coaches, the reach of this valuable tool can be significantly increased when we also take time to build the coaching capability of managers.
Research from an ICF Global Coaching Study found that 99% of workers who had been coached were satisfied or very satisfied, and 96% of them said they would repeat the process. However, most managers that I talk to admit to finding coaching ‘scary’ or ‘nerve-wracking’; some of them worry that they won’t be equipped to deal with the level of vulnerability that might arise, while others simply worry that they won’t be able to ask the right questions. So, what often happens is managers default to mentoring their employees and then call it coaching.
As we are in National Mentoring Month, I’ve been reflecting on how both are valuable and whether there’s a way we can support more managers in getting the balance right. This can even be as part of the same conversation if managers have a simple structure for how they might do this. After all, professional coaches sometimes offer suggestions to their coachees!
What I would suggest is that the first step is to simplify the coaching process. Everyone will probably feel comfortable getting someone they are coaching to:
I often recommend that managers read Michael Bungay Stanier’s The Coaching Habit. But, even if they don’t have time to read the whole book, they should have time to read one of the many articles that outline his 7 questions designed to help leaders coach.
If managers spend the first part of a development conversation focused on encouraging their employees to explore their own ideas and take time to think differently, I think it’s then highly complementary to build on this with appropriate mentoring.
After all, your boss has often experienced the exact same challenges you now face, so why wouldn’t they want to share their wisdom? Perhaps what’s key in the transition from coaching to mentoring in this situation, is avoiding the word “should” and clearly stating that while this is what you experienced, and/or did, that it won’t necessarily be the right solution for you. Instead, position it as something to consider.
I read a statistic recently published by Ten Thousand Coffees that over 60% of employees would consider leaving their current company for one with more mentorship opportunities. So anything we can do to support managers by leveraging both coaching and mentoring effectively has got to be a good thing!
For more information around coaching and how it can benefit you as a client, get in touch with me at anya@orgshakers.com
Copyright OrgShakers: The global HR consultancy for workplace transformation founded by David Fairhurst in 2020
There has been a bit of a theme emerging in the world of work.
First it was the ‘quiet quitting’ phenomenon that swept across the 2022 workplace landscape.
Hot on its heels came the trend for ‘quiet firing’ which emerged in response to workers quietly quitting.
And so, to the newest edition – ‘quiet hiring’.
The term has been coined by the leader of Gartner’s research team, Emily Rose McRae, who describes ‘quiet hiring’ as a way to address an immediate need for the company. The business could hire external contractors. Or, if money is tight, they might shuffle existing team members around to fill the short-term gap that has opened up.
The latter approach is, however, higher risk as uprooting people from their roles might just prompt them to begin quietly quitting! Add to that the danger of someone feeling their original role was not valued if it could be put on hold and you have a recipe for a host of unintended consequences further down the line.
The problem with having all of these ‘quiet’ approaches is that they are all being carried out, well, quietly!
Employees found themselves struggling to communicate their need for boundaries at work, and so began to quietly build them themselves. Employers were struggling with communicating with staff who they felt were underperforming, and so began to quietly push them away. And now we have companies who are trying to quietly repair skill gaps, which could result in more quiet quitting … which will, in turn, lead to more quiet firing.
It is a vicious, surreptitious cycle which could be avoided if employers and employees spoke up rather than clammed up about their mutual needs and expectations.
This means encouraging and supporting a dialogue between managers and their direct reports about their wellbeing needs, as well as managers knowing how to help employees they feel may be underperforming.
And when it comes to filling those short-term gaps, the best approach is to be open with your people about what the company needs to do – and how you plan to do it. Then sit back and listen to what they have to say, because a productive two-way dialogue is always better than the sound of silence.
To get in touch with us about any communication and culture needs you may have, head over to our contact page.
Copyright OrgShakers: The global HR consultancy for workplace transformation founded by David Fairhurst in 2020
With the pandemic altering the fundamental structure of work, many employers have been wading through several stages of grief as they realize there is no “returning to normal” and remote/hybrid working models are here to stay. As we venture into a new year – three years after the pandemic began – employers appear to be entering the final stage of grief: acceptance. And this ‘acceptance’ can help organizations thrive with the introducing of a Chief Remote Officer (CRO).
According to the State of Remote Work Report 2022, 60% of employers in the US require staff to work remotely or in a hybrid capacity. Now is the time for employers to embed remote work into their foundations and use it as an organizational tool. Employers who are intentional about remote working strategies will be able to build, innovate, and leverage their benefits, and this means clearly establishing how remote work will fit into your company and its culture.
This is where a CRO proves incredibly valuable; having an executive leader dedicated to optimizing remote and hybrid workers ensures a business can create and accelerate opportunity. The CRO finds ways of leveraging remote work in a healthy, productive, and profitable way for employers and employees alike.
They also design policies and programs that remove an individual’s work location as a critical factor for success. With McKinsey finding over 90 million American workers now working remotely or in a hybrid setting, the need for a specialized executive to coordinate and care for this aspect of work has become even more necessary.
Many more responsibilities fall under a CRO – establishing the most effective communication protocols, exchanging and gaining access to shared data, maintaining the organization’s culture, and repurposing the workplace to meet today’s business and workforce needs. Expanding the C-suite to include this new role reflects how many companies’ dynamics have evolved since COVID. Employee needs have changed – people value their time, recognize its importance, and are largely in favor of a remote working lifestyle.
Establishing a role like the CRO allows an organization to move away from being constantly reactive to remote and hybrid work. It is a proactive approach to meeting today’s business and workforce needs. Now is the time to begin looking at how you can best leverage this organizational tool – whether that be from an economic perspective, a people strategy perspective, or to further your environmental, social, and governance agenda. To discuss this topic further, please get in touch with me at amanda@orgshakers.com
Copyright OrgShakers: The global HR consultancy for workplace transformation founded by David Fairhurst in 2020
As we venture into this new year, none of us can be sure what the future holds. However, with ‘unprecedented’ events becoming commonplace this decade, there are sure to be more than a few surprises in store for employers over the next 12-months.
But the truth about ‘surprises’ is that very often we will have had an idea they were coming our way. So, whether it’s based on the extrapolation of an established trend or simply ‘gut instinct’ based on years’ of experience, we asked the OrgShakers to predict what will be surprising us in 2023.
What we do know for certain is that 2022 brought with it many unexpected surprises that had a great effect on the working world, and so as we venture into 2023, OrgShakers are ready to help employers optimize every opportunity that comes their way. To get in touch with us about your people strategy or organization dynamics, head over here.
Copyright OrgShakers: The global HR consultancy for workplace transformation founded by David Fairhurst in 2020
2022 was yet another memorable addition to the 21st century’s ‘roaring twenties’.
With the working world still adapting to the changes that the pandemic brought, as well as the rise of the metaverse and the cost-of-living crisis, there are a lot of things that employers, upon reflection, may want to leave in the past so that they can focus on the new year – and new opportunities – that lay ahead.
The OrgShakers team, therefore, have put together a list of thoughts that we think organizations should leave in 2022 in order to propel them upwards in the year to come:
If you want to get in touch with us surrounding any of these points, you can do so here!
Copyright OrgShakers: The global HR consultancy for workplace transformation founded by David Fairhurst in 2020
Creating the conditions which enable employees to be engaged and motivated should be a top priority for employers. Gallup’s State of the Global Workforce report, which found that only 21% of employees were actively engaged at work, sadly shed light on the fact that employee engagement is not being done effectively, or even prioritised, and the result is unhappy employees. This unhappiness will affect performance and will lead inevitably to unhappy customers and less successful business outcomes.
Employee engagement should be an important year-round focus, but we can do some things to help create a ‘reset’ at the beginning of the New Year and support our teams to reengage with their work. 16th January 2023 will be ‘Blue Monday’ in the UK, so called (and coined by a psychologist Cliff Arnall) because of people returning to work post-holiday to bad weather, debt and low levels of motivation. This does not apply to everyone of course, but how can employers help counteract this?
The end of year holiday period creates a ‘pause’ which people are often desperately looking forward to. With our ‘always on’ working lives, and what seems to have been an epidemic of overwork this year, many people are limping towards the finishing line of what has felt like the Marathon of 2022. The joy of having some rest time with family and friends also creates time and space for people to think about their lives, the good and the ‘not so good’, and in particular their work lives, and how this aligns with their personal aspirations.
Rather than just hoping that people will come back from their holidays refreshed and suddenly regain engagement, we are suggesting that employers need to be proactive this new year and enable a January ‘reset’.
A key part of a leader’s role is to tap into what motivates their people, to carry the torch for the organisational purpose and create excitement about what they are to achieve in 2023 through their ability to create an engaging story of what might be.
We would like to suggest a few things businesses can do to enable a reset:
My suggested reading for points 1. and 2. is ‘The Heart of Business’ by Hubert Joly – his personal playbook for achieving extraordinary outcomes by putting people and purpose at the heart of business.
A strong start to your business year can make all the difference and engaging in a January reset will have big business benefits. If you would like to discuss these and other ways to create this reset, you can get in touch with me at pamela@orgshakers.com
Copyright OrgShakers: The global HR consultancy for workplace transformation founded by David Fairhurst in 2020
by Gary Payne, Robert Satterwhite, and Ann Wheeler
Middle managers need to be sold on the culture and vision of your organization. When your middle managers are going to model organizational behaviors and values, it’s critical to win over their hearts and minds, and keep them motivated.
To do so, your company should:
People are motivated by purpose, particularly the younger generation. In a 2021 Deloitte survey, out of 8,273 Gen Z respondents, 49% said they chose their careers and employment based on their personal ethics.
Motivation is not solely about career advancement; people want to feel like they are adding value, meaning, and purpose within the company and beyond. They want to feel proud of their work.
Your company communications, both internal and external, need to be consistent and highlight the impact your organization is making.
Motivation is different for each individual.
Some might be driven by a promotion, while others want to avoid boredom; they fear growing stale in their career. They want to be innovators as opposed to overseers.
Take opportunities during scheduled check-ins, quarterly assessments, and year-end reviews to ask your middle managers about the vision for their careers and how that vision fits within both their current roles and potential future roles.
Whether they are striving for career advancement, or they want to expand their skillset, help them define what drives their passions and their individual goals, so your organization can create opportunities and projects to keep them interested and engaged in their work.
Many organizations see the value in dedicated mentorship programs, but it’s important to remember that people can have many mentors who will help them with various aspects of their career.
Encourage your middle managers to establish and build different relationships and get multiple sources of input.
Helping middle managers progress their career path involves three key factors:
Early identification
As you are working with middle management and attempting to identify those who could grow into even greater leadership roles, it’s important to establish your criteria and competency model.
A common challenge for organizations is identifying leadership potential early enough in an individual’s career path. Often by the time they have been identified, it’s too late to ensure they get enough diverse experience to fulfill those leadership qualifications.
Assessment still needs to be viewed as an internal employee investment. The hiring rigor of qualifications needs to be applied equally to all promotions. If you want to retain the majority of your employees, it goes without saying that you need to treat people fairly and consistently.
When you are assessing internal employees for a role, make sure to communicate that you are using the exact same standards as you would for external employees. Give every internal candidate feedback throughout the process, especially if they aren’t chosen for the position.
Use the assessment process as an additional development tool, so you can build upon that feedback and provide the resources or a coach to help your internal hire candidates continue to develop.
When internal hires are promoted, they are already embedded within the organization’s DNA. There tends to be an expectation they will hit the ground running when you might give more leeway to an external hire. But as we noted earlier, that can be a weird mirage of success; it becomes very easy to fail under the burden of presupposed expectations. What made an internal hire successful in their previous role will be different from the KPIs of their new role.
Give your internal hires the same grace period you would extend to external hires:
Leadership also has to ensure the proper amount of focus is being put on strategic change and initiatives. If you want to create a coaching culture where there’s mutual team accountability, you need to create processes to support that philosophy.
Below are some questions to consider as you reexamine your current leadership development program:
At the end of the day, retaining your employees through leadership development is good risk management. You want to develop a deep bench of leaders that your organization can use to propel its growth and ultimately plot its succession plan. If you have any questions about retaining and promoting middle management or leadership development, please do not hesitate to reach out to us here.
Copyright OrgShakers: The global HR consultancy for workplace transformation founded by David Fairhurst in 2020