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Most US-based publicly traded company boards will currently be approving 2021 executive incentives. As they do so, they will also be considering designs for their 2022 compensation programs. So, what’s likely to be new on this year’s agenda for Boards and executives to discuss?

1. Environmental, Societal and Governance (ESG) metrics

Whether it’s because of company focus on external stakeholders or pressure from activist investors, we’ve already seen a large increase in companies including ESG metrics in their incentive plans.

ESG embraces a diverse range of issues and how they are incorporated in incentive plans varies greatly not only in how they are measured but, as importantly, what is measured and how much it influences actual payouts.

For example, Environmental criteria may include meeting carbon footprint reduction targets and or increasing the percentage of renewable energy used by the organization.

Societal areas could include support for disadvantaged school systems or support for specific programs such as Science Technology Engineering and Math (STEM).

Governance can focus on a variety of areas from fostering an open culture to setting the highest standards for professional integrity which might include Diversity, Equity, and Inclusion (DE&I) objectives.

Indeed, according to Harvard Law Review, among the S&P 500 companies filing proxy statements between January and March of 2021, there was a 19% increase of companies including a DE&I metric over the prior year.

The point here is that, under the ESG umbrella, companies are still trying to figure out what is important to their shareholders and what should be (can be) measured and included as incentive metrics.

2. Human Capital Management (HCM)

The U.S. Securities and Exchange Commission (SEC) has recently introduced new disclosure requirements designed to provide stakeholders insight into an organizations HCM – from the operating model and talent planning practices through to the employee experience and work environment.

As with many other historical disclosure requirements, it is to be expected that companies will begin to mirror their HCM disclosures with some metrics included in incentive programs.

At the risk of being dilutive to other metrics incorporated into incentive plans, it can be expected that the ESG metrics will likely start to include some metrics related to their HCM.

For example, as part of an organization’s DE&I objectives, the attraction, retention, training, and promotion of diverse employees becomes a standard for measurement with incentive dollars tied to it.

3. Pay for Performance

Without doubt, this year’s executive compensation discussions will have the usual focus on pay for performance.

What will be different this year, however, is that while the economy was beginning to turn around, there are some significant headwinds companies are facing.

Talent shortages continue to be a critical business matter directly affecting companies’ ability to effectively serve their customers and to grow profitably.

And a significant downturn in the stock market has impacted shareholders’ perspective of company performance.

It has also adversely affected executive compensation currency since most long-term incentives are paid in the form of stock and/or stock options which now may be underwater.

Conclusion

How companies deal with these matters will shape how their programs are perceived both internally and externally.

It is always important to remember, whether it is a closely held family-owned business or a Fortune 100 publicly traded company, executive compensation is one of the most impactful communication vehicles a company has.

Through these programs, a company communicates what is important, how they define success, and how they value success (or lack of).

This year will be different in that people will be looking forward to the post-pandemic world, judging how the company has acted during the pandemic, and trying to assess the potential impact of the war in Ukraine.

Extra prudence is advised.

To make a difference for International Women’s Day 2022, OrgShakers’ leadership coaches are proud to offer FREE 1-hour one-on-one online sessions to women professionals throughout the whole of March.
To book your FREE 1-hour one-on-one online coaching session CLICK HERE.

Just because we can, doesn’t mean we should.

This was my initial reaction to a recent article by Josh Bersin, Online coaching is so hot it’s now disrupting leadership development, where he explores how AI is transforming the way coaching is delivered – and to whom.

Now, I believe in the power of AI and the amazing things it can do to drive the HR agenda in ways that we’ve never dreamed possible. Here at OrgShakers, for example, we are using the latest developments in AI and machine learning to identify, map, and source hard-to-find talent.

But I was shocked when Bersin pointed out that AI might be able to monitor online coaching sessions to help coaches (and coachees) focus on the key issues – and even ‘give nudges’ to both parties to guide discussion during the actual session.

Am I stuck with a fixed mindset? Would this mean having to let go of some of the principles that are fundamental in a coaching relationship? I’m so used to the coachee bringing the agenda for the session. And what would this mean for the confidentiality of the coaching?

Then I started to reflect on another key point raised by Bersin – that the growth of companies like BetterUp, Torch, CoachHub, and SoundingBoard is ‘democratizing coaching’.

I can see that their business model certainly has advantages for companies wanting to provide coaching for more of their employees. However, I think online coaching is only one route to a more inclusive coaching culture.

The ease of availability and the lower costs delivered by online coaching are not exclusive to these providers. We’re all used to coaching virtually now and, while I’m starting to see some clients in person again, I will continue to work with many clients remotely.

Maybe it’s because I’m writing this having just come from a presentation by the truly inspirational Stephen Frost (a globally-recognized diversity, inclusion, and leadership expert, and a friend and partner of OrgShakers) that I’m wondering whether this approach really can achieve ‘coaching for all’ – the kind of coaching that Senior Executives have benefited from for years.

Previously I’ve written about the pandemic leading to more people being able to access coaching. Coaching definitely becomes more accessible if we offer one-off, on-demand sessions or the ability to contract for a few hours.

So, as we think about embracing online coaching, I suppose I have two asks! That we are clear on what’s on offer. And that we don’t lose the value and quality of a true coaching partnership.

Only then can we be sure whether (or not) we should.

If you are interested in a complimentary coaching session with an OrgShaker, look out for our International Women’s Day activity!

The UK government were calling it ‘Freedom Day’ – the day when all Covid-19 restrictions would be lifted after two long years.

To be honest, even though Thursday 24^th February was also my birthday, it felt the furthest thing from a Freedom Day that I had ever experienced in my HR career. As one newspaper headline summed it up: ‘The sun is shining, but we’re keeping our umbrella’.

That morning I had taken a call from a HR director who was talking about the pressures her colleagues were facing. Change and uncertainty were causing stress-related absence to spike like never before and, for the first time, her Board had asked about employee financial poverty.

She wasn’t alone – it was the third call I’d had in a week where financial impact was the number one topic of concern.

For years financial poverty has been a ‘dirty little secret’ in many boardrooms – known about, but never really aired in public.

The CIPD recently published data in partnership with the Joseph Rowntree Foundation that 1 in 8 UK workers are in financial poverty. While research by financial wellbeing platform Wagestream has shown that 75% of the UK workforce have volatile and unpredictable pay, 50% run out of money before payday, 39% are not comfortable managing money, and 11.5 million have less that £100 in savings.

When financial issues are experienced, there is a direct link to mental and physical wellbeing with an impact on absence. If employees are worrying about money or covering up concerns this can also lead to a negative performance of up to 30% in productivity.

In short, the moral case and business case for acting on financial poverty is compelling.

What can I do to understand what’s going on for my Employees?

Over the past two-years’ the world has experienced a profound economic and social shock that has affected businesses and individuals alike. And the war in Ukraine is adding to heightened emotions of fear and distress as well as accelerating an increase in the cost of living – all of which are being highlighted in news, on social media and in every conversation, by the hour!

Now more than ever, it is critical to scrutinise whatever insights and data you have within your organisations thoroughly, to work out who is worst affected. Use the data determine how the trends are changing or have changed and get a plan of action in place to support your colleagues. Where data is light, or insights are not easily accessible, look internally and externally for support, advise and solutions.

Being aware of employee financial poverty it is no longer good enough. You need to demonstrate that you understand workplace poverty and engage in a conversation across the business about what is driving it and how it feels to be in financial difficulty. Only then can you start to put meaningful solutions and practices in place to help.

In my experience, the core to financial freedom begins with education on money health. It’s a topic that I was never taught at my school or in business. But increasingly it is coming onto the agenda of wellbeing, and rightly so. It’s never too late to start educating – and your employees will welcome your support.

Many HRDs and organisations are looking at external solutions to support their efforts on this topic. There are some really great technology-based solutions available which can help give employees ‘power over pay’.

I’m engaging more and more on this topic happy to share my knowledge and insights about the impact it has on wellbeing and inclusion as well as wider People Strategies.

It’s a conversation that is not going away, and it will require a dedicated focus if you are to retain your talent, maximise , workforce productivity, and demonstrate your understanding of what is , going on in everyone’s lives right now.

As I write this, I’m few days older, perhaps a little wiser, and the sun is streaming through my window. But I am acutely aware of the need for umbrella!

Before you know it, graduation will be approaching. Many of those graduating may not have their first job prospects leaving them feeling anxious as their peers will begin the workforce right after. What do you suggest to your upcoming graduate? Is there an approach you can take? What if you say something wrong to them and they don’t listen to what you have to say? All of these questions are lingering in a parent’s mind around graduation time. Not only for those that do not have a future job prospect, but it is also a question in parents minds for those that do. You hope your child makes the right decision about their career choice. You want your child to be happy about the career they choose and the place of employment. Simply put, you want your child to succeed!

Millennials are procrastinators when it comes to looking ahead in life after college or university. They spend a large amount of time studying, building a relationship and networking with friends that they do not focus on finding a job or career after graduation. They worry about receiving the wrong information from parents who have been in the same job for many years. Not to mention the building anxiety of wanting to succeed and do good things in the world is still hovering over their head.

Chief People Officers (CPOs) are a good resource for setting your child up for success. CPOs know the current trends facing the workplace and what steps a graduate will need to take in order to be successful. Acting as mentors to their current workforce, they tailor their thoughts and speaking capabilities to various groups as we live in a diverse world. This is vital for graduates to understand in order to present themselves well to prospective employers and also guides them to make the right choice that aligns with their values.

This is where we can help. OrgShakers consultants have the knowledge, tools and expertise across various key People disciplines to support your child in finding their future career.

Looking back, I can’t remember a time when my parents weren’t leading. Sometimes they led small teams of 5-10, sometimes groups in the thousands. They were leaders at local, national, and international levels. While they were both leaders in their careers, they also led in many volunteer roles. Socially gifted, my parents’ ability to connect with people and bring them together was awe-inspiring.

Meanwhile, I was extremely shy and struggled to be in the same room with someone I didn’t know. This was okay as a small child. As I grew older, it was expected I would lead – just like my parents.

By the time I started school, I learned that no matter my personal preference, someone would call on me to lead. More importantly, it was expected that I would always accept the leadership role. As awkward and uncomfortable as I often felt, each new role built my knowledge, skill sets, and confidence. Today, I am a mixture of experienced leader, shy child, and leadership student.

My parents often reminded my siblings and me that the ability to work with people was more important than any personal gift we might have, like musical ability, intelligence, or physical agility. They constantly encouraged us to exercise our social “muscles” and often taught us through stories. To this day, I rely on their stories to help guide me through new or challenging situations.

Abraham Lincoln as a storyteller

Character is like a tree and reputation its shadow.
The shadow is what we think it is and the tree is the real thing.
Abraham Lincoln

Abraham Lincoln is often recognized as one of the most effective and influential leaders in history. He was also known for his ability to lead through storytelling. A number of his stories are captured in Donald T. Phillips’ book, “Lincoln on Leadership.”

The underlying theme of Abraham Lincoln’s leadership stories is a focus on individuals, relationships, and compassion. In his book, Phillips states, “the foundation of Abraham Lincoln’s leadership style was an unshakable commitment to the rights of the individual.” Fast Company author Mark C. Crowley underscores the importance of Lincoln’s understanding that, “Engagement and performance are mostly influenced by feelings and emotions.”

Whatever you are, be a good one.
Abraham Lincoln

Storytelling is an integral part of human learning and connection. Intentional storytelling can be one of the most effective and formative tools in a leader’s tool kit.

Think back to a personal leadership learning moment with a strong connection to your development journey. Chances are, there is a story that goes with the moment.

What stories would be included in a book about your leadership? Is there a theme or main message your stories contain? Is it the story you intended to tell?

What are the stories that guide you or that you use when guiding others? How will you use intentional storytelling in your leadership journey?

Want to dig a little deeper?
Consider:

Academic Paper – Harris, J & Barnes, B.K. (2006): “Leadership Storytelling“
Article by Christine Hennebury from CBC Canada: “Storytelling is not just entertainment. It’s a fundamental part of being human“
Book by Donald T. Phillips : “Lincoln on Leadership: Executive Strategies for Tough Times”
Article by Mark C. Crowley from Fast Company: The Leadership Genius Of Abraham Lincoln (fastcompany.com)

In this episode of the HR Leaders podcast, Chris Rainey is joined by Therese Procter of OrgShakers and Vivek Patni, CEO and Co-Founder WeMa.

With one-third of the workforce now over the age of 50, their focus for discusion is how organizations can optimize this often overlooked pool of talent.

Midlife is a pivotal period in our life journey. It can suck – or rock!

Neither well defined nor well understood, Midlife is described simply as ‘the time between youth and old age’. A time which is often associated with stress and crisis – especially for women.

I can relate to this, but there are many positives to celebrate in Midlife too, including higher earnings, status at work, leadership in the family, authority in decision-making, self-confidence, and contribution to the community.

The reality is that these negative and positive aspects of Midlife are not exclusive to women – these are things we will all experience.

50 is the new 30

Employers are slowly starting to take more interest in Midlife workers … and they should, because for the first time in history, over 1/3^rd of the working population are over 50!

On reflection I realise that for many years the HR community (me included!) put our energy, focus and effort on progressive processes and practices that were supporting the needs of the younger working generation. Many of these innovations were ground-breaking – especially around maternity/paternity, IVF, adoption, childcare, etc. – and we should be proud of what we achieved.

However, the ageing workforce means that we now have to widen our focus to meet the wellbeing and mental health needs of those in Midlife and to consider how they can help them to live their best life while performing their job.

I suggest there are three issues we need to prioritise:

Biological Changes – Menopause and Andropause
The tide is turning with conversations at work about Menopause.
Rightly so, as there are 34 symptoms associated with this time in women’s lives – with some individuals suffering for up to 15 years.
However, less understood and rarely talked about is the fact that men can experience 17 of these 34 symptoms – the Andropause.
None of the Midlife men I speak to about the Andropause has heard of it. But all of them recognise that they have experienced the symptoms.
And the number one silent condition in both women and men linked to the biological changes we go through in Midlife is probably the least well known – a loss of bone density.
Osteoporosis typically strikes in older age but starts with the Menopause and Andropause.
Cancer – Breast Cancer/ Testicular Cancer
One in four of us will get cancer.
Breast cancer is the biggest cancer in women and testicular cancer in men.
New cases of cancer are 50% higher amongst over 50’s.
Mental Health – ‘Brain Fog’ and Memory Loss
A symptom of both Menopause and Andropause is ‘brain fog’ and memory loss.
It’s a scary feeling, and people often mistakenly fear that it’s the onset of dementia.
However, the evidence shows that these symptoms pass over time and that cognitive ability is not affected – we remain as sharp as we were.

In most cases if these issues are identified early, they can be treated positively and permanently.

So, is your organization encouraging Midlife colleagues to be aware of these issues and encouraging them to get regular health checks? And are they being given time to get appointments booked and time off to support these issues?

I’m in the camp that wants to Rock my mid life and get up every day and perform at my best.

So, I recently started taking HRT – not because I had any menopausal symptoms, but because my mum has osteoporosis. I have also had a blood tests and bone scans.

My parents are my role models, they exercise every day and have done since I can remember, and they are 83!

Diet and exercise are important. And so is being aware of what is going on in our bodies.

So, my call to arms is for all of us in Midlife to take control of ensuring that we can live our best lives – and for organizations to provide the encouragement, environment, and policies that support their employees throughout their working lives.

For more information, training, policy reviews or insight on how your business can navigate this important topic and “shake” things up, please contact therese@orgshakers.com.

Rise to the challenge of #TheGreatResignation by CHARM-ing your people.

More than 15-million people have quit their jobs since April 2021, and there’s no way of knowing if this the exodus is temporary – or a long term shift in how people manage their careers.

Organizations can take control, however, by understanding why employees are leaving and taking measures to not only retain talent, but also attract and develop new and future leaders.

Do you know why your employees are leaving? Do you know where they’re going?

Employees exiting companies are citing a smorgasbord of culture-related reasons from toxic leadership and stifled growth opportunities to poor communication and lack of vision.

So, either the culture organizations thought they had pre-pandemic wasn’t truly aligned with their people’s values, or the pandemic has created a situation in which their people’s values are shifting.

Are you CHARM-ing your employees?

However, understanding the “why” behind the exit is only part of the battle; employers must be able to swiftly enact CHARM-ing strategies to attract, retain, and develop their workforce.

Committing to your vision and ensuring your culture aligns with the company’s values as well as the type of person you seek to employ.

Helping your leaders navigate the changing scope of work and equipping them with the tools and resources needed to inspire, coach, and develop their teams. And helping your employees manage competing priorities, their growth, and outside factors that can cause stress.

Attracting the best talent by partnering with your HR teams to maximize results in recruiting. Focus on the type of person you want to employ and what they want in an employer. When you identify those qualities, use them as the foundation for your recruiting strategy.

Re-recruiting your good people! Retaining key talent needs to be done with the same energy that you invested in recruiting that talent in the first place.

Motivating your people by taking the time to know what’s going on in their work and personal lives and offer support. Take care of work-life balance and recognize your people’s achievements. People become most motivated when their leader shows interest in their whole lives and not just work output.

The OrgShakers team have extensive experience in analyzing why employees are leaving, where they are going, and what will attract and retain your ideal employee. So, if you would like insight into how #TheGreatResignation is impacting your team and guidance in developing your strategy to combat the mass exit please get in touch: hello@orgshakers.com.

OrgShakers crack data analyst, Imogen Parsley, conducted a review of LinkedIn Updates and the results should cause significant concern in the board room.

A staggering rate of increase has occurred for C-suite executives updating their LinkedIn profiles.

Well, it is no secret that executive search firms leverage LinkedIn as one of their primary sources. Some may have done it because they’ve changed roles or employer.

But, why the sudden surge in updates? Is this a sign of the first wave of post-pandemic executive fatigue?

If this doesn’t set off significant alarm bells in the boardroom, someone is not paying attention.

Boards should take note and check to ensure the effectiveness of their total rewards and other recognition for their leadership team.

Does the team feel recognized and appreciated by the board?
How has the C-suite been treated throughout the pandemic?
Does the current compensation structure provide enough reward when merited by performance?
Are metrics reasonable or too aggressive?
Is there enough retention value in your Long-Term Incentives?

Board’s need to take stock of their rewards and the possible risk of key C-suite departures. As importantly, they need to pay close attention to the strength of their succession plan.

The first in line may be at the highest risk of departure. This follows a trend where recent study by Monster.com showed that more than 95% of employees in the US are considering a job change post pandemic.

The C-suite is apparently not immune from that sentiment – Boards ignore at your own risk!

Similar alert for CEOs!

When was the last time you gave unsolicited feedback?

When was the last time you told one your direct reports they did a great job on something?

How realistic is your succession plan? How strong is the retention component of your executive compensation program?

Should you engage your board with some recommendations for updates/modifications to your compensation structures?

Now is the time to act, by year end your best leaders may have already taken the call.

If they take the call, they are gone.

“If you want to get paid New York rates, you work in New York … none of this, ‘I’m in Colorado … and getting paid like I’m sitting in New York City.’ Sorry. That doesn’t work.”

This comment from Morgan Stanley CEO James Gorman during a recent investing conference created quite a commotion in the Twittersphere. And it’s likely that many Chief People Officers winced when they first heard it.

Is this evidence of a CEO who is insensitive to the reality of post-pandemic workplace dynamics?

Gorman continued: “Make no mistake about it. We do our work inside Morgan Stanley offices, and that’s where we teach, that’s where our interns learn, that’s how we develop people.”

So, was this actually an insight into the mind of a CEO who had assessed how best to meet the needs of his customers and organize work accordingly?

Either way, Gorman has highlighted that most organizations are going to be forced to re-evaluate how best to organize how work is performed, where it is performed, and who should perform it.

His comments also illustrated that most compensation structures are woefully out of date: why shouldn’t someone sitting in Colorado be paid as if they are sitting in New York? They’re doing the same work after all.

A recent study by Monster.com found that 95% of people are considering changing jobs following the pandemic – and according to the US Department of Labor a record 4-million people quit their jobs in April alone. A significant portion of employees also considering “fractional” employment where they work for more than one employer.

The pandemic is also forcing employers to re-think their real estate footprint, with a recent McKinsey survey showing that 9 out of 10 organizations are planning to combine remote and on-site working.

All of this will all lead to a different kind of workforce, delivering work in different ways, from different locations.

So, does it make sense to keep the traditional “one size fits all” approach to job structures and the associated pay?

Most of today’s compensation systems are focused on rewards for doing a specific job in a specific geography. And many of the job evaluation systems that help level and price these jobs are based on evaluation methodologies that are decades old and an assessment of values that are based on outdated workplace dynamics.

Now is, therefore, a perfect time to step back and reassess what is important to an organization, how best to structure the business to deliver the work, where talent should be located, and then – and only then – how best to reward that talent.

All too often in the past, compensation systems have been disconnected from the overall human capital strategy. Chief People Officers now have a unique opportunity to take a deeper, more strategic look at how you staff, who you staff – and how you keep them.

With extensive knowledge and expertise gained from supporting organizations of all sizes, OrgShakers can help you to positively “shake up” thinking about compensation systems to give you the reward agility you need to sustain and accelerate business performance.

Life expectancy is increasing, and by 2040 this is projected to rise to the age of 85.

That’s great news for me personally as I am now in my 50’s, but as an HR professional I’m also thinking about what these projections mean in the workplace – and what I should be focussing on for the future to benefit employees and to drive business performance.

The ageing population means that there are more midlife workers than ever before.

The employment rate for 50- to 64-year-olds in the UK has risen from 56% 30-years ago to 73% today – and it’s still rising.

We know that knowledge, skills, and experience are at their peak in midlife. And for employers to optimise these, they need to better understand and answer the needs of midlife workers.

Working Carers. Working age people will soon have more adult dependants than child dependants, with 1 in 6 of the workforce currently balancing their ‘day job’ with adult care responsibilities.

The pressures created by this balancing act can be enormous, with many being forced to take a career break.

Midlife workers the most likely to fall into this category, and the pandemic has had a massive impact on them with 81% saying caring responsibilities have grown due to Covid-19 and 74% feeling exhausted because of the increased stress.

Menopause and andropause are a biological fact of life and many organisations are starting to implement policies and workplace principles to support their employees through these changes.

More remains needs to be done, however, to educate managers and those without experience of midlife issues.

Career opportunities. Perversely, career and personal development opportunities for midlife workers slow down at precisely the moment they have the most to offer.

Some organisations offer a ‘returnship’ programs for individuals who have had to take a midlife career break, but these are currently very inconsistent with varied success.

There is also disparity in gender pay – especially if a person has been out of the workplace for some time and then returning.

As a proud midlife HR practitioner my aim is to shine a light for employers on the issues people face at midlife and to provide education, policies, training, seminars, and guidelines to ensure organizations can maximise the performance of an age diverse workforce.

I’m also very privileged to work with companies who are developing products to support businesses with these issues and, in doing so, help us all to live our best life, for the rest of our life.