The Sound of...Flyin' High

May 22nd, the date of the Carnival of HR (of which this blog is one small part), is an important date in my employer’s corporate calendar, it is when our Remuneration Committee and the Board meet to review, amend and approve the reward packages proposed for each of our employees. (For a glimpse of the full range of the Carnival of HR offering see http://s.shr.lc/167ai7a  |, lovingly curated by Doug Shaw ( @dougshaw1 ) Thanks Doug - a tough job very well done.  The URL is http://stopdoingdumbthingstocustomers.com/hr/the-carnival-of-hr-beginnings/ )  Back to my own day: although our financial year runs in line with the tax year, we tackle reward only after we know how the business units and individuals have performed.  As in many organisations, for most employees the knowledge of what their salary will be for the next twelve months (and whether they will receive a bonus that could enable them and their family to have a significant holiday or pay for some anticipated expenditure), is the beginning of their planning for the year ahead. 

Planning is important...

In fact, as this HR Carnival blog's theme is "Beginnings", I will start by saying that planning, prior to beginning almost anything, enables a better outcome and my intention in this post is to encourage you to think strategically and hence to become more effective in an important, but in my opinion under-valued, aspect of HR.  So...

“Let’s start at the very beginning...”, as Maria sang to the von Trapp children in The Sound of Music

http://www.youtube.com/watch?v=1RW3nDRmu6k

“...when you read you begin with A-B-C”, however, the song does not progress to “when you count you begin with 1-2-3”... it moves straight into singing about “do-re-mi”.  Perhaps it is because I have been working with reward spreadsheets for the past few weeks (and hence have become somewhat obsessed), but I think HR needs to consider its relationship with “dough” (of the monetary variety), analysis and informed decision making, using management information (re M.I.).  So many in HR are more comfortable with letters than they are with numbers.  As the world becomes increasingly data focused, this could become a problem for our profession.  

Reward is too often the ignored little spanner in the HR toolbox... perhaps because traditionally HR has neither valued nor attracted numerate, analysis-hungry, spreadsheet experts. 

In most businesses, HR is recognised as the custodian of remuneration, diligently compiling benchmarking data to validate that salaries are in-line with competitors and that job offers and pay increases are not out of sync with the market.  I am not saying that this is a bad thing.  Everyone I have spoken with acknowledges that the basics have to be right (otherwise employees will become disengaged, feel undervalued, may walk and potential employees may decline to join). However, few HR professionals are doing more than managing the basics when it comes to Reward.  People need to appreciate that Reward is so much more than simply “pay and rations”.  Total Reward is an often over-used, but usually under-comprehended phrase.  Total refers to "involving all aspects" of reward at work. 

How often do we really think of Reward within the bigger picture of employment and the people involved in work?  Most acknowledge that Reward is more than simply base pay, benefits, wellbeing initiatives and a potential bonus.  The BBC is not famed for its high salaries and yet people strive to be able to work there, partially because of the experiential opportunities it can provide. No other organisation can enable you to be part of the production team making world-leading natural history documentaries with David Attenborough.  People there find their roles "rewarding".  A similar positive advantage can be considered applicable to people working in the not-for-profit or medical research sectors - their day-to-day jobs have the potential to change people's lives and that is gratifying in itself.  

Photo courtesy of the BBC

The drivers that inspire people are complex, in addition to money people will give their employer their dedicated thought and labour to achieve objectives in return for: prestige, respect, status, dignity, the ability to learn, the sense of being part of team/belonging, time to pursue out-of-work interests, travel, generous praise and/or recognition, to name but a few.  As a result, smart HR professionals must not view Reward in isolation, away from the broader work environment.  

A number of organisations have undertaken research into the impact of Reward.  A recent, notable paper is Aon Hewitt’s 2012 study into Total Rewards, which demonstrates a link between reward and high performance (as evidenced by companies achieving significant revenue vs. objectives, degrees of innovation and high levels of employee engagement).  A significant element of the success seems to be down to communication, not just espousing Total Rewards but articulating a clear strategy that includes objectives, measures and competitive positioning (back to HR’s need to understand and use data).  Before determining the strategy employees, as well as managers and the top leadership, are asked what they want – the advent of technology and social media has made it so much easier to be personal, to solicit feedback and suggestions.

Landing Signal Officer's Communication - as used on HMS Ark Royal

According to the Aon survey, Total Rewards impact at various stages of the employee life cycle, namely:

Top factors influencing Attraction:          

• Competitive base pay

• Competitive health care benefits

• Financial stability of business 
• Flexible working 
• Good pension provision 
• Number of days’ holiday
• Reputation as “a great place to work” 
• Promotion prospects
• Challenge/stimulating work 
• Culture

Top factors influencing Retention:          

• Faith in senior leadership re future direction

• Tools to do the job

• Health care benefits
• Sufficient resources
• Reliable colleagues
• Career opportunities/clear career path
• Good relationship with line manager
• Supportive culture

Top factors influencing Engagement:

• Clear career path
• Involved in decisions that affect their work
• Appropriate resources
• Development
• Team
• Colleagues going the extra mile for success
• A culture of personal development
• Good managerial relationship
• Comprehensible decision making

• Appropriate benefits

The best businesses are brilliant at using certain elements of Total Reward (such as manager effectiveness, inclusion, culture, values, learning and career development) to emphasise the factors that differentiate them from other employers in their field.  I have a little experience of this – I co-founded a business in 2000 and within a short space of time we were deemed best of breed in our sector.  It was hard work and demanded long hours to get the business off the ground, but, without exception, my colleagues at all levels in the business valued being part of a team that was “making history”.  We were not the highest payers and we did not have the swankiest offices (indeed our premises as we grew were close to the end of their natural life and hence provided cheap rental), but our sense of community, mutual respect, genuine fun, shared success and mutual appreciation made up for most of the hardships.  HR had a fundamental role to play in the success of the business.  

The time has come for all of us in HR to realise that we can and should make a difference.  We have the ability and tools to enable both our workers and our businesses to become high fliers.

So, returning to the theme of Beginnings, let's make a start, let's change the way we think about Reward.  We want our employees to be truly engaged and to be feeling good about where they work. It's a new dawn, it's a new day, it's a new life...

Nina Simone singing "Feeling Good"

http://www.youtube.com/watch?v=OfJRX-8SXOs

              "Feeling Good"

Birds flyin' high, you know how I feel
Sun in the sky, you know how I feel
Breeze driftin' on by, you know how I feel
It's a new dawn, it's a new day, it's a new life for me.
Yeah, it's a new dawn, it's a new day, it's a new life for me, ooooooooh...
And I'm feelin' good.

Fish in the sea, you know how I feel
River runnin' free, you know how I feel
Blossom on the tree, you know how I feel
It's a new dawn, it's a new day, it's a new life for me,
And I'm feelin' good

Dragonfly out in the sun, you know what I mean, don't you know,
Butterflies all havin' fun, you know what I mean.
Sleep in peace when day is done: that's what I mean,
And this old world is a new world and a bold world for me...

Stars when you shine, you know how I feel
Scent of the pine, you know how I feel
Yeah, freedom is mine, and I know how I feel..
It's a new dawn, it's a new day, it's a new life for me
[scat]
And I'm feelin'... good.

Catching Stars

We should be more careful about the ways in which we utilise Helium, and probably not waste it in frivolous party balloons when we need it to cool the large magnets in medical MRI scanners, according to Tom Welton, a professor of sustainable chemistry at Imperial College in London.  There is a finite supply of Helium on earth and it is swiftly running out (or floating away to be more accurate as, being lighter than air, once it is released it drifts upwards and into space) http://www.bbc.co.uk/news/uk-19676639 .  One could argue that we should be equally careful with top talent in our organisations – there are a finite number of star performers and, if we aren’t careful, it is easy for them to drift away either emotionally or literally by moving to another organisation.  In these tough economic times, few businesses have the budget to undertake significant recruitment and “throw bodies at a problem”, indeed many organisations are reporting that they are trying to do more with less.  How can we ensure that we keep our stars engaged and striving to enable sustainable business growth and success?

Engagement is currently a hot topic in HR and broader business circles.  There are numerous articles (both on and offline) extolling the importance of having engaged employees and highlighting the direct correlation between employee engagement, customer satisfaction, business performance and overall results.  Rather worryingly for the businesses concerned, a recent Towers Watson survey seems to show that employee engagement is falling http://www.towerswatson.com/research/7177  , despite managers encouraging their reports to respond.

 

Another often stated fact is that an employee’s relationship with their direct manager has a significant impact on their personal engagement levels.  Most employees’ experience of management and leadership at work is through their day-to-day manager who oversees what they do and when and how they do it – moment-to-moment interactions impact how the employee feels about their boss and therefore the organisation for which they work.  As a result, managers are encouraged to:

• make time for direct reports;
• discuss their performance and what’s expected of them;
• say “thank you”; and (perhaps)
• take them out for a drink or meal to make them feel valued. 

 

Don’t get me wrong, I am strongly in favour of managers making an effort, but interactions need to be meaningful – an employee feeling trapped in a meeting they don’t enjoy or want to attend, where they believe that the other person with them is “going through the motions”, not actually listening and/or where there is no genuine connection or understanding, can result in good employees becoming disengaged and even lead to subversive conversations with others (which could have broader repercussions on engagement and morale).  Managers are crucial within the work environment and the little things do count – managers should:

• show appreciation for efforts made by their team to achieve results;
• make sure that they don’t keep their reports waiting (doing so risks making people feel that they are not important or valued, especially if a tardy manager is noticeably punctual for meetings with their own superiors);
• be responsive in a timely and appropriate manner (no matter how well researched or crafted the response, an emailed reply over a fortnight after a simple request is made is probably too late to be pertinent); and
• lend an ear, show genuine interest and give people consideration and/or support when they need it.

 

Although the above listed approaches can improve employee relations and hence foster engagement, they are unlikely to provide sufficient long-term, sustainable levels of morale building nor to encourage a unified drive across the workforce to realise and exceed objectives.  Increasingly people want to feel proud of what they do and where they work.  To achieve this, employees need to believe that the people they work for are genuine with a real sense of purpose behind what they do.  This can be on a personal level, such as an appreciation that they and the organisation have them on a career path (as opposed to just doing a day job) or it can be feeling that they are part of a bigger plan and that their values are aligned with the vision and ethics of the business.

 

Never mind Kate Moss’s vain boast that “nothing tastes as good as skinny feels” - I know firsthand that the best feeling in the world is achieving something you feel proud of with other like-minded people.  Organisations with the highest engagement scores are ones where empowered employees, united with concurring colleagues, work in an environment that inspires them and where they are passionate about attaining shared goals.  The power of having a collective common vision of what could and should be done can be extraordinary. I have co-founded a couple of highly successful businesses, one of which recently held a well-attended a reunion to celebrate a decade since its inception.  Without exception all of us nostalgic alumni who attended said that it had been “the best place we had ever worked at”.  When we analysed why, we agreed that it was because of the shared

• sense of pride,
• ownership,
• knowledge of what each of us was doing to enable the bigger plan to be achieved. 

We worked hard (really hard at times), but we knew why and we were proud of what we were doing - we each felt part of a team that were changing the world and building a better future.  How great is that?  It will make an inspiring tale to tell the grandchildren (when/if I have some and I have finally slowed down a bit).

 

Humans have traditionally used stories to raise awareness and spread ideas and/or values, as well as to engender a sense of community amongst groups of people.  Increasingly within the business environment we are telling stories to engender a sense of pride in our organisations and to showcase what we and colleagues have achieved.  Many companies now host regular awards for the people who are “stars in our eyes”, “helpful heroes” and “Gems” who Go the Extra Mile.  The tales of their accomplishments are publicised, often videoed and shared.  Stories are potent – they help us learn; we use them from an early age as a lens through which to interpret the world.  Powerful concepts are depicted in traditional fairy tales, including good and evil, the basis of human relationships and the commercial ways of the world.  Many universals and scientifically grounded truths can be found in tales and legends (for example, there are sound psychological and evolutionary reasons as to why step mothers are often “wicked” and, as the disappearance of Megan Stammers and her married maths teacher Jeremy Forrest perhaps testifies – one should never underestimate the power of a pretty face). 

 

Amongst the most influential Western fairy stories are the Grimms’ Fairy Tales which are celebrating the 200^th anniversary since their first publication.  (You might be interested to know that The Brothers Grimm’s book “Children’s’ and Household Tales” is the second best-selling book in the German language after the Bible.) 



Original 1812 Frontispiece



Many of us have been delighted by these traditional fairy tales, when told to us as children – admittedly Disney has given us sanitised versions of Cinderella, Snow White and Rapunzel, as compared to the originals published by Jacob and Wilhelm Grimm, but, regardless of the version, the main strands of the stories are familiar to many of us and have provided swathes of society around the globe with a shared culture and outlook.  Leading global authors, such as Sir Terry Pratchett, Angela Carter and Philip Pullman, admit to drawing upon familiar stories, such as those compiled by the Grimm brothers, using them a familiar shortcut to aid comprehension in their own tales.  Stories can shed light on the past as well as potentially illuminating a path for our futures and they are often well founded.  Scientists have found genetic and psychological reasons for why step mothers are often wicked and evolutionary competition encourages tricksters.  I like the fact that similar stories are often replicated across cultures, for example, many societies have tales about a blacksmith with magical powers (he also is often handicapped) and accounts of a “Great Flood”. 

 

As an aside (whilst on the subject of “Great Floods”) - also in the news this week is the fact that scientists have reviewed almost two decades of satellite data to create a new map that depicts changes and trends in sea levels.  In general, the oceans are rising (by an average of 3mm per annum), but it is a complex picture with significant regional differences (such as an average rise of 10mm around the Philippines) and more information is needed before definite conclusions can be drawn.

 

As Richard Ward the Chief Executive of Lloyds of London (the heart of the global insurance market), commented on the radio this morning, we have seen a significant change in weather patterns over the past fifteen years.  We are in a state of change and flux.

Monmouth Flood 1607

How often do organisations reassess what drives employees?  Like those coping with sea levels and climate, businesses are experiencing significant challenges within a changeable environment and this impacts their people.  I suspect that one of the reasons why traditional surveys are showing a marked decline in employee engagement is because we are no longer asking the right questions.  We need to make pertinent enquiries that strike a chord with the respondents.  As the world changes, so do individuals’ expectations and motivations; what was right a decade ago may not be so apt now.  Increasingly people want to know not just what they should do, but how they should do it and why.  Integrity matters, values are required to ensure that value can be made and sustained. Enough meaningless hot air!  We need to decide between the merits of projects and aspirations (in other words to choose between our own forms of balloons or scanners) and spread the word to ensure that what we do appeals to those we require to work with us to create the future.  You need a good and true story to attract, inspire and retain stars.