Recruiting new employees should feel like a relief. Fresh perspectives, new possibilities, and more balanced workloads. Although, if you’ve ever done recruiting, you probably know that it rarely works out that way.
What begins as an exciting endeavor to seek out that person whose presence will restore order to your over-encumbered and frantically busy team becomes a long, draining, slog of an effort.
Guest article written by Deidre Paknad
Two-thirds of corporate recruiters say their organization has a difficult time managing millennials and a similar number of executives give millennials low grades for work preparedness according to Deloitte – alarming because they comprise a third of the workforce. While it’s common to call them out as “different” or “difficult,” they may not be either of those things.
In 2013, CEB research found that 86% of organizations had recently made significant changes to their performance management system, or were planning to. In 2014, a Deloitte survey found that 58% percent of companies surveyed did not think performance management was an effective use of time, and many media outlets jumped on the opportunity to air their grievances.
Remember when your mom told you, “If you can’t say something nice, don’t say anything at all?” Turns out, there’s a lot of merit to that advice.
No one likes a complainer. When you show up to work and try your best to add value while being as positive as possible, the resident Debby Downer of the workplace can instantly turn your best intentions into another bad day.
Having to tolerate a perpetual complainer in the workplace has many downsides, not only for you but for the rest of the team. Here’s how.
It amazes me how many executives are knuckle-draggers. A knuckle-dragger, for purposes of this conversation, is someone who is unintelligent (or makes unintelligent decisions) and is stuck in the past, promoting and using antiquated and ineffective methods.
This is the person who is still wandering out of his/her cave with a club in search of something to knock in the head and eat for dinner. There isn’t a lot of thought that goes into a knuckle-dragger’s actions. In an office environment, it is the executive that screams at people when they make mistakes. Or a C-Suite that performs mass layoffs.
Yep, I said it. If you do mass layoffs, you are a knuckle-dragger.
According to CNBC, in January of this year, layoffs surged to a 6 month high. Over 75,000 planned job cuts by US-based companies were announced last month. That’s 200% more than December, and 42% higher than this time last year. Two of the major contributors are Wal-Mart and Macy’s, cutting 16,000 and 4,820 respectively.
People try to justify mass layoffs by talking about the good of the company, looking out for shareholders, blah, blah, blah. Here’s what they don’t tell you: They are laying off people because of their failure. Simply put, most executives rely on mass layoffs to compensate for their inability to lead properly and make the right decisions.
A great example is Al Dunlap, aka “Chainsaw Al.” He was famous for downsizing. Everyone thought his methods caused companies to become successful by “cutting the fat.” However, what people didn’t realize was his turnarounds were elaborate frauds. When Sunbeam brought him in to solve their financial issues, he downsized. Sunbeam went bankrupt, and he was caught trying to engineer an accounting scandal.
The simple truth is that downsizing and mass layoffs are BAD for your company. They will give you an uptick in profits at the end of the year if done at the proper time, but they are not a viable long term solution. In fact, in the long term they are detrimental to the sustainability of your company. Here are four myths and realities about layoffs:
Improving Productivity
Downsizing and mass layoffs are thought to improve the productivity of the organization. It supposedly motivates employees (which we will talk about later), consolidates resources, and makes the organization leaner.
But the simple truth is that organizations aren’t any more productive after a mass layoff than they were before it. The budget sheet looks better because there are less expenses, but productivity doesn’t increase. In fact, studies show you are likely to see a drop in productivity in the short and long term. Here’s why: When an organization has a mass layoff, they usually don’t determine who are the talent players (often because the people making the decision have no idea who they are laying off). So they choose some metric, and get rid of people using that.
Because they are only measuring performance based on a single factor, they get rid of both talented and untalented employees. The result is a smaller workforce, not a more productive one. Often mass layoffs cause employees to look for work elsewhere. Would you want to work where you could get laid off any minute? Usually, the better employees get hired at other places and leave. Once this happens, the level of talent at your organization actually decreases.
Motivating the Workforce
Downsizing and mass layoffs are thought by some to motivate employees. They don’t motivate, they distract. Think about it. When a company has a mass layoff, it causes widespread uncertainty and fear. Every employee wonders if they are the next to go. While they might work a bit harder for a short time, they are constantly worried about losing their job.
At best, mass layoffs motivate your most talented employees to look for jobs elsewhere.
Solving Financial Issues
Many people think mass layoffs will solve an organization’s financial problems. But rather than actually solving the problem that caused the budget shortfall, layoffs are usually used to offset it. An organization fires a large amount of people to help their budget and then, as things seem to get better, they hire all these people back until they are in the same spot they were in to begin with. 3-5 years later, they have to have another mass layoff. The cycle repeats itself.
In addition, studies show that layoffs actually drag down a company’s stock value.
Making the Company Stronger
There is this perception that mass layoffs make companies stronger. They don’t. Usually, its because they don’t solve the root of the problem. The problems might even be making the layoff decisions.
Other than some major external factors shifting without warning, the failures that lead to a mass layoff are the responsibility of the C-Suite. And in the end, it is the failure of company leadership that causes mass layoffs. Sadly, they often don’t see it and aren’t held accountable. Instead, they hold others accountable for their failure in leadership and decision making.
It saddens me how many executives think mass layoffs are a viable option. To be fair, in some rare cases they are, but not usually. Yet, we have created a business culture that says it is just another way of doing business. But the ways of doing business are changing, and mass layoffs are more of a detriment to your organization than ever before.
Think about millennials, for example. We constantly hear companies complain that the millennials don’t want to work for them, or are more concerned with personal gain than their loyalty to the company. I’ve heard many business executives shake their heads, tsk and complain about this behavior. Guess what, knuckle-draggers? You caused it. Who’d want to be loyal to a company when mass layoffs are a just another way of doing business?
Financially, layoffs reduce stock prices. They reduce productivity and cause a need for payouts in severance, plus the cost of rehiring employees as business improves. They cause a burden on the tax payers because of the increase in unemployment recipients. They make people wary of working there, have a severe negative effect on employee health, and often leave the organization with a less capable workforce in the long run.
So, with the overwhelming amount of evidence about the detrimental effects of mass layoffs, why do they still do it? How do we get the knuckle-draggers to put down the clubs, become leaders, and make better decisions?
There I was, sitting in a conference room with my client, the Chief Human Resources Officer (CHRO) of a large, San Francisco-based company. I wasn’t quite sure what I was getting myself into. I had been onsite supporting an unrelated project when my client asked me to join her in a meeting with another consulting firm to review the results of the company’s recent employee engagement survey.
Last year, Deloitte released some startling statistics about leadership development in their 2015 Human Capital Trends Report. According to their global survey, 50 percent of respondents rated their leadership shortfalls as “very important.” Yet only 6 percent of organizations believe their leadership pipeline is “very ready”—pointing to a staggering capability gap.
This capability gap will only widen if organizations don’t make leadership development a priority. So, how can organizations get back on track in 2016?
Leadership development is a fairly common phrase in business. Most professionals understand and appreciate leadership development for its intangible benefits: growing our cadre of business leaders, improving our workforce, developing core skills such as communication and management. It’s all those things, AND it’s more.
Understanding how leadership development provides a positive return on investment is critical in establishing and sustaining an effective program.
There are three core areas through which leadership development can affect your bottom line:
1. Setting/executing corporate goals. Providing skill development for leaders in the area of both setting and executing corporate goals is a foundational component of their development.
Emerging leaders in an organization are counted on to become champions and contributors to organizational planning. They will be the guiding forces within business units or departments to see those plans are executed. Over time, these emerging leaders will direct the planning at the highest levels. Because of this evolving set of expectations, providing these individuals with a proper tool set is paramount.
The investment up front for personnel to develop their skills in strategic planning, business planning and related actions will provide a return on investment in both the short and long terms. In the short term, they help direct the goal execution in a more efficient (read: cost minimizing) way. In the long term, they will take their knowledge and expertise to make the key decisions that directly affect the bottom line.
2. Getting the best from individuals and teams. The second impact to the bottom line relates to these developing leaders getting the very best results from the individuals and teams they lead. Through skill development in the areas of communication, management, coaching, emotional intelligence, presence, and others – leaders will be able to more effectively redirect their personnel’s ineffective approaches.
A leader can better motivate an individual by being actively present on-site, in a very supportive and approachable manner. A leader can make significant contributions to individual performance because of a refined set of skills as a coach. Knowing and working with team members who have different levels of emotional intelligence could provide difference-making insights.
All these outcomes provide stimulus for greater efficiency, time savings, cost savings and profitability.
3. Driving accountability. Finally, leadership development supports more effective levels of accountability. First, the leader is held accountable in having an active stake in the business, as one of the key contributors to organizational goals. Additionally, these leaders provide an improved approach to driving accountability for the individuals and teams they manage. And improved levels of accountability leads to improved results in terms of financial outcomes.
While the intangible benefits of leadership development have grown increasingly visible to organizations, the return on investment has not received as much attention. Understanding the ways in which your financial investment intentionally leads to improved performance helps reinforce the importance of the leadership development. It also makes a direct impact on the dollar signs that your stakeholders find important.
The growing interest in employee benefits has hit a fevered pitch this year. Many large organizations like Netflix, Microsoft, and Facebook have all recently enhanced their benefits packages. Others, like Gravity Payments, made a splash in the headlines with news of higher wages across the board.
As a result, I’ve had plenty of fodder for recent articles on the topics of interesting employee benefits programs, as well as the potential dangers of companies attempting to “keep up with the Joneses” with sometimes outrageous offerings.
Don’t get me wrong; extending additional benefits to employees is a wonderful thing. The danger, in my opinion, has more to do with the why behind these efforts and the selection of which benefits to extend versus others.
The question that I often ask my clients is why are they looking at extending additional benefits to employees? Is it because the rest of the world seems to be doing it? Is it because you’re trying to keep up with your competitors?
Julia Gometz, author of the book, The Brandful Workforce: How Employees Can Make, Not Break Your Brand, suggests that a company’s benefits offerings define a brand. “If you focus on salaries then you will attract people who are motivated by that. People who apply to work at your organization make their decision based on what you are offering and if it aligns to what they are looking for. Not everyone is looking for the same type of offering and it’s the organization’s responsibility to seek out the types of people they want and figure out what motivates them,” Gometz says.
Rather than simply keeping up with your competitors, benefits should help attract and retain the right talent and help your employees succeed in their roles with your company.
Companies that clearly align their benefits package to the values of both their employees and the organization are better positioned to succeed in today’s competitive landscape.
I recently had an opportunity to spend some time with the leaders at Hilton Worldwide, an organization that is taking a thoughtful approach to employee benefits. I asked them about several benefits changes being implemented across their corporate offices and corporate-owned and operated properties.
Matt Schuyler, Chief Human Resources Officer at Hilton Worldwide says, “In the hospitality industry, we believe that it all starts with culture. Our team members join Hilton because they love to please others. It’s our job to ensure that we take care of our people so they are empowered to take care of our guests.”
The first major benefits changes instituted by Hilton is the January 2016 roll out of extended parental leave benefits to fathers and adoptive parents. In January, new fathers will be eligible for two full weeks per child. Additionally, the company’s existing maternity leave will be extended for an additional eight weeks (to a total of ten weeks of fully paid leave per child).
The second benefits expansion announced by Hilton was the roll out of a new GED assistance program to all full-time, US-based staff of corporately owned and operated properties. In a partnership with the Council for Adult and Experiential Learning (CAEL) Hilton will provide one-on-one GED preparation and advisement services, as well as test preparation.
“It’s tough for many adults to go back to school and to commit to getting their GED”, says Mark Crowley, Director of Internal Communications. “For many of our hourly team members, the achievement of obtaining a GED can help them not only continue to develop themselves, but it can unlock additional professional opportunities for them both within the Hilton organization and beyond.”
In an effort to provide employees of corporately-owned properties increased ability to plan their lives, Hilton also instituted a ten-day schedule guarantee. This commitment meant that employees no longer had to plan their lives around very short notice work scheduling. Instead, they now see their schedule with enough advance time to effectively schedule the rest of their personal commitments and plans.
These benefits will positively impact thousands of Hilton Worldwide employees across the country by providing them with additional support in both their family lives and their personal development. But it’s important to understand how these benefits came about.
Rather than being the brainchild of an HR staffer in subbasement D, Hilton’s leaders took the time to understand the unique values and needs of their employee base in order to craft enhanced benefits that actually mean something to them.
Using both data analytics and personal interaction and insight, Hilton’s leaders were able to gain a clear understanding of employees’ needs and struggles. This allowed them to be intentional with their employee benefits, as opposed to chasing the latest fad or the latest perk that their competitors just announced.
In the hospitality industry, the experience is everything. If hospitality brands are able to create an internal culture that models their values and their desired customer experience, they are much better positioned to drive long-term customer satisfaction and loyalty. Hilton’s Schuyler describes his organization as desiring to attract and retain talented team members who love what they do. “If you love what you do, it shows.”
Culture is evidenced in your product. And in this transparent world, it shows. Julia Gometz explained that, “Brandful companies have figured out how to merge the culture with the organizational brand. They cannot be spoken about separately and those organizations who isolate the customer from the employee experience will fall behind.”
Schuyler adds, “There is a lot of copycatting going on in the benefits space. We’ve consciously rejected this approach. What works at Netflix won’t work for us.” Hilton’s efforts to gain a true understanding of the needs and values of their employees in order to provide meaningful benefits speaks to the power of being intentional and aligning benefits packages to support and reinforce the deeper values of the organization.
This article originally appeared on Forbes
Guest Article Written By Kristy Sundjaja
Reward and recognition programs have a tendency to get on auto pilot, with a few star employees and top sales people lauded by management the same time every year as crystal trophies collect on a handful of desks. But as a new breed of employee enters the workforce—one the values rewards and recognition for a job well done—companies are starting to turning to these programs as a way to keep their entire staff satisfied, motivated and productive.
For LivePerson, a leading provider of digital engagement, we’ve looked to reward and recognition programs as one way to keep our 1,200 employees invested in not only their own success, but that of the company. And we’re not the only ones that are investing heavily into programs like this. Nearly 75% of companies have some kind of program in place.
However, after an internal employee survey conducted in 2013 uncovered that LivePerson employees weren’t satisfied with the current methods of recognition, we knew we had to rethink this critical element of the employee journey.
The first step in redesigning our recognition program was to look to our mission of creating meaningful connections, and our values of being and owner and helping others. Using those established ideals, we created a reward and recognition program, the Outstanding Employee Awards, that served to recognize our employees. This program also brought them closer together through the peer-to-peer nomination style while shedding light on the behaviors of our most successful employees. The results were phenomenal. We had almost 600 nominations from across our company, an engagement rate that more than doubled our goal. And not only did the winners feel great, but their peer nominators felt involved and heard as well.
Here are some ways that you can use your company’s culture to establish a strong program to reward and recognize your employees and involve everyone, not just a select few “usual suspects”:
Encourage peer-to-peer recognition. Employees are the ones that see the day-to-day success and accomplishments of their peers — especially those who are behind the scenes and might not have lots of public exposure. It not only inspires more connection and collaboration among employees, but colleague recognition can make a bigger impact than manager recognition (not to mention it’s 35% more likely to have an financial impact than manager recognition).
Involve a community aspect. Millennials want more than just a job that pays the bills. Instead, they are looking for purpose and expect the companies they work for to give back to the community in one way or another. Including a volunteer day is an easy way to make employees feel good about themselves and their company.
Connect them with leadership. In large, global companies especially, employees can feel pretty disconnected from the executive team. A chance to spend some time with them outside of the office can go a long way to making an employee feel special.
Give them a break. In this digital era, employees tend to work around the clock, even on what should be a stress-free vacation. This can lead to serious work fatigue, so encourage them to shut down the laptops, stay off their emails for a few days, and get some R&R.
Look past cliché team activities. Bringing your employees together for a day of fun is a great way to connect them, especially if your company, like LivePerson, believes that true innovation comes from collaboration. Encourage team or group activities that they wouldn’t normally do, but be sure to look past the ‘team building’ trust falls and look to more unique experiences that bring them closer together. And you may just uncover some hidden skills and talents that could be beneficial to the whole company.
Above all, stay true to your culture. Before your company launches into a reward and recognition program thinking that it’s the way to reboot unmotivated employees, it’s important to keep in mind how a program like this would fit into your own company’s culture.
Do you have other ideas that have worked to reward and recognize your employees? Please share!
Kristy Sundjaja is Chief of Staff and Global Head of People at LivePerson, the global leader in intelligent online consumer engagement. In her role, Kristy integrates and aligns business and people strategies to deliver the company mission of creating meaningful connections to consumers and brands. LivePerson currently employs 1,200 people in 13 locations around the world
The holidays are officially upon us! It’s a season of giving, gratitude, and spending time with those who matter most to us.
This is a perfect time to give thanks to your customers and your employees for all the work they’ve done over the last year, but some organizations today still miss the opportunity to give their team something meaningful during the holidays.
How can you show your gratitude to your team this holiday season? We asked our team to share their thoughts and ideas around holiday giving. Here’s what they had to say:
Chelsea Weber – OD InternAt one of my early jobs, I had a boss who, a few days before December 25th, left gift bags on each of her team members’ chairs. Mine was a big bag, but it did not have anything expensive in it. Instead, it was a mix of good books and trinkets that would help me in my next chapter as a United States Peace Corps volunteer. The books were used, and the trinkets were more humorous than useful. The note that accompanied the bag highlighted a couple of specific strengths she had noticed in my work and wished me luck on my journey ahead.
Each and every item in that bag told me something loud and clear: that she had been listening, and that she cared about my success. I knew I mattered.
As humans, we need to feel genuinely seen, and the holidays are a perfect time to give that gift. People respond positively to authenticity in leaders and can sense genuine interest. And part of showing that authenticity as a leader is to see your team members as individuals with specific traits and strengths. Showing employees they matter through personal touches and quiet nods to their individual talents, hopes, or interests creates a deeper connection that lasts far beyond the motivation generated by a one-time reward or a lavish party.
Add to your holiday celebrations this season by reaching out and thanking your employees for something they’ve contributed or giving them something that speaks to who they are.
Mark Emerson – General ManagerI think one of the best ways to thank employees is simply to give a handwritten note. It goes a long way by acknowledging the contribution throughout the year and sets the stage for the next year.
Gifts are always a nice idea and don’t have to be expensive. One company I worked for would send a gift basket to every employee for the holiday and then a gift card directly to the partner of the employee.
Having a company dinner is also always nice, but the logistics can get in the way sometimes and the cost can climb when you start adding in your employee’s partners (although it’s nice to meet them so you know who your co-workers are talking about around the office).
If the company can swing it, giving the time off between Christmas and New Year’s is probably one of the best gifts – it gives everyone time to enjoy the holidays and reset for the next year, and truthfully, much doesn’t get done during this time for most companies anyhow.
Claire Taylor – AssociateWhen I think about employers showing their appreciation for their employees during the holiday season (or any season, for that matter), I think how they do it matters even more than what they do.
A sincere ‘thank you’ will always be more valuable than one given out of obligation. When someone takes the time to choose or plan something that fits the occasion or the person, the show of appreciation becomes as much about the intent as the actual item or event.
When organizations are thinking about saying thanks to their employees, they should approach the situation similarly. Organizational culture can help give insight into what would be most appreciated by employees at large. There may be several options that would resonate as meaningful with employees. Depending on the company, they may even be able to say thank you in more than one way (e.g., a holiday party plus a holiday gift) or let employees choose from a few options (e.g., select a holiday gift or an event to attend from several option) to maximize their chances that a particular action or item will resonate with each employee.
Even if the organization is not in a position to host exciting events or present lavish gifts, they can still sincerely express their gratitude. In many cases, the simplest gestures are the most meaningful, especially during the time of year that many struggle to slow down and appreciate the spirit of the season.
Shawn Overcast – Managing DirectorRecently, a colleague (read more from Jonathan here) shared with me a framework for thinking about one of our client organizations, and the cultural implications they were experiencing. This framework, known as The Golden Circle, was created by Simon Sinek in an effort to reframe how leaders should think and communicate about their organization.
Leaders who are most inspirational communicate differently. Most communicate from the outside in – What, How, and then maybe Why. We start with what is most tangible. Inspired leaders think, act, communicate from the inside out. Instead of what we do…how we do it…and then the call to action, inspired leaders communicate what we believe…the way we do it…and then what we do and the call for action. Why focuses not on making money, but on the purpose, belief or cause for existence. Sinek explains that ‘people don’t buy what you do, they buy why you do it.’
Some of our clients have found ways to excel at communicating strategic direction and intent, some at driving customer loyalty, and others have mastered operational efficiency and reliability. Yet, they may struggle with communicating to their customer, and to their employee population why the organization exists.
While it is critical we define this at the organizational level, it is also imperative that we define this at the individual level. Why do my employees exist on my team, in our company? The answer is not simply to make money. There is a reason you chose him or her. Today, we consider the topic of creative ways to acknowledge the individuals in your organization, and help them to recognize their value and purpose for being a contributing member of your team.
Tip #1. Get personal. Recognize each employee as an individual, not just for showing up and doing their job. Not even for doing their job exceptionally well. Recognize that one thing he or she contributes in a way that no one else does. Acknowledge those things that would be missed, that bring personal significance to you as the leader, and to the members of the team.
Speaking of the team…this recognition can go a long way in helping you build – or sustain – a high performing team. In The Wisdom of Teams, Jon Katzenbach and Douglas Smith, define high performing teams in part by members’ strong personal commitment to the growth and success of each team member of the team as a whole.
Tip #2. Go broad. It’seasy,and typical for those highest performers to get recognition. They do good work – consistently – that results in big impact for the company. Think for a moment about your last trip to the dentist. If you’re a high performer (or high achiever), you likely received kudos for good flossing behavior. For those of us who might not receive such praise and recognition, we might have been given a pass. You don’t have to floss all of your teeth, just the ones you want to keep. If the thought of recognizing each employee becomes overwhelming, keep this motto in mind.
We all need to feel appreciated and valued by others. That recognition can serve to validate, to motivate, or to elevate our performance, regardless of where we are today.
Tip #3. Create opportunities. It’s great to take advantage of the time of year to start these habits of recognition. But let this be the gift that keeps giving. Establish a culture of gratitude.There are many research studies being funded on the topic of gratitude, and the findings are consistent. Psychologists Robert Emmons of U.C. Davis and Michael McCullough of the University of Miami have found that practicing gratitude can actually improve our emotional and physical well-being.
Gratitude matters. It impacts our self-esteem, our quality of sleep, our physical health, our psychological health, our stress levels, and even our ability to establish longer-term relationships, according to a 2014 study published in Emotion. Happy and healthy employees means happy and healthy client relationships.
As those of us in the United States prepare to celebrate Thanksgiving, we give pause and reflect on what we’re most grateful for. I am grateful for my friends and family, and the diversity of perspective they help me to find. I am grateful to my colleagues for inspiring me to up my game, by continually upping theirs. And I’m grateful to you, our readers, for taking the time to engage…and for sharing your thoughts and ideas in return!
Creating and maintaining a high-performing organization is difficult. Learn how to make our expertise work for you.
