Let’s talk leadership – a journey that doesn’t have a final destination

Author: Andrea Stevenson

The working environment has become ever more complex in recent years and now, more than ever, leaders in organisations need to be stepping up to the plate. In a world that has thrown a lot at us over the last few years, now is the time, more than ever, for leaders to step up to the plate and shine.

People are needing leadership. I’m not talking about top-down control. I’m talking about the kind of leadership that brings out the best in the team, espouses high performance, is visionary, motivating, inspiring and empowering. Yes most leaders are not delivering on these aspects of leaders. Even more concerning is that a reported 60%* of all first-time managers do not receive any sort of leadership development training, according to the Centre for Creative Leadership.

It’s no wonder many leaders are flailing.

So what defines a good leader?

A good leader is defined by the ability to build a high-performing team. Leadership should be evaluated by the team’s performance. A good leader plays the critical role of influencing the team and their actions towards a common goal. Leadership is visionary, but it is also relationship-driven – a balance of establishing direction and vision with investing in the formation and building up of those relationships.

A common error is the assumption that because someone is technically good in their role, they’ll make a good leader. Leaders need to recognise that what got them ‘here’, won’t get them ‘there’. The traits that have worked for them to date and helped them succeed can, in many cases, be the very traits that get in the way of leading effectively (e.g. being detail attentive is now micromanaging).

The first step Leadership is a journey. We are never there (if you think you are, then you are most definitely not). There is always something to learn and improve on. The foundation of good leadership is self-awareness. This requires leaders to be acutely aware of their strengths and their flip side (and every strength has a flip side), of their motivations, values, blind spots, unconscious biases and behaviours under pressure.

When it comes to leadership, how we think we might be performing is somewhat irrelevant – what matters is how others experience us. Diagnostic tools can progress an insight process, be it through profiling or 360 Surveys that reference specific leadership competencies as can 1:1 coaching. These can be affronting but they provide valuable insight into one’s developmental needs. Without this awareness, any type of change behaviour will not be achieved. The nature-nurture debate is relevant to leadership. Some personality traits have a natural predisposition towards leadership, but it is also true that any good leader can learn and apply the skills. Think like an athlete – top athletes know what skills they need, are meticulous in reviewing their performance and they practice what is required. It is an intentional approach to:

1. Learn the skills

2. Develop the qualities

3. Practice the actions

Leading the team

Traditionally, leading strategy and leading culture have been seen as two different things. However, the two are inextricably linked and getting alignment is critical. Leadership coach Gordon J Curphy’s Rocket Model framework for building high performing teams is a useful starting point. Being in the Rocket requires an understanding of the context you are operating in first – considering key stakeholders, the stage of the team (e.g. new, broken, virtual etc.), and economic realities etc. From there, a leader can develop a map for determining mission/vision, talent, operating rhythms, motivation and resourcing through to results. At the core, trust is a primary factor. If this is not the foundation then high performance is unlikely to follow.

From there, clarify the difference between leading from the front versus leading from behind and know how these differ. Understanding that and getting the balance right is important, and not over-doing either.

It’s the balance of establishing vision and setting expectations, through to seeking input, asking questions, listening and having team members take the lead. Jim Collins, in his book Good to Great, identified leadership as a critical success factor. He found that leaders in high-performing organisations had two things in common – humility and persistent drive. These two traits are a nice descriptor of leading from the front and behind. Curphy also refers to a third factor – being comfortable in the sheriff role – being ultimately responsible for holding team members accountable. And yes, this includes managing under-performers and being skilled in healthy conflict.

Situational Leadership (see the work of Blanchard and Hersey) is about adapting your leadership style/response to each unique situation or task to meet the needs of the team or team members.

It requires leaders to change “hats” at times, shifting between being directional through to supporting, delegating and coaching. “Before you are a leader, success is all about growing yourself. When you become a leader, success is all about growing others.” Jack Welch, Jack Welch Management Institute

AI, while a great tool, is not the solution to developing “soft skills” in leaders. Nor will a one-off training day turn one’s leadership on its head. Development of leadership skills is a journey. It takes time, practice and commitment. It takes building of trust. It takes putting yourself out there. It takes being intentional on everything. Above all it takes practice. And you are never really there. My challenge to leaders for the year – be intentional. May this be your year!

For assistance with human resources initiatives including teams, leadership, investigations or facilitated meetings, please contact hr-consulting-hawkesbay@bakertillysr.nz

The beauty of a well-run meeting

Well-run meetings are an amazing thing but when poorly executed, they can be extremely frustrating. Meetings are a key touchpoint for our teams, and they provide an overt and visual display of our leadership. However, few people feel they are time well spent.

Meetings are often poorly planned and ineffective and get in the way of work done. Research suggests that 50 percent of meetings are unnecessary, so let’s look at how to get the most out of them.

The value of the meeting

Meetings are indispensable to both organisational and team success. Research shows organisations that hold meetings outperform those that don’t, and leadership teams that hold them in times of challenges or change notably outperform those that don’t. Well-run meetings increase collaboration and psychological safety. They are also correlated with general work satisfaction (likewise poor ones with dissatisfaction).

This isn’t about banning them – it’s about doing them better.

Is a meeting needed?

The first step is to decide if a meeting is needed. It is often an automatic reflex to accept a meeting invite without first checking its relevance to us. Reportedly, the worst meetings are those that purely exist to disseminate information. Rather, an email, shared documents or webinar/video should be used for status updates. Meetings should be about resolution, brainstorming, decision-making and approvals or creating ideas. Purpose Each meeting needs a purpose and outcome statement. Part of the role of leading is to let participants know why they are there – Why are you having the meeting and what do you want to achieve before attendees leave?

The purpose should refer to a result, for example, “Business Review” as a title doesn’t focus on outcomes. Add a verb/action word to the purpose – “make a decision…” or “develop a plan of action…” or “decide top three actions for …”.

Are the right people in the room?

It is suggested that 10-15% of meeting participants are not usually necessary. When considering the purpose and desired outcome, ask yourself, who needs to attend to deliver on this? You’ll save time and improve meeting performance if you only include people who need to attend. From there, a balanced contribution from all participants tends to correlate with better performance – if a topic only relates to two people, take it out of the meeting.

Is the timeframe right?

Parkinson’s Law states that work expands to the time allotted for.

If you schedule an hour, your meeting will comfortably swell out to the hour. Shortening meetings will often allow for more focused and productive meetings. This is why we have seen the rise of the 10-minute huddle, the 18-minute team meeting and 50-minute meeting (instead of the standard one hour).

Planning is key

All eyes are on you as the meeting lead and the team will clearly see if you are not prepared (including use of technology). Be purposeful, thinking beforehand about what you want to accomplish with your agenda and being careful of covering too many things. Prior assignment of certain tasks such as note-taking, chairing, sorting visuals etc is helpful. Having documents ready (not preparing them on the day!) and sending out any preparatory information helps keep things moving. Preparing questions for team engagement and active input is also useful.

The meeting

Referring to your purpose is a powerful way to calibrate the first 40 seconds: “The purpose of today’s meeting is to…”. From there, the fundamental focus is to drive discussion that leads to an action or decision. You may opt to start with a connecting chit-chat, especially if you have decided that connection is a purpose. Celebrating wins is also useful to set the tone of the meeting – it’s easy to go to the problem and miss an opportunity to allow some positive energy in the room. Thereafter you can delve into your purpose and agenda. Outcomes and ownership should be a priority, summarising all agreed-upon actions in the final 10 minutes and ensuring these are recorded. Michael Hyatt of No-Fail Meetings promotes a meeting format of AEIO – Achievement, Expectations, Issues, Outcomes, which can be useful to follow. Finally, start and end on time.

Engaging participants

The leader is responsible for creating active engagement. Tricks can include keeping meetings small (four to six participants), using open-ended questions, co-creating using flipcharts and whiteboards, engaging different senses using colour, variety and movement (sitting still moves us to a passive state), and thinking about room layout: Make the room match the process i.e. theatre vs round table. Hyatt suggests a useful strategy for leaders is to “hold your counsel” – which requires us to pause and stay quiet to get the group sharing before a leader weighs in. Distractions such as side conversations, phones and laptops should be managed from the outset by setting clear expectations. Lastly, stay on topic. As a final thought, it is good to periodically check in with your team as to how meetings are going and what would make them better. Getting your meetings right can be a work in progress, but it’s worth the time and effort.

For more advice like this, contact your local Baker Tilly Staples Rodway HR leadership specialist.

Celebrate your people and team successes

Let’s Celebrate! In the face of inflationary pressures, interest rate rises, cyclones and uncertainty, it is challenging to rise out of the mire and celebrate the good in our organisations and people. Too often it’s the loudest voice, the trickiest staff member or the latest crisis that takes all our time, attention, and energy.

If morale ever really needed a boost, it is now! It is therefore timely to reflect on how we celebrate the wins and the good performance in our organisations. Unfortunately, it seems a natural and accepted Kiwi trait to not sing praises. We are stingy or subtle with our “thank-yous” and praise and are risking becoming a “thankless” work culture.

A recent HR Trends 2023 survey suggests that more than a quarter of employees believe that they aren’t rewarded or recognised for good work. This statistic is surprising in the tight talent market where finding skilled people is such a challenge. Employers should be pulling out all stops to keep team members motivated and engaged.

Moreover, in a world where New Zealand now sits at the bottom of the OECD in terms of productivity, keeping high-performing teams and employees motivated and recognised needs to become a priority.

Why Celebrate?

According to Gallup, both meaningful public and private recognition are bigger motivational perks than being given a promotion, bonus or raise.

Evidence also suggests that employees feel encouraged to do better work if they receive personal recognition and people who feel recognised are more than twice as likely to innovate and bring forward ideas. It also has a strong correlation with retention. There is also now strong scientific evidence behind the benefits of giving gratitude – it increases happiness, reduces depression, increases resilience and it has proven health benefits such as lower blood pressure and better sleep. Gratitude rewires our brains and it kickstarts the production of dopamine and serotonin, our feel-good hormones – effectively it’s an antidepressant.

So let’s Celebrate… Great leaders take the time to notice and reward great work, but we need to celebrate more than just a job well done or a project completed. Celebrate what you value – look to a situation well handled, organisational values demonstrated, a significant first, courageousness demonstrated, truly exceptional work, consistently good work done, when someone made a difference to someone else, or even a major mistake or failure where it revealed a key learning (see TedTalk The unexpected benefit of Celebrating Failure).

How to Celebrate…

 

 

 

 

 

 

 

 

Say “thank you”! It’s free and it feels great for all concerned.

✓ Start meetings with a quick acknowledgment of wins or achievements.

✓ Build a feedback culture. Don’t wait for an annual review – have regular one-on-ones with team members. The same equation for negative feedback works well for positive feedback and makes it more meaningful (see the accompanying diagram for more detail).

✓ Create platforms for crowd-sourced feedback and celebration. A shared platform allows leaders to hear great stories they may not know about.

✓ Invest in development – it acknowledges a person’s value and is a key retention strategy. Your high performers should have a tailored development plan that is revisited regularly and includes a range of development initiatives from mentoring, coaching, shadowing and secondments through to more traditional training programmes.

✓ Encourage the innovation and input of high performers
by increasing responsibility and autonomy as a means of investing in development.

✓ Have some fun. Our staff spin a wheel to win prizes after various achievements. This can include serious and fun prizes.

✓ Take a break – celebrate during the workday with short breaks as a team – summer ice-creams in our office are a big hit.

✓ Use social media to share success stories.

✓ Move after-work events into the workday. There is a major shift in workplace culture where employees no longer want to use their after-hours time for workplace events as it impedes on time with family, friends or recharging. Use lunch breaks or finish work slightly early for a celebratory social occasion.

✓ Lastly, if it’s all about the bottom line in your organisation, then now is the time to put bonus structures or profit share schemes in place.

All of this points to being more considered in your approach. Its more than just having a programme, but sometimes having one in place will mean you are active and conscious about your initiatives. A final word to the wise – don’t overdo it. Good recognition should be natural and authentic.

For assistance with human resources initiatives including teams, leadership, investigations or facilitated meetings, please contact hr-consulting-hawkesbay@bakertillysr.nz

People Planning for a Year that is not business as usual

It was anticipated as a year of positivity, business as usual and moving on, but 2023 so far has not been what Hawke’s Bay expected.

From a people and business perspective, managing through a disaster creates additional issues to navigate. Resilient Organisations, a research and consultancy group, classify the stages of looking after staff in a major disaster into four areas – planning for your people, responding to the situation, rebuilding a better future and leadership.

The Dichotomy

The impacts from the cyclone appear to be a dichotomy – those affected and those not. There is now potentially a third category – those presented with an opportunity in the rebuild. Employers successfully navigated the first weeks after the cyclone and (from what we have seen) supported staff through that first week. It is worth noting, however, that just like the Christchurch earthquake, the six-week mark can be tough – the novelty has worn off, adrenaline is no longer flowing, and the rest of the world seems to be moving on. If some of your staff “hit a wall” at this point, you are not alone. WorkSafe are currently emphasising a focus on mentally healthy workplaces with the expectation that employers proactively manage mental health as part of their health and safety management plan. For staff that are notably impacted, keep this in mind.

The Downside

There are some sad stories emerging where a small number of impacted businesses will need to downscale for a time
or cease operations altogether. While there has been a natural disaster, employers are still required to follow through on contractual obligations. As such, any changes to their people’s working arrangements and restructures need to
be supported by the right conversations, processes and documentation. This will require some short and longer-term planning. Disestablishing positions requires a robust process and considerations to individual employment agreements, legislation and procedural correctness is required. It is advisable to seek advice from an HR consultant or employment lawyer to get this process right.

Leadership

Building confidence in leadership during times like this is important. Likewise, leaders need to instil confidence. The recent report on the Auckland response to the January flooding highlights this. Visibility in leadership in times like this is important. Amid COVID-19, business confidence has dissipated. We have seen leadership and team dynamics fraying and resilience and agility has been tested. Guide your leaders through change and build their capabilities to manage issues. Coaching and leadership development is a great investment right now.

The Upside

There are others for whom the rebuild poses great opportunity. Certain industries will need key skills on the ground floor and also in key technical roles such as engineering. When talent has already been difficult to source, having a clear strategy for finding the right staff will be vital. Having a good Talent Strategy will provide a set of plans and initiatives to attract, develop and retain quality people, and assists in identifying skills and capabilities required to achieve organisational goals and programmes to develop your people. If your business is trying to pivot, you will need new skills and potentially some people who are different to those you’ve have hired before. You will need to plan for this.

Your Talent Strategy

Five components you should feature in your strategy:

Attracting great employees requires identifying specifically your EVP (Employee Value Proposition), Analysing the candidate experience as a litmus test – would a great candidate who came a close second for the job give you a positive rating for your recruitment process and refer a friend to you? Measure your Return On Investment in your process, even just the basics – how long to fill the vacancy, where did we advertise, how much did it cost, which channel did the quality candidates apply through and, after six months in the job, were they a good or bad hire? Good data enables us to continuously improve what we do. The definition of success is also shifting for employees. Beyond just job title and pay, looking to find a balance in hours worked, organisational culture, mental and physical health, development and progression, and job satisfaction will help retain and attract talent.

For assistance with human resources initiatives including teams, leadership, investigations or facilitated meetings, please contact hr-consulting-hawkesbay@bakertillysr.nz

What to do when there’s a fraction too much friction

As we head into a new year it is timely to reflect on 2022 as you plan your our human resources considerations for 2023.

Talent sourcing was an ongoing challenge in 2022, but employers seem to have successfully revisited their talent acquisition strategies and practices, and are now shifting focus to workforce planning, resetting teams via team development and managing any friction. For 2023, setting a clear vision, engaging and developing staff, and building a culture that retains high performers will be important. However, one of the flipsides for employers is the need to carefully navigate workplace relationship challenges that have emerged over the past two years.

It’s fair to say that employers and employees alike are experiencing an overarching sense of wariness. Tolerance levels are frayed and various tension and conflicts are surfacing. It is important for employers, front-line supervisors and team leads to be acutely aware of the required processes around the conversations that need to occur.

Neuroscience has found the old adage ‘you can’t teach an old dog new tricks’ is incorrect. Our brains have a lot of plasticity and as such people can change their thinking and approach. Ensure clear expectations are set (clarity is kind!) and give feedback, albeit appropriately, to create awareness around your concerns. Great feedback has five components – the context, the behaviour, its impact and what needs to be different, and then check for input from the receiver.

Today’s managers and leaders just about need to be psychologists to read people and situations then adapt their approach to suit. It requires a level of curiosity to ask yourself, “do I need to provide management, mentoring, coaching or inspiration?”. The answer to those four components will be a combination of two things – the employee’s skill (ability) and will (attitude). We call this The Skill/Will Matrix (an adaption of Hersey and Blanchard’s original situational leadership model):Managing scenarios in the bottom left quadrant can be tricky. Currently we are seeing a lot of employee-manager and employee-employee conflict in workplaces.

This can be difficult to journey through and needs careful management. The situation is often due to a series of misunderstandings or miscommunications that need to be tabled and unpacked. Using an independent facilitator is a great way to steer discussions towards resolution – it’s always better to not let these scenarios fester to the point where they need an
“ambulance at the bottom of the cliff” response.

It’s important that your front-line people understand the overarching principles of employment law, what can and can’t be said, and which processes need to be followed. A portion of the bottom quadrant may, however, need a more formal course of action.

It is useful to be aware that the processes differ for disciplinary issues (involving misconduct) and issues around performance (involving capability). Be wary of confusing the two. “Misconduct” and “Serious Misconduct” cover multiple things from absenteeism, not following instructions through to bullying and harassment.

These can be extremely sensitive subjects and any workplace investigation may require a Licensed Private Investigator. Licensed PIs ensure full understanding of the required legal processes, mitigate accusations of internal bias and assist employers in making their next decisions. If issues relate to performance, employees must be given sufficient opportunity to improve by way of a PIP (Performance Improvement Plan) with specific actions and timeframes.

Without this in place, employers should not proceed to disciplinary sanctions or exit conversations. Upskilling your leaders and frontline staff to help them provide  the right intervention for their people, be it in leadership, coaching, mentoring or having effective conversations as a manager (even when it’s tricky), will work towards a culture of accountability and clarity in 2023. For assistance with human resources initiatives, including teams, leadership, investigations or facilitated meetings, please contact hr-consulting-hawkesbay@bakertillysr.nz

Could your team be doing better?

Teams are a powerful asset for any organisation. However, unlike a sports team, we rarely spend time practicing being a team. While most organisations can acknowledge the positive impact of an effective team, particularly in leadership, few create a plan to make this happen. Looking at how your team is assembled and structured, how it functions, its strengths, blind spots and developmental requirements could be the single best thing you do for the success of your business this year.

Where to start 

If you are wanting to build a high performing team, its members need to know that this is their “primary team” and not a secondary one. Leaders often think their own team of direct reports is their primary team. However, their commitment and aligned focus must be to the primary team and its direction, goals, and strategy. This mindset will facilitate the breaking down of silos in an organisation.

It is also important to consider the size of the team. While leadership collaborations like to be inclusive, they can be too big to be effective. A team with more than ten members can suffer from efficiency, effectiveness and alignment problems, whereas smaller groups will ensure strong relationships, healthy debate and actioned decisions.

There is no algorithm for putting different people together in the complex roles required in a top team, so design and development are critical. If the CEO can successfully play the role of developer, the leadership team will function more effectively and members will learn to think differently, both individually and together.

Understanding the right mix of people in terms of skills, experience and personality is key to ensuring a productive team. Getting that wrong, even by just one individual, can have far reaching impacts. Too often, we promote people who are technically strong in their own roles but put little thought into a team’s collective capability.

Get the diagnosis right To improve performance, self-awareness is a must have for a team to develop effectively and master its strengths, potential fracture lines and know its blind spots and gaps, both individually and collectively. Likewise, the CEO/team leader needs to understand what makes members of the team tick individually and what makes them work (or not) as a group and talk openly about this to facilitate introspection and provide insights into behaviour, shared responses under pressure and unconscious bias.

Use of a diagnostic tool is helpful here. Options include assessment tools such as personality or a team 360 survey to provide a map and understanding of strengths and performance improvement areas.

Commonality versus diversity

Truly understanding the skills and characteristics needed for a cohesive team will ensure a balance of traits – too much commonality is not a good thing.

Diversity of thinking with different “hats’’ around the table is important. This will ensure that members complement one another and, when done well, it will create a high functioning team.

Teams typically focus on functional roles (our technical role as defined by the position title) but our “psychological roles” can be more impactful. This is the informal roles individuals gravitate towards based on their personality e.g. focus on results versus relationships, pragmatism or process versus innovation and change. A high preforming team has a balance of people in these roles. Too much of the same thing and the team can miss leading the organisation in the right direction.

Keys for a high performing team

Research by leadership specialists Winsborough found key characteristics that effective leadership teams have in common.

These included:

1: Focus – Having a shared and clear brief of objective and goals. As such, spend time and energy to establish vision and set the focus.

2: Development – Having a conscious reflection on the team’s performance and investing time in development and improvement to improving team dynamics.

3: Norms and decision making – Having a clear process for decisions with no hidden agendas – consensus among members is achieved via constructive debate.

4: Trust and healthy conflict – Teams that trust their colleagues and have some conflict is healthy. Often teams are conflict averse, but the ability to be transparent, give constructive feedback and address team dynamics is crucial for success. A good team will give opinions, debate issues and hold each other to account. Lack of conflict can lead to artificial harmony. In Patrick Lencioni’s work “The Five Dysfunctions of a Team”, a lack of conflict is found to be just as damaging on team morale as harsh and direct conflict. Remember, good conflict requires a foundation of trust and if this is lacking in your team, developing trust needs to be your starting point.

5: Contribution to team – By participating, holding up their end of the role and adding value, members can create a more effective leadership team. Lencioni refers to this as commitment followed by accountability.

Summary

Building and developing a team is a process that never ends. It requires ongoing commitment and investment of time and energy, but the advantages are great and the rewards are plentiful. If you want to know more about how to map and develop your team, please contact Andrea Stevenson. andrea.stevenson@bakertillysr.nz

Have we learned any recruitment lessons yet?

By Adam Caccioppoli, Associate – Baker Tilly Staples Rodway 

Many businesses seemingly have not changed their approach to recruiting talent, despite the almost constant noise from all industries about how hard it is to find the people their businesses need to grow and succeed.

Are we really going through the same old motions expecting a different result? Here are four things businesses could and should think about when it comes to talent, if they aren’t already:

Posting an advert is not enough in this job market, especially for in-demand skillsets.

According to data from Seek NZ, the average time to hire is now 50 days. That’s a long time! Sometimes the best candidates are passive – interested in their next great opportunity, but too busy achieving good things in their current role to be looking on job boards all the time. Businesses that are quickly managing to secure the best talent have proactive sourcing strategies to access and engage with the people they need, utilising a mix of approaches.

These include investment in dedicated internal recruitment resources, utilising recruitment tools such as LinkedIn Recruiter and recruitment agencies, and hiring people who fit their culture and values, then providing them with technical skill gap training where needed.

Your leaders are your secret weapon to accessing the best talent.

If you have amazing leaders in your business, great! People don’t quit a job, the saying goes – they quit a manager. The same lesson can be applied to attracting talent – more people choose a manager than the company. If you have great leaders in your business, they need to be front and centre in the recruitment process working alongside internal and external recruitment partners to come up with innovative ways to engage with the intended target audience.

Think long term – build sustainable talent pipelines.

It’s easy, especially in a talent-short market, to get caught up in spending your time, energy and resources to fill the vacancy you have right now and neglecting to think about future hiring. Wouldn’t it be great if the next time you recruit for a similar position you are not starting from scratch? Organisations that are winning the war on talent have strategies to build their employee value proposition (EVP) with their target audiences. Whether this is through regular networking (online or in person) with key industry groups and meet-ups or building talent pools using recruitment tools and partnerships with specialist recruitment agencies, the key is to do this on an ongoing basis so that you have warm leads to contact when you next have a vacancy.

Embrace a data-driven approach to drive better return on investment (ROI).

Businesses collect and analyse data, often to extreme levels of detail, to help inform decision making about which customers to target or what price a product should be, yet when it comes to recruitment it seems most organisations have little if any data. You should constantly measure key questions around your recruitment strategy.

Which channels have produced the most suitable applicants and ultimately the most successful employees?

Which channels are bringing the most engagement from good talent? What is your time to hire? Recruitment costs have doubled across New Zealand over the past year. How much have you spent on recruitment agencies in the past 12 months?

Having a system in place, whether it is a simple spreadsheet or a more sophisticated Applicant Tracking System (ATS) to collect accurate data that highlights how your business is going about recruitment, can be an important first step to identifying what your key

talent problems are and improving your ROI at the same time. For any talent acquisition support or strategizing about your approach to getting the best talent for your organisation or business, Adam can be contacted at adam.caccioppoli@bakertillysr.nz

The Employee Experience – Now is the time

A tight labour market, closed borders and now The Great Resignation (a term used to describe an unexpected side effect of the pandemic, where people are rethinking how to live their lives and what type of meaning and purpose they want out of work and life), the task of finding and keeping talent needed to operate in business right now is an overwhelming challenge.

Many employers either don’t know how to tackle the situation or have been distracted by other challenges the pandemic has posed, but now more than ever, employers have a unique opportunity to think more strategically about their people and attract and retain the talent they need to create a thriving postpandemic organisation.

Leadership with a Difference

To lead well during these times is not easy and requires some real thought to get it right. It requires re-imagining how you – the employer, lead and develop others, how you create strong teams, how you communicate and how you develop a positive workplace culture.

Employees are tired and they are looking for a revised sense of meaning and purpose and this requires great leadership. Be conscious about setting in place a vision of what you are trying to achieve and align everyday work to the vision and purpose. All work can be meaningful. Reframe tasks to connect to the larger purpose (remember the NASA janitor who, when asked, “what do you do?” answered “helping put a man on the moon”). Does it mean your people need a ‘calling’? No. But you can establish meaning by setting the vision, telling your story, and making the connection for them. Know what you stand for as an organisation (your values) and double down on culture.

What’s your EVP? Know your Employee Value Proposition.

Genuinely ask the question “Why would I work for your company instead of elsewhere?”. Understand what your employees are running from and what they gravitate to. Gain information from them – ask them – and utilise information sources such as exit interviews (best done by an independent party). There can be a lot of things at play here – remuneration yes, but also meaning, impact, job content, development opportunities, culture, team and life balance.

Employee Experience

Take time to consider the key touchpoints in your employees’ ‘lifecycle’ – these are the human aspects of work that can make a big difference and includes people processes such as:

  • Hiring
  • Onboarding
  • Development
  • Reward and recognition
  • Exit

Look at the social and interpersonal connections both spontaneous and formal to develop a sense of community. Review communication effectiveness and set in place meaningful interactions, not just transactions. Meetings are a classic connection point – when done correctly they pose an opportunity; know their purpose and do them well. Take a conscious look at how you engage your people, how can you enhance wellbeing and build a sense of team and create a strong organisational culture?

Time and again, engagement surveys show that staff development is a priority, so put in place development plans and mentoring programmes.

A Flexible Working Model

From an attraction and retention perspective, flexibility is a key selling point. Redesigning your work model is better than watching your investment walk out the door. Employees are looking for greater flexibility. A willingness to accept employees’ commitments and ensure they feel supported in doing what is important in their lives, will help employees feel strongly about their commitment to the organisation. A hybrid work model should be a serious consideration. However, do not underestimate the amount of structure needed for this to work well.

For those who’ve tried this without the right structures in place, it has been a disaster. It needs careful planning and design, an understanding of people’s personal situations and a balance of care that is offset with communicating personal responsibility and productivity along with a focus on outcomes rather than actions. It may also need a re-education of more traditional managers – a remote employee is not automatically less engaged or less communicative – don’t mistake physical presence for loyalty. It also needs the right digital communication platform to act as a main channel where information and conversation is captured for both remote and onsite workers.

My overarching point here is to keep your eye on the ball. Take some time and be strategic and about how things are done and change it up. As Thomas Jefferson once said, “If you want something you’ve never had, you must be willing to do something you’ve never done.

Is your business ready for changes to alert levels?

The last Alert Level 3 Lockdown in Auckland has once again shown that businesses need to be prepared, at short notice, to make to significant changes to the way they work if required to move to Alert Level 3, or 4.  As a result, it’s important to have a plan that you can put into action should this next occur.

An important part of this plan should focus on how you will, if necessary, seek agreement with staff on temporary changes to their employment terms and conditions.

During the lockdown in March, it became obvious that numerous employers were making decisions without first getting agreement with staff. The common situations included:

  • Automatically reducing salaries to 80% or lower, or to the $585 subsidy level – without employee agreement, and
  • Directing employees to take annual leave, leave in advance or leave without pay – without their agreement and without the 14 days’ notice required under the Holidays Act.

It was noted at the time, that irrespective of the disruption and confusion caused by COVID-19, many of these practices were illegal and it was widely expected that we would see these claims filter through to the Employment Relations Authority. We are starting to see the first of these cases appear [note: both of the below cases are being appealed].

Raggett & Ors v Eastern Bays Hospice Trust t/a Dove Hospice [2020] NZERA 266

In addition to providing hospice services, Dove Hospice also operates a number of retail shops that were closed due to the COVID-19 Lockdown.  Dove proposed restructuring the retail shop employees’ positions and invited feedback, which the employees gave.  Dove subsequently sent letters advising the employees’ positions would be disestablished with an eight week notice period.  The first four weeks would be paid at 80% of their wages and the second four weeks would be paid at the wage subsidy rate of $585.80.

The employees’ maintained they did not agree to be paid anything short of their normal wages and therefore Dove had breached the Wages Protection Act (WPA). Dove stated that due to COVID-19, the employees were not ready, willing and able to work, and therefore the WPA did not apply.

In this case the Authority found that:

  • If employees could not work due to a Lockdown, the employer must pay 100% of wages unless otherwise ‘agreed’.
  • There was no ability to only pay 80% of wages unilaterally.
  • The employer must fulfill its Employment Agreement obligations.

Sandhu vs Gate Gourmet NZ Ltd [2020] NZERA 259

Gate Gourmet provides inflight catering services and was therefore deemed an ‘essential service’.  Business had fallen sharply and the company proposed a partial shutdown of its operations.  The employees in question were all paid the minimum wage which was due to increase on 1 April.  The company decided that only those employees at work would be paid the new minimum wage, and believed that those who were not rostered should be paid 80% of the old minimum wage.  After some objection, the company agreed to apply the new minimum wage, but only at 80%.

The employees challenged this on the basis that 1) reducing wages required consent, and 2) the company failed to pay the minimum wage.

The Authority found that:

  • The minimum wage increase on 1 April 2020 must be paid even if the employee was not required to work, and
  • The company could not agree to pay 80% of wage rate if the employee was on the minimum wage.

While this might seem obvious now, during the confusion of the first few days of the March lockdown this was far from clear to many employers. While there is no doubt that employers were facing a unique situation, compliance with employment law should not be ignored.

To avoid this these issues arising it is important to note that all of your pre-COVID-19 employment obligations still exist – nothing has changed in this regard.  Importantly:

  • You cannot unilaterally make decisions regarding employees terms and conditions, including wages and hours of work.
  • Any agreed changes should be recorded in writing confirming that agreement.
  • If you cannot get agreement and need to reduce costs, you have the ability to restructure the positions in your business.

Thinking change? – get the process right

COVID-19 has caused many employers to consider making changes within their business. If you are a business owner who needs to downsize, or re-align to new market conditions, there’s an important process you need to follow if those changes have the potential to impact an employee’s employment, and while there’s a lot at stake for you, it’s just as important to consider the employee.

Plan and prepare:

Before embarking on any proposed changes, you should describe the genuine business reasons for the change in a clear and transparent manner. Even as a result of COVID-19, an employer needs to be able to describe the specific reason for the change, the problem you are trying to fix, and the outcomes you are hoping to achieve.

Develop a proposal:

The next step is to develop the proposal for change. Depending on the extent of the change, this could be in the form of an individual letter or a more comprehensive change proposal document. This should clearly describe the change being proposed, provide the potentially affected employees with access to information relevant to the proposed changes, and clearly set out how the employee(s) will be affected by
the change. The proposal should also set out the timeframes, how the employee can provide feedback and any support you will offer. If new positions are being proposed, or there is a reduction in the number of employees who hold the same position, you will need to clearly outline the proposed selection criteria for those positions.

Consultation:

Under the Employment Relations Act an employer is required
to consult with employees potentially affected by the proposed change, and allow them the opportunity to provide feedback on the proposal. Feedback could include any alternatives to the changes proposed.

Ideally, you should meet with each affected employee. This is an important discussion, so if you feel a bit nervous, prepare a script and follow that. Employees also find these discussions difficult and potentially upsetting, so should always be given the opportunity to have a support person or representative present.

Employees should then be given sufficient time to consider the proposal, seek independent advice if necessary, and provide

feedback on the proposal. There’s no fixed timeframe, but I generally recommend a minimum of five business days.

Once you have received the feedback, it’s important that you consider that feedback carefully, or any alternatives suggested. Often employees provide viable alternatives that you may not have considered or thought acceptable to the employee such as job sharing or reduced hours. You don’t have to accept everyone’s feedback or suggestions, but it’s important to show you have considered it.

Making the decision:

Once the consultation period is over and all feedback considered, the employer must decide what the final decision will look like. The final decision needs to be conveyed in person to each employee.

If an outcome is that an employee’s position is to be disestablished, you must comply with the terms and conditions of their employment agreement in regards to any redundancy entitlements or notice provisions. It’s also important to consider any opportunities for redeployment within the business.

Don’t undermine your brand:

While it’s important to get the process right from a legal perspective, it is also important to get the process right from
a humane perspective. Demonstrating genuine empathy during meetings, treating employee’s with respect and dignity, taking the time to meet individually with affected employees, being aware of the employee’s emotional state and being
able to respond appropriately to that, offering support or outplacement, allowing time off to attend job interviews or
to talk to professional advisors, considering requests for shortened or extended notice periods – all make this a better process for both the employee and the employer.

Businesses often spend years building their employer brand and recruiting the right people, don’t undo all that good work and good will by cutting corners through the change process.

This article deals with complex legal issues. If you are considering change management or restructuring, please seek specialist advice first.