Management

Staying Off the ‘Naughty List’ Is a Growing Concern for HR Leaders
By
Apr 2, 2019 - 1:32pm
Staying Off the ‘Naughty List’ Is a Growing Concern for HR Leaders
Antonio Guillem/Shutterstock

For many years, business publications and research organizations have put out “best employer” lists, ranking organizations based on their employees’ reported job satisfaction, the quantity and quality of their benefits, learning opportunities, and other selling points of the employee experience. These lists offer employers an opportunity to earn some good press and burnish their employer brand, and can be particularly valuable in helping lesser-known companies get their names out there and compete for talent with their higher-profile peers. These lists are typically opt-in: Employers that have good stories to tell submit their information, the top ten or 20 of them get a brand boost, and the rest don’t need to tell anyone they didn’t make the cut.

With more information about organizations’ talent policies becoming publicly available, these lists have evolved to draw on new sources of information and to focus on issues of increasing importance to employees today, like diversity and inclusion or corporate social responsibility. Glassdoor, for example, puts out an annual list of best places to work based on employee ratings and reviews, while Forbes and the activist investment firm Just Capital have begun publishing a “Just 100” ranking of the most socially responsible publicly-traded companies in the US and Bloomberg’s Gender Equality Index highlights companies that are investing in gender equality. The proliferation of best-of lists, however, has led to diminishing returns in their reputational value: Our research at Gartner has found that only 7 percent of candidates say being on one of these lists was an important factor for them in deciding whether to accept an offer from an employer.

The Lists Organizations Don’t Want to Be On

At the same time as the value of a spot on the nice list is waning, a growing trove of publicly available data has led to the emergence of new lists on which employers didn’t ask to be included. Some of these are extensive indices that identify both the best and the worst, like FertilityIQ’s Family Builder Workplace Index, which ranks employers based on the generosity of their fertility benefits. In some rankings, even the best-scoring companies are not great: Equileap recently published a special report on gender equality in the S&P 100, in which the highest grade was a B+. Furthermore, investors, governments, and media outlets have begun to compile what we might call “naughty lists” of companies that are not living up to expectations in terms of fairness, inclusion, transparency, or social responsibility — and you really don’t want to see your organization’s name on one of those.

These naughty lists tend to focus on gender pay equity, executive compensation, handling of sexual harassment claims, and the experiences of diverse employees. One recent, prominent example was a BuzzFeed report in November that pressed leading US tech companies on whether they required employees to resolve sexual harassment claims in private arbitration and called out those that did have such policies or declined to answer (Ironically, the reporters also discovered that BuzzFeed had a mandatory arbitration policy itself). The publication of this report prompted several companies to announce changes in their policies.

Read more

Diversity & Inclusion • Management • Recruiting • Rewards //  • • • • • • • • •

Changes Are Coming: How to Stay Ahead of Workplace Disruptions
By
Mar 19, 2019 - 4:00pm
Changes Are Coming: How to Stay Ahead of Workplace Disruptions
Shutterstock

When we think about the future of work, we often picture robots taking our jobs and a permanent end to the decreasingly popular 9-to-5. While changes as extreme as these may be coming at some point in the future, ongoing technological innovations are changing the future of work today, while subsequent disruptions will continue to shape our working lives tomorrow. Artificial intelligence (AI), robotics, machine learning, and other emerging technologies are already promising to fundamentally change how we work and what we need from our HR functions. The ongoing and upcoming waves of technological change will fundamentally disrupt the way work is done and who does it.

HR functions are starting to engage with these changes: Gartner research shows that one in four HR teams are already using or piloting AI in some form. However, only 10% of Chief HR Officers feel that they have an operational strategy to address the risks of automation. In order for HR to evolve, its leaders need to better understand the technology trends that affect the future of work. HR executives are now expected to evaluate the impact of these trends on their organization, both to leverage them in growing the business and to prepare the organization for the risks they pose.

So how do you proactively prepare for workplace disruptions instead of reactively lagging behind them? We reviewed how some of the most progressive organizations and HR leaders are tracking, assessing, and managing the implications of upcoming technology trends on their employees and the work they do. From our research, we determined that HR leaders must focus on two key areas: identifying and anticipating business disruptions, and preparing for workforce transformation.

Read more

Management • Technology //  • • • •

With Brexit Uncertainty Looming, UK Businesses and Employees Lose Confidence in Economy
By
Mar 15, 2019 - 3:31pm
With Brexit Uncertainty Looming, UK Businesses and Employees Lose Confidence in Economy
Ink Drop/Shutterstock.com

The deadline for the UK to withdraw from the European Union is coming up in just two weeks, on March 29. This week, the UK Parliament voted against a deal negotiated between Prime Minister Theresa May’s government and EU leaders, against a no-deal Brexit, and in favor of delaying the Brexit date in order to buy additional time to figure out a solution. Any delay will require the consent of the 27 remaining EU countries, which is not guaranteed, and even with more time, legislators will still face the same tough choices.

As the clock counts down to the deadline, Brexit has created a lot of uncertainty for UK organizations and their employees, especially workers from other EU countries whose future status is up in the air. This uncertainty has done significant damage to UK employees’ confidence in the business environment, Gartner’s latest Global Talent Monitor report indicates:

Employee confidence in the UK business environment has slumped, according to Gartner, Inc. The latest data in Gartner’s Global Talent Monitor report for 4Q18 shows employee confidence in near-term business conditions and long-term economic prospects reaching an index score of 55.6, a decline of 7.5 per cent from an index score of 60.09 in 3Q18. These results follow a worldwide trend that has seen global business confidence sink to its lowest point since the fourth quarter of 2017.

This lapse in confidence was paired with a sharp decline in employees’ active job seeking behavior, which fell by 7.2 per cent from 3Q18. Amid declining perceptions of the job market, coupled with the highly uncertain Brexit outlook, employees’ intent to stay in their current jobs in 4Q18 increased for the first time in 2018, as did their willingness to go above and beyond in their present roles.

UK employers are staring down the uncertainty of Brexit in the context of a tight talent market in which it has become exceptionally challenging to fill critical skills gaps. The Global Talent Monitor data from the final quarter of last year suggests that talent attraction will be a major challenge for employers this year, regardless of what happens with Brexit, as employees take a more pessimistic view of the job market and become more averse to the risks inherent in changing jobs. (Gartner for HR Leaders clients can see all the latest data from our Global Talent Monitor here.)

Uncertainty is a key factor — perhaps the key factor — driving the Brexit panic, as illustrated by the Decision Maker Panel, a survey of 7,500 UK business executives that researchers from the Bank of England, University of Nottingham, and Stanford University have been running regularly to gauge the impact of Brexit on companies. Writing at the Harvard Business Review, the researchers ascribe declines in investment, employment, and productivity to Brexit-related uncertainty:

Read more

Management • News • Recruiting //  • • • • • • • • • •

Goldman Sachs Adopts a More Flexible Dress Code
By
Mar 6, 2019 - 3:29pm
Goldman Sachs Adopts a More Flexible Dress Code
Piotr Swat/Shutterstock.com

In an announcement that went out on Tuesday to the roughly 36,000 staff of Goldman Sachs, the bank’s new CEO David Solomon, CFO Stephen Scherr, and COO John Waldron indicated that employees would now have more flexibility in deciding what to wear to work, joining a growing number of financial and professional services firms that have embraced less formal dress codes:

Given our firm philosophy and the changing nature of workplaces generally in favor of a more casual environment, we believe this is the right time to move to a firmwide flexible dress code. Goldman Sachs has a broad and diverse client base around the world, and we want all of our clients to feel comfortable with and confident in our team, so please dress in a manner that is consistent with your clients’ expectations.

Of course, casual dress is not appropriate every day and for every interaction and we trust you will consistently exercise good judgment in this regard. All of us know what is and is not appropriate for the workplace. We hope this approach will provide flexibility for our people and create a welcoming environment for all.

The trend of “white-shoe” firms going business casual took its last big step forward in the summer of 2016, when JPMorgan Chase and PwC both relaxed their policies. Reuters characterizes Goldman Sachs’ decision to follow suit as “a move once considered unimaginable for the Wall Street firm’s leagues of monk-shoed partners and bankers in bespoke suits”:

Historically known as a white-shoe investment bank, Goldman Sachs traditionally required formal business attire. But since 2017, the bank began relaxing its dress code for employees in the technology division and other new digital businesses. This created a divide in the workforce as clear as denim versus pinstripes.

Read more

Diversity & Inclusion • Management • News //  • • •

Feeling Trapped: Can HR Leaders Take On a Toxic Culture?
By and
Feb 25, 2019 - 2:21pm
Feeling Trapped: Can HR Leaders Take On a Toxic Culture?
Shutterstock

Culture is having a moment in the sun. In our analysis of earnings calls, Gartner discovered that culture was the most frequently discussed talent issue in 2017, while mentions of the word increased 12 percent from the previous year. When we discuss culture change with HR leaders, their objective is usually to align the culture to changing business models or strategies, in order to accelerate and improve the outcomes of those transformations. A culture challenge is often phrased as: “We need to be more innovative,” or “we’re not as inclusive as we could be.”

But recent events have prompted another set of conversations on what to do when you find yourself in a culture that requires not just an adjustment, but a true overhaul. Many companies have recently faced public scrutiny for possessing workplace environments deemed “toxic”—in terms of enabling sexual harassment, bullying, discrimination, or other forms of unethical conduct. Over the past two years, we’ve seen several high-profile organizations undergo significant organizational restructuring to address this issue. In the #MeToo era, as the corporate world engages in a long-overdue reckoning with sexism and sexual harassment, more of these toxic workplace cultures are sure to be uncovered.

When we talk about a “toxic” culture here, we mean something more than just a low-performing culture demonstrated by low employee engagement, siloed workstreams, or high turnover. Those issues are worth addressing, but cultural toxicity is higher stakes. Toxic cultures engender malevolent harassment or corrupt business practices, protect the perpetrators of these toxic behaviors, and create an unsafe environment for employees, permeated with fear and anxiety. While the symptoms may vary, toxic cultures can directly and acutely damage a business’ reputation, profits, and employer brand, while doing real harm to employees and their careers along the way.

Many HR leaders have walked into a new position, only to find themselves in a deeply toxic culture, and wondered what’s next. Of course, since the door is right there, many of these leaders give feedback with their feet, understandably unwilling to fight a force as large and as nebulous as culture. On the other hand, fixing a toxic culture is one of most powerful and positive legacies an HR leader can achieve, in terms of both employee welfare and the health of the organization.

Before leaving a culturally toxic organization behind, HR leaders should determine whether there is an opportunity to partner with relevant stakeholders and address this problem. Here are some steps you, as an HR leader, can consider:

Read more

Diversity & Inclusion • Management //  • • •

Does Hermes’ Union Deal Predict the Future of Gig Economy Workers’ Rights in the UK?
By
Feb 21, 2019 - 1:41pm
Does Hermes’ Union Deal Predict the Future of Gig Economy Workers’ Rights in the UK?
Cineberg/Shutterstock.com

In a deal reached earlier this month with one of the UK’s largest trade unions, the courier company Hermes is offering its self-employed drivers the option to obtain some of the rights enjoyed by regular employees, including a guaranteed minimum wage and holiday pay, the Guardian reported:

Under the agreement with the GMB union, Hermes’ 15,000 drivers will continue to be self-employed but can opt into contracts with better rights. The deal comes after almost 200 Hermes couriers won the right to be recognised as “workers” at an employment tribunal last summer in a case backed by the GMB. Under employment law, “workers” are guaranteed rights including holiday pay, the legal minimum wage, minimum rest breaks and protection against unlawful discrimination.

The GMB has been active in advocating for the rights of British workers in the gig economy, also backing similar labor tribunal cases against other companies operating on an independent contractor model, including Uber, which lost a landmark case in 2016. Other British unions and union federations have also supported claims regarding the rights of gig economy workers, with tribunals ruling in favor of the workers in most of these cases. The settlement reached this month means that Hermes will drop its planned appeal against the ruling last year, while the GMB will refrain from pursuing further litigation against the company.

The “worker” classification in UK employment law defines a space between employees and the self-employed, but the tests for classifying workers as such are primarily defined by case law and increasingly unclear as technological shifts have brought about changes in the way people work. The Taylor Review of modern working practices recommended in its 2017 report that the government relabel “workers” as “dependent contractors,” write a clearer definition of this category into law, and make it the default status for companies that have a self-employed workforce above a certain size. The government said last year that it would adopt most of the review’s recommendations, but did not commit to writing this “worker by default” model into law.

Yvonne Gallagher, A partner at the London-based law firm Harbottle and Lewis, commented to Personnel Today that the Hermes deal would raise some questions about these drivers’ tax and national insurance obligations:

Read more

Management • News //  • • • • • • • •

How Can an Employer Incentivize Social Responsibility?
By
Feb 15, 2019 - 2:34pm
How Can an Employer Incentivize Social Responsibility?
Jacob Lund

At an all-company meeting last week, Facebook CEO Mark Zuckerberg announced that the company was retooling its employee bonus system to reflect a new set of priorities, focused on addressing the controversies surrounding the social media giant concerning the proliferation of hate speech and misinformation on its platform. In addition to traditional metrics like user growth and product quality, Facebook will reward employees this year based on their success at promoting the social good including combating fake accounts, protecting users’ safety, and making progress on other social issues affected by Facebook and the internet in general.

The decision to reward employees for doing social good reflects a challenge that many companies, particularly large corporations with major public profiles, are facing today. Investors, politicians, the media, and consumers are paying more attention than ever before to the social, environmental, and ethical consequences of what businesses do. And Facebook is not alone in this desire, for example, Chevron recently announced that it would tie executive compensation to reductions in the energy corporation’s greenhouse gas emissions. This dynamic, in turn, puts more pressure on corporate leaders to deliver sustainability and social responsibility as well as growth.

For Facebook, awarding bonuses to employees for meeting social responsibility goals will inevitably test the company’s ability to live up to two truisms: “actions speak louder than words,” and “what gets measured gets done.” To the first point, companies can articulate all the values they want, but at the end of the quarter or fiscal year, what matters is whether the organization actually lived up to those values in its day-to-day business practices. We’ve seen companies attempt to project an image of social responsibility, only to get called out for not really reflecting that image in their work. The impact of Facebook’s new policy will take time to fully materialize, but when it pays out bonuses for 2019, investors and reporters will be curious to see whether they have really rewarded the kind of choices they say they intend to, and whether those rewards reflect a real change.

As to the second point, Facebook has set itself an ambitious goal of identifying quantifiable metrics by which to determine progress against its goals of social good. Facebook has acknowledged that there is no easy or obvious formula for doing this, but they are looking at targets like number of fake accounts shut down daily or improvements to safety and security as possible metrics. Being a data-driven company, Facebook will likely get more granular and detailed about how it defines success, especially with both the media and governments paying closer and closer attention.

Here are four things that any company considering a similar change should be ready to do to make it more likely that an incentive program like this will be successful:

Read more

Management • Rewards //  • • • • • • • •