FT EXECUTIVE APPOINTMENTS Employment Global Best Practice Friday February 26 2016 www.ft.com/reports | @ftreports

Inside

Younger staff want meaningful work Older workers relish volunteering opportunities, too Page 3 Rise in competition for best hires Falling working-age populations drive global mobility Page 6 Basic benefits are better received Tennis umpire uses unpaid leave scheme to officiate at Wimbledon Page 8

Time to manage the damage Stressful situations call for empathetic company leaders Page 8 Apps that tackle inbox overload Latest workplace technology made to avoid email’s failings

Page 10 Illustration: Mario Wagner

Happy workers do the job Freelance USA Americans embrace Employee satisfaction has a positive impact on productivity, but how to achieve it? Page 2 the gig economy Page 11 2 | FTReports FINANCIAL TIMES Friday 26 February 2016 FINANCIAL TIMES Friday 26 February 2016 FTReports | 3 Employment Global Best Practice Employment Global Best Practice

Management Teamwork and collaboration are consistently linked to increases in innovation, writes Tim Smedley Workplace volunteering makes sound business sense

When Mr Bulloch and his team practical terms? An inspiring mission Philanthropy were developing the programme, statementisnolongerenough. their research showed that it was the One way of engaging employees is There is more to most talented executives who were to offer them opportunities to volun- charitable efforts than interestedinit. teer while at work. And rather than Mr Bulloch is not alone in believing sending staff out to paint a school or serving in soup kitchens, thedesireforasenseofpurposemoti- serve in a soup kitchen, this increas- writes Sarah Murray vates both younger and more senior ingly means allowing executives to employees. “I do think it is longer use their skills to help non-profits or A “sense of meaning” was among the lasting,” says Nancy McGaw, deputy communityorganisations. top factors that respondents to the director of the Aspen Institute’sBusi- Ms Lawson advises companies to 2016 Deloitte Millennial Survey said ness and Society Programme. “The involve staff from the earliest stages they used when assessing job oppor- millennialshavegivensomelanguage ofavolunteeringinitiative. tunities,excludingsalary. to it, but we’ve all wanted meaning in “A top-down directive isn’t the With only 16 per cent of respond- ourwork.” most effective way to engage them,” ents intending to be still with their Jenny Lawson agrees. “Millennials she says. ‘It’s about getting employee current employer in 10 years’ time, are just demanding the kind of work- support and input in designing pro- companies hoping to retain talented place we wanted all along but didn’t grammes.” workers are searching for ways to feel empowered enough to ask for,” In the long run, companies benefit, meetthisaspiration. says Ms Lawson, who is executive too.“Leadershiptraining,cross-team Thosebornbetween1981and1997, director of the Corporate Institute at activity, getting people out of their known as millennials, make more Points of Light, which helps compa- silos — all those skills come along than a third of the US workforce, nies develop employee volunteer when companies engage in volun- according to the Pew Research programmes. teering,”saysMsLawson. Center. Companies around the world Ms McGaw has seen this motiva- A growing number of business are looking for ways to attract and tion at work in the Aspen Institute’s leadersappeartohaverecognisedthe retainthem. First Movers Fellowship programme, value of this. Of the companies Some interpret younger workers’ which she founded in 2009. The pro- tracked by the Committee Encourag- response to this and other surveys as gramme helps executives find the ing Corporate Philanthropy, an Happy workplaces a youthful desire to change the world support and networks they need to organisation of chief executives, 51 that will fade with age and experi- implement ideas that promote social per cent made pro bono opportuni- ence. Since recession and rising prop- or environmental sustainability in ties available to their employees in erty prices have put wealth and asset theircompanies. 2014,upfrom40percentin2012. accumulation out of reach for many She argues that encouraging Butwhileskills-basedvolunteering are the building in this generation, pursuing meaning employees to pursue these projects is a powerful engagement tool, Ms may have become the necessary McGaw argues that companies will alternative. Nancy McGaw: needtodomore. ButGibBulloch,whountilrecently Millennials have “Corporate volunteering is just the headed Accenture Development given some tip of the iceberg,”she says. “We talk language to it, blocks of success Partnerships (ADP), a non-profit but we’ve all with people doing leadership devel- arm of the global consultancy, has wanted meaning opment and they’re looking for ways noticed a more fundamental shift in in our work to produce services and management the workplace. “There’s a change in practices that are designed to create ompanies with a reputa- One of the most comprehensive the company is very productive but Empowerment: chief executive strengthsintheteam.Helpingpeople model has become “an archetype”. company, has a flat management thezeitgeist,”hesays. helps companies attract and retain long-termvaluetosociety.” tion for strong employee studies on the topic is Gallup’s 2012 does not maintain satisfaction at Jorgen Vig Knudstorp sees feel like they are the future of the He adds: “The Netflix values include structure. Layers of management are TheADPprogrammeallowsexecu- the most talented employees, which This suggests that companies need engagement and creating research of 192 organisations in 49 work then in a few years perform- employee engagement as organisation and helping them do management that is about ‘context, effectively stripped out, leaving only tives to work overseas, mainly in ultimately benefits the business. to go beyond providing volunteering ahappyworkplacegener- industries and 34 countries, covering ancewilldrop.” vital to Lego’s success whattheydobest.” not control’, creating the right envi- the employees, a cadre of team lead- developing countries, on consulting “There’s an emerging understanding opportunities and making philan- C ate good publicity and 50,000 business units and 1.4m But many employers have yet to Martin Dam Kristensen/epa/Corbis Teamwork and collaboration are ronment that inspires people, that ers and the executive team. WL projects that help charities increase of the relationship between engage- thropic community investments. cachet for their chief executives. But employees. It found that business cottonon.Employeeengagementand consistently linked to increases in provides direction and transparency Gore’s 10,000-plus employees are theirefficiency. ment and purpose and profitability,” They may also have to examine the these companies are finding that divisions scoring in the top half of happiness at work is in decline. Sepa- innovation and discretionary effort, — as opposed to top-down decision divided into self-managing teams of Executives take a pay cut of up to shesays. natureofthebusinessitself. whatmakesagreatemployercanalso reported employee engagement had rate studies by the Conference Board, shaping how some companies now making, approvals processes and eight to 12 people who set their own 50% of their salary, which is paid by But if giving employees a sense of “This has to influence business leadtobusinesssuccess. nearly double the performance out- Gallup and Quantum Workplace think about reward packages. “You committees.” work and pay. Staff also to elect the Accenture, while charities pay ADP a purpose is good for business, what strategy,”says Mr Bulloch. “It’sabout In fact, the link between employee comes compared with those in the foundthatemployeeengagementhas must be very careful with reward and Lego,theDanishtoymanufacturer, company’schiefexecutive. feethatgoestowardsthiscost. does this mean for companies in balancingprofitwithpurpose.” attitudes and business performance bottomhalf. been falling for the past decade or bonuses,”says Mr Morieux, “because also credits employee empowerment What does this say, then, for the has been known for decades. A series The authors concluded: “Financial more. Mr Morieux attributes this to a if the bonus is very significant then as central to its success. The Lego future of managers? Yves Duhalde- of influential experiments from the performanceisbestviewedasadown- “proliferation of cumbersome proc- your goal becomes to earn the bonus. group chief executive, Jorgen Vig borde, director of organisational sur- 1930s,knownastheHawthornestud- stream outcome . . . Employees with esses, systems, scorecards, metrics, And then you will do everything you Knudstorp,iswidelyquotedassaying veys and insights at consultants Tow- Contributors ies, showed the impact of improved positive attitudes toward their work- meetings — what I call ‘complicated- can to earn the bonus, including hid- “blame is not for failure, it is for fail- ers Watson, argues that managers — workplace environments on overall place are likely to carry those atti- ness’. People spend between 40 per ing, exaggerating and why not cheat- ingtohelportoaskforhelp”. the ones that are left, at least — actu- Hannah Murphy Lesley Uren For advertising details, contact: factory outputs. One finding was that tudesovertocustomersandtoengage cent and 60 per cent of their time ing? These strong incentives are Mr Morieux says: “When you use ally become even more important in Data journalist, World News Desk Management expert, PA Consulting Peres Kagbala, +44 (0)20 7873 4909, reducing the working day by half an in the discretionary effort it takes to wasting their time, working on less counterproductiveifyouwantpeople this principle it changes everything flatterstructures. email: [email protected], or your hoursawproductivityimprove. serve . . . atahighlevel.” andlessvalue-addedactivity.” toco-operate.” because suddenly it becomes in peo- “What people need from managers Maija Palmer Carola Hoyos usual FT representative. Later, James Worthy, a sociologist- Yves Morieux, director for the Bos- By contrast, best practice employ- Netflix, the digital broadcaster, ple’s interest to be as transparent as is not someone they get permission Digital and communities editor, Commissioning editor turned-executive, wrote in 1950 of ton Consulting Group’s Institute for ers are “turning the engagement pays only salary and not bonuses. It possible about their real weaknesses, from, but the person who coaches Special Reports All editorial content in this report is increased autonomy for employees Organization, believes the debate is process into a lot more than an allows staff to choose their working their real forecast, as opposed to hid- and gives meaningful feedback,” he Owen Walker produced by the FT. Our advertisers leading to improved morale and pro- now over. “Happy employees create annual event,” says Jim Harter, Gal- hours. ing or protecting themselves . . . The says. “Good people management is Maxine Boersma Editor have no influence over or prior sight ductivity. high-performing organisa- lup’s chief scientist for workplace If the bonus is very A seemingly dull set of 124 Power- way [Lego] describe it is, ‘don’t think key to having happy people in an Sophie Clowes of the articles. While some have argued that suc- tions . . . because there are more management and wellbeing. “They significant then your Point slides outlining Netflix’s less of yourself, but think of yourself organisation.” Sharmila Devi Steven Bird cessful companies make employees opportunities to satisfy their aspira- embed it in how people think about employment culture has become a less’. This is precisely to promote co- Thebestmanagersbuild“asenseof Sarah Murray Designer All FT Reports are available at: happy, not the other way round, aca- tions, job security, chance of promo- their day-to-day work . . . education goal becomes to earn surpriseviralhit,nowviewedcloseto operation.” trust and autonomy” in teams, adds Rhymer Rigby ft.com/reports demic studies have steadily discred- tion, career development [and] and training, development that the bonus 14mtimes. Lego, along with the likes of Google Mr Harter of Gallup. “Getting that Tim Smedley Alan Knox itedthisview. wages,”hesays.“Thatisobvious . . . if focuses on the natural talents and Mr Morieux believes the Netflix and WL Gore, a US manufacturing rightleadstohigherperformance.” Freelance journalists Picture editor Follow us on Twitter @ftreports 4 | FTReports FINANCIAL TIMES Friday 26 February 2016 FINANCIAL TIMES Friday 26 February 2016 FTReports | 5 Employment Global Best Practice Employment Global Best Practice ‘Move from hoarding to producing talent’ Great leaders possess unteachable flair

Q&A Greatertransparency environmentarebecoming formanagerstotrytoholdon leadingtoahighernumberof personneltheyneedforworldwide ageof17.AirViceMarshalTurner guy?Wouldyoubelievehim?’When David Plink aroundwiderorganisational increasinglyimportantfor totopperformers.Witha internalcandidatesforkey COMMENT operations,believesthatleadership believestheRAFcanspotpotential youseeyourselfinthislightyou CEO, Top Employers Institute opportunities—acrossroles The top global engagement,withthe broaderapproachtoemployee managerialroles. isnotinnate. earlyon. reallyunderstandtheemotional andborders—aswellasthe performers have availabilityofdevelopment developmentandagreater Subjectivemethodsarestill Lesley Uren “Youcangenuinelyhelppeople Soifleadershipcanbedeveloped impactyouarehavingonpeople.” Younger workers are possibilitiesofmobilityand opportunitiesbeing awarenessofthebenefitsof favouredbymostbusinesses developthemselves,teachthem andshapedfromayoungage,evenif Thismaymakesense,butitfeels allowingemployeestoswitch a stronger focus particularlycrucial.Restless mobility,managersare whenitcomestoevaluating aboutthestressesandstrainsof wedonotdefinitivelyunderstandits moreakintolearningthemechanics often more restless fromoneprojecttoanother, on the leadership workersareespecially movingawayfrombeing thesuccessofleadership leadershipfromayoungageandhelp genesis,whatarewetryingtoshape? ofleadershipratherthantheflair. alsohelpkeepyounger interestedinflexibility, talenthoarders,toplaying developmentprogrammes, themcontinuetolearnthroughout Whatmakesagreatleader? Trulygreatleadershaveavision workers. pipeline mobilityandthepossibilityof theirpartastalentproducers. resultinginasurprisinglylow Therearenodefinitivefindingstotell life,”hesays. LeadingneuroscientistBaroness andpassionthatcomesfrom Much is made of younger Thesepeoplearemorelikely diversityintheircareers. Thisalsoavoidsthenegative performancescoreforreturn uswhetherleadershipisinnateor Logicsuggeststhatifleadership SusanGreenfieldbelievesitiswrong somewhereelse—awillingnessto workers’ restless approach to tobeinterestedinbroader effectonmotivationthatcan oninvestmentandaslowly learned.Thelatestthinkingin wassimplyaninbornquality,thenall todescribeleadershipasa“skill”.To maketheirvoiceheard,oftenwhen their careers. What are the careerperspectives,andthese Are these employers taking becausedbyalackof improvingoneforbusiness neurosciencesuggestsnatureand peoplewhopossessthenecessary her,itismoreofa“mindset,a confrontedwithopposition. most innovative employers initiativeshelpthemengage different approaches to developmentopportunities. performance. nurturearesoinextricablylinked traitswouldeventuallyfind disposition”.Muchofitisaboutthe Yetnooneseemstosuggestthiscan doing to attract and retain withthebusiness. mentoring and managing Mosttop-performing thattheycannotbeseparated. themselvesinleadershiproles.But wayindividualscommunicate. betaught.Indeed,almostallparties millennials? Careerpreferencesarealso younger workers? If so, what How are successful employers employershaveafocuson Butwhilesciencehasnotanswered thisisnotthecase.Leaderswho Thatmeansleadersneedamuch inthenature-nurturedebateappear Thereisarestlessnessamonga changing.Youngerworkers are they doing? using big data to identify measuringtheirdevelopment thequestion,practitionerswhohave shouldsucceedsometimesfail,often deeperunderstandingofhowthey toacceptthatthereareagiftedfew newgenerationofyounger arelesslikelytopursuepurely Careerandsuccession future leaders within their programmes. spenttheircareerssearchingfor becausetheywillnotchangewhen appeartoothers,amuchhigherlevel whoseflairisnotnecessarilygenetic, workerstogainvariedskills linearcareerprogression. managementismovingaway own organisation? However,theirleadership leadershippotentialinside theirsituationchanges.Thisismorea ofself-awareness. Born to rule? The RAF identifies butinsteadcomesfromacomplex andexperiences,whilethey Instead,theyarelookingfora frombeinganannualevent. Themainobjectivesof developmentprogrammesare organisationsaremuchmore learnedthananinnateresponse. Emotionalintelligence—whichis future leaders at a young age webofpersonalityfactors. alsotakeamorelateralviewof rangeofvariedand Instead,thebestemployers leadershipdevelopment anotableexceptionasthey convincedthatthequalitycanbe Alotofsuccessfulleadership theabilitytorecogniseotherpeople’s Soifwedonothavethetoolsto careerprogression. challengingwork,while areembracinganongoing programmesaretoimprove oftendonotusedatato developed. developmentactivityisabouthelping emotionsandusethatknowledgeto communicationskillscanbelearned. dissectleadershipandreally Weseethatemployersare keepingafocusonthe conversationalapproachwith boththequalityofleadership measurethem. TheUK’sRoyalAirForcehas individualsspottheirownstrengths. guidetheirbehaviour—iscriticalfor “Weareworkingalotonself- understanditsgenesis,wewillhave offeringtheiremployees— organisation’spurposeand managers,usingcoaching, andthestrengthofthe Whiletherehasbeenan spottedanddevelopedtalentfor FortheRAF,thisstartswithcadetsat theleaderofthefuture.Butisit perception,”hesays.“Oneofthe toacceptthatalthoughwecanlearn millennialsandothers—the mission. mentoringandgoalsettingas leadershippipeline. increaseintheuseofsome morethan100years.AirVice theageof12. possibletodevelopemotional exercisesIwasaskedtodowastolook toleadandmakethemostofwhatwe chancetotakegreater Factorssuchas partoftheirday-to-day Topglobalperformersare businessperformance MarshalAndrewTurner,whois TheAirCadets,theRAF’s40,000- intelligence? atavideoofmyselfspeakingwithout have,fewofuswillbegreatleaders. ownershipofboththeirown management interactionswiththeir differentiatingthemselvesby measures,therearelarge responsibleforensuringtheRAFand memberstrongorganisationfor12to GianlucaVentura,HRdirectorfor audioandthefacilitatorchallenged performanceandtheircareer style,jobdesign teams. havingastrongerfocusonthe differencesbetweenthebest thetechnicalarmsoftheBritish 20yearolds,runsformalleadership Africa,MiddleEast,AsiaandPacific metothinkaboutmybodylanguage LesleyUrenisheadofthetalent development. andworkplace Itisnolongerpossible leadershippipeline,whichis performersandtherest. armyandnavyhavetheskilled trainingcoursesforcadetsfromthe atVodafone,believesthese andaskedme:‘Wouldyoutrustthis managementpracticeatPAConsulting Coaching no longer the preserve of executives

employees and can be carried quarters (73 per cent) of the Training out by telephone or video con- 105 blue-chip organisations it ference. surveyed expect to increase Remote and group Thisreducestravelcostsand investment in coaching over sessions extend the increases convenience. It also thenexttwoyears. means that employees posted Much of this will be spent on benefits, says Maxine abroad can access coaching remote training as 42 per cent Boersma from accredited, high-quality of those surveyed say they fre- coaches. quentlyusetelephoneorvideo Samantha King, Standard coaching, up from 29 per cent Coaching has become a lucra- Chartered’s head of executive in2013. tiveindustryinrecentyears,as development,hasusedremote The report also predicts a 47 companies increasingly invest coaching to train employees in per cent increase in group in personal approaches to parts of the world where suita- coaching over the next two training. blecoachesarescarce. years. Unlike mentoring, coaching “Remote coaching enables But some doubt whether is a form of training that us to increase the scope and executive coaching is worth focuses on one specific per- consistency of our approach theincreasedinvestment. sonal or professional goal, across 71 countries and is a In 2014 Erik de Haan and rather than on overall per- Nadine Page of Ashridge Busi- sonaldevelopment. ness School in the UK studied The International Coach the effects of coaching and Federation, which has a mem- The proof of concluded that “outcome bership of close to 50,000 pro- research in coaching is devel- fessionals,estimatestheglobal effectiveness is yet oping, but the holy grail of coaching sector generates to be found executive coaching — proof of about$2bnayearinrevenue. effectivenessfromacontrolled However, coaching is no flexible way to offer global study—isyettobefound”. longer confined to one-on-one quality coaching to a diverse Thestudyreportedevidence discussions. It is just as likely community of leaders who that matching employees with to be delivered remotely or in would otherwise not have the right coach or colleague is groupsessions. accesstoit,”shesays. what determines successful Remote coaching is a more A forthcoming report by coaching, regardless of flexible way of extending the executive coaching provider whether it is delivered benefits to a wider group of Ridler shows that nearly three remotelyornot. 6 | FTReports FINANCIAL TIMES Friday 26 February 2016 Employment Global Best Practice Talent scarcity spurs global hunt

Mobility Policy- human resources adviser Total Countries compete for the world’s most talented workers Reward Solutions. “When you makers are under go there, they even have an employee pressure to help Working age populations are declining … … causing severe from the government who helps As a % of total talent shortages companies move in and set up,” he companies attract 75 Labour deficit by 2030, million people says. in-demand staff, Brazil The UK ranks seventh overall, but China Brazil 40.9 falls drastically short when it comes says Hannah Murphy High income 70 to the gender earnings gap, where it countries China 24.5 ranks 71st out of the 109 countries lobal mobility is mor- includedintheindex. phingfromanicheoffer- 65 The importance of fairness and ing for a few select Germany 10.0 transparency should not be underes- employees to a neces- timated, says Adecco Group’s Mr G sary fix for one of the Canada 2.3 Marshall, who calls such factors biggest problems facing multina- 60 “hygieneissues”. tionalemployers:ascarcityoftalent. 2000 05 10 15 20 25 30 35 40 45 50 Italy 0.9 Countries can also do a lot to boost But as the battle to attract and Forecast the brand perception of their cities, retainthebestemployeesgoesglobal, whether by building opera houses countries are having to change the Competing for talent: the top 10 countries and art galleries to make a place way they support companies within Global Talent Competitiveness Index, 2015–2016 moreculturallyappealingoropening their borders and encourage inward international schools to accommo- Insead, Adecco Group and the Human Capital Leadership movement. Institute score more than 100 countries on 61 variables Score* (out of 100) datethechildrenoftopcandidates. International mobility has tradi- to generate an overall ranking From a regulatory perspective, tionally been associated with tempt- Ease of doing Gender Formal Work tax Political managers of global mobility pro- ing staff to relocate from developed Rank 2015 Country business earnings gap education incentives stability grammes welcome stability over con- countries to emerging markets, with (rank 2014) 0 100 stant change, says Andrea Piacentini, the lure of an expatriate lifestyle and headofrewardfortheUKandEurope agenerouspaypackage. 1 (1) Switzerland atStandardLife. This model of mobility is undergo- “Whatgovernmentsneedtorealise ing rapid transformation, human is that every time you change a tax resources experts say, as economies law or add an extra requirement, with ageing populations are faced 2 (2) Singapore you’re putting the onus on organisa- withacuteworkforceshortages. tionstobeuptospeed,”hesays. Germany will face a labour short- If structural reforms are necessary, fall of 10m workers by 2030, accord- theyshouldbefocusedonsimplifying ingtoestimatesbyBostonConsulting 3 (3) Luxembourg labour market bureaucracy and Group. For China, the figure is 24.5m, ensuringlegalframeworksareeasyto whileforBrazilitisaround40.9m. navigate,MrPiacentiniadds. “Companies have to be very proac- It is not just complexity that can be (4) US tive about thinking what their talent 4 an obstacle. Against the backdrop of needs are likely to be five, 10 years the European refugee crisis, some from now,” says John Marshall, UK governments are ramping up costs as andIrelandchiefexecutiveofspecial- 5 (8) Denmark awayofreducingnetmigration. istrecruiterAdeccoGroup. A family of four relocating to the “You really can’t wait until then to UK for five years would be hit with try to figure out how you’re going to fillthosetalentneeds . . . We’vegotto 6 (6) Sweden findawaytoclosethatgap.” Skills shortages are not the only Switzerland, with its reason organisations are broadening tax breaks, makes their approach to global mobility. 7 (7) UK New evidence shows international attracting talent a priority experiencedrivesinnovation,saysDr Eduardo Rodriguez-Montemayor, visafeesofnearly£10,000,according senior research fellow at Insead busi- 8 (11) Norway to Jurga McCluskey,head of Deloitte’s nessschool. UK immigration practice. To move to He points to research suggesting the US, the same family would need one in four tech start-ups in the US to pay about £2,000, while in Canada between1995and2005waslaunched 9 (5) Canada thecostis£812. by foreign-born entrepreneurs. US- Instead of introducing a blanket based foreigners “patent twice as rise in costs to drive migration num- much as [native-born Americans]”, bersdown,countriesshouldcraftpol- (13) Finland headds. 10 icies to target the expertise that is With these benefits in mind, com- 0 100 needed,saysMsMcCluskey. panies are developing internal sys- Sources: Adecco; Boston Consulting Group; Human Capital Leadership Institute; Insead; UN * On selected variables A well-designed immigration pol- tems to move talent across borders icy is equivalent to “opening a valve” quickly and smoothly — and in a way scratch. Just 8 per cent of human tries also play a big role in making life countries on their competitive edge that lets talent flow into a country, thatismorecosteffectivethantheold resourcesprofessionalsratetheirglo- easier for the organisations within by measuring 61 variables, from according to Insead’s Dr Rodriguez- expatriatemodel. bal mobility programmes as “world theirborders. political stability to research and Montemayor, adding that a seamless But few are prepared for the class”, according to a Deloitte survey Switzerland,withitstaxbreaksand developmentspending(seechart). visa system alone is not enough to complexity of conflicting country from2014. snowy mountain peaks, tops the Glo- The Alpine country makes attract- persuade a promising candidate to regulations and the bureaucracy Whileitisuptoemployerstoinvest bal Talent Competitiveness Index by ing talent a priority, says Simon move abroad. Above all, people are involved in creating a system from their time and money wisely, coun- Adecco Group, a ranking that scores Richardson, senior consultant at attractedbyopportunity,hesays. 8 | FTReports FINANCIAL TIMES Friday 26 February 2016 FINANCIAL TIMES Friday 26 February 2016 FTReports | 9 Employment Global Best Practice Employment Global Best Practice

bewidelyknown.MrFerrabeerecalls a company in Madrid whose building was destroyed by fire. “Someone How ex-staff can still asked where the crisis plan was,” he Tough times says. “The company replied that it wasinthebuilding.” Keeping people informed is one way to help them feel that they are work for a company not at the mercy of forces beyond call for bold their control. Offering them choices isanother.Thesemightnotnecessar- Alumni ily be appealing options — such as redundancy or moving across the county — but even so, they allow peo- Nurturing links with Connections yet sensitive ple to take charge and feel as if they former employees Building a network that are doing something positive to can aid recruitment, affecttheirfutures. benefits everyone Giving people bad news face to face writes Sophie Clowes itisoftenunpalatablebutthealterna- leadership tivecanbesufferingapublicrelations What form should your network take? disaster and long-term damage to the Corporate alumni networks An effective network needs an active social media platform company’sbrand. are growing in importance as for users to stay connected, as well as organised events Last year, Hutchison Ports in Aus- employees spend less and less where people can meet in person. tralia sacked 97 people by text and a timeatasinglecompany. Tony Audino says he learnt the value of balancing both follow-up email. Few organisations Mainstream employment is while building the Microsoft network. “We learnt that while take such impersonal measures, but gradually giving way to a gig having the digital connection is certainly helpful, people manyneglecttotellstaffwhatisgoing economy,where temporary or love to get together face-to-face.” on. It can be very demotivating for freelance positions and short- Most of the physical events — from sponsored workers to rely on the news and term contracts are rapidly exhibitions to talks by alumni to year-group gatherings — rumours to find out about the future becomingcommonplace. provide an opportunity to network. “People want to learn oftheirjob. Last year, millenials — those about other people and how they have become successful,” However, it is worth remembering born between 1981 and 1997 — says David Goggin (pictured). People management Staff need support when that most people’s day-to-day work- became the largest genera- ing lives are quite tightly circum- tional group in the US labour- What are the advantages of using a third party? bad news breaks, says Rhymer Rigby scribed. force, according to the Pew Markus Simon says there are IT advantages of using Insala “Most people work in their own lit- Research Center. The demo- to manage the Credit Suisse alumni network. He does not hese are uncertain times news for shareholders, it will almost You also need to give them a are job losses. This is something that are not always appropriate or practi- Organisations need to be wary of Contrition: tleworldsmadeupoftheirteamsand graphic shift is helping create believe the network would get the right attention were it foremployeesofbigmul- certainlymeanjoblossesforstaff. straightforward narrative they can Japanese companies have been very cal. But, at the very least, executives assuming people understand every- Volkswagen their line managers,” says Prof this broader employment run in-house because the bank’s own IT resources are tinationals. Itiseasytokeepemployeescontent take away with them to tell families goodat. shouldbeondisplayanddemonstrat- thing, says David Ferrabee, manag- chairman Cooper. “If that’s good, even if there model and a mobile genera- targeted elsewhere. Mining company when the sun is shining, but how do and friends. “We’re making job cuts In2014,Nintendo’sthenchiefexec- ing concern, management consult- ing director of consultants Able and Matthias are problems in the wider company, tionwhereconnectivityiskey. T Anglo American this companiesensurepeoplestayonside because oil prices have fallen and the utive, Satoru Iwata, halved his salary antssay. How.Theyalsoneedtohavetheright Mueller, centre, thenthey’reprobablyhappy.” Tony Audino founded the What are the challenges? month announced a $5.5bn annual when bad news and disruption are alternative is going out of business” is when the company’s profits suffered. “If you see CEOs walking around structures in place to deal with diffi- addresses the Therefore,headds,thereshouldbe Microsoft alumni network 20 Engagement is the main loss. This followed a December theorderoftheday? much better than “We’re making job Similarly, in 2007, when Japan Air- the business and talking to people culttimesorbadnews,headds. media after greater emphasis on training line years ago and is now chief challenge, says Mr Goggin, and announcement that it would shed Treating staff like adults is a good cuts,” Mr Shaw says. He adds that lines cut jobs and asked older and explaining, it really makes a dif- “People often assume information last year’s managers to be empathetic and have executive and founder of getting companies to almost two-thirds of its workforce. start, says Peter Shaw, an executive managers should expect employees employees to take early retirement, ference,”says Cary Cooper, professor will cascade down, but it rarely does emissions the kind of soft skills needed to man- Conenza, a company that understand the new The past five months have seen coachatPraesta.“Givepeoplethefac- to be upset and give people space to its chief executive, Haruka Nishi- of organisational psychology and unless it’s gossip,” Ferrabee says. In scandal agewhentimesarehard. builds and manages alumni opportunities available for Volkswagen go from being a symbol tual background and rationale react. matsu, cut his own pay to $90,000, health at Manchester Business fact, he adds, employers should be Sean Gallup/Getty Images Mr Shaw adds: “You should dem- networks. He sees companies growing their business. of engineering excellence to an envi- behind what is happening, so you’re In an ideal world, senior manage- which was less than a pilot would School. Sadly, he adds, highly visible building up an understanding of how onstrate appreciation for what staff facing a loyalty challenge as For Mr Simon, the challenge ronmental pariah. And, although the making it clear why the decisions mentmightdemonstrateempathyby earn. empathy is rare, especially in Anglo- to communicate problems to their have done, especially if it’s bad news they compete for global talent. is more technical: ensuring that Pfizer-Allergan merger may be good havebeenmade,”headds. sharing the pain, particularly if there Financial hair shirts for executives Saxonbusinesses. staff, and these disaster plans should you’regivingthem.” He believes an effective the bank always complies with alumni network offers huge data privacy laws from benefits to both the organisa- different countries. tionandthealumni. An organisation’s former employees should not be dis- anonymously report what office equipment, TinyPulse workers can act as promoters says. Companies can save accounting firms early adop- missed as a fluffy idea because they are feeling so if there are alteredIkeafurnituretocreate for its “talent brand as well as money in recruiting using ters. David Goggin of Insala, Quirky perks no match for peer recognition retention is tied to recogni- any trends, there’s time to act low-coststandingdesks. its overall corporate brand”, alumni networks. Further sav- an alumni software provider, tion, says TinyPulse, a Seattle onit,”saysMrNiu. “Or instead of a sleeping says Mr Audino. Companies ings are made when an alumni says some financial service company that monitors “People also want peer rec- pod, which can cost $10,000, also can use alumni networks network generates referrals of companies are investing employee satisfaction. Its ognition, so giving a shout-out why not have a room with a as a resource for recruiting talentandbusiness. in their alumni networks. Pri- Silicon Valley, say some busi- cheap,” says Mr Ledford. “If 2015 employee engagement or acknowledgment at the couch where you can shut the formeremployees. For the alumni themselves, vate equity firms are starting Retention ness analysts. But more seri- Umpire takes advantage taken part so far, with a broad 50-50 gender they really want high levels of report collated anonymous individual or team level is door.” Annabel Rake, chief mar- staying connected, maintain- to foster their alumni, too, he ous programmes — ranging split and a mix of those in senior roles and employee motivation and responses from more than important, too. It can be as He says TinyPulse has man- keting officer at Deloitte UK, ing relationships with people adds. Traditional ways of from unpaid leave and allow- of unpaid leave scheme more junior positions. engagement, [they should] 400,000 employees at 500- easy as a regular email or agedtokeepmillennialshappy refers to returning workers as and networking are significant The success of a network is motivating still work, ing time for personal projects The scheme is open to workers who have try fixing the problems that plus companies. It found that weeklylunch.” with initiatives such as quar- “boomerangs”. “These are benefits. For many, it is a all about engagement, says Mr at work, to volunteer days and While some Londoners might take an odd been at the company for more than a year, are a lot harder to work on but only31percentofworkersfelt When it comes to benefits terly volunteering days, when people who come back with a career management tool, Goggin. “Successful networks writes Sharmila Devi company donations to charity day off work in the summer to watch a tennis meaning up to 10,000 people in the UK are a lot more important to strongly valued, while nearly suchassleepingpodsorstand- employees choose to work in a new set of skills and experi- where they can find new jobs areinorganisationsthatspend — may help to retain more match at the Wimbledon Championships, eligible. employees.” one in four said they would ing desks, research has found soupkitchenorclearlitter. ences that we find very benefi- orbusinessopportunities. timeunderstandingwhattheir Employers are coming up with socially conscious younger Alex Bosshardt (pictured) made use of Emma Codd, UK managing partner for To attract and retain millen- leave if offered a 10 per cent contradictory results. For Another way to engage cial,” she says. About 20 per Deloitte runs a referral alumniarelookingfor.” novel perks and working workers. his company’s unpaid leave scheme to talent at Deloitte, expects many more nials, Mr Ledford says, “the raiseelsewhere. example, a study by the Uni- younger employees is to let cent of Deloitte’s hires each scheme for its alumni, as well Mr Audino believes a net- structures to attract and keep Gerald Ledford, senior umpire at the prestigious tournament. to take advantage. best way is to look beyond So what would work to versity of Exeter and Univer- them set their own working yearareboomerangs. as offering access to the com- work’s success comes down to younger workers, from paying researchscientistattheCentre Mr Bosshardt, who began umpiring “It was slow to begin with as perksatwhatkindoforganisa- attractandretainthebestpeo- sity College London last Octo- hours and judge them on the Returning employees are a pany’s latest research. Ms two simple things: people and for dry cleaning and gourmet for Effective Organisations at more than 10 years ago, was able to people waited to see what their tion they are most likely to ple? “It’s not things like coco- ber challenged claims that sit- results, says Anne-Marie Mal- proven benefit of the Credit Rake says Deloitte’s alumni purpose. “If you focus on the chefs at work to installing theUniversityofSouthernCal- officiate at two warm-up tournaments colleagues would do,” she says. “You identify with in terms of social nut water in the war of perks,” ting for long periods increases ley, UK human capital leader Suisse alumni network, too, networkhasa“circularbenefit people and some purpose that sleeping pods and even, in the ifornia, says employers often using the same staff benefit. have to apply six months in advance values”. Other employees, saysDavidNiu,chiefexecutive the risk of an early death even atDeloitte. says Markus Simon, global model”,adding “if we can help makessenseforyourorganisa- case of Facebook and Apple, overestimate the value of His employer, Deloitte, last year and it’s really taking off now. such as those in the middle of ofTinyPulse. if you are otherwise physically “Other things I’ve seen com- headofthebank’stalentdevel- them then ultimately they can tionanditstalent,thenyouare offering to pay up to $20,000 fringebenefits. introduced its Time Out scheme, “People said they wanted to be their careers or with families, “It can be just the basic nuts active. Standing desks are an panies do that seem to work opment shared services and help us and that’s what makes offtoagoodstart,”hesays. for some female employees to “Executives and HR people which enables workers to request a judged on output . . . This is one are more likely to value bene- and bolts that management expensive investment for include giving grants to create online academy, as well as its thenetworkstrong.” “If you are a company today havetheireggsfrozen. love the latest shiny fad that four-week block of unpaid leave way of showing our trust in fits, such as flexible working should not overlook. They start-ups if the research is not homeworking spaces or allow- alumninetwork.LikeDeloitte, Alumni networks have without a corporate alumni Many are gimmicks and they hope will buy employee each year. Some 600 people have people,” she adds. andparentalleave. should be open to getting feed- conclusive, Mr Niu says. ing people to spend . . . time roughly 20 per cent of Credit evolved from the collegiate network, you are at a competi- unsuited to the world outside motivation and loyalty on the Showing appreciation to back and allowing people to Rather than buying expensive ontheirownproject,”shesays. Suisse recruits are rehires, he to the corporate, with law and tivedisadvantage.” 10 | FTReports FINANCIAL TIMES Friday 26 February 2016 FINANCIAL TIMES Friday 26 February 2016 FTReports | 11 Employment Global Best Practice Employment Global Best Practice Apps learn from email’s productivity flaws Frustrated US workers go it alone

Institutereportedthattheaverage about30sincewestartedusing ofourtransformationtobecomea Slackhasopenedanappstore Technology workerwhosejobinvolveshandling Slack,”saysAlexHirst,co-founder moretransparentcompany,”says whereuserscanaccessordownload arrangements,” says Charles informationspendsmorethan andjointchiefexecutiveof KevinHanley,directorofdesignat servicessuchasDropboxandGoogle Freelancing Jeszeck, director of the GAO’s Slack and Facebook at halftheirtimeattheoffice HuckleberryPartners,amarketing RBS.“Emailtendstobemore Drive,whichwillworkwiththe Work is becoming education, workforce and Work are becoming communicatingabouttheirwork, andofficesupportservicescompany. hierarchical,itisaone-way platform. more flexible but incomesecurityteam. indispensable in the office, andlessthanone-thirdoftheirtime “Thatalonehasradicallyimproved broadcast.Itisnotatoolthat Thereisoneimportantproblem He argues that for policy- actuallydoingthejobtheywerehired productivity.” promptsfeedbackordiscussion. thatnewmessagingplatformsfailto less secure, writes makers to come up with solu- writes Maija Palmer todo. SurajKika,founderandchief Facebookletsuscommunicateina solve,however,whichiswhathas tions, they need better infor- Thesearchisnowonat executiveatJadu,aUK-based differentway.” beendescribedasthe“crisisof Sarah Murray mation on the size and nature manycompaniesfor softwarecompany,describes Oneofthebenefits,MrHanley attention”,wheremodernoffice of the independent workforce. “Electronicmailhasbecomeavital newmessaging himselfas“slightlyaddicted”to says,isthatemployeescansetup workershavetoomanymessagesand In this respect, one sign of businesstoolformany platformsthat Slack.“Itissafetosaythatit groupsaroundsharedinterests. notificationsvyingfortheirattention n a space resembling the progress is the US Department companies . . . whenusedeffectively woulddoaway hasalsoloweredthenumber Therearegroupsfornewgraduates, andarethereforeunableto lobby of a boutique hotel, of Labor’s recent announce- itcanimproveacompany’s withemail ofmeetingsandphone othersthatdiscusscorporatesocial concentrateontheirwork. stylishly dressed profes- ment that it will conduct a sur- productivityandcompetitiveness.” andmake calls,”headds. responsibilityandonelookingathow Whenprobed,manySlack sionals gather around vey of contingent workers as SowrotetheFinancialTimesin1995 communication TheRoyalBankof thebankcanhelpvulnerable enthusiastswilladmitthatsomeof I cappuccinos and glasses part of the 2017 Current Popu- aboutthenewbusinesscrazefor moreefficient. Scotland,meanwhile, customers.Stafffromacrossdifferent theplatform’sfeatures—suchasthe of wine. These people are rent- lationSurvey. email.Itwasstillanewtoolthen— Twoofthenewest rolledoutFacebookat paygradescollaborateandshare abilitytoaddanimatedimagesand ing space from NeueHouse, a Ms Horowitz believes there only55percentofworkersat toolsareSlack,a Worktoapilotgroup knowledgeinthesegroupsinaway emojistomessages—canleadtotime luxury co-working hub in New is an important role for unions America’sbiggestcompanieshad business-focused lastsummer,and thatdoesnototherwisenaturally wasting. YorkCitydesignedforconsult- and charities in providing sup- usedit. messagingapp,and nowhasmore happen,saysMrHanley. Itispossibletoadjusthowoften ants,freelancersandentrepre- port services and professional Fastforward21yearsandemailhas FacebookatWork,a than10,000staff Messagingtoolsarealso youseenotificationsandtoswitch neurs. They are part of a grow- development to those in alter- becomeatime-sappingcursethat version enrolledonthe automatingcertaintasks.Jadu,like offmessagesatcertaintimes. ing army of people who are swelledby700,000inayear. Shared space: NeueHouse vulnerable to abuses such as nativeformsofemployment. floodsinboxeseveryday. ofthepopularsocialmedia platform. manySlackusers,hasalsocreatedan Butevenso,saysDavidJohnson, redefining the nature of work ButwhatevertheshareofUS co-working hub in New York workplacediscrimination. “Wehavetobeimaginative,” Farfromenhancingproductivity, platform.Anecdotallyat “Facebook automatedprogram—a‘slackbot’— principalanalystatForrester acrosstheUS. employment this workforce Craig Rockwell “Alot of these workers don’t she says. “As profoundly as studieshaveshownthatemail least,theseseemeffectiveat atWorkispart whichhelpsusersfindcompany Research,thesetoolsarelikely “Work is no longer a place,” represents, few see it as likely have the labour market pro- work is changing, so the new interruptionsmaketaskstakeupto eliminatingemail. informationquicker.Anumberof tohelppeoplewhoarealready says Stephane Kasriel, chief to shrink. “It’s definitely a tections afforded to workers work organisations are going threetimeslonger.In2012, “I’vegonefromreceiving Taking up Slack: productivity-aidingtoolslikethis goodatmanagingtheirtime,and executiveofUpwork,anonline growing proportion,” says Joe in traditional employment to[haveto]change.” researchersattheMcKinseyGlobal around180emailsadaydownto app is growing canbebuiltintothesystem,and willdistractthosewhoarenot. marketplace that matches Coombs, a senior analyst on freelancers with assignments. workforce trends at the Soci- “The future of work is much ety for Human Resources more flexible and distributed. Management. Time and location barriers are However, he points out, not being knocked down and rigid all workers are freelancing by rolesaregoingaway.” Case study choice. “While the job market Technology has played a Corel has strengthened, there’s still critical role in enabling this many people out of work or form of work. “You can have underemployed,” he says. “So 50 people in Argentina coding One company that is in frustration with those con- for a project in Germany — making the most of the ditions, more people are strik- that was unthinkable 10 years proliferation of freelance ingoutontheirown.” ago,”says Jonas Prising, chair- workers is Corel, the Nevertheless, the study con- man and chief executive of software developer ducted by Upwork and Free- ManpowerGroup, the recruit- based in Ottawa, Canada, lancers Union found that 60 mentcompany. and known for per cent of people freelancing IntheUS,assessmentsofthe programmes such as were doing so by choice, a rise size of this new labour force WinZip, PaintShop Pro of 7 percentage points from depend on what is counted as and WordPerfect. 2014. an independent worker and “I need skills but at the But if adopting the freelance whether part-time or tempo- optimal spend — not for life is a positive decision for an rary workers are included in more than I would spend increasing number of people, thecalculation. on a full-time hire,” says many of the support systems Estimates vary considera- Prasannaa Ganesan needed by this group of work- bly. The US Government (pictured), vice-president ersarenotyetinplace. Accountability Office’s figures of operations at Corel. While the US Affordable show that less than 5 per cent What has made Care Act has widened the of the total US workforce fit its accessing this talent availability of healthcare narrow definition of tempo- easier is technology in insurance — which employers raryemployment. the form of workforce traditionally provided to their On the other hand, says the matchmaking platforms workforces — not all the GAO, by including alternative such as Upwork. changes have helped freelanc- employment arrangements On Upwork, Mr ers, argues Sara Horowitz, such as on-call, part-time and Ganesan can search founder and executive direc- self-employment, estimates globally for the types of torofFreelancersUnion. can be more than a third of the skills he needs, manage “They’renoteligibleforsub- labourforce. their payments and sidies and the options on the This was the conclusion of a identify the best individual market are getting 2015 study by Upwork and performers. “You need a worse,”shesays. Freelancers Union, an advo- middleman,” he says. Othersupportservices,such cacy group, which found that He also likes to have as pension plans and training more than one in three work- the flexibility of being and development courses, can ers in the US — almost 54m able to hire skilled be harder to find or more people—arenowfreelancing. freelancers as and when expensive for independent The study estimated the he needs them. workers. number of US freelancers Moreover, this workforce is