the HR Director The only magazine dedicated to HR Directors November 2003 Issue 1

Inside… Diversity We meet Ivan Massow, BT & Ford

Preview of the Diversity Day Summit

Plus: Willill economiceconomic boomboom mean retention gloom?

Calling last Orders! Fresh alternatives to the pub after work

How to help employees escape commuting hell

We look at HR in Sweden • Advice on conquering your nerves • Age discrimination at work

Contents

Welcome Contents Welcome to the launch issue of The HR Director – the only magazine Inside… Diversity dedicated to informing HR Directors. Each month we will be dissecting the strategy that is working for other organisations – and aim to do so in 10 Gay Pay Day We meet entrepreneur Ivan Massow a pithy and entertaining way.

12 Pushing the right buttons: Dave Wilson We begin with the good news: the economy is finally showing signs of tells us how diversity has changed BT picking up. But there is always a flip side and your most talented employees might now be tempted to jump ship. Brett Walsh from 14 The Diversity Day Summit Deloitte offers a few ideas for HR Directors who want to avoid an exodus. 16 Bringing policy to life with the Institute for And if the swift shuffle of talented feet is not enough to keep you busy, Employment Studies & Ford next month you must be ready for new legislation which outlaws discrimination on the basis of sexual orientation, religion or belief. Starting on page 10, our main feature provides a host of ideas and Features examples of how to go beyond the laws and improve performance through 4Will economic boom mean retention gloom? diversity. We also spotlight the Diversity Day summit which promises to Deloitte’s Brett Walsh explains how to rebuild be an excellent event. trust and motivation.

After all that you might fancy a drink. But before you pop off to the pub, 18 Calling last orders: relaxation not inebriation. consider the alternative ways to relax. Rhymer Rigby talks us through Rhymer Rigby investigates the creative them, with advice from some of the most creative employers around. employers who don’t resort to the pub to get to know their staff

The HR Director will be available each month from January. We hope 21 Career off the road: how to help your workforce that you enjoy the magazine and find it useful. We welcome your feedback overcome the commuting nightmare and ideas for future issues.

Regulars 8 Legal eyes: Makbool Javaid from DLA explains how to tackle age discrimination at work

24 Distance learning: HR in Sweden

26 Wellbeing at work: Juliette Kellow has advice Peter Kane for overcoming nerves and creating the right Editor first impression

Contacts

Contacts Letters Contributions: Peter Kane – Editor In future issues, we will carry a letters page – letters We welcome ideas for features. Please send ideas, [email protected] should be sent to [email protected] or including a short synopsis if possible, to Peter Kane. Editorial guidelines are available on request. In the absence Ben Renshaw – Head of Advertising Letters to the Editor of an agreement, the copyright of all contributions, [email protected] The HR Director, 14 Orchard Street, Bristol BS1 5EH regardless of format, belongs to Kane Communications www.thehrdirector.com Subscriptions: Ltd. © 2003 Kane Communications Ltd. The publishers 0117 9055006 The HR Director is distributed free of charge to key HR accept no responsibility in respect of advertisements decision-makers in companies of over 100 employees. If appearing in the magazine and the opinions expressed in Design & production you would like to receive the magazine, email your editorial material or otherwise do not necessarily represent em5 Design & Advertising details to Peter Kane, including your name, position, the views of the publishers. The publishers accept no www.em5.co.uk company, postal address, telephone number and the size responsibility for actions taken on the basis of any 0117 9200 005 of your company (no. of employees). If you do not fall information contained within this magazine. The into the above category, you may still qualify for a free publishers cannot accept liability for any loss arising Thanks to Anna Masserick and Katy Bath for their subscription at this time, although a subscription charge from the late appearance or non-publication of any massive contributions to this launch issue. will be introduced at a later date. advertisement for any reason whatsoever.

The HR Director - Issue 1 Nov 2003 page 3 Economic Boom = Retention Gloom?

Will economic boom mean retention gloom?

As the economy and the job market improve, Brett Walsh, Head of Human Capital Advisory Services at Deloitte asks how HR Directors can ensure retention policies are effective.

Recent research has predicted that as the job The cost of turnover market and the economy improve, staff Employee turnover is enormously costly. Losing an turnover rates will soar, as an increasing employee on £15,000 per annum is likely to cost the number of career move opportunities business £15,000 on recruitment and induction costs become available to employees. The Job and loss of productivity. For a business employing 5,000 Recovery Survey, by the Society for Human staff with an employee turnover of 15% it amounts to Resource Management (SHRM) and £11.25 million a year. Some skills are more costly to CareerJournal.com, suggests that employees are sitting replace than others, for example a sales person earning out the downturn, but once activity picks up – as it is £39,000 could cost the company £300,000 to replace. expected to next year – staff turnover in the US could rise significantly. Similar levels of turnover are expected in the UK.

Signs of an upturn are already beginning to appear. The Report on Jobs by Deloitte found a notable improvement in the UK job market in August. “HR Directors face two issues; ensuring talent is retained, and attracting the talent that is becoming available on the job market”

Demand for staff was the principle driving force behind the strongest rise in permanent placements for two and a half years. Encouragingly, for the first time since May 2001 a rise in the demand for private sector staff was recorded. Apart from the recruitment expenses, lower productivity Employers are beginning to return to the job market to and loss of scarce skills, there is also the less quantifiable take advantage of good staff availability and relatively issue of disruption to teams, loss of knowledge and lower subdued rates of wage and salary growth. As a result, HR employee moral. Directors will face two issues; how do they ensure that their talent is retained, and how do they attract the talent Why is turnover expected to rise so dramatically? that is becoming available on to the job market? During the last two and a half years, businesses have page 4 The HR Director - Issue 1 Nov 2003 Economic Boom = Retention Gloom?

been forced to cut costs in order to remain competitive “As businesses in difficult conditions. Staff have experienced cuts in begin to benefit bonuses, training and development, and other key from improved elements of their total reward package. Those businesses conditions, it is that over-staffed during strong market conditions have vital to reinvest in found it necessary to make large cuts to their workforce. learning and According to the CBI, 43% of City firms cut jobs in the first half of 2003. development”.

The tough economic conditions have meant that employers have had to achieve more with less, creating a pressured work environment. As a result there are high levels of mistrust and dissatisfaction amongst many workforces. In order to rebuild trust and motivation, HR Directors must review their retention policies.

“The tough economic conditions have meant that employers have had to achieve more with less, “Employees will resulting in high levels of mistrust and dissatisfaction find motivation in amongst many workforces”. clear and flexible career paths with Developing an effective retention policy requires an long term prospects understanding of the skills and talent that are critical to that are achieving business objectives. HR Directors must also tailored to their ask what motivates the employees that demonstrate individual needs”. these vital skills to stay.

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The HR Director - Issue 1 Nov 2003 page 5 Economic Boom = retention gloom?

Harnessing commitment statistics are more or less similar; job content, career The main aim of a retention policy is to create employee development, company environment and remuneration commitment to the company management and receive almost equal weightings of importance. Learning leadership style. The cutbacks that businesses have been and development was one of the main areas that suffered through are likely to have caused considerable damage to in the downturn and as businesses begin to benefit from employee commitment. Employees do not necessarily improved conditions, it is vital that they now reinvest. understand why the job market dropped; they have only witnessed it through what they have personally lost in Finally, HR Directors need to focus on creating a culture the cutbacks. that involves employees and recognises their needs. Whether is it by two-way communication, celebration of Commitment is created by effectively communicating employee successes or suitable work-life balance policies, company ideals, values and objectives of which the aim should be to create an innovative and functional employees can be proud. Internal communications can work environment that motivates employees to come to also be used to explain to employees the strategy work. Employees will find motivation in clear and behind and the benefits arising from apparently flexible career paths with long term prospects that are negative moves such as cost cuts. But last year Deloitte tailored to their individual needs. conducted research amongst HR Directors and CEOs which found that CEOs do not necessarily feel that As the economy improves, HR Directors can play a key businesses are delivering effective internal comm- role in ensuring that their business is fit to take unications. This is an area where there is room for advantage of new opportunities and move ahead of the improvement in most businesses. competition. The new external career opportunities that will inevitably arise will be tempting to talented The Institute for Employment Studies surveyed employees but as long as HR Directors recognise which graduates earlier this year to establish what it is that skills are crucial to business performance, and how to motivates them to stay in their organisation. Nearly all attract and retain them, HR can ensure that the graduates (90%) ranked training and development challenges of the war for talent are won. opportunities as the most important aspect of their career, followed by mentoring/coaching (83%) and then Brett Walsh is UK Head of Human Capital at Deloitte career/salary progression (66%). For managers, the Email: [email protected] page 6 The HR Director - Issue 1 Nov 2003 Whatever you’re planning, we can provide the resource, experience and support to help you find a simple solution. Find out more about our range of services on 0845 456 3678 or email [email protected] Legal Eyes

Legal eyes

Each month Makbool Javaid, employment partner at DLA, who has been ranked as one of the UK’s top ten solicitors, looks at the latest developments in employment law. This month, age discrimination. The issue of age discrimination within society and the Perhaps the most contentious issue of all is mandatory workplace has long been on the government’s agenda. retirement. Once the directive is in force employers will However it has shied away from legislating in the area for not be able to impose a retirement age unless they can fear of imposing a further burden on business and because demonstrate objective justification for doing so. of the lack of a consensus as to the shape any new Appreciating the difficulties which employers might face legislation should take. Consequently the Government the Government has suggested a compromise position has favoured the voluntary approach and published a whereby employers will be forced to justify objectively any Code of Practice on Age Diversity in 1999. Research has mandatory retirement age. Also the Government is shown that the code had little impact on employment considering a default retirement age, of 70, above which practices and further that few employers were aware of its employers would be able to retire employees without fear existence. Perplexed by these difficulties the Government of age discrimination or unfair dismissal claims. appeared helpless in the face of the demographic pressures created by a decline in birth rates and an ageing 2006 may seem a long way away but in reality employers population with rapidly increasing life expectancy. It was do not have much time within which to change hearts and therefore a relief when Europe came to the rescue with the minds so as to avoid damaging claims for discrimination. Employment Framework Directive (2000/78/EC). This For example all employers should audit existing policies meant that the UK had no alternative but to introduce and practices particularly to avoid indirect age laws to tackle age discrimination by the deadline of discrimination. Redundancy payment schemes will need December 2003. Only the UK out of the 15 EU member to be revised. The Government proposes to remove the states asked for more time and was given an extension to age based aspects of the statutory redundancy payment implement the legislation by December 2006. The scheme. Employers who have incorporated age multiples ostensible reason for the extension was to allow UK into their own schemes will need to take similar action. employers the opportunity to create the right Other areas include recruitment e.g. a graduate environment for the fundamental changes flowing from recruitment programme that requires candidates to have any legislation on the issue. graduated within the last five years; or instances where employers specify a minimum number of years experience Although the general principle is that employers may not for positions or promotions. The indirect discrimination discriminate on grounds of age, treating people differently in the first example is against older workers and younger on the grounds of age will, in limited circumstances, be workers in the second. An employer would have to justify possible. However, to do so, employers must be able to the requirements in order to successfully defend a claim. justify their actions by demonstrating that this is both in respect of a specific, permitted aim and where it is There is no doubt that the Government was right to delay appropriate and necessary in the particular circumstances. legislating in this area given the significant implications The Government in line with the directive has identified for many well established workplace practices. UK a number of potentially legitimate aims which could be employers should take advantage of this opportunity, not included in the final Regulations as follows: afforded to businesses in other EU member states. The • to protect the health, welfare, and safety of workers tragedy is that too many employers will fail to recognise e.g. to protect younger workers on account of their lack the dangers of inaction and could find themselves in very of experience; deep waters come 2006. • to facilitate employment planning, e.g. where a business has a number of people approaching Makbool is Employment Partner at DLA and will be retirement age at the same time; speaking at Diversity Day. Please see page 14 for more details. • on account of the particular training requirements of the person in question e.g. air traffic controllers [email protected] who must demonstrate high levels of health, fitness and concentration; • to encourage and reward loyalty e.g. long service award. page 8 The HR Director - Issue 1 Nov 2003 TION

The HR Director - Issue 1 Nov 2003 page 9 Inside… Diversity - Gay Pay Day Inside… Diversity Diversity is a hot topic and while some organisations are enjoying its warmth - others have had their fingers burnt. Employers who want to attract and retain key talent are moving fast to reflect the massive UK societal changes of the Twentieth Century. Over the next eight pages we meet some of the individuals and organisations famous for their pioneering diversity work. If this is an issue that is important for your organisation – then you will be interested in the Diversity Day Summit which examines every aspect of diversity from an HR perspective – full details are on pages 14 and 15. Since “The HR Director” is supporting it, you as a reader can benefit from an extended early booking discount – with a £100 saving until the 12th November. Gay Pay Day In 1990 Ivan Massow founded a pioneering company offering financial services to the gay community. Like most city institutions, simply being associated with gay issues at a time when HIV was openly talked about as God’s retribution on gay people, was considered bad for business. Massow proved otherwise. The company was highly successful from the start. The community was costing them serious business. The gay Guardian’s Patrick Collinson recalled in a recent article, community earns a lot of money – as Massow himself “When I first met him he lived in a squat in north points out, “all the evidence I have seen suggests that gay London and ran his business from a solitary mobile people, if not higher earners than average, have a good phone. Only months later, I was invited to a party at his deal of cash to spend on the things important to them.. new home. It was still north London – but now one of I’m not saying that Mothercare does that well out of Islington’s smartest addresses”. Since then, Massow’s them, although even that’s changing now – but target business went on to become the 10th largest insurance the market with appropriate products or services and brokerage in the UK – and Massow himself is a you could be onto something”. Research firm Mintel millionaire famous (among other reasons) for buying estimates that there are 1.9 million gay people in the UK and restoring a string of country homes. with a disposable income of over £4 billion per year.

Changing attitudes One of the first examples of this changing attitude among Gay people were facing some irritating financial financial services providers was a ground-breaking dilemmas in the early 90’s. If a man wanted to buy a flat advertising campaign which ran on the London with his male partner, some banks would advise that life Underground in 2001. Created for the high street bank assurance was essential. Massow would advise otherwise. Bristol and West, it pictured a gay couple in an advert for Another key frustration was the common question on an ISA. At the same time, the bank sponsored the gay applications for insurance ‘have you ever taken an HIV Mardi Gras festival in London. Bristol & West’s Head of test?’ Simply admitting to taking a test led in almost all Communications Colin McDougall said at the time, cases to additional intrusive questionnaires and higher “There’s a huge market out there. The research we have got premiums – and in some cases no insurance at all. shows that gay people tend to be almost your ideal type of Massow’s specialist skills helped individuals find more customer for financial services – ABC1s, bright, affluent”. suitable providers. In a further example of changing attitudes Ivan Massow’s As Massow’s success became obvious, other financial company has recently been able to strike a deal with services companies realised that their attitude to the gay insurance giant Zurich – a company which Massow page 10 The HR Director - Issue 1 Nov 2003 Inside… Diversity - Gay Pay Day

“I’m not saying that Mothercare does that well out of gay people, although even that’s changing now – but target the market with appropriate products or services and you could be onto something”.

targeted in the 1990’s for an alleged lack of support for prisons and lecturing pre-release inmates on business the gay community, but which he now sees as having the skills for the Princes Trust. Like Massow, a high power and size to offer better investment options for his proportion (approximately 70%) of inmates are dyslexic customers. “I know Zurich was one of the companies or have learning difficulties and Massow believes that if “One in 4 people criticised by me eight years ago – but they’ve moved on these individuals could understand how closely their suffer some form of and, for the sake of my customers, so must I. Financial skills resembled those of entrepreneurs as notable as mental illness in advice is about giving your clients the best. I hated being Richard Branson, also dyslexic, they may learn to apply their lifetime – this unable to offer my customers the best because the their qualities more resourcefully and without incurring isn’t just a problem companies had such a bad policy when it came to gay the consequences of crime. people. Some of my competitors for example still won’t that insurers must deal with Zurich out of principal. Now that companies Taking his commitment to diversity further, in addition get to grips with, like Zurich are making such a huge effort to reform to providing services for cancer sufferers, the Ivan but employers too”. industry practice, I sometimes wonder who exactly these Massow Group is now supporting Loonscape, a website so called advisers think they are helping when they’re offering advice to those suffering from mental health only capable of providing grudge based advice”. issues. As with gay people 10 years ago, those with mental health problems today are often ignored by Committed to diversity financial services providers or refused access to their As well as his business role, Massow has been a products. Massow chaired the MIND Enquiry into prominent campaigner for gay rights. He famously Social Exclusion, the most comprehensive enquiry into defected from the Conservative Party to Labour over care in the community and the way people with mental Section 28, describing the Conservatives of the time as health issues survive in a world where they are “nasty and intolerant”. He currently describes his stereotyped as dangerous throughout the media. “One in political position as “vehemently independent” and like 4 people suffer some form of mental illness in their his Grandfather who successfully became mayor in his lifetime – this isn’t just a problem that insurers must get local town as an independent, is considering standing for to grips with, but employers too”. Mayor of London on the June election. A trained Samaritan, he also led fundraising for the Soho bomb appeal. In-between campaigning, and running his Ivan Massow will be speaking at Diversity Day. business, Massow’s latest project involves going into Please see page 14 for full details.

The HR Director - Issue 1 Nov 2003 page 11 Inside… Diversity - Pushing the right Buttons

Pushing all the right buttons: Diversity, Communication and Business Impact

“Our big button telephone was designed for people with arthritis, but it’s now one of our most popular models”. Dave Wilson, head of People Networks at BT, uses this as Internal and external communication remains at the a very practical demonstration of his company’s “effortless core of the process. A wide range of information is made inclusion” policy – creating successful products and available on contentious issues – and all employees can services that reflect different communities. e-mail Wilson (or indeed CEO Ben Verwaayen) and ask further, and at times challenging, questions about He also cites the Asian language call centre based in policies and achievements. Groups such as BT’s Leicester created and staffed by existing employees, and Women’s Network, (now complemented by the new the introduction and acceptance of flexible working Women’s Executive Network) the Ethnic Minority (including 8,000 homeworkers and rising) which has Network, Able2 (disability) and Kaleidoscope (GLB) significantly increased the company’s ability to recruit the offer mentoring, training and support. best person for each job, rather than the most convenient. In terms of informing the wider community, BT is also “The introduction and acceptance highly transparent. As an example, the corporate website (www.bt.com) is very open about the ethnic and gender of flexible working has significantly split of the company, and few companies would admit increased the company’s ability openly to the (rapidly declining) number of to recruit the best person for each job, discrimination-related cases of litigation as BT does. rather than the most convenient”. The results of BT’s work? BT, which employs around 100,000 people, has been an By any standards, the company has performed well. The acknowledged leader in encouraging diversity for more company demographics now more closely resemble the than 20 years. The company recognised that changes in demographics of the UK, and promotions are now UK society and in its customer base meant that changes demonstrably equally likely for each gender. were also needed to the company’s “white, male and able-bodied” products, services and workforce in order “Businesses will be able to recruit from to achieve business survival and success. A core business the biggest pool of talented people, competence – that of “Valuing Difference” – was sell more, and introduced as a result and taking advantage of diversity make more profit”. and providing equality of opportunity has been important to the company ever since. Of the new 2003 graduate intake, 4 per cent declared a disability and 29 per cent were from an ethnic minority. “98% of new Holistic attitude to diversity The business results are equally good, with the latest mothers now The company considers diversity holistically – as a annual profit well over £3 billion. return after business and a social issue. An illustration of this is its maternity leave, HR policy around employees’ children. The business opportunities of diversity are still there for saving significant BT. Dave Wilson adds: “By 2010, 20 per cent of school recruitment and “We’re committed to developing the best people. We leavers will be from an ethnic minority – businesses need think of parents, not just mothers, for instance”, says to be aware of this. If they take this opportunity, training costs”. Dave Wilson. As an example of this, the company offers businesses will be able to recruit from the biggest pool of two weeks paid paternity leave and support with talented people, sell more, and make more profit.” childcare as well as maternity benefits. 98% of new mothers now return after maternity leave, saving Dave Wilson will be speaking at Diversity Day. significant recruitment and training costs. Please see page 14 for more details. page 12 The HR Director - Issue 1 Nov 2003 Inside… Diversity - Pushing the right Buttons

The big button phone – a model designed for people with arthritis which is now one of BT’s most popular designs

The HR Director - Issue 1 Nov 2003 page 13 The Diversity Day Summit supported by “The HR Director”

4th December - Thistle Tower London Care to join us?

Advantage through diversity What will you gain? Attending this single intensive day, packed with Diversity is in the news every day. Both the talent practical tips from leading employers, will give you: pool and the marketplace in the UK are changing An expert analysis of what the new laws will quickly and more legislation is being introduced mean for you to combat discrimination. Many companies have a policy but struggle with implementation. It is a Ideas for recruiting and developing a wider delicate area, with infinite potential pitfalls - an pool of talent awful lot for HR professionals to keep abreast of. A full understanding of the business benefits of diversity - improving productivity and exploring This summit guides you through the minefield. new markets Case studies from leading companies will show how HR departments can successfully implement Advice on how to promote an employee culture Gender diversity policies in a way that not only prevents which welcomes diversity Age legal action but produces tangible benefits across Practical ways to achieve buy-in at every level Racial Origin the organisation. of the organisation Ethnic Origin Fresh ideas for training line managers Who is it for? Religious Belief The summit is designed for senior HR professionals, Plus the chance to network with 200 peers and gain Disability diversity managers, management consultants and ideas and inspiration from the highest calibre of Sexual Orientation senior recruiters. speakers that you will hear at any business event.

SAVE £100 BY BOOKING BEFORE 12TH NOVEMBER - 0800 180 4034 REDUCED PRICES: BUSINESS RATE £499 + VAT • GOVERNMENT & CHARITY £299 + VAT 14:30 Seminar streams - Choice of 4 Agenda: Attendees can choose one of the following 4 break- out seminars – please indicate your preference on the registration form 9:15 Chairperson’s Introduction 1. The new rules: are you ready? Trevor McDonald, ITV News at Ten presenter This session will offer practical advice for employers looking at the application of the new laws. • The new anti-discrimination legislation – sexual 9:30 In the Pink orientation plus religion and belief Ivan Massow has made millions from supplying financial • The implications for employers – avoiding the pitfalls services to gay people. He will speak about the benefits of • Steps essential to compliance – what tribunals paying attention to diverse groups - and how organisations expect to see should adapt to gain advantage. Makbool Javaid specialises in employment law work Outspoken and controversial, Ivan hit the headlines for DLA. He was formerly head of litigation at the when he was dismissed as chair of the Institute of CRE and is one of Europe’s leading discrimination Contemporary Arts after describing conceptual art as lawyers. He has been ranked as one of the UK’s top ten solicitors and has advised the Government on ‘self-indulgent, craftless tat’. Besides being a trailblazer race relations. for gay and lesbian rights, Ivan holds numerous roles as a champion of the socially excluded. 2. Applying Diversity in Europe: The Challenge for Global Firms 10:15 Driving changes While the US has been focused on diversity for longer Surinder Sharma, European Diversity Director from the and there are useful lessons for European companies Ford Motor Company, explains the steps Ford has to learn from the US experience, we can’t assume that one size fits all. Frank Howell, Diversity Manager taken to recover from past difficulties and develop a for Europe, Middle East and Africa, from JP Morgan, holistic approach to diversity. Ford is now widely sheds light on ways to make US-originated diversity celebrated for its diversity-friendly practices and policy work in a European context. Surinder will look at how these bring the company closer to being both an employer of choice and a brand 3. Why it pays to value difference of choice. Alison O’Connor, HR Director at Arriva, explains why they are passionate about travelling beyond compliance A qualified lawyer, Surinder began his career with the – and the steps they have taken to maximise the Commission for Racial Equality in 1983. He has worked business benefits of diversity. with the BBC, Littlewoods and Ford. He is also a Arriva have used innovative methods to train line Commissioner at the Equal Opportunities Commission. managers, including theatre workshops.

11:00 Morning coffee 4. Promoting diversity - international challenges for the British Council 11:30 Marching to a different beat Fiona Bartels-Ellis, Head of Equal Opportunities and The Met’s new Diversity Chief, Commander Stephen Diversity, will speak about The British Council’s Allen, shares latest developments at the London force pioneering work – developing diversity training for their managers to keep ahead of legislation. which has become highly controversial due to diversity issues. The force’s experience holds lessons for The British Council is the UK’s main organisation for organisations everywhere. cultural relations with offices in 109 countries and a workforce of 7,000. Commander Allen will explain how the Met implements three key strands of diversity policy: 15:15 Afternoon tea • Changing culture – stamping out the ‘canteen culture’ • Promoting diversity through the ranks 15:45 More connections, more possibilities • Internal and external communication to maximise • Gaining respect in the public eye the benefits of diversity • Diversity in the ‘real’ world – in all aspects of 12:15 Defusing the demographic time bomb the business By 2006, 45-59 year olds will form the largest group BT has won awards for diversity and their work to in the labour force. This affects every organisation, but create an appropriate work-life balance. The employers have not adapted sufficiently. Focusing on company has actively encouraged diversity and real examples, Sam Mercer, Campaigns Director, will inclusiveness to improve performance. Dave Wilson, show how some employers are shaking up the whole Head of People Networks, explains the steps BT has way they work to address age diversity positively. taken and exposes future challenges.

You will learn: 16:30 Disability in the Office • How ageism affects all employees • Just how easy is it to accommodate wheelchair users • How to challenge stereotypes and expectations and people with mobility issues in the workplace? • Disability in the market - are you missing out on a • The best way to combat ageism significant potential market? The Employers Forum on Age is the first ever employer Julie Fernandez is an actress, presenter and disability led initiative to promote the business benefits of an age rights consultant. She is best known for her role as diverse workforce. Brenda in the BBC’s award winning comedy ‘The Office’

13:00 Buffet lunch 17:00 Close

SAVE £100 IF BOOKED BEFORE 12TH NOVEMBER www.diversityday.info EXCLUSIVE EARLY BOOKING EXTENSION FOR READERS OF “THE HR DIRECTOR” Inside Diversity… Bringing Policy to life

How to bring policy to life through diversity training

Agreeing to a principle is easy, and the whole area of encouraging diversity in the workplace is highly susceptible to becoming a matter of fine words, fine feelings and an imperfect understanding of the real issues and what can be done. “The roots of A planned, detailed effort is crucial for a and the more likely it is that it will be called to account discrimination are diversity strategy to be successful, particularly for them. usually very subtle, as the roots of discrimination are usually very often unconscious, subtle, often unconscious, and ingrained in 2. Acknowledge the problem and ingrained familiar ways of thinking. It's not a case Most organisations are not as diverse as they would like of imposing regulations that will prevent in familiar ways to be and this is even truer towards the top of the flagrant breaches of behaviour. of thinking”. hierarchy. To move forward, organisations need to understand the problems they face, and the first step is The study to acknowledge that there are difficulties with equalities The Institute for Employment Studies has made a and these are likely to be due to racism, sexism or comprehensive review of the concept and practice of stereotyping, either consciously or unconsciously, either diversity training in more than 800 organisations on individually or organisationally. behalf of the Home Office, a study commissioned in the wake of the Stephen Lawrence Inquiry. This looked at 3. Clarify what you want to change the experiences of organisations, and the factors that Most organisations do not have a clear understanding impact on success and the study has led to a good about why they are doing something or what they are “The more practice guide, outlined in a 10-point plan here, for hoping to achieve through the various initiatives that formulating good strategy. The guide is based on: successful an they have in place. That is not to say that they are completely unaware, although this may be true for some, organisation is, • what the organisation is trying to achieve or change the more visible but they lack clarity of purpose and the ability to translate it into measurable initiatives that can make a its failures and • implementing strategy in the context of current difference in the direction anticipated. the more likely organisational issues it is that it will • understanding how power is expressed in 4. Deal with power the organisation be called to Organisations need to be clear about where resistance is account for them”. • ensuring that solutions are appropriately specified likely and ensure that systems and procedures take and enacted. account of this, e.g. ensuring that recruitment panels are balanced, that reward and promotion systems take 1. Take a clear stance account of diversity issues, that managers' roles are An organisation needs to decide the approach it wishes to clearly spelt out. Disadvantage is embedded in adopt towards diversity issues; is it about ensuring people individual and organisational power structures, and it is are treated the same or is it about celebrating difference? critical to understand where the power is in the organisation and where those with power are likely to Similar to some other concepts in Human Resources, gain or lose from any diversity initiatives. The initiatives such as empowerment, diversity can gain acceptance themselves should seek to take into account power without understanding, and in doing so the real power relationships. The support and positive engagement of of the concept can pass people by. Fully embracing the top team will, to a large extent, determine the culture diversity is also about accepting change and that the of the organisation and the extent to which it can organisation will become a different place to where it is successfully embody change. now. This is likely to be uncomfortable for many. It should be recognised that diversity becomes more 5. Target your activities difficult, not easier, as progress is made. The more Within both the diversity and equal opportunities successful an organisation is, the more visible its failures paradigms, there is a choice whether to keep attention page 16 The HR Director - Issue 1 Nov 2003 Inside Diversity… Bringing Policy to life

broad and use all forms of disadvantage to drive the of staff representatives in improving the content of training point home, or to focus on a particular issue to ensure it and promoting training visibility and commitment either receives sufficient attention. Some organisations by supporting or critiquing the process. deliberately utilise the interplay between different expressions of disadvantage to make points that nearly Be aware of the culture of your organisation and whether “Be tough on everyone in the organisation can identify with. Others it will hinder diversity initiatives and therefore will those who believe that it is only in focusing organisational attention require programmes to effect cultural change. resist change”. on specific issues, that it can really be dealt with Programmes should take account of any recent/current effectively. Ideally this decision needs to align with the environmental factors affecting diversity issues. For identified issues in the organisation. some organisations the dilemma is in trying to develop training for a largely non-minority ethnic workforce 6. Set aims and objectives for training who have low levels of contact with minority ethnic When trying to engage staff interest and support for race clients. In these cases the need is to develop training that and/or diversity training, it may be helpful to keep staff raises awareness of and sensitivity to the potential needs regularly informed about the whole training strategy. If of all clients and colleagues, and at the same time ensures “Training is better they are not aware that a particular element of training that the support system is in place to provide specialised received where is part of a longer-term strategy, they can become and detailed knowledge when required. Where there is it is delivered disillusioned with what is being provided at any given cultural resistance, strong measures and determined in small, moment. If possible, diversity training should be ongoing, leadership will be needed to resolve it: give clear homogeneous in response to individual and organisational need. messages on diversity and top office support; set clear groups. behavioural expectations; brief managers as to their role; This enables the 7. Tailoring to suit needs persist and be tough on those who resist change. trainer to cover Training can take many forms: general awareness courses individual issues 10. Evaluate aimed at all staff, as well as specific issues tailored and more carefully targeted to particular groups, to provide practical job- Think of the evaluation and monitoring of the training as an integral part of it and not as a separate 'add on' and to deal with related behaviours. Individuals prefer training that they any resistance believe to be applicable to their work context, relevant to activity. Building diversity is a long-term initiative. It that arises”. their personal understanding and need for information, or requires establishing a new culture and building trust which changes their awareness. On the whole, training is and this cannot be done through short-term measures. better received where it is delivered in small, The act of monitoring and checking success is critical to homogeneous groups. This enables the trainer to cover re-energising the organisation and the initiatives. individual issues more carefully and to deal with any resistance that arises. Penny Tamkin is Principal Research Fellow at the Institute for Employment Studies (IES) 8. Maximising credibility and attendance www.employment-studies.co.uk Trainers need to be able to demonstrate an understanding of the issues set within the organisational context/culture and this can be helped by having mixed Changing Perceptions - Ford's Diversity Challenge teams of internal and external trainers, including trainers In the mid-1990s, the Ford Motor Company had a who have personal experience of some of the issues highly visible problem in handling diversity issues, covered. However, credibility is most strongly related to especially those around racial discrimination. At one the approach of a trainer. There is evidence from case point the company was threatened with a formal studies of a greater participant satisfaction and training investigation by the Commission for Racial Equality. impact with mixed training teams. However, the massive changes that have taken place since then have not just improved race relations within Consider whether compulsory attendance on training the company (although this has definitely occurred), but courses will cause resentment or will indicate has had a major business impact. Surinder Sharma, organisational commitment. Alternative approaches to “The support European Diversity Director for Ford Europe, has a mandatory attendance would be to encourage and positive number of good examples - "we're now effectively attendance with: clear communication of how training engagement of targeting Asian small businesses who buy vans, for differs from previous diversity/race/equal opportunities the top team example. Sponsorship of the MOBO Awards and training; clear communication of the individual benefits; will, to a large London's Mardi Gras celebration is also bringing the creating formal links between training and staff benefits Ford brand to further new audiences", he comments. extent, determine and progression; attendance by senior staff; line manager the culture of endorsement, and effective administrative support How did Ford achieve this change? They key factors the organisation enabling participants to select convenient courses. include strong support right from the top of the and the extent organisation, partnerships with unions, internal training to which it 9. Organisational support and commitment and comprehensive monitoring. A dedicated harassment can successfully Ensure visible and active support from senior management telephone helpline and policy of zero tolerance of embody change”. to give a strong message of organisational commitment. It harassment was strengthened further by the adoption of makes a real difference where the chief executive takes a formal 'Dignity At Work' policy. personal responsibility for the strategy and where diversity has high status. Other organisational initiatives and Surinder Sharma will be speaking at Diversity Day. activities such as appraisal and reward systems should Please see p.14 for more details. support training programme outcomes. Consider the role

The HR Director - Issue 1 Nov 2003 page 17 Calling last orders: relaxation not inebriation

Calling last orders How can employers encourage relaxation without inebriation? If you think back to the Thatcherite boom years, what upswing in young female drinking. Perhaps then, what do you think of? Yuppies, Porsches, cocaine and, perhaps employers should be offering and trying to encourage are more than anything else, a real work drinking culture: other ways for staff to relax. champagne, lager, whatever, whenever. You might also remember how business lunches used to be – plenty of “1 in 10 adults do not drink – claret, consumed by tubby, ruddy-faced businessmen in either for religious reasons clubby surroundings. Now think back to the last big or out of choice, and, boom – the dot.com bubble. True, there was plenty of for these folk, foolishness around, but it wasn’t drunken foolishness. pubs really aren’t much fun” And, a couple of years on, in these tight-belted times, liquorous lunches are few and far between. But what are the alternatives to a couple of swifties Indeed, for all the fuss about Britons diving into a sea after work? of alcohol (and walking home in a sea of vomit) every Some would argue that the espresso bars that now dot Friday or Saturday evening, there is one area of the high street are the new pubs. Certainly their growth national life where drinking has become steadily less has been impressive. With their big squishy sofas and fashionable – the workplace. Twenty, ten, or even five convivial atmospheres they have many pub-like years ago, the workplace was a far more drunken place attributes – just no alcohol and usually no cigarettes. than it is nowadays. The pressure to drink coffee is less too: nobody is going to get sniffy if you order tea or fruit juice instead of a “Booze costs the UK 14.8 million double macchiato. working days per year” Cathy Heseltine, marketing director at Starbucks UK, Which is not to suggest that business isn’t adversely explains: “Starbucks represents the “third place” – a place affected by booze. A recent report from the TUC claims between home and work, somewhere customers can that alcohol costs the UK 14.8 million working days per reflect, chat or meet with friends. Our stores offer year. Commenting on this Brendan Barber, TUC customers a relaxing, smoke-free alternative environ- general-secretary, said, ‘Drink is definitely a workplace ment to the pub, in which they can unwind in comfort issue. People who like the odd drink or two may think over their favourite coffee.” their drinking is under control, but their colleagues who have to cover for their “duvet days” and long lunches Companies have recognised this and many now have in- might think otherwise.’ office cafés modelled on espresso bars. Some have gone rather further. Moreover, recent research at Loughborough University revealed that a single large vodka and orange at One is British Airways’ Waterside HQ with its vast lunchtime was enough to significantly reduce mental glassed-over atrium running down its centre which is alertness in the afternoon. And a survey by DrugScope known as ‘The Street’. The idea was to mimic the feel of revealed that one in three-quarters of businesses believe a Mediterranean street and, to be fair, it is closer to the that lunchtime drinking should be banned. real thing than you might expect. There are the usual urban standards such as lamps, benches, trees and, Nor are the deleterious affects of alcohol on performance presumably to aid relaxation, a stream. Ranged along the only reason for business to be down on the boozer. A ‘The Street’ are the offices, but also cafés for meeting in, small, but significant, minority of adults (one in ten) do a Waitrose, a library and, for those who want their not drink – either for religious reasons or out of choice. relaxation a little higher brow, an art gallery. And, for these folk, pubs really aren’t much fun. There is also the perception that pubs are blokey places, although Healthy body, healthy mind the proliferation of wine bars, gastro-pubs and the like Once you start thinking out of the box, there are all sorts has done much to mitigate this – with a commensurate of interesting ways of going about this. West London page 18 The HR Director - Issue 1 Nov 2003 Calling last orders: relaxation not inebriation

based Innocent Fruit Drinks is well known for its innovative approach to work and this spills over into relaxation. Explains Innocent’s Ailana Kamelmacher, “Exercise is certainly a good one. We do exercise together every Monday. But there are various different things. In the past we have done yoga together and Tai Chi. Then we have the culture club: tomorrow we have a guy coming in to tell people how to write a book; next month there’s cheese tasting. There are also various different mini clubs such as cinema club and badminton club.” And, perhaps best of all, once a year the entire Innocent staff goes skiing for a weekend.

“The espresso bars that now dot the high street are the new pubs”

Nor is Innocent the only business that offers its workers such relaxotainment. The London based law firm Olswang does work for a lot of media clients so it offers staff free preview screenings of plenty of films. Over at Orange, there are reading groups where staff get together to discuss the book that they’re currently working their way through, while employees at TMP worldwide and Loot magazine get a monthly massage, free of charge. In fact, massage has proved one of the most popular ways to help staff relax and is now a widespread benefit – one that is usually loved by staff and costs employers little. Some have even gone one better and offer employees acupuncture, while over in California, corporate yoga is gaining popularity as a relaxing counterpoint to extreme sports.

Of course, companies such as Innocent are in rather an enviable position when it comes to doing all this. They are, after all, young companies with young staff. But many businesses run sport leagues – everything from football to squash to tennis.

Another possibility employers may want to look at is building a company gym on the premises. Apart from the initial outlay, this is pretty much a win-win. Employees get a chance to work out and will be more relaxed – and a fit workforce is less likely to take sick days. A gym means showers and that encourages employees to cycle to work, which can be a boost to both relaxation and fitness. For businesses that do not have the space or means to build onsite fitness, it is usually possible to negotiate corporate rates with providers such as Holmes Place.

Flexible ‘summer hours’ Thinking more laterally, one thing many American businesses do to help their employees relax is extend their weekends. They do this by working a system called ‘summer hours’ whereby employees get in half an hour early from Monday to Friday; and then knock off at lunchtime on Fridays. The scheme originally came from New York, the idea being to allow office workers time to get out to the Hamptons on

The HR Director - Issue 1 Nov 2003 page 19 Calling last orders: relaxation not inebriation

Long Island before the the restaurant option. But Britons trail far beyond their traffic, but it has spread in continental cousins in this respect. Although matters are the US and is now making improving, we simply do not have the bar-café its presence felt here. infrastructure (like say, Barcelona) to facilitate this and going out to dinner remains something of an occasion Thus far in the UK it is on this side of the channel. only operated by US-based businesses but these include So for all this, sensible drinking with colleagues remains giants such as Yum brands one of the most popular ways to relax after a day at work. (Pizza Hut, KFC, Taco Bell), Microsoft, Pfizer and And despite what Californian wheat-grass juicing types Bristol Myers Squibb. Staff response to the scheme, thus might have you believe, many of the best business ideas far has been, to say the least, enthusiastic. As Mark have their roots in a well lubricated chat. Says Rick Tr udeau, UK MD of Bristol Myers Squibbs explains, Wills, chairman of BA’s phenomenally successful foray “Last time I announced we’d do it, I practically got a into oversized Ferris wheels, “You do know that the standing ovation. We encourage it in the summer original idea for the London Eye came out of a because we know people want to get away to relax for the discussion over a few bottles of claret that Rod weekend.” As the scheme results in employees working Eddington and his wife had after dinner with some exactly the same number of hours, he says that neighbours of theirs who are architects?” productivity is the same, if not better. Rhymer Rigby is a regular contributor to the FT and Sunday Telegraph. Of course, most of these things are daytime, rather than evening activities. Get to the after work period and you Above Picture: Relaxotainment at Innocent includes are a little more limited, although activities such as sport, classes on how to write a book and ‘cheesopoly’ – the theatre and cinema all remain possibilities. Then there is cheese tasting club, above

page 20 The HR Director - Issue 1 Nov 2003

Career off the road

Career off the road

“Annually, Alex Keve catches the 7.37 from Orpington, having made the 10-minute trek from his home transport problems cost the economy to the station. Arriving at Waterloo just after eight o’clock, he joins the hordes queuing to enter £6 billion in lost the underground station, boarding the Bakerloo Line to Paddington. Alex works in one of the productivity”. new tower blocks revitalising Paddington Basin. On a good day, his journey to work, door-to- door, is around one hour 20 minutes, adding over two-and-a-half hours to his working day.

“The danger is that Official figures show that the average commute to work government-funded transport improvements, by 2010 long working hours in London is now 40 minutes, and 56 minutes in the thousands of workers will regularly travel to the capital – British employees City. But the most educated and talented employees in from homes in Yorkshire and Devon. Manchester’s the south-east spend, like Alex Keve, over two hours a commuter belt is predicted to spread to North Wales and tend to work the day commuting and the situation is getting worse. the Lake District, and Birmingham’s will encompass huge longest hours in According to the RAC Foundation, UK workers spend swathes of Shropshire and Herefordshire. Europe – coupled the most time commuting in Europe – almost twice as with long long as Italians. Paul Suff looks at what Britain’s most One explanation for the greater distance being travelled commuting times pioneering employers are doing to minimise the by commuters is that people are now much less likely will produce an disruption and stress caused to their staff by the daily than in the past to move home for their work. Reflecting increasingly stressed commute the huge growth in dual-career households as more and unhappy women join the labour force, the proportion of workforce”. Rising travel-to-work times make it harder for people to households moving because of employment reasons fell achieve a better work-life balance. Commuting is one of by 50% between 1984 and 1994. People often prefer to the biggest causes of stress among office workers, with continue living in the same area rather than uproot their 41% saying travel was the most annoying aspect of their family even if a new job means enduring a longer jobs. Initial findings from a University of Nottingham commute. Some are prevented from moving closer to study suggests that the poor state and reliability of the their workplace by higher relative property prices, while UK railway network means that some commuters could others tire of urban living, preferring a rural idyll, even “Teleworkers don’t be suffering from dangerously high stress levels. if they can only enjoy it at weekends. arrive late because they are stuck in a The Office for National Statistics says that besides the The danger is that long working hours – British traffic jam, can’t increase in journey times over the past decade, the employees tend to work the longest hours in Europe – find a parking distance workers travel is also getting longer. In 1991 the coupled with long commuting times will produce an average commute was 11.6 kilometres. Ten years later this increasingly stressed and unhappy workforce. Many space or their bus had risen 17% to 13.6 kilometres. Predictions suggest that workers already complain of being time-poor. Surveys or train is late”. commuting distances may get longer still. Academics at indicate that the majority, if given the choice, would opt University College London claim that as a result of for a shorter working week rather than a large pay rise. page 22 The HR Director - Issue 1 Nov 2003 Career off the road

One effect of employees’ inability to achieve a proper number of times work-life balance will be reduced loyalty. PeoplePC, individuals’ drive each which helps companies provide staff with home week. Currently only “41% of office computers, reported in 2001 that 10 million UK 5% of workers share a workers say travel workers would consider leaving their current jobs unless car to work. But research is the most employers take steps to improve their work-life balance. by the internet job site annoying aspect of reed.co.uk reveals that their jobs”. How can HR Directors develop a business solution to car sharing is something ease the stress of commuting? many employees would welcome, with 45% Teleworking saying they would be more likely to work for an Travelling 80 kilometres or more to sit at a desk or to employer who offered such a scheme. At the attend a meeting seems ridiculous. Working from home Nottingham head office of Boots over 1,000 employees is the most obvious alternative. The latest figures show are registered members of the company car-share that teleworking has doubled in the six years to 2003. scheme. Elsewhere in the City, limited parking space Defined as people working from home who need both a forced several organisations sharing the same business telephone and computer, there are now more than 2.1 park, including the BBC, NHS Direct the East million teleworkers. The demand to work from home, at Midlands Development Agency, to band together to least occasionally, is growing and is undoubtedly fuelled encourage staff to share cars. Claire Fleming of the by the increasing difficulties and expense of getting to Travelwise organisation in Nottingham, which operates and from work. Teleworkers range from entirely office- the scheme’s database of members, says that ‘around based customer service employees to mobile social “Reflecting the 10% of the overall workforce initially joined and that services caseworkers and from solicitors to senior 90% of these were matched with suitable car partners’. huge growth in managers. Some teleworkers work entirely from home, dual-career while others do so one or two days each week. Financial assistance households as more Financial assistance with commuting costs is another women join the Next time your car breaks down and you contact the AA way of supporting commuters. Help with transport labour force, the for assistance, the person who handles your SOS is quite fares, usually by providing an interest-free loan to cover proportion of probably doing so from home. Now part of Centrica, the the lump sum upfront cost of buying a season ticket, is AA has 150 call handlers working from home. ‘One households moving fairly common and becoming more so. A 2003 survey by significant advantage is that they avoid commuting because of IRS found that almost half (46%) of the organisations through busy traffic. This suits them and the business. employment polled offer their staff interest-free season ticket loans for They don’t arrive late because they are stuck in a traffic reasons fell by 50% travel to and from work, which is 8% more than in jam, can’t find a parking space or their bus or train is 2002. Some firms, such as First Direct, also provide between 1984 late’, says Centrica’s Andrew Turpin. ‘Also, there is a loans to cover the cost of parking the car while at work. and 1994” lower turnover rate among teleworkers than there is for staff on site at call centres.’ Teleworking, compressed working weeks, car-share schemes and financial assistance are one thing. A more Obviously, teleworking is only a realistic option for jobs radical response is to relocate the business to somewhere that entail high computer use or telephone work, and where the commuting time is vastly reduced and some employees need to be office-based. Nonetheless, accomplished in rather less stressful circumstances. Few there are other possible solutions to lessen the strain of organisations relocate to ease the commuting burden, commuting on those who have to come to a workplace. but it can be one of the benefits. It could have the opposite effect though. Alex Keve’s daily commute is Compressed working weeks now one hour longer after his employer relocated to Compressed working weeks and flexitime may provide Paddington from the City. But at least the views of partial respite for suffering commuters. Condensing the London are better. working week into four longer days or a nine-day fortnight means less commuting journeys and increased Cost of commuting leisure opportunities. Varying starting and finishing Commuters: The proportion of total weekly household times allows staff to travel outside of peak commuting expenditure going on fares and other travel costs in periods, so they might at least get a seat. According to London is double the UK average at 4%. Lack of time the Work-Life Balance 2000 survey almost seven million means that commuters are forced to spend money on workers are employed by organisations that operate unnecessary expenses, such as take-away meals. flexitime arrangements but the number offering a compressed working week to staff is negligible. Lloyds Employers: Recruitment firm Reed found the average TSB and Unilever are two firms that do offer staff the UK employee is losing 25 minutes of working time each opportunity to condense their weekly working hours week due to problems getting to work. Annually, this into fewer days. costs the economy £6 billion in lost productivity.

Car share schemes The environment: Car commuting accounts for 78.5 If staffing patterns make flexible working impossible, billion miles of car travel each year, with, annually the employers can try to make the daily commute slightly average worker travelling 2,906 miles to and from work more bearable. Car share schemes reduce individual in their vehicle. trips. This eases congestion and costs of commuting, helps build an informal network within the organisation, Paul Suff is freelance editor of The Work Foundation’s and, if more than one driver takes part, reduces the Managing Best Practice journal

The HR Director - Issue 1 Nov 2003 page 23 Distance Learning: HR in Sweden

Distance learning

The first of a series of articles looking at different approaches to HR around the globe. From Bjorn Borg & Abba to Sven & Ikea, the UK seems to have a fascination with all things Swedish – but what can we learn from their people management style?

One of the hallmarks of working life in Sweden is that state – from generous pensions to free medical care, employees are given far more responsibility for their maternity/paternity leave and education, including free work than their British counterparts. There is less school meals for all. “checking up” and management structures are far flatter. However, when it comes to overall employment costs, In short, employees feel a greater sense of ownership of Sweden is the third most expensive country in the EU, “The ‘that’s not my their job and a greater stake in their company. They according to a study by consulting company Mercer. In job’ attitude, we know what they are expected to do and get on with it. terms of national average pay alone, Sweden is ranked just don’t have that fifth most expensive after Denmark, Belgium in Sweden”. “In terms of contracts and responsibility, we Luxembourg and France, but including employer have a very simple process in Sweden,” says contributions, it is third. Christina Knutsson (left), the London director of Invest in Sweden Agency (ISA), a Around 820 British companies employ 60,000 people in government-backed inward investment Sweden. Three UK companies figure in the top 25 promoter. Detailed job descriptions and foreign companies by size – AstraZeneca, HIH Sweden clear instructions that are common in the (owned by the Hilton Group) and Compass Group. UK are less so in Sweden. British companies make up around 10% of foreign “Swedes aren’t companies by headcount, according to the ISA. used to being told “That’s something you don’t have as much of in what they’re Sweden,” she says. “You will describe the outline of the According to Knutsson, most foreign companies moving supposed to do, responsibility and people are very responsibility into Sweden would hire local staff, maybe starting off with and to reporting minded…The ‘that’s not my job’ attitude, we just don’t a British manager to get things going for an initial period. back constantly”. have that.” Contracts of employment are usually not much more than a page long, except where more It is here where things can go wrong for British complicated terms are involved, such as for a CEO. companies, she says. Their polling of UK companies in Sweden finds many are surprised at the culture. “It does An area that often surprises British companies is in white surprise British companies because there’s a bit of a clash collar salary levels, which are around 20% lower than in with the workforce. Swedes aren’t used to being told the UK. Blue collar workers generally earn more though what they’re supposed to do, and to reporting back than their British counterparts. The Swedes are highly constantly. You are responsible and get on with the job. affluent, and this is because so much is provided by the There’s also a lot of team work and a lot of consensus.” page 24 The HR Director - Issue 1 Nov 2003 Distance Learning: HR in Sweden

Anglo-Swedish pharmaceutical giant AstraZeneca helpful. We deal mostly with white collar unions. They (brought about by a merger in 2000) represents a major are like chalk and cheese compared to British unions.” challenge to HR Directors because of the two countries’ cultures and customs. Swedish unions are very strong and membership is high at around 80%. This is boosted by the fact that unions Jenni Hardy (left), senior human administer unemployment insurance schemes. There is resources partner in the company’s also a view that unions are appreciated by employers Discovery business area (the unit because they are knowledgeable about the labour market that comes up with new drugs), law and employees’ rights. lived in Sweden for 12 months “The Swedes during the merger process and was In March, oil major Shell announced it was seeking a surprised at what she found. “In all buyer for its Swedish company, AB Svenska Shell. This emphasise quality my experience, you never know how much things are to follows a strategic decision to sell. Douglas Caldwell, over speed”. do with the individual culture or with the nationality.” HR manager for Shell UK oil products, was put in charge of drawing up an HR strategy. She echoes the ISA view of how Swedish employees take responsibility. “On the culture side with respect to Caldwell has worked closely with the Swedish HR human resources, the difference for me was very much in Director, among other things to survey the workforce. the use of informal dialogue to clarify what’s expected. “What has surprised me has been the positivism which the When these conversations take place, they probably take Swedes have shown towards the process and in assessing longer having the conversations, but once it’s clear in the the development. They’ve taken it very well – they see it individual’s mind, they just believe it’s their as much of a challenge as anything else, an opportunity to responsibility to go and do it…Writing down things isn’t be free from the bureaucracy of a major multinational.” something that’s familiar to them. We have to get used to that.” One of the most famous Swedes in She found it a bit frustrating that such a conversation the UK is England could go on and on, but found that once completed, the football coach Sven Swedish employee was clear. Subsequent progress checks Göran Eriksson. He by her were resented. is admired for the fine results he helped “I found it unsettling,” she says. “I remember several the English side achieve, but his management style is conversations with my colleagues in Sweden. I believed I worth a look as well. was following up how things were going and they felt I was checking up on whether they were doing anything.” In an interview with the BBC on Swedish management She never encountered anyone shirking their work. style, Eriksson said: “It is very consensus oriented and fairly pragmatic. Egos do not get in the way of making The Swedes also emphasise quality, as opposed to speed. good decisions.” And if it takes a day, week or month longer to get something done, then so be it. This clashes in particular He said it was about combining “very plain speaking with the American approach, present through the discussions as well as very polite ones”, but not being company’s US subsidiaries where getting the job done by confrontational. He stressed empowerment, certain deadlines is the top priority, says Hardy, adding encouraging dissent and listening as part of good that the Swedish approach is “refreshing”. decision making.

Trade unions are seen as partners in Swedish business, not Andrew Draper, Nordic International opponents. Hardy says: “They are very constructive, very www.nordicinternational.co.uk

The HR Director - Issue 1 Nov 2003 page 25 Wellbeing at work - Impressive First Impressions Impressive first impressions Whether it’s an important business meeting, an encounter with a new colleague by the fax machine or wining and dining clients you’ve never met, we show you how to overcome the jitters and make a fabulous first impression… First impressions count! In fact, experts believe that objectives and what you want from the meeting.” If this still within seconds of meeting someone new, we make up to doesn’t work, try some deep breathing in the toilets a dozen assumptions about them, ranging from their age beforehand! and education to their mood and personality. 5. Handle the shakes It’s something Sandra Donaldson, HR and Learning A firm handshake is better than a weak one, but don’t go Consultant for Hampshire-based company Training too far. “A handshake is a professional form of personal 2000, knows all about. When she started working with contact so it’s important not to grip someone’s hand like a GP’s and practice managers to establish effective vice,” says Sandra. “Make sure it’s firm but not aggressive.” performance management systems in their surgeries, she knew the initial impression she made was essential. “I 6. Raise your eyes had to look credible without alienating the staff I needed Make eye contact when you first meet someone and to talk to,” she says. “But, I was also able to learn a lot smile. But avoid grinning like a Cheshire cat or staring about the running of the surgery simply by how the them out. You’ll look intimidating! reception staff treated me on my first visit.” 7. Walk tall So how can you ensure that nerves don’t get the better of Your posture can speak volumes. “Keep your shoulders you and you make the best impression? Follow Sandra’s down and back when you walk into a room, and keep an top tips… upright, relaxed position when sitting. Don’t lean too far back in your chair though, because this conveys pseudo- 1. Create the right image confidence,” says Sandra. Imagine visiting your bank manager to find him wearing Bermuda shorts and a t-shirt! You’d wonder what was 8. Gauge the level of formality going on. For good first impressions, your image must If you’re unsure about how formal you should be, let be right for the occasion. “When someone looks at you, yourself be led by others. “If someone introduces himself they shouldn’t get any nasty shocks – what they see, as Dr Watson, introduce yourself as Joe Bloggs; if you’re should be what they expect,” says Sandra. invited to use a first name, then use it,” says Sandra.

2. Dress to impress 9. Name that person Wear something you like and feel comfortable in. Remember the person’s name. “Often people are so “Now’s not the time to experiment with your wardrobe worried about everything else, they forget the name of or wear your brand-new Jimmy Choos that have never the person they’re talking to,” explains Sandra. seen the light of day,” says Sandra. “Both men and 10. Don’t take yourself too seriously women should especially make sure their hair and shoes Be light, friendly and approachable, but use humour look great. It’s the top-to-toe effect. Although we don’t carefully. “Most of us are wary of court jesters or smart even know we do it, most of us scan people – if the asses. Most of us simply like nice people,” reveals Sandra. extremities look good, you can get away with a less-than- perfect middle.” 11. Know when to finish Make sure meetings end before awkward silences kick in. 3. Take a time check Sandra suggests establishing how long the meeting will Turning up too early will add to your nerves, so if you have last at the beginning, while still making it clear that if it time to kill, go for a coffee. “It’s acceptable to turn up 10 overruns, that’s fine with you. minutes early,” says Sandra, “but don’t forget you might have to check in at reception, get a security card and then 12. Follow it up hit the 24th floor – and this could make you late!” Establish at the meeting whether you’ll follow up with a letter, email or phone call – and then remember to do it! 4. Beat the butterflies “Never go to a meeting feeling hungry or thirsty – Juliette Kellow dehydration will affect your breathing and speech, making you sound even more nervous” explains Sandra. “And Juliette Kellow is a freelance journalist and former prepare well. Be clear about why you’re there, your editor of Top Santé magazine. In the next issue of the HR Director - January 2004 Advertise Here The HR Director goes inside Recruitment – talking to leading agencies and employers about their plans for 2004. It costs less than you think to have your There will also be features on: message read by 1000’s of HR Directors every month… • Employing ethics – exploitation globally and in the UK – what can the HR Director do? • Age diversity – how employers are challenging attitudes to look at age diversity positively – and Call Ben on 0117 905 5006 • Smoking in the workplace – as Dublin goes smoke-free, we look at the implications for employers or email [email protected] page 26 The HR Director - Issue 1 Nov 2003

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