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What will the Great Resignation bring for January 2022?

How companies are using the reprieve of November and December to prepare for looming January.

The holidays are approaching.  Historically, a time synonymous with gift shopping, holiday parties, and time with friends and family, this year HR professionals are celebrating a two-month break from months of steadily exiting employees.  November and December are traditionally lower voluntary turnover months whereas the following January traditionally higher.  Although many HR professionals will choose to embrace the much needed (and quite frankly, deserved) break from the grind brought about by the “Great Resignation”, many are instead using this time to implement employee retention strategies.  A recent 2021 survey sheds light on long and short-term retention strategies that work.

Co-create workplace culture to ensure flexibility.

38% of employees surveyed plan to look for a new job before the summer of 2022.  An especially alarming statistic for many HR and talent leaders considering a separate 2021 survey shows 69% of employers report difficulty in filling currently open positions.  30% of those intending to leave their jobs cite wanting more flexibility as their primary reason for looking, making flexibility the #1 reason to seek out new employment, surpassing common leading reasons – higher salary and dissatisfaction with management.  As talent teams agonize over the complexities of employee experience design, this call for flexibility suggests perhaps we’re looking to the wrong people to solve workplace problems.  Rather than theorizing and convincing employees to buy into our solutions this and other workplace challenges, why not instead empower employees and teams to identify and create solutions?  While we tend to believe it’s the highly connected, collaborative teams that effectively solve complex problems, we at Culture Engineered have actually found it to be the reverse.  Problem solving, as a team, drives connection and collaboration.  Co-creative cultures work because of this principle.  Co-created cultures empower employees and teams to identify and solve for external and internal challenges.  Because problem solving as a team, and on a larger scale, co-creating, is also associated with higher employee retention, and greater innovation and creativity, it poses as the one stone for the two problematic birds – employee desire for flexibility and increased employee retention.

Promote a culture of gratitude.

How often are leaders thanking employees for their contributions?  Although much about the workplace has changed during the pandemic, the power of thanks on employee retention remains the same.  It turns out two little words, thank you, have a big impact on retention.  49% of those planning to leave their jobs indicate they have not been thanked for their work contributions in the last month compared to only 26% of those intending to leave recall being thanked in the last 30 days.  2021 survey results combined with those of previous studies suggest employee appreciation, as an employee retention strategy, needs to meet three criteria to be effective:

  • Make it count. While 52% of all surveyed workers recall giving thanks to a coworker in the last month, only 34% recall receiving thanks suggesting 18% failed to either recognize or remember being thanked.  The best appreciation is specific and done with intention (ie, pulling someone aside or calling someone to say thanks) making it memorable and meaningful.
  • Give thanks frequently. Weekly or even daily messages of thanks have shown to impact an employee’s experience and satisfaction significantly. Leaders expressing gratitude when it’s more predictable (annual reviews or Employee Appreciation Day) see less benefits.
  • Encourage thanks from every level. Thanks from a direct manager has the most value.  But it’s workplaces creating an entire culture of gratitude, enabling kudos and shout outs from all levels and persons within the company (executives, peers, customers, etc) see the biggest impact.

Create an environment where people are seen and heard.

Project Aristotle, a multi-year Google study, was designed to identify why some teams fail while others strive.  Findings revealed psychological safety, a team’s collective belief that members are safe to take risks and be vulnerable with each other, to be the #1 factor in team success.  Because psychological safety relies on the trust within teams and the willingness of team members to be authentic, psychologically safe environments embolden individuals to see and hear each other.  Not only do people perform better in these environments, they turnover less.  When we fail to feel seen or heard, we feel invisible and excluded.  It’s easier to leave places we believe don’t want us.  An employee feeling connected with a team that sees and hears them is less likely to return a recruiter’s call, or peruse job openings.

There are 45 US working days this November and December.  The quiet before the stormy mass exodus many predict January 2022 will bring.  Although 45 days is not much time, it is a critical time.  Holidays can be especially difficult and lonely for many, particularly with the pandemic.   Forty-five 8-hour days spent in a humancentric, inviting workplace is no doubt a welcomed change for most US workers.  While not every resignation can be prevented, each workplace must distinguish the employee experience key to hiring and retaining those essential for their business.  If not now, when?  

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Is your team struggling with affiliative disconnect?

What is affiliative disconnect?

Have you ever been in a room, surrounded by people, only to still feel lonely?  According to Cigna research, 61% of the people in that room with you likely felt the same way.  This is because loneliness different from togetherness because it’s irrespective of the physical presence of others, occurring when we lack the feeling of meaningful connection with others.  Affiliative disconnect is a feeling of isolation or loneliness that develops collectively within a team, despite being part of a group.  While affiliative disconnect, like loneliness, may be hard to see, the symptoms are clear and can derail even the strongest of companies if not addressed.

Is your team struggling with affiliative disconnect?

Teams experiencing affiliative disconnect left unaddressed will eventually turn toxic.  The key is detecting signs of team affiliative disconnect early. Some of the most commonly observed warning signs include:

  • Higher than normal turnover (particularly high turnover with new hires – less than 90 days of employment).
  • Increased/high absenteeism.
  • Poor team performance (particularly with customer-facing roles such as sales or customer service).
  • Distrustful behaviors within the team such as passive aggressive comments, finger-pointing, hostility, and/or intentionally withholding information.
  • A lack of interaction or camaraderie among team members. In more extreme situations, team members will often know very little about one another, despite having worked together for a significant period of time.

How to (re)ignite connection within your team.

As social creatures, we as humans take to high connection interactions like fish to water.  Even individuals and teams that have survived for extended periods of time without meaningful connection are highly resilient.  Here are three basic ways every leader can take to help restore connections within their team:

#1 – Make individual wellbeing the priority, for the team.

It’s an unfortunate truth that hurt people, hurt people.  Although not quite as catchy, the same concept works conversely.  Individuals with a healthier sense of wellbeing when working together, tend to make better teams, associated with higher job satisfaction, better company stock performance, improved productivity and customer loyalty, and reduced turnover.  Research shows lonely workers are less productive and more frequently sick which can wreak havoc on any business.  More importantly however, people with poor mental health and wellbeing were three to six times more likely to report frequent loneliness.  Because research has also found a lonely person can transmit loneliness to others, wellbeing offers a solution to prevent the harm caused by loneliness in our workplaces and communities.

#2 – Encourage and recognize supportive behaviors within the team.

There is a popular legend of unknown origin, often attributed to the Cherokee or Lenape people, that begins with a grandfather telling his grandson of a battle of two wolves going on inside him.  The grandfather describes one wolf as evil – driven by anger, jealousy, and ego, and the other good – motivated by love, generosity, and compassion.  When asked by his grandson which wolf will win, the grandfather responds, the one you feed.  This same battle happening within each one of us individually is also happening within our teams.  When we recognize the supportive, prosocial, behaviors that are foundational to collaboration and communication within teams, we are feeding the good wolf.  Because recognition has been shown to affect two areas of the brain:  1) our hypothalamus, the part of our body responsible for regulating many of the body’s key processes, such as heart rate and body temperature, and 2) our dopamine receptors which receive dopamine, the chemical that affects mood, sleep, memory, learning, and concentration, recognition has been shown to have tangible benefits on a team and virtuous benefits on individuals.

#3 – Co-create team culture.

Historically, culture was often something defined by a few leaders, perhaps with the help of outside consultants or HR, and distributed in a top-down fashion.  More recently however, with growing appreciation and value for diversity and inclusivity, we’re realizing the previously one-to-many approach is far surpassed by the approach of many-to-many.  It’s only when environments are inclusive, engaging the voices thoughts, and talents of diverse groups, that communities thrive.  A co-creative workplace culture not only embraces but implores feedback and transparency.  With the development of our newest tool, TeamEthos.io, it was the introduction of the team notifications, informing team members of how the team was doing that day and what each person can support one another in the moment, that we saw the biggest shift in team connection and success.  Empowering a team to identify and solve for challenges within a process or system can be a great first step toward building psychological safety and collaboration, the foundation of any co-creative, highly connected culture.

 

Affiliative disconnect isn’t the sickness.  It’s a warning sign that the health of your team is in jeopardy.  The danger comes only from ignoring it.  It’s taken the Covid pandemic to reveal another potentially harmful pandemic we’re all susceptible to, loneliness.  Not everyone comes from a healthy family environment.  Many struggle to create a healthy network of friends.  But most of us, in our lifetimes will need to work.  What if we, as leaders, make work the safe space we intentionally create meaningful connection?

Combat the disconnect plaguing your team and company with TeamEthos.io.  Click here for a two-week free trial!

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5 Performance Management Myths Every Leader Should Avoid

The North Wind and the Sun is a famous story that are part of the ancient Greek’s collection, Aesop’s Fables.  It begins with the Sun and North Wind arguing over which is stronger.  To resolve the dispute, they agree to a challenge when they see a man walking along a road, wearing a coat.  Whoever can get the man to remove his coat is the stronger of the two.  The North Wind goes first, blowing and howling more intensely with each gust, frustrated that the man holds his coat only tighter against the wind.  Defeated, it’s then the Sun’s chance.  The Sun begins to shine with gentle beams.  The man unfastens the coat, leaving it to hang loosely from his shoulders.  As the beams grow warmer, the man takes off his coat and sits beneath a tree to enjoy the shade.

The moral of this story is “gentleness and kind persuasion win where force and bluster fail”.  Today, more than 2500 years since written, this story also reflects what we know to be true about human behavior.  Our behavior is largely driven by our experiences and how we feel.  While we may under stable or controlled situations show up a certain way, how we act in stressful or even uncomfortable situations can be very different.  So what does this mean for our workplaces?  How can we lead our teams to success knowing the journey of paving any path is uncomfortable and riddled with stressful obstacles?  Unfortunately much of today’s performance management practices are outdated (if not completely contradictory to what we now know about how we work).  Even the terminology used….driving results….corrective action…..performance review…..the term performance management itself….imply a combative or  suspicious relationship between employee and manager.  Much like the North Wind’s approach toward the man with the cloak, we remain convinced that negative reinforcement and punishment yield desired results…despite our failed attempts.  Here are five of the most common performance management myths that continue to blow through and harm our teams.

Myth #5:  The purpose of Performance Improvement Plans (PIPs) is to set clear expectations for a poor performing employee.

Have you ever struggled to meet the expectations of your job?  Did you need someone to put it in writing to recognize your job was in jeopardy?  From a legal and ethical standpoint, setting expectations is important.  From a commonsense standpoint though – it’s ridiculous.  Using a PIP merely to outline expectations for someone to keep his/her job is similar to describing the water to someone who is drowning, believing it will help him swim.  The primary purpose of a PIP is to create and develop a plan for the employee to improve.  A good PIP will include short-term measurable actions that align to longer-term goals essential indicative of progress.  A great PIP will include manager commitments such as a period of more frequent check-ins to reassess progress.  PIPs are a plan for success, and both the manager and the employee should be collaborating on how to save the situation.  And because the point of the plan is to improve, progress is key.  And similar to horseshoes and hand grenades, close a counts.  An employee who performs better although falls slightly short of the goal, should continue to be supported with the PIP process.  We all learn differently and at different speeds.  Performance management is about the trajectory.  So, an employee’s performance that is trending toward success that over time proves to be sustainable is a positive outcome for any PIP.

Myth #4:  Bonuses drive employees to work harder and smarter.

Bonuses, commissions, and incentives are not new concepts.  Perhaps one of the first positive psychology philosophies adopted by workplaces, pay-for-performance aims to encourage certain desired behaviors and results through positive reinforcement.  Research has shown however that the concept of how pay impacts how we work is much more complex.  Not all pay-for-performance plans produce better employee output.  Success of such a plan depends on the level of complexity in priorities within a role (ie, an incentive for quantity will often compromise quality goals), the level of social dynamics among coworkers, and the level of (existing) motivation within the employee-base to do a good job.  When considering how financial incentives improve employee performance, it’s first important to realize employees fail to succeed in their jobs for only one of two reasons, skill or will.  This is not meant to validate or reinforce the unfortunate misconception that struggling employees are either incompetent or lazy.  If anything, this false belief tends to be held and perpetuated by leaders that are underdeveloped or inexperienced. Neither term meant to reflect an employee’s motivations but instead their experience/expertise (skill) and habits (will).  For example, a sales representative that fails to meet her quota each month is either lacking the experience in converting leads to sales (skill) or has failed to adopt the habits of feeding and maintaining a healthy pipeline (will).  While financial incentives like commissions or bonuses may increase an employee’s short-term motivations, they don’t change an employee’s experience or habits.  In short, pay-for-performance plans can be a great reward for employees making significant contributions to the company’s success.  Pay-for-performance is not however an appropriate or effective way to resolve performance issues.  Research shows leaders meeting with employees more frequently, providing constructive feedback and coaching with those struggling is much more effective in improving performance.  Companies cannot simply buy their way out of it.

Myth #3:  Good employees don’t need performance discussions.

Why do top-performers leave your organization?  Performance discussions, for top-performers, serve as a way to retain them.  Given research shows high performers can deliver 400% more productivity than the average performer, your team’s success could drastically improve if this article dispels your belief in this myth alone.  Only 53% of top performing employees feel their managers provide valuable and timely feedback.  Would your team’s performance be different if your best employees were getting feedback on how they can improve?  How many of them would stay if you used frequent performance discussions with high-performers as a way to detect poor job satisfaction or work-related issues?  Weekly 15-minute check-ins, asking employees two questions, 1) what are their priorities for the week, and 2) how can you (their leader) help them, is one of the simplest and most effective habits a leader can adopt.  Not only will these interactions help retain and develop top performing employees, they will also establish a valuable connections, a quality consistent with the #1 driver of high-performing teams, psychological safety.

 

Myth #2:  Poor employee performance is caused by poor training.

Training is often the first, if not only, offering to an under-performing employee.  But rarely is training the actual answer.  Training is intended to teach skills.  Learning to use new technology or how to create and interpret business financials are skills to be gained by training.  More commonly challenging areas where employees fail to perform revolve around habits.  Staying motivated, time management, effective communication, collaboration, and attendance are the top employee performance issues….and none of them have to do with a lack of skills or need for training.  Similar to why we continue to consume junk food, eat too much, stay up too late, hit the snooze button too many times in the morning, or watch too much TV….it’s not because we lack the knowledge that these behaviors are harmful.  We continue to do things in spite of the negative consequences and even harm they produce.  We are habitual creatures.  It’s not something most of us like to admit.  Research shows habits dictate 40% of what we do each day!  If this is the case, wouldn’t it be fair to assume at least 40% of performance issues are simply bad habits?  What would helping an employee to replace bad habits or build new ones look like?  According to James Clear, author of Atomic Habits, willpower is like a muscle, so the key is to start small, increasing over time.  Staying consistent and not succumbing to feelings of overwhelm or hopelessness helps to create sustainable success.  So, start struggling employees with smaller goals.  If an Inside Sales Representative is not hitting their monthly sales goals, you may realize he is failing to maintain a healthy pipeline.  Start with a number of quality calls he should make each day.  Then look to add in how many appointments he should set each week.  Then how many proposals he should submit….then how many new customers….then how much new revenue.  It’s not as black and white as having him listening to sales training videos, and it may take more patience as his manager, but isn’t that the job of a manager….to develop their people?  If this is not a manager’s #1 priority, perhaps the manager could also benefit from replacing or building new habits.

Myth #1:  Poor performing employees are disengaged or lack motivation to succeed.

Have you lost a loved one and returned to work while still grief-stricken?  Or, have you ever been really sick but decided to work rather than go see a doctor or rest?  How was the quality of your work during these times, honestly?  While working today, if you received a call that your house was broken into, it’s highly unlikely you would be very productive should you try to remain working for the rest of the day, without details   We are not robots.  We are complex beings. The same quality in all of us that drives us to do amazing things like create, collaborate with one another, and innovate, is the same quality that makes us susceptible to the natural setbacks and challenges of life.  While someone may LOVE her job, her team, and her boss…..how she shows up to work is not simply a reflection of how she feels about work.  We are a sum of our experiences – ALL OF THEM.  So, an employee that is stressed or fearful about life outside of work will naturally display symptoms of stress and fear at work.  She may seem tired, suffer from pain or headaches, appear more anxious than normal, struggle to focus, withdrawal socially, and seem more irritable or angry.  All well-documented symptoms of chronic stress, regardless of what is causing that stress.  If she is going through a divorce, or recently lost a loved one, is struggling financially, or with raising children…her poor performance may not be about her feelings toward the job at all.  It is the whole person that shows up to work each day.  It is the whole person that we as leaders are coaching when they’re struggling to perform.  While we as leaders may not be able to solve the problems at home, we can and ought to honor life challenges our employees are dealing with outside of the office.  It starts by connecting with our teams.  While many of today’s leaders have been promoted for our problem-solving capabilities.  This is not the skill that makes someone a good leader.  Good leaders support and collaborate with employees to solve problems.  It’s the difference in giving a man a fish versus teaching him how to fish.  So, the first step to collaborating with an employee on improving his performance is to ask him why he’s struggling.  Pull him aside, share your observations, let him know you’re concerned, ask what’s going on and how you can help.  Start this conversation before you come bearing paperwork.  According to a recent study, 62% of working Americans are lonely, meaning they may not have anyone else to talk to about challenges they are facing.  In many cases, employee life obstacles may first appear as performance issues.  If they don’t have a healthy and supportive network of people around them, you might be the only one to ask them this question.  Because we are social creatures, our work is a reflection of how we are feeling.  Just as a sales or customer service representative may struggle to be patient with or listen to customers when they are not feeling well emotionally or physically, a person that builds websites or analyzes financials is likely to make more mistakes or be less productive when emotionally or physically struggling.  As leaders of teams, it is critical we take a whole-person approach to performance management…..not just for the sake of our teams but for humanity.

Senior leaders say the number one weakness of their organizations’ leaders is their ability to have difficult performance discussions with direct reports.  Unfortunately, it’s our society’s belief in many of these myths that have prevented leaders from learning how to navigate these types of employee-discussions.  The longer we pretend these myths are effective only prolongs the pain felt by our businesses, and those that serve them.  So, who will you be in the story of your team’s success and performance?  Will you be the North Wind, blowing with all your might to make them do what you want….only to fail and be left deflated?  Or will you choose a the way of the Sun?

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Do small business owners need to repay PUA benefits if they received PPP/EIDL funds?

PUA Assistance text

Last week, I started getting calls from small business owners stating they personally received Notice of Overpayment letters from state unemployment offices indicating they were to pay back pandemic unemployment assistance (PUA) benefits previously paid to them.  Based on a quick review, it appears some state offices determined these business owners ineligible for  unemployment under PUA benefits because their companies were also issued funds through either Paycheck Protection Program (PPP) and/or Economic Injury Disaster Loans (EIDL) programs.

Earlier this year when pandemic assistance efforts were first announced, one of the most commonly asked questions was around unemployment eligibility for unemployment if they too received PPP and/or EIDL funds.  The answer was yes, so long as the business owner or solopreneur is not double-dipping and EIDL/PPP assistance is being used to cover permissible expenses.  Permissible expenses for either program are as follows:

Paycheck Protection Program (PPP) permissible expenses:  Payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 60% of the forgiven amount must have been used for payroll)

Economic Injury Disaster Loan permissible expenses:  Working capital & normal operating expenses (ie continuation of health care benefits, rent, utilities, fixed debt payments).

Under the CARES Act, an individual is eligible for PUA benefits if he/she:

  • Is not be eligible for regular unemployment benefits, and
  • Is unemployed, partially unemployed, or unable or unavailable to work because of certain health or economic consequences of the COVID-19 pandemic.

What to do if you are a business owner who received a notice to repay PUA benefits.

If you have unintentionally or intentionally collected unemployment benefits, most state agencies provide options and in some cases enter into a repayment plan and even request a waiver or reduction in the overpayment amount.  Responding sooner than later may be especially beneficial if you are facing a high interest rate.

If you have not unintentionally or intentionally collected unemployment benefits, appeal within the timeframe indicated on the notice of overpayment letter.  Once you’ve submitted your timely appeal, follow up with your state agency on your appeal.  CARES Act relief efforts and government shutdowns related to COVID resulted in state unemployment offices backlogs.  Following up and continuing to monitor your appeal is the best way to avoid any unfavorable determination due to administrative errors.

How to appeal the determination.

Some key pieces of information on these notices are classification/reasoning for overpayment, amount to be repaid (which may a different amount than what you received if you had taxes or child support withheld), the applicable interest rate to be applied to the unpaid balance, and your appeal rights.  If you used PPP/EIDL funds appropriately (on permissible expenses) other than your own salary or wages and were eligible to receive PUA under the CARES Act because you were unemployed, partially unemployed, or unable or unavailable to work because of certain health or economic consequences of the COVID-19 pandemic, then you will need to appeal the state’s determination of overpayment.  Typically appeals must be made within a relatively short timeframe (10-15 days).  Failure to appeal within the timeframe can serve as a waiver of your rights to appeal.

Provide documentation

As part of your appeal, provide details and documentation supporting your eligibility to receive PUA benefits.  Documentation showing how PPP and/or EIDL funds were used if other than your own salary/wages can serve as proof that you, personally were not paid with small business assistance funds.  It is also recommended to engage your company’s finance or tax professional in the process to ensure your supporting documents are consistent with any documentation they use to report the use of PPP/EIDL funds to the Lender servicing your loan(s).

What happens if you fail to appeal the decision.

Consequences of not appealing the decision will result in your obligation to repay the amount due, plus interest (penalties).  Depending on the reasoning for the decision and whether the unemployment office deemed your overpayment as unintentional misrepresentation or intentional misrepresentation (fraud), offices reserve the right to take legal action.  Although extremely rare, state unemployment offices can pursue criminal charges for payments they deem fraudulent.

 

In a year that has been hard on small businesses, it’s been especially difficult on the small business owners responsible for their recovery.  Although the CARES Act helped reduce the financial and economic hardships to small businesses brought about by COVID19 shutdowns, the lasting haphazard nature of disaster relief efforts are burdensome.  Responding to PUA overpayment letters can be frustrating.  Not responding however can lead to even more frustration, and much more burdensome consequences.  If you’ve received one of these letters, take the time to respond today and save yourself the stress, time, and frustration later when it’s sure to be exponentially more taxing.

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The Future of Remote Work

Remote worker

Last weekend, I caught up with some friends….in the very awkward social distancing way that we’ve grown to know in 2020.  It’s a group that has known each other for years….some since childhood.  Perhaps due to so much history, we rarely talk about work.  This time though, much to my HR-geeky pleasure, everyone seemed to have something to say about how work has changed this year in light of COVID19.  Nearly everyone, despite working in different industries, at different levels, and with varying levels of expertise, is now working remotely either some or all of the time.  Few expect to ever return to an office full-time and are now realizing what it means to work 100% remote.  Many are not happy about it.  The annoying HR person in me wanted to shout, “I knew it!”.  Fortunately though I know to keep that annoying HR voice in check in social settings.  She’s a buzzkill!

What are we missing about our workplaces?

What we miss about collocated work depends on role.  For managers – it’s seeing and knowing employees are working.  For employees – it’s the interactions with coworkers.  Ultimately though, these are two sides of the same coin, because whether managers are unsure employees are working, or employees miss interacting with peers, it comes down to our dependency on visual communication.  According to a recent survey of more than 2,300 US workers, 74% say “people” are what they miss most about the office.  As much as 93% of communication is thought to be nonverbal (Mehrabian & Wiener, 1967 and Mehrabian & Ferris, 1967), with body language and tone of voice having a much larger impact on our understanding of messages.  Although there is some debate on the extent to which we depend on tone and body language in communication with others – anyone who has worked in a remote capacity would likely agree with this information.  Emails, texts, slack messages without tone or body language, are often misinterpreted.  When stress enters the scene, communication becomes even more fragmented.  High levels of stress actually impairs brain function.  The part of the brain responsible for planning, communication, and logical reasoning suffers – leading to more frequent mistakes, frustration, ultimately leading to feelings of disconnection and loneliness. Feeling stressed, left without the nonverbal cues on which we depend to connect with others, not only our work suffers, we also suffer personally.  So while very few of us miss the commute or inconvenience of sitting in an actual office, we do miss interacting with others.  We are after all social creatures.  Yes, introverts, even you.

What challenges lie ahead?

Social isolation

A closely watched industry during the pandemic has been call centers.  Historically resistant to the work-from-home model, call centers were part of the 88% of companies to seemingly overnight switch to remote work, encouraging and in some cases requiring employees to work from home and socially distance.  Last month, J.D. Power published findings from a survey of 124 customer service organizations where 86% of companies say they plan to implement permanent work-from-home models even after the pandemic – clearly happy with how their teams are performing.  Call centers, notorious for their workforce analytics, recognized an unexpected phenomenon, increased Average Handle Time.  Average Handle Time (AHT) is a common call center key performance indicator (KPI) reflecting the average amount of time that a call center employee spends on the phone with customers/callers.  During the pandemic, 55% of companies saw an increase in AHT, despite lower call volumes.  Why?  Employees and customers alike, are lonely, more eager than normal to chat with someone on the phone – even a stranger.  Perhaps one of the few positive effects to life in quarantine, it’s not something to be ignored or monetized.  This finding serves as warning of how significant yet subtle we are to our need for social interaction and connection.

Exit, employee engagement. Enter wellbeing.

For years we have been consumed with the concept of keeping our employees engaged, certain that better engagement means happier and more productive employees.  Historically, employee engagement was a term used to identify an employee’s involvement, enthusiasm, and commitment to their workplace.  Although methods of calculating  engagement vary, most consist of qualitative data reflecting a combination of two things: 1) the extent to which an employee understands his role as it relates to the company’s success, and 2) behaviors in how an employee approaches her work.  With the pandemic however, we’ve seen this definition change, both rapidly and drastically.  Today’s definition of employee engagement has shifted toward a definition of wellbeing.  For many of us, our workplaces during the pandemic have validated what research has revealed for years, a culture of wellbeing is a high-performing culture. A 1997 study illustrates the positive correlation between employee mood and quality service interactions with customers.  A 2005 study confirms the importance wellbeing has on creativity.  More recently, a 2019 meta-analysis of 339 independent research studies related to wellbeing and either employee, team, or company performance, found positive correlations between employee wellbeing and customer loyalty (0.30) and employee productivity (0.20).  It turns out, we humans are a bit more complex than previously predicted by the traditional concept of employee engagement.  Even if we care deeply about our professional success, the success of our company, and understand and are committed to the importance of our work, the quality and output of our work can still be jeopardized by how we think and feel – even when thoughts and feelings are unrelated to work.  Health concerns, fearing for the safety and health of our loved ones, caring for our children unable to attend school or daycare, concerns about the economy, racial tensions….basically the entire 2020 human experience is taxing to both our emotional and psychological state.  And because our modern world is primarily made up of knowledge-based jobs, dependent on our cognitive ability to solve complex problems, our thoughts and emotions have a significant impact on how we work.  In times of stress, cognitive function is impaired.  Research and the pandemic serve as evidence that good work is not simply a choice as an extension of our work ethic.  Good work is a byproduct of our wellbeing.

Implications for the Future of Work

Stop obsessing on the physical and look to the psychological.

Several new terms and phrases have surfaced so far in 2020 such as social distancing, maskne, and a new normal.  Another term to surface recently is bossware – software apps that allow companies to monitor the computer and online activity of its workers that functions a lot like spyware.  While some software is more invasive, covertly capturing employee private social media passwords, others are much more overt, tracking an employee’s key strokes and opening and closing of work-related applications to then calculate and report productivity scores back to the employee, his/her boss, and his/her boss’ boss, and even coworkers.  A recent article reported two such software applications have seen a 500% and 600% increase in prospective or actual users since the pandemic!  These tools are growing in popularity serving as a reminder of Albert Einstein’s quote, “We cannot solve our problems with the same thinking we used when we created them”.  A micromanager pre-COVID will likely be a micromanager post-COVID unless she decides to develop into an actual leader.  True leaders understand leading people effectively when it comes to work, means first understanding the value of the work.  Unless a company’s success somehow depends on how many keystrokes are made by an employee in a sitting or how many websites and software applications she opens and closes in her shift, the data collected is useless.  Without a qualitative measurement, these metrics mean very little.  Something understood by most modern workplace HR professionals, if you want to identify holes and gaps in any people-facing system or structure, put down incentives and consequences.  People will naturally seek out ways to game systems to avoid pain (consequences) and achieve pleasure (incentives).  Rarely do they drive the behaviors you hoped to elicit.  Instead, today’s leaders and workplaces are best to invest in creating a high-performing culture.  Generally high-performing teams, remote or onsite, are made up of more self-aware workers and have a higher level of psychological safety within teams.  A study on high-performing and average leaders showed high-performing leaders were significantly more self-aware than average leaders.  A 2017 report identifies employee self-awareness and emotional intelligence as having a significant impact on employee performance in two different areas, contextual performance – interpersonal behaviors or actions that benefit the organization, and task performance – using skills, knowledge, or accomplishing specialized tasks to support core functions of a business.  So, while some managers choose to focus on driving the physical tasks associated with knowledge-based work, such as typing, opening and closing programs, etc,. others are choosing to focus on an employee’s psychological approach to work like self-awareness, emotional intelligence, psychological safety.  Research shows us that those workplaces investing in employee mindfulness and wellbeing see a much bigger return on their investment compared to those allocating dollars to bossware-type technology.

It’s a team effort

For years we have stressed the importance of leadership, making statements like “people don’t quit companies, they quit managers”.  But, in many cases the manager is simply the embodiment of the company.  Who hired and trained the manager?  Who holds the manager accountable?  And when employees don’t quit – is it only because of a good manager?  Most companies attribute their high employee retention in part to managers, but not entirely.  So, if the saying is true, how would any of this make sense?  Managers are an important part of the employee experience, but less as a standalone component, and more as a byproduct.  How individuals and teams feel and perform today has much more to do with their connection to the team, as a whole.  High-performing teams, as mentioned previously, have a higher level of psychological safety.  To measure psychological safety, individuals indicate how much they agree or disagree with statements like, members of this team are able to bring up problems and tough issues, and it is difficult to ask other members of this team for help.  While a manager can clearly impact whether a person feels comfortable speaking candidly or asking for help, peers within the team also have influence.  Psychological safety isn’t just about how individuals perceive the leader.  Psychological safety is about how individuals perceive the team.  It’s a team measurement highly reflective of a team’s potential to be high-performing.  Research on social relationships and business performance further demonstrates the importance of trust and connection within teams.  A report by Gallup shows 20% of employees say they have a best friend at work.  Based on their findings, they predict companies where 60% of employees have a best friend at work see 36% fewer safety incidents, 7% more engaged customers, and 12% higher profits.  In a separate study, 72% of workers indicate the most meaningful and memorable recognition they received came from someone other than their direct manager – placing a high value on other workplace relationships such as peers, customers, and indirect leaders.  Looking toward the future, it’s critical we look to create an environment conducive to success – where employees look to peers and leaders for support and connection.  Particularly for remote teams – even the best leaders do not have the bandwidth to serve as the sole thread linking employees together.  People perform and feel better when they support one another, can collaborate on projects, and have a network within the workplace.  Historically we have hired, developed, and rewarded leaders based largely on their ability to solve problems.  In doing so, we’ve inadvertently stifled the creativity, innovation, and success achieved when we instead empower entire teams to solve problems.  Leaders of the future will not be tactical problem solvers.  Instead, leaders of the future will be coaches, understanding how to ignite and enable teams to collaborate.

How will you remember 2020?  Spoiler alert, it turns out bad memories tend to stay with us more than the good ones.  As 2020 has had its fair share of distress, to say the least, most of us will associated 2020 with health concerns, social and racial tensions, and economic woes, no doubt.  But, how each of us changes from these events will likely differ, greatly.  In 2007, days after my 27th birthday I caught a virus and was rushed into surgery after learning my body was shutting down and that I had only a few hours left to breathe.  A month after recovering, heading home from picking up a coworker’s wedding gift, I lost control of my car and hit a concrete barricade at around 50mph head on.  Months later in an attempt to reconnect with someone I was in a relationship with earlier that year, I learned he’d been killed in a tragic accident.  It was not a fun year, but most certainly a memorable one.  Today however, I reflect on 2007 as the year that saved my life.  To that point, I’d been living a fairly shallow life. Most of my relationships revolved around parties and going out, not about connecting.  I looked to food as comfort, not nourishment.  I treated my body like a well-insured weekend rental car, not bothering to make maintenance a priority.  2007 presented me with the painful but valuable opportunity to reconsider my entire way of life.  It’s been better each day because of it.  So although 2020 has no doubt been painful for you personally as a parent, spouse, friend, and member of your community, and professionally as a leader, what will matter most is how you come out of it.  How has 2020 changed your relationship with humanity?  How will you choose to lead the future of work?

 

Interested in learning tools to help your team collaborate and connect?  Click here to learn more about Team Ethos.

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Why smart teams fail to perform (and how to lead them to success)

Usain Bolt is the current 100m world record holder.  A nine-time gold medal holder, Bolt broke the world record in 2009, running the 100m race in 9.58 seconds with a top speed of 27.8 miles per hour.  It’s no mystery why he’s referred to by many as the “fastest man alive”.  In 2017 however, in what was known to be Bolt’s final race, he was unable to even finish same 100m distance.  Approximately halfway through his leg of a 4 x 100m relay, Bolt fell to the track, visibly in pain, due to an injury he later attributed to a torn hamstring.

For most of us, this is not a surprise.  Recognizing hamstrings important to sprinting, it seems natural that performance would be compromised by a tear, even for an elite athlete such as Usain Bolt.  So, why are we surprised when an employee’s work is compromised when he is in a bad mental or emotional state?  Okay – I can actually hear some of you rolling your eyes but I assure you, it’s the same.  Let’s talk brain function.

Jobs today depend mostly on a person’s cognitive capabilities and/or emotional intelligence.  Sales professionals, customer service reps, teachers, technicians, accounting, administrative work….success is contingent on a person’s ability to reason, apply logic, interact with others, and innovate.   And our ability to perform these functions is controlled by our mind.  As a rather small person with a historically weak immune system, this is great for me as physically (I’m not exactly winning any strongman competitions or powerlifting championships).  While my strength and endurance may be limited by my genetics and stature, learning new skills and managing my emotions to boost mindset is much more my speed. Unfortunately though, threats to mindset are less recognizable than physical threats as they originate in our own beliefs and perceptions.  Unlike Bolt, I won’t fall to the ground, writhing in pain when I’m feeling a down.  Since 1999, Harvard Business Professor, Dr. Amy Edmonson, has researched psychological safety’s impact on teams.  Psychological safety, a shared belief within a team that no one will be punished or humiliated for speaking up with ideas, questions, concerns or mistakes, is popular with high-performing teams.  Google, in their 2015 Project Aristotle study, confirmed psychological safety’s importance on work – finding it to be the #1 driver of high-performing teams. So, if a belief, a mindset is conducive to good work, how can mindset hinder work?

A Threat to Mindset is a Threat to Business

In the story of mindset, there is only one bad guy.  That bad guy is stress.  Stress impairs cognitive function and changes us on a biochemical level.  According to the Mayo Clinic, chronic stress impacts us physically, emotionally, and behaviorally (Fig 1).

 

Fig 1: Mayo Clinic Signs of Chronic Stress
Fig 1: Common effects of stress by the Mayo Clinic staff article, “Stress symptoms: Effects on your body and behavior”

Whether stress is due to personal reasons or work-related, when we’re in a stressful state, it’s bad, for us individually and our businesses.  We make mistakes and errors that we typically wouldn’t.  Due to cognitive biases, interactions with colleagues and managers can easily be filtered through a lens of negativity.  Comments that would normally seem harmless appear aggressive and actions seem calculated.  We can’t focus and struggle to stay motivated.  We feel overwhelmed and isolate ourselves, withdrawing from our teammates, friends, and even families, unaware we’re going further into the perception that is dragging down our mindset.  In a poor mindset, we suffer and so does our work.  It should not be assumed, but expected that any work done with compromised mindset will surely pale in comparison to work performed by the same team or individual in an optimal mindset.

Optimizing Mindset

The goal, for any leader, is to maximize mindset.  While potential will always vary person-to-person, optimizing mindset helps leaders from wondering, is it them or is it me?  Because leaders should be hiring smart, competent people, understanding how to cultivate mindset will be what separates the managers from leaders in the future of work.  Creating a climate in which employees work collaboratively and perform their best comes down to 4 key points:

  1. Prioritize team mindset. Improving or maintaining a positive team mindset should come first.  Before starting a project or work for the day, assess current and collective team mind set against mindset necessary for work to be valuable.
  2. Inspire employees to beware and accountable for their own mindset. Get employees out of a reactive state of mind by encouraging them and giving pause for self-reflection.  How are they feeling today?  What needs to change for them to be in a better mindset, conducive to great work?
  3. Use transparency to encourage trust & collaboration. Transparency empowers a team with to solve problems, creatively.  Through collaborating on solving a problem, people feel they belong, a valuable component of team psychological safety.
  4. Speak with purpose. What happens when the team doesn’t show up in a good mindset?  When people fail to be aware of their state of mind and work in autopilot?  Individually we disconnect, teams underperform, companies lose money, and customers churn.  Speaking with purpose prevents the team from confusing activity with results.

Richard Weisman, a Professor with Hertfordshire University in 1993 began to investigate the concept of luck.  Over a 10-year study of hundreds of exceptionally lucky and unlucky people, he determined “lucky” people actually generate their own good fortune via four basic principles:  1) they are skilled at creating and noticing chance opportunities, 2) they listen to their intuition, 3) they have positive expectations, and 4) using resilience they transform bad luck into good.  In short, luck is neither a gift or a curse, but a mindset.  Positive mindset teams search for opportunities to improve and succeed.  Negative mindset teams dwell on mistakes and anticipate losses.   Which employee mindset is working for you?

Does your team have high-performing potential?  Take the free psychological safety assessment here.
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Employee Experience Basics Every Leader Should Know

Person walking down a hallway

“A mind that is stretched  by a new experience can never go back to its old dimensions.” ~ Oliver Wendell Holmes Jr.

What experiences have made you who you are today?  Whether good or bad, experiences can change us.  An event may change the way we see a person, or the world entirely.  Being part of or witnessing an incident can trigger intense chemical responses within us of pleasure or pain.  Our perception and response to an occurrence transforms a neutral event to a life-altering experience.  In recent years we’ve applied this understanding to our workplaces, resulting in the term employee experience, often referred to as EX.

What is the definition of employee experience?

Employee experience is an all-encompassing term used to describe an employee’s perception and observations regarding the collective events, interactions, and benefits he/she undergoes as part of the journey in working for a company.  Unlike many definitions that define the experience as simply a person’s journey working for an organization, the word experience implies the personal and emotional response to potentially neutral events.  While workplace events and communications take place in an office or around an employee, it’s an employee’s perception and/or interpretation of these events that make for his/her unique experience.

How is employee experience different from employee engagement?

The term employee engagement has been around for several years.  Engaged employees are defined as physically energized, emotionally connected, mentally focused, and indicate alignment with the purpose of the company (Loehr & Schwartz, 2003).  By this definition, employee engagement is a positive state of mind or mindset held by employees.  Research suggests companies with high employee engagement are more profitable, more productive, have higher sales, are safer, have lower turnover, and have lower employee absenteeism.  Whereas the term employee engagement is used to describe how connected an employee feels to his/her work and company, the term employee experience is used to describe an employee’s perception of a collection of events and exchanges related to his/her working for the company.  How much a person feels connected to or disconnected from their work may be a result of a positive or negative employee experience.  So, while a high level of engagement may be the goal, it is achieved by strategically improving different aspects of the employee experience.  Many metrics may be used to assess how positive or negative a company’s employee experience is.  Employee engagement is just one of these metrics used.

How is a company’s employee experience measured?

The ultimate goal of a positive employee experience is a healthy business.  So, when a company fails to perform successfully, it is often a sign of a misaligned or even poor employee experience.  Because of this, metrics used to assess a company’s operational and financial performance such as revenue, shrinkage, customer retention, and productivity also serve as valuable methods of measuring a company’s employee experience.

A company’s workforce data such as employee turnover, retention, absenteeism, and overtime per employee rates are also indicators of an effective or ineffective employee experience as these datapoints are reflective of employee behaviors driven by their experience.  The two most popular methods for evaluating a company’s employee experience are employee engagement, as explained previously, and the Employee Net Promoter Score (eNPS).  The eNPS system was born out of the customer loyalty metric, Net Promoter Score (NPS), first recognized by Fred Reichheld of Bain & Company in 2003.  Through research, Reichheld and the Bain team found customers responding positively to the question, “what is the likelihood you would refer Company X to a friend or colleague”, were very likely to demonstrate positive buying behaviors (rebuying, referring new customers, and spend more).  It was later as the concept of the internal customer (employees) grew that industry and leaders began applying the model internally giving way to the eNPS, asking employees the question, “On a scale of 0-10, how likely are you to recommend the Company as a (good) place to work?”.  Higher eNPS ratings reflect more employee loyalty, higher employee satisfaction, and suggest a more engaged workforce.  While generally this is a metric intended for internal use only, not designed for benchmarking, scores can range from -100 to +100 and generally scores in the 10-30 range are considered good, and 50+ considered excellent.

What can a company do to improve its employee experience?

To improve a company’s employee experience is to improve an employee’s perception of how the company rewards, recognizes, motivates, drives, communicates with, hires, terminates, values, supports, and develops its employees.  While an eNPS score can provide an overview of how an employee feels about and perceives the company, an eNPS rating does not identify why.  To improve the employee experience it is then important to understand both the employee’s overview of the company AND the what led to this perception.  For this reason, it is best to ask employees to rate not only their overall perception of the company (eNPS) but also ask their outlook as it relates to attributes of the employee experience (recognition, communication, safety, brand, management engagement, employee engagement, culture, compensation & benefits, and business viability).  With this data, companies can decipher what employees like and dislike about their interactions with the company as well as how heavily the different aspects of the employee experience impact their unique company culture.   For example, a media company had poor employee ratings around compensation and benefits.  Upon further examination however, compensation & benefit ratings had very little impact on whether an employee felt positively or negatively about the company’s employee experience (no correlation between comp & benefit ratings and eNPS ratings).  Instead, recognition (how employees feel rewarded for outstanding performance) and brand pride (whether employees are proud to work for the company and of the company’s impact to the industry/community) were the most influential attributes to a positive employee experience.  With this realization, the company chose to strategically invest allotted time and budget to people initiatives around recognition and employee-brand alignment, appreciating the value employees place on these aspects of their relationship with the company.  These insights allowed the company to create a much more thoughtful and unique experience for employees that resonates with its culture and helps deliver better business results.

Just as today we each are a culmination of our past individual experiences, our current workplace cultures are a reflection of our collective employee experiences.  Experiences are not based on logic.  We often don’t even realize what historical work-related events led to the perceptions we hold so firmly today.  By asking concise, reflective questions in a strategic way, we shift the employee experience from habitual to intentional.  Every workplace has an employee experience leading somewhere.  Where is your current employee experience leading you?

Learn more about surveys to capture your eNPS score and identify the critical attributes to your employee experience.

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Bringing Value to Employee Reviews

Two men meeting

Are you gearing up for annual employee reviews?  And are you dreading it?  If you’ve answered “yes” to these questions, know you are not alone.  A 2018 WorldatWork survey shows 94% of companies conduct formal employee reviews annually – and a separate study suggests we hate them.  95% of managers surveyed are dissatisfied are with the process and nearly 90% of HR executives feel results are inaccurate.  A Gallup survey shows only 14% of employees feel performance reviews inspire them to improve.  So, if it’s so awful, should we just chuck the review process all together?  No.  Although there is frustration on all sides of the current traditional process, employees who have had a review in the past year are more engaged in their work than employees who haven’t.  Surprisingly, 82% of employees say they value receiving feedback (positive and negative) with 65% of employees wanting more feedback.  So rather than abandoning performance reviews entirely, here are the three ways to elevate your culture and your business by simply fixing what’s broken with our current approach to employee reviews.

1.  Increase the frequency.

Seems counterintuitive right?  Managers, HR professionals, and employees dread them, so do them MORE?  Much of what seems to be broken is that we are only talking about performance once per year.  A Gallup poll shows only 15% of employees working for a manager who does not meet with them regularly are engaged.  Consider this, what if you set an intention on January 1st to lose 15 pounds by December 31st?  Then, come the morning of December 31st you weigh yourself – for the first time since setting the intention nearly a year earlier and you instead gained five pounds.  How would you feel?  How would it have been different had you known in September that you were further away from your goal that in January?  You could’ve chosen to do something about it – but now that you waited the entire year, you’ve really painted yourself into a corner of disappointment.  Waiting to talk about employee performance is the same.  No one works their butts off only to have it all come crashing down when it’s too late.  Frequent, less formal reviews, often referred to as check-ins, allow employees some time for course correction and leaders the opportunity to evaluate employee goals and performance as needs of the business change.  Check-ins also allow for more trust to be established between employees and managers.  Social psychology identifies two types of trust, cognitive – trust based on what you know about someone, and affective – trust based on emotional connection and closeness.  It’s through frequent interaction with another that we develop affective trust in another – so long as both parties act in a trustworthy way of course.

2.  Care

Recently there has been a lot of talk, and some significant research on what makes a good boss.  Top traits include being a good coach, helping employees achieve their professional goals, and caring about employee success & well-being.  A Harvard study of 3,200 employees found employees describing their culture as caring, had higher levels of satisfaction and teamwork, less absenteeism, and better company performance.  What this means from an employee appraisal or check-in standpoint is – performance discussions should serve as a time to either support or recognize an employee depending on how that employee is doing.  Performance reviews – whether formal or informal – are not simply a time to report back performance data.  If an employee isn’t performing, work with the employee to identify why he/she is struggling – and how to fix it!  If an employee is performing above expectations, recognize the employee for a job well done.  Get to know about what is important to employees – what they love and dislike about their work.  Caring about employee success will not only make for more valuable reviews and check-ins but also make for a more open and honest relationship.  What managers did you have that cared about your happiness and success?  How did you choose to show up for them each day?  Our employees are no different.  Start each employee check-in by asking how they are doing.  Did they recently go on vacation?  Is his son graduating high school?  Did she get a new car?  Did she have a big sale?  Is it his busy time of year?  Start each check-in building rapport, reinforcing you care.  “I know you are wanting to spend every minute with your son before he heads off to college, so let’s talk about what you have on your plate and make sure we’re streamlining everything as much as possible to get you out early on Fridays.”  Empathizing with the employee and offering support to get work done in a way that benefits you both is highly effective.

3.  Collaborate on goals

The happiest and most valuable employees are the employees that understand how their work translates to company success.  They get it.  Without this understanding, an employee’s manager is no longer a manager but a babysitter or a person that barks orders.  But leaders are responsible for exposing employees to this mindset, by explaining company initiatives and describing how the employee’s work aligns to those initiatives.  For this reason, effective employee reviews happen when employees and managers collaborate on employee goals.  With a basic understanding of what the company aims to achieve for the month, quarter, year, or whatever timeframe, encourage employees to create their own goals for the period.  Aside from helping employees get more engaged in the business, there are also some psychological benefits.  Research shows that when we create our own goals, the emotional and strategic parts of the brain work together to plan for and envision the goal, turning our attention away from less productive thoughts and events that aren’t aligned to our goals.  When an employee then creates his or her own goal that a leader then reviews and/or tweaks, the employee is more emotionally and mentally committed to the goal that if we as leaders were to just prescribe them goals.  When we encourage employees to create specific challenging goals, studies show these difficult goals will actually lead to higher performance than easy goals (such as “do your best), or no goals at all.  Because mindset is critical to achieving any goal – regardless of it being personal or professional, this step is key to making a valuable performance discussion.

Like any interaction with employees, it’s more valuable to both parties when it’s an exchange, not one-way feedback.  Historically, performance appraisals were one-way discussions in which a manager advises each employee of how well or poorly he/she performed over the year.  Is it any wonder we all dread this process?  By implementing these three simple strategies in your performance management process, you solve for a healthier and more effective feedback loop in which leaders work with employees to achieve success.  More successful companies start with more successful people and feedback paves the way.

Does your performance management process need a boost?  Learn more about our tools from a Culture Engineer.

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Reducing Turnover with Employee Exit Interview Data

Person holding I quit sign

I am a self-admitted feedback enthusiast, mainly because I put a high value on exerted energy.  Without feedback, I believe energy is instead spent frivolously in a manner that resembles “guessing”.  Feedback is such a huge part of my foundation and every fiber of my being that when my business coach advised me to develop a marketing strategy around imagined behaviors of my target audience, I stopped working with said coach that day.  So, it goes without saying that employee feedback and analytics are at the foundation of every Culture Engineered strategy.  Although workforce analytics are somewhat new in the world of HR, exit interviews are perhaps the most popular and widely used employee feedback tools used in business.  And it’s with a heavy heart that I say, exit interview data sucks.

Not all data is valuable.

In a Payscale study of over 38,000 people, 25% of participants indicated higher pay as their primary reason they sought out new employment, making it the #1 reason people quit.  When the same participants were asked however why they were attracted to their new role with the new company, only 16% indicated “better pay”, making it the #3 reason to accept a new position.  The #1 reason was “the opportunity to do more meaningful work” at 27%.  How is it then possible that a person would, in a single move, choose to leave a job for one reason only to then accept a new job for an entirely separate and unrelated reason?  There is an answer – but you’re not going to like it.  It doesn’t make sense because how we make decisions is complex, depending much more on our emotions than on logic.  Logically, if 25% of people quit due to low pay, 25% of people would then seek out a job for better pay.  We at Culture Engineered also conduct exit interviews and find more than 90% of those surveyed initially indicate low pay as their primary reason for resigning. Through exit interview analysis however, we find the actual percentage of resignations due to pay dissatisfaction to be closer to 10%, most of which are shortly following an annual appraisal or assuming additional responsibilities.  It’s usually a combination of reasons an employee chooses to quit.  We refer to these internal factors as push factors.  Similarly, it’s often a combination of reasons we are attracted to a new opportunity, external factors we refer to as pull factors.  The key to collecting valuable data from an exit interview is to ask valuable questions.  Ask about attributes of the employee experiences specifically to understand the person’s feelings about pay & benefits, recognition, etc.  Most importantly though – find out what event triggered the person’s decision to leave the company.  This is critical.  Like any relationship, we accept and tolerate certain flaws or frustrations.  But then one day the straw breaks the proverbial camel’s back and we’re done.  Our relationships with work are no different.  Employees are often unaware of what causes them to look for start looking for jobs, or respond to a call from a recruiter.  And even if a person is aware of the event that prompted their job search, he/she will often avoid sharing the details of the event in an exit interview because it is a painful or sometimes humiliating moment.  Getting exiting individuals to open up about this point of no return event is critical and takes practice and rapport.  But it’s worth it.  By learning about this moment your employee shifts from an “us” to a “them” mindset, deciding to separate from the company they once celebrated joining will give you the insights you need to repair and preserve your company culture’s foundation.

Getting clear on purpose

In a study of 210 companies in 33 industries, 157 had a practice of conducting exit interviews; however only 50 were able to provide even one example of how exit interview data was being used in their business.  Although unclear why data was collected but not used, it begs the question what is the purpose of exit interview data?  Data alone solves nothing.  Exit interviews like so many employer practices have become habitual, making it a harmful practice.  Each time we as leaders ask for employee feedback, we are asking employees to collaborate with us.  This holds true for performance discussions and surveys.  Have you ever had someone ask your opinion only to do the complete opposite of what you recommend or suggest?  Like me, the thought, “then why even ask me!” likely crept into your mind.  Now imagine that person is asking your opinion on something that actually impacts your life, like your job and workplace.  If I do this enough, asking for your opinion on parts of your life that I control only to then do what I feel is best without considering your suggestions, wouldn’t you just stop sharing your thoughts with me?  Would you feel like I valued your opinions or your time?  Is it possible you may even be more hurt than if I hadn’t asked at all?  If you’re being honest here, the answer is yes.  It feels terrible when someone invites you into a conversation and exercise only to then actively reject you.  This is the same feeling employees develop when we ask for feedback and discard it without ever really giving it consideration.  So, before conducting one more exit interview, or using any feedback tool, consider what it is you intend to do with the information.  Are you asking to identify any legal risks associated with difficult employees exiting your organization?  Is your company interested in identifying training needs for frontline managers using exit interview data related to management engagement?  Or are you using exit interviews as an early warning detection of culture issues lurking below the surface?  There is no wrong answer, so long as you have an answer.  Collecting it because it’s what you’ve always done is not an answer.  Attrition is expensive and one of the best ways to identify issues driving attrition in your workplace is analyzing exit interview data.  Simply collecting this data alone though solves nothing and may actually be making matters worse.

The estimated cost of employee turnover ranges from 16% annual salary for lower paying jobs, all the way to 213% annual salary for highly paid executives, making exit interview data very appealing.  But, it’s only when we take the time to ensure we’re gathering quality data that helps to solve an identified problem that data serves as a feedback tool.  Why are people quitting your company?  The answer to this question isn’t the end.  The answer is where the work begins.  Do you have the energy to solve for the problems your data reveals?

Want actionable insights to keep your best employees?  Click here. 

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Giving Thanks: The Power of Employee Recognition

Employee Recognition

Appreciation is a wonderful thing. It makes what is excellent in others belong to us as well. —Voltaire

Have you ever gotten a really good thank you note?  The kind that is so good, you feel you need to send a thank you note for the thank you note?  How likely you are to help that person again?  I am HUGE on thank yous, particularly after I’ve worked hard for someone.  Employee recognition is one of the 10 attributes   I expect a lot of those that report to me and have always put a substantial amount of effort in understanding what makes them feel valued and recognizing them in the way they feel appreciated.  Sometimes it’s through professional development, sometimes through public praise, and others monetary recognition.  So, when I learned about half of leaders participating in a recent survey answered they avoid giving positive feedback (ie saying thank you or good job), I considered why this might be.  I came down to two reasons:  1) leaders are failing to see the value and ROI of employee recognition, or 2) leaders aren’t recognizing employees in a way that resonates.  Fortunately there is a significant amount of research on both topics.  Here we speak to the importance of employee recognition and how to do it.

Benefits of employee recognition and appreciation

Acknowledgment

How do you work when you feel recognized and appreciated versus not?  Chances are, your answer reflects what research has found on this topic.  In a SHRM survey, 48% of participating employees reported that management’s recognition of employee job performance was very important to their job satisfaction.  It’s no surprise then that separate research shows employees who do not feel adequately recognized are twice as likely to say they’ll quit in the next year. Because recognition is one of Culture Engineered’s ten attributes of the employee experience, we too show a significant correlation in most industries and roles between recognition and a positive employee experience.  Part of the reason, I believe, is due to our need as humans to been seen.  We have a desire to belong and part of that belonging is validated when we are acknowledged.  A study out of MIT randomly assigned students into three groups – acknowledged, ignored, shredded.  All students were given the mundane task of reviewing sheets of paper with random sequences of letters, circling pairs of duplicate letters appearing on each page.  Upon completing each page, they would then turn it into a person facilitating the study who, as the name suggests, either acknowledged, ignored, or shredded the page.  Students were paid 50 cents for their first submitted page and asked if they would then complete another page for five cents less, each following page worth 5 cents less than the previously submitted page, until payment was reduced to zero (ie 45 cents, then 40 cents, then 35 cents….5 cents, zero).  Participants were able to quit at any point of their choosing, OR continue until payment for each page was reduced to $0.00.  Which group do you think completed more pages?  The acknowledged group!  Contradictory to predictions made by researchers who anticipated the ignored and shredded groups would outperform the acknowledged group on account of there being such a low risk of cheating in these groups in particular, the acknowledged group outperformed the ignored and shredded groups by nearly 1.5 times.  The only difference?  Acknowledgment by the facilitator as the subject handed in his/her work.  No “thank you”, “good job”, nor did the facilitator even review the page.  Brief eye contact in this case produced a significant result where people were willing to work for the most basic reward – human connection.

Social worth

How do you get an employee engaged in their role?  One of the most frustrating things I hear from leaders is around people “going through the motions” of a job.  A study published in the Journal of Personality and Social Psychology conducted by researchers Adam Grant and Francesca Gino suggests gratitude may be the key to keeping employees engaged in even the jobs most prone to burnout – fundraising.  In the study fundraisers were randomly assigned to one of two groups.  All conditions were the same except the director of annual giving visited the test “gratitude” group, to thank the fundraisers for their work whereas the control group was not met with or “thanked”.  Over the course of a week, the gratitude group, having been thanked by the director, made 50% more calls than the control group having worked without thanks.  Consider those employees you feel have checked out of their jobs and those who approach their day’s work with the desire to succeed.  It’s only fair to assume you express more gratitude with employee working hard to drive your business and company forward.  But which came first – their drive or your words of gratitude?  Could a simple thanks be all the other employee needs to turn it around?

Employee recognition that resonates

Whose thanks matters most?

Historically, the higher rank the person praising you, the higher the perceived value the praise.  As our workplaces and society shift from placing a high value on authority to placing a high value on authenticity however, organizational hierarchy’s importance is not as important as it once was when it comes to employee recognition.  Data shows 24% of employees feel recognition is most memorable when it comes from the CEO, while 28% of employees feels it’s most memorable coming from the employee’s direct manager.  9% indicated peer-recognition is most notable.   If you wish to recognize an employee’s performance, the person recognizing the employee should understand the value of the employee’s contributions, capable of convincingly explaining the importance of the employee’s work.  If it’s recognizing an employee’s tenure or dedication to values, the person recognizing the employee should be a person that works closely with the employee, familiar with his/her journey and character.  Employee recognition is not transactional.  Even a “thank you” will mean more from a person that is sincere.  Have you ever received a certificate with your name misspelled?  Have you had an executive leader congratulate you on a sale you didn’t make?  Being recognized for the wrong thing can sometimes feel worse than not being recognized at all.  So, to avoid this from happening, make sure appreciation and recognition is coming from someone “in the know”.  All leaders should be looking to catch employees doing something right as often as possible.

How often?

How often leaders recognize employees will often depend on how the leader defines recognition.  Do you consider saying “thank you”, recognition?  What about one-on-ones with employees?  Or performance reviews?  According to Gallup’s Chief Scientist, we should praise employees frequently – weekly or even daily.  Similar to my feelings on the superficiality of romantic gestures on Valentine’s Day, recognition seems to resonate less with employees in the traditional and formal annual review where feedback is obligatory.  Instead, making appreciation and praise a part of your commitment to ongoing feedback and harnessing relationships proves to be a more sustainable and effective approach to employee recognition.  If you are not in the habit of regularly recognizing employee performance, create the habit by scheduling time each week to recognize your employees.  If you oversee leaders, make it a part of their weekly reporting that they meet with employees to recognize their work.  You do not need to schedule it in the employee’s work calendar (ie, “Kelly’s employee recognition time”).  Instead schedule the time for yourself, as a leader, to reflect on the good work each of your employees have done in the past week.  Then communicate your appreciate for that good work to that employee.  You will be amazed in just a few weeks how you will grow to be a more grateful leader and your employees will transform into more appreciative contributors.

What to say

Think back to that great “thank you” note you received.  What made it great?  Have you ever received a thank you note that said, thanks for your generous gift.  I have, and I immediately wished I had been less generous!  The best thank yous are specific and timely.  The thank you note you thought of likely thanked you specifically for the gift you gave the person and shared what that gift meant to them.  If you gifted them money – they may have even told you what they used it for.  If you gave them tickets to an event, they may have even included a picture of them at the event having the greatest time ever!  When you choose to say thank you or recognize someone for their great work, generosity, amazing character, it’s important to articulate two things:  the behavior or action you appreciate (specific), and what that behavior or action means to you (value) as an individual or to the department, organization, etc.  Remember the acknowledgment example we talked about earlier?  It’s not enough to say, you do great work or I appreciate your stellar attendance.  Here are some recognition and appreciation examples using the specific and value criteria:

Congratulations on exceeding your goal this month!  Because you hit your goal, we were able to meet our team goal – despite some other team members falling short of their targets.  Thank you for your willingness to give it your all, day in and day out.  You are an inspiration to me as well as the team and we are grateful for the energy and positivity you bring each day. 

Thank you for being such a reliable part of our team.  I know life is demanding of your time and energy; however, your stellar attendance and amazing consistent focus while at work have such a great impact on me and all those around you.  When you commit to something, I never doubt for a minute that you will achieve it.  Thank you for being such a great example of determination and integrity to me an all those around you.

How would you work differently if you were given this feedback?  We all want to be seen and acknowledged.  We all want to be of value.  It’s when we aren’t acknowledged and valued that we stop trying and sometimes apply our energy toward destructive behaviors.  Research shows us the historical practices of micromanaging and manipulating employees does not work.  Employees will not change until we as leaders change.  Will you rise to the challenge?