Pandemic Crossroads - People First...?

We seem to be coming to a pandemic crossroads. Many countries are steadily moving ahead with vaccine programmes, but at the same time new strains are wreaking havoc in India, South Africa and Brazil. Are we able to say we are post pandemic yet, as we all cautiously emerge from a collective trauma? Maybe not, but we are certainly at a point where leaders are trying to anticipate future trends for vaccine distribution and use, and develop strategies, policies and practices to respond effectively.

For many businesses this is an opportunity to either adapt and innovate, or retrench and revert to old ways. Will we see the "coronacoaster" boom and people first initiatives that was talked about mid pandemic?

The jury is out.

War for talent

It's impossible not to miss all the warnings about the war for talent. Different specialists forecast that the key challenges to influence the recovery will be skill set shortages, as machines, algorithms and people all compete in the same space. Layer on concerns around health, safety and other social issues, compassion and flexibility will be central to any approach around the return to work. How organisations respond to these challenges will be key differentiators.

However, the war for talent is not only about hiring the best talent, but also retaining the talent you have. And that is about employee engagement.

Talent Retention

Organisations that monitored employee engagement throughout COVID-19 actually saw improved results. However, we are already seeing a downward realignment towards pre-pandemic levels which in some geographies were chronically low. Leaders will need to be aware of (and sensitive to) the needs of their teams by demonstrating an understanding of their ongoing challenges. Some employees are likely to expect continued flexibility around working arrangements either to meet personal circumstances or because they now have different expectations created by the pandemic.

This is going to generate a host of new challenges.

Refusal to return

One of the first issues will be whether employees will have a right to refuse to return to the physical workplace. Any decisions should factor in employees wanting to work remotely because office conditions pose a personal risk, or as a precautionary measure. Employment lawyers are going to be pretty busy navigating these nuances to establish :

• if there is an underlying medical condition that would make an employee a risk for contracting COVID-19 more easily, or perhaps suffer a more serious form of the virus if contracted. Does this come under any disability provisions?
• if there are adequate safety precautions taken by the company to maintain a healthy and safe workplace environment thus putting them at risk.
• are they living with a vulnerable person which may require accommodation. Should businesses respect that, at least in the short-term?

CEOs, such as Cathy Merrill, of Washingtonian Media, are already re-iterating the concept that has been bubbling under the surface for a while. A gradual shift towards a two-tier workforce where employees who work remotely have a lower status to #WFO employees. She suggested that those employees who refuse to return to the office risk having their status changed from employee to contractor. She has already backtracked perhaps after consulting aforementioned busy employment lawyers, or the fact that her staff promptly went on strike. But I don't expect that concept to disappear.

Compromise

We are seeing some forms of compromise. JP Morgan is supporting a summer return to work, but with some level of flexibility The shift to part-time remote work CEO Jamie Dimon said “ is not going to change everything so dramatically, It accelerated a trend, but it does not work for younger people. It doesn’t work for those who want to hustle, it doesn’t work in terms of spontaneous idea generation And everyone is going to be happy with it..."

He then opens his mouth to change feet with compelling insight adding "yes, the commute, you know people don’t like commuting, but so what?"

Back to an un-empathetic future

Nevertheless, there is still a push for the old days, good or otherwise. Goldman Sachs has been one of the first organisations to say they want all employees back in the office by July, where it is safe to do to. CEO David Solomon suggested that remote work would not be their new normal. Earlier attempts had been met with resistance, when a group of analysts complained about their 100 hour weeks. A survey carried out by the bank in February showed that 13 respondents registered dissatisfaction claiming their working hours had “negatively impacted their relationships with friends and family.”

The solution? To make the lives of their analysts marginally less miserable by strengthening "the enforcement of the Saturday rule," a concept that suggests that time off on a Saturday is a privilege not a right. Underpinning this notion is the lure of a future six figure salary combined with the prospect of 5 whole hours' sleep a night, plus an entire week off a year to encourage "work life balance" will be persuasive. Now the U.S. is the no vacation nation, but will that do it? Or will those bankers simply lose interest (sorry!) and leave?

What we also need to do post-pandemic, is to re-imagine corporate cultures where we stop measuring and rewarding commitment by personal sacrifice and hours worked.

Employee engagement and the eco-system

Managers will also have to factor in issues that have escalated and become touch points in our wider cultures during the pandemic and navigate those conversations with empathy. Organisations don’t operate in a vacuum and it’s impossible to separate them from the culture of the eco-system in which they operate, on any issue.

Research from Gallup in 2020 supports the idea that "there are many potential compounding factors that likely contribute to the sharp decline in employee engagement -- lack of clear direction and uncertainty about returning back to the workplace following state openings, continued health and financial risk, and the societal unrest around race relations."

Broader social issues impact individuals and they don't have a de-activation switch where those issues magically disappear in the workplace. Nor is organisational culture static, it develops gradually and organically via demonstrated strong leadership vision and values. This is supported not only by leaders being positive role models themselves, but by eliminating behaviours which create toxic cultures.

What not to do

The recent melt down in Basecamp will probably become a master class in how not to handle those difficult conversations. Linear thinking around a commitment to a company mission to the exclusion of everything else, is not aligned with the cultural shifts we are seeing outside our organisations today.

CEO Jason Friend published a somewhat bizarre blog and it was obvious there was some sort of back story. He said “We are not a social impact company.”  He goes on “We don’t have to solve deep social problems, chime in publicly whenever the world requests our opinion on the major issues of the day, or get behind one movement or another with time or treasure. These are all important topics, but they’re not our topics at work — they’re not what we collectively do here.”  

As the sub-text emerged, it seems it was also about the failure to navigate hard conversations within the company itself and its own culture, especially around race. Employees who chose not buy into the new philosophy were given the option to leave with a 3-6 months severance, depending on the length of service. A large number (roughly one-third) took that option. 

Many workplace issues are also political issues. To think that should not be the case usually comes from a place of privilege. Pay gaps, gender balance, diversity, sustainability, the environment, anti-discrimination and health and safety issues, are significant concerns inside and outside the workplace. It would probably have been more effective to set up a framework of ground rules, to hold those conversations in a constructive way in a brave space, rather demand a "no talk" rule.

People first

In an environment where we see a skill set deficit, motivating and upskilling existing teams is going to be a key activity to encourage retention.This will be difficult for leaders who have not managed to adapt successfully to a changing environment. During the pandemic companies which shifted successfully to remote working were the ones to thrive. Those that switched from "command and control" to a more coaching style of leadership also seem to have made smoother transitions.

Businesses can increase talent retention by improving employee engagement. This is about making "people first" a reality, not a catchphrase by giving employees meaningful recognition and a sense of purpose. Leaders need to demonstrate clear, open and honest communication, as well as policies of inclusion and well being.

Organisations which achieve that will be the ones that employees want to be a part of.

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Footnote: If your organisation wants to strengthen its talent pipeline to create gender balanced, diverse and inclusive workplaces in a post COVID world reach out for more information: [email protected]