More and more employers are adopting socially conscious practices that impact the manner in which the employer operates.
My firmâs headquarters are in a Certified LEED âgreen building.â Generally, companies in such buildings commit to reducing the use of plasticware.
In July 2018, American Airlines and Starbucks announced they will no longer use plastic straws. But, how far can and should these practices go? Could a company in a Certified LEED green building refuse a reimbursement request from an employee who had a business meal at a restaurant that uses only plasticware? Could American Airlines or Starbucks discipline an employee who was caught using a plastic straw at work? Likely, yes.
Title VII of the Civil Rights Act protects employees from discrimination on the basis of race, color, religion, sex and national origin. The American with Disabilities Act protects employees with disabilities; the Age Discrimination in Employment Act prohibits age discrimination.
But there is no employment law protecting an employeeâs right to use plastic.
Should an employerâs âsocial consciousnessâ go that far? While an employer may legally be permitted to influence employee behavior by disciplinary enforcement of the employersâ socially conscious policies, should it do so? Letâs address socially motivated policies that may be legally permissible as well as questions employers should consider when determining whether such policies are good business practices.
Considerations for Employers
Shared workspaces provider WeWork recently announced that it is imposing a companywide ban on all meat. As part of the ban, the company announced it will no longer reimburse employees for meals that include red meat, poultry and pork (presumably fish and seafood are OK). Failed startup Juicero reportedly had refused to reimburse the cost of any business meals other than meals at vegan restaurants.
What about the employees who see nothing wrong with eating meat? Or with eating at a non-vegan restaurant? There is no law entitling employees to the right to eat meat (or eat non-vegan), so technically these policies are legal. While one could conjure up some possible âselective enforcementâ argument that it is unfair, the practice is not likely unlawful (though in some very few instances it could run afoul of stringent state laws on reimbursing employees who spend their own funds for business purposes).
But are they advisable? Are employers who are implementing these socially conscious policies actually creating a more positive workplace culture? Or, are they inviting cries of hypocrisy from those who think they do not go far enough or cries of unfairness from those who think they go too far?
âThese policies are easily attacked as hypocritical. WeWork, for example, claims its policy of not reimbursing for meals with meat supports sustainability. But what about the use of plasticware? Or what about car allowances only for electric vehicles? Without a policy on the use of plastic or about gas vehicles, is their sustainability stance pure or merely selective?
What of taking this benefit from those who see nothing wrong with meat? Or worse, what about the workplace morale of an employee whose family owns a cattle farm that produces beef? Perhaps that was the only way the family could afford to support themselves or send the children to college, and perhaps the family even supports other meaningful causes with its income from cattle. And, what of our cultureâs âno one should tell others what to doâ individualism?
The professed sustainability purpose, on the one hand, or the professed âinclusivenessâ and camaraderie of the workplace environment on the other hand, can only reach so far. Both the purists and those excluded for not having ârightâ ideas are marginalized.
How Employers Should Move Forward
So where does this leave us? Certainly, employers should take into consideration employee rights and employment laws in having socially conscious policies that reach so far as to attempt to impact employee behavior. But the harder question is whether employers should make such attempts.
The answer is nuanced, and often the very purposes an employer seeks to serve with these policies have unintended consequences that weaken, rather than strengthen, employee morale or a greater purpose of workplace âculture.â
One other point deserves mention. Do employers make these decisions based on principle or on a market analysis? Are these decisions borne of a desire to cultivate a healthy workplace community by being part of a bigger, socially conscious vision?
Or, are these market-based decisions borne primarily of a desire to use social consciousness as a marketing tool? For example, what if we learned that WeWork, when first deciding on this policy, had conducted market research predicting that such a decision to adopt a vegetarian stance would enhance customer loyalty and market penetration and consequently increase revenue, and that this research was the primary driver of its decision? Would this socially conscious principle lose its power?
A principled decision often sees the bigger vision of work as an attempt to cultivate deeper meaning beyond a cost-benefit economic analysis. Such decisions can have a powerful positive impact on the workplace.
But, the market-based approach, the view that we should be socially conscious because it is good for business and a great marketing strategy, can certainly backfire. It is impossible to promote selflessness by touting its selfish benefits.
Itâs the human resources dilemma: how to balance whatâs best for the business with whatâs best for employees.
The place where you feel it the most? Medical benefit costs. With health care costs increasing nationally, HR is stuck in the middle trying to decide between savings for the company and easing the cost burden on employees.
Finding new strategies to lower costs is a constant challenge â one that doesnât always prove fruitful. Employers that tried 14 or more tactics to curb rising health benefit costs, such as having healthy food choices available or offering onsite fitness facilities, only realized .4 percent savings, according to a recent Mercer survey. Thatâs a lot of work for little payoff.
Barry Rose, superintendent of Cumberland School District in Wisconsin, cycled through numerous health plans in the last six years, none of which struck the right balance between saving the district money and satisfying employees. âI couldnât keep taking money out of the budget to spend on health insurance. Our district needs that $2 million for a new high school and teacher salaries.â
One hidden culprit behind the health benefits struggle? High-deductible health plans. Todayâs average deductible is $3,000. Yet, many Americans donât have $400 in savings to cover medical costs.
Deductibles often are preventing people from seeking the care they need. Due to cost, 44 percent of Americans say they avoided the doctor last year when they were sick or injured. In addition to lower company morale, care avoidance is costing businesses a lot of money. Illness-related productivity losses cost employers $530 billion on top of the $880 billion they spent on health benefits in 2018.
When J&E Manufacturing Co., a custom metal manufacturing company in the Midwest, learned from their existing health insurance provider their premiums were set to balloon over 30 percent in 2019 along with a deductible of $6,500, Ha Nguyen, corporate human resources manager, took a hard look at alternatives for their 200 employees.
âI couldnât stand before our employees and tell them that,â said Nguyen, âIt would upset most people, and we would risk some of them deciding to explore the marketplace to find a different job. Manufacturing is in a talent shortage right now, so we canât afford to lose employees.â
With unemployment at an all-time low, itâs a candidateâs market; they have negotiating leverage and little tolerance for inferior benefits. Recruiters are struggling to offer attractive new incentives â commuter reimbursement, stock options, and personal trainers. Between the 14 tactics to lower costs and the myriad efforts to attract and retain talent, human resource professionals are juggling a lot.
HR managers need solutions that lower everyoneâs health care costs and also promote compelling talent acquisition and retention. How can they do that? By giving employees what they want:
Clarity on what care is covered.
Clarity on the exact cost for that care.
Employees want access to both those things before they obtain care, not weeks after. When employees have access to these things in their health insurance plan, it can drive down costs for the employer.
Both J&E and Cumberland found such a solution in on-demand health insurance, a new model of health insurance that gives employees more control. Instead of a deductible and unpredictable costs, they have simple copays, easy coverage verification, and price certainty before they step foot into a doctorâs office.
âOur employees became better consumers because they see exactly what theyâre paying for care,â Rose said. Seventy percent of members on the plan spent less than $500 in total copays â thatâs one-sixth the cost of the average deductible.
And they have a compelling new advantage to attract talent.
âTop tier labor is hard to find. When people look at our benefits package and compare it to others, they see our plan is superior,â said Nguyen. âIn the past, I just glossed over the health insurance plan during interviews. Now, itâs one of the first things I mention.â
Take some time to evaluate your current health insurance offering. Are you feeling like you are trapped between your employees and your C-suite? You donât have to be. Itâs time to make health care easy and affordable, and itâs time to empower your employees to make informed care choices.
Road maps are a form of content that will help you navigate key areas of people management. Each road map includes an orientation guide that gives a high-level overview of the subject as well as articles and other resources that provide more detailed directions on how to find your way to success. This road map focuses on the changing terrain of employee communication. The orientation guide below will get you started, and we invite you to see other Workforce road maps by visiting workforce.com/roadmaps.
Effective employee communication is the foundation of a good human resources program. Setting guidelines for how and when to communicate with employees, and what you are going to say sets the tone for the company culture and paves the way for business success. However, most companies â even big global firms â often leave this important element of human resource management to chance.
Only 20 percent of organizations have an internal communications role somewhere within their HR department, according to a 2018 Newsweaver study. In other organizations this role falls to sales and marketing teams, individual managers or no one in particular.
âThey just let the communication culture emerge, and assume everyone knows what to do,â said Craig Johnson, partner in Mercerâs Career Business focusing on communication and technology. âThatâs not the right approach.â
This âdo-it-yourselfâ attitude leads to mixed messages, missed opportunities to engage, and a negative communication experience when employees are deluged with messages from management that they eventually just tune out, according to Rachel Miller, director of All Things IC, an internal communications consultancy.
âInternal communications should be part of your business strategy and plan,â she said. It ensures that internal messaging is consistent, relevant to the brand, and reflective of the company culture and business goals. âEvery message should reflect what the company is trying to achieve.â
If you donât have a communication plan â or havenât reviewed yours in years â this road map will help you get started.
PART 1: Make a Plan
Put someone in charge. A communication strategy needs a leader, said Johnson. Putting someone from HR in change of the overarching company communication plan ensures a consistent tone and prevents disparate, confusing or conflicting information bombarding employees from all sides.
Identify stakeholders. Effective employee communication requires planning and buy-in from leaders across the organization. Miller suggests bringing together a cross functional team of executives, HR leaders, managers and employees to write the plan and ensure it aligns with the corporate vision.
Define your goals. A good communication plan links communication strategies to the purpose of the company, its mission and its vision. âDonât just copy the words off a vision statement,â Miller warned. Really think about what the company is trying to do and how internal communication supports those goals.
Consider your audience. Itâs not enough to know what information you want to send, you need to customize it for the reader. If you are announcing a merger, the information you share with front-line workers or IT teams will be far different from the messages you send to VPs and managers. âUnderstanding your audience is how you get the right information to the right people at the right time so that they can do their jobs,â Miller said.
Choose your channels. Do your employees read emails every day? Visit the company portal? Communicate via Slack? âItâs easy to attach a document to an email, but if three-fourths of your employees wonât click on it, what is the point?â Johnson said. Understanding how, where and when employees want to engage with company content will increase the chance that your messages will get read.
Create a calendar. Large companies may have dozens of vendors sending information to employees about benefits packages, 401(k) plans, insurance offerings, etc. If they all send messages at the same time it creates a tremendous amount of noise, Johnson said. To reduce the deluge, he advises clients to audit all communications â including vendor messages â then eliminate the ones that arenât necessary, and create a schedule for those that are. âA plan helps you think through what you are sending instead of always reacting.â
He suggests organizing messages into three categories:
Annual events: Messages related to benefits enrollment and updates about annual meetings can be scheduled months in advance.
Ad hoc scheduled events. These include one-time scheduled events, including information about workshops, announcement about technology upgrades or reminders to complete required training.
Ad hoc unplanned events. Leave some space in the calendar for urgent messages that canât wait.
Remember, Johnson added, âeven if emails from vendors are part of the service, if the message isnât useful it wonât add value.â
PART 2: Start Communicating
Customize each message. Every communication should begin with an overarching message about why this information ties back to the companyâs goals and values, Johnson said. For example, if you are hosting a financial wellness workshop, start the announcement with, âAs part of our commitment to helping employees achieve a better work-life balance, we are offering this financial wellness workshop to ⌠.â â
It shows that the workshop is tied to something broader, Johnson said.
Create a review step. Having someone else review messages before they get sent to the entire company can minimize the risk that grammar errors, inaccurate information and embarrassing gaffes get sent out.
Provide training. HR isnât the only group sending company communiques. To ensure there is a consistent cadence in all internal messages, provide training to managers and leaders about how to craft messages that align with the business goals.
PART 3: Measure Results
Define success. Every communication campaign should have a goal. âThat is what makes measurement possible,â Miller said.
Establish key performance indicators. When setting measures, focus on outcomes not output. Counting messages sent or number of people who signed up for a class doesnât tell you much, Miller said, whereas tracking the results of these programs will. Some useful measures might include proof of changed behavior, improved employee engagement, increased participation in rewards programs or fewer safety incidences. âOutcomes are tangible if you know what you are looking for,â she added. âWe donât do this enough.â
Ask employees what they think. Include questions in employee surveys about the quality of company communication, their top communication issues and/or what could be done better. This can provide evidence of the impact of HR communication efforts and help identify areas that require improvement.
Adapt accordingly. A communication plan is always evolving. Measuring outcomes can help you identify which messages, channels and cadence of content is having the biggest impact, so you can continue to adjust it to meet employeesâ needs.
Listen to an intense conversation among people-management professionals these days and thereâs a good chance the discussion will include immigration.
Organizations are constantly subject to changing regulations and high-stakes political developments affecting the growing global workforce, making immigration a huge pain point, surpassing even costs as a concern in some quarters.
Global uncertainty, changes in H-1B visa availability and countless other immigration-related factors make worldwide recruiting increasingly complex. At the same time, historically low unemployment, widening skills gaps, an aging workforce and the desire to be more diverse and inclusive to compete effectively in a global economy have increased demand for foreign-born workers.
U.S. Census Bureau data show that about 17 percent of the workforce is foreign-born, and without international migration, nearly 45 percent of the nationâs population would be in shrinking regions, with economic concerns related to population decline.
Without an influx of immigrants, the total U.S. population of working-age adults is expected to decline over the next 20 years. Itâs clear that HR professionals need a way to prepare for a changing immigration landscape to recruit the talent they need. Here are three tips on how to be prepared.
Build broad support for a diverse workforce. Organizations pursue diversity and inclusion initiatives for a variety of reasons, including a desire to improve employee morale, a sense of social responsibility, greater internal parity and a drive to appeal to a diverse customer base. In addition to these worthy objectives, a growing body of evidence suggests diversity improves performance and competitive standing.
A Barronâs article published earlier this year cites two studies demonstrating diversityâs value. The studies found gender diversity improves investment performance from 4 to 10 percentâand diverse leadership teams outperformed peers on profitability by 21 percent, and on value creation by 27 percent.
Building broad support for a diverse workforce across the organization is critical, not only for gaining buy-in for corporate diversity and inclusion initiatives, but also to prepare for changes in immigration regulations which make recruiting more expensive and time-consuming. With a strong commitment to diversity, company leaders are more likely to allocate the necessary resources.
Stay current on trends and events by following industry sources. Most HR professionals have enough on their plate already and struggle to find time to research immigration policy proposals and keep close tabs on political developments which may affect employment-based immigration programs. This is especially true for those who manage large, global workforces.
One way to stay up to date without investing an inordinate amount of time in research is to follow a variety of industry sources for immigration policy news. In some cases, sectors adjacent to employment-based immigration might spot trends before HR outlets identify an emerging pattern and alert their readers and followers. Immigration law associations frequently provide a roundup on the status of proposed regulations and court cases impacting employment-based immigration.
Prepare policies and workforce strategy for changes. A Pearl Law Group survey conducted last year found 68 percent of employers felt their strategic talent planning has been impacted by recent immigration changes. Thatâs unlikely to change as long as immigration remains a polarizing political issue around the world. HR leaders who acknowledge uncertainty is the new normal can be more prepared than their peers who are caught off guard by changing immigration regulations. Engaging in what-if scenarios and preparing for likely contingencies can put forward-thinking companies ahead of competitors in the war for global talent. For example, exploring remote working policies can expand the pool of available employees to include offsite candidates who can be a part of the team without relocating. HR can also work closely with counsel to develop policies to address possible scenarios, such as the judicial extension of the DACA program and changes in H-1B visa administration.
A recent National Foundation for American Policy analysis underscored the scope of the challenge HR professionals face on immigration, reporting on a recent spike in visa denials in the United States. The denial rate for visa extensions rose from 4 percent in 2016 to 18 percent in the first quarter of 2019. Over that same time, rejection rates for visa petitions rose from 10 percent to 32 percent.
These changes are happening against a backdrop of a decrease in the number of visa applicants and independent of specific changes in policies or laws. That emphasizes the need for HR professionals to proactively address employment-based immigration policies.
By building a commitment to a diverse workforce, staying informed on trends, and gaming out possible scenarios and strategies to future-proof policies, HR leaders can stay ahead of the curve in a rapidly changing environment.
Peggy Smith is president and CEO of Worldwide ERC. A frequent keynoter and panelist at mobility and HR-related conferences, Smith shares her thoughts on global workforce issues, talent and skills shortages, multigenerational workplace considerations and future mobility strategy.
In todayâs increasingly connected and international marketplace, HR professionals who have a strong understanding of global dynamics are going to have an advantage.
The question I often hear is, âHow do I develop that global mindset?â
Many people in HR assume they canât travel abroad and build valuable global knowledge unless their company sends them on an official work trip overseas. The reality is that you can take that initiative yourself and learn to become an effective global leader â whether you travel abroad regularly or not â and thereâs a good chance your employer will take notice if you do.
These three steps will help you get started.
1. Develop Global Relationships Online
No matter what function you’re in within an organization, there’s a global community you can join via Facebook, LinkedIn or a professional association. These online communities are excellent ways to connect with your peers in other parts of the world and start meaningful conversations.
Investing time and energy in global social media groups can both help you with your professional development and expand your understanding of the global scope of your industry â all from your home or office.
2. Travel to an Overseas Conference, Then Hang Out
However, even if youâre active in every available international social media group for your profession, to fully expand your global understanding youâre going to have to travel. I would suggest figuring out how to travel internationally once a year â with an intention to visit a different country every trip. While this may sound daunting at first, there are practical ways to make it happen.
An excellent starting point is to attend a conference in another country or schedule an annual professional development trip overseas, then tack on some time to explore and network after your official business is wrapped.
For example, if youâre traveling to a three-day conference in another country, add a few days and use the connections that you’re making in your online groups to meet with people face-to-face in that city. There’s nothing better than immersing yourself in another culture.
3. Explore International Development Opportunities
A very powerful way to expand your global mindset is to travel with a group of like-minded professionals to really explore a specific country. A good place to begin is Nanda Journeys, a travel company that brings together travelers with purpose and passion to explore the world in a meaningful way â whether itâs nurses to Vietnam, dentists to Ecuador or HR people to Singapore.
An associate and I organize an HR delegation every year to a different country. In recent years, weâve taken 21 HR-related professionals to Cuba for a week and another dozen to Japan. Last year we traveled with an HR group to the Czech Republic and Hungary. In each location, we meet with government officials, academics and business leaders about HR topics and talent issues.
On one of the trips, an attendee was the head of talent acquisition for a specific business unit inside a global organization, and she said the trip was part of her strategy to take on a more global job. This person was wisely investing in her ability to understand talent acquisition dynamics in other parts of the world.
When she returned her company took note of her willingness to invest her own funds and time in an international learning perspective and put her into a global job within a few months.
If you truly want to understand how things work in other parts of the world and make the investment to start your learning curve, your employer is likely to notice that effort and support your journey. And if they donât then you have a great foundation to find an organization thatâs more conducive to your global learning.
I worked for a grocery store. Can a child molester be employed by the grocery store? I reported it to the manager, and showed proof and nothing was done about it.
Thereâs a lot going on here. What does the law require an employer to do (if anything) under these circumstances? And what should an employer do when it discovers it is employing a sex offender?
Legally speaking, it depends on the state in which you are operating. Laws that mandate state sex offender registries are more commonly known as Meganâs Law. All 50 states and the District of Columbia maintain these sex offender registries that are open to the public via websites. As of 2016, there were 859,500 registered sex offenders in United States. Some of these Meganâs Laws expressly prohibit an employer from using the state sex offender registry information for employment purposes (California, for example). Ohioâs Meganâs Law has no such requirement. Because these law do vary from state to state, you should check with your lawyer before refusing to hire, or fire, a registered sex offender.
Separately, the EEOCâs Enforcement Guidance on the Consideration of Arrest and Conviction Records in Employment Decisions under Title VII  prohibits an employer from instituting a blanket rule against the employment of anyone with a criminal history, including sex crimes. Instead, employers must make an individualized assessment of the employeeâs fit for the specific job at issue in light of the criminal history, taking into consideration factors such as the facts or circumstances surrounding the offense, the length and consistency of employment history before and after the offense or conduct, rehabilitation efforts, and the essential functions of the job. Thus, the EEOC might take issue with a blanket policy against the employment of sex offenders in all cases.
These legal limits on an employerâs ability to fire a sex offender notwithstanding, I still see liability red flags that should make you very jumpy if you are deciding whether to hire or fire someone with this background. Specifically, what happens if you choose to employ this individual, and he or she commits a sex crime while on-the-clock or otherwise relating to the employment.
First, you should be worried about liability for negligent hiring/retention. An employer has an affirmative duty to protect its employees, customers, and anyone else that comes in contact with the business from risks of harm of which the employer knows or should know. If an employer hires or retains an individual despite knowledge of prior improper behavior (i.e., sex crimes), and the employee then sexually assaults someone, that injured party could argue the employer knew, or should have known, that the employee might hurt someone. You could even face liability for punitive damages for consciously disregarding for the rights and safety of other employees. This could potentially be a very expensive mistake for an employer to learn. And, Iâm speaking from experience, having defended an employer in a case with these facts.
Second, I can envision an argument that the employment of a registered sex offender violates OSHAâs General Duty Clause, which requires employers to provide their employees with a place of employment that âis free from recognizable hazards that are causing or likely to cause death or serious harm to employees.â The courts have interpreted OSHAâs general duty clause to impose upon employers a legal obligation to provide a workplace free from conditions that cause, or are likely to cause, death or serious physical harm to employees. Itâs not a stretch to imagine the employment of a registered sex offender violating this duty.
Separate from these legal issues that might drive you not to employ a sex offender, there are also workplace issues youâll have to consider and manage. Since sex offender registries are mostly public, itâs not hard to envision a situation in which (1) an employeeâs registration status becomes known in the workplace, and (2) it becomes fodder for gossip, discomfort, and scorn among co-workers. Not surprisingly, employees tend not to react well to news that one of their coworkers is a sex offender. They may demand you take immediate action and fire the sex offender, walk off the job in protest, or bully the sex offender into quitting. Do you want to deal with this level of discontent? Is a registered sex offender the mountain youâre willing to die on?
Thus, to address the question that started this discussion, if Iâm an employer and I find out that Iâm about to employ, or am employing, a registered sex offender, my decision is a relatively easy one. Iâm either not hiring or firing. Iâm all for rehabilitation and second chances, but in the case, let it be in someone elseâs workplace.
For managers who are building or inheriting teams in todayâs fast-paced, digitally enabled business environment, things are far more interesting, productive and creative. But that doesnât simplify managing a modern global team.
Most enterprise companies now do business overseas, and they employ teams that span many boundaries: cultural, functional, geographic and global teams are becoming more of the norm. According to the U.S. Bureau of Economic Analysis, worldwide employment by U.S. multinational enterprises increased 0.4 percent from 42.1 million in 2015 to 42.3 million workers in 2016 (the latest year available).
The good news is that people typically enjoy working on global teams. Based on data from a 2019 âGlobal Employee Surveyâ conducted by my company, professional employer organization Globalization Partners, 72 percent of people said they like to be part of global teams but like them even more when they feel listened to and treated fairly. Also, the flexibility in work locations lets companies hire the best talent anywhere in the world, and the diversity that comes from global teams can be a huge benefit.
But there are challenges that generally fall into three types: communications, logistics and culture. Communication issues are no surprise, but if not tended to can snowball to become serious problems. Also, the same diversity that brings new ideas into the mix and inspires us can cause conflict and disagreement, or misunderstandings and hurt feelings.
What does it take to succeed in managing a global team? It rolls up to two kinds of activities: establishing good systems and establishing trust.
Establishing good systems means following the laws and knowing the customs in the places where your organization does business, taking the time to understand how your team will need to work together and then acquiring the technology to support it. It also means communicating with your team â in a firm, clear and inclusive way â to help them adhere to those systems and use those tools. Here are some best practices.
Understand the law. Work with finance, legal and HR teams to be sure you are always operating according to local laws.
Set up centralized information sharing. Make sure your team can all access the same files and tools, and establish centralized, cloud-based sharing to save yourself endless headaches and revision nightmares.
Establish strong communications methods. Choose your tech wisely and stick to it. Plan for differences in schedules and augment text-based communication (email, instant message, text) with face-to-face meetings whenever possible using online video tools. Difficulty with languages or accents? Try more text-based collaboration.
Rotate time zones fairly. Introduce your team to tools like world clocks, which tell you what time it is anywhere in the world. When scheduling meetings be sure not to eat up all your âgolden hour overlapâ time when everyone is available with meetings, leaving no time for spontaneous collaboration. Also, be aware and respectful of holidays, which of course differ from region to region.
Encourage participation and communication. Make sure the processes and tools you put into place encourage people from all backgrounds to have a voice in the conversation. People who connect daily with global team members feel more connected, engaged and involved than those who donât.
Itâs a lot easier to build processes than trust, but you will need both to be successful. In terms of establishing trust, global virtual managers donât get the benefits of managing by walking around that local managers get, so youâll have to make up for it in other ways. Here are a few.
Do your culture homework. The very act of expressing genuine interest in an individual and their background improves morale and understanding. According to our survey data, more than two-thirds of employees (68 percent) say their companies struggle at least some of the time to align with, be sensitive about and adhere to local laws, practices and cultures.
Understand working styles and communications. In addition to understanding cultures, get to know your employees as individuals. Be sensitive to how people from a âdominantâ culture within the team may frustrate team members from a region that is less represented or that has differing cultural norms and values.
Set goals, communicate, motivate and inspire: This is Manager 101, but with all the unique challenges of managing a dispersed team it can fall by the wayside. Be sure youâre working with those team members, not just on deliverables but also on their development.
Know your tech. Be willing to tailor your communication style and medium to the needs of different employees, based on things like time zones and language barriers.
Be available. The most successful managers make themselves available across multiple time zones and through different means of technology (IM, Slack, Skype, email, phone and text).
Check in frequently and consistently. Global team members who connect daily with their co-workers feel more engaged and involved than those who donât. Employees who feel like they belong are 93 percent more likely to say they feel optimistic about their companyâsâ future.
 As more companies continue to enter the global game, they will need to make it a priority to build and nurture a local team, set them up with compliant, equitable systems, demonstrate an understanding of local culture, and establish communications practices that make them feel valued and heard. If not, they risk losing the much sought-after international employees that can be so hard to find.
Relationships are complex, particularly so at work since employees have limited control over who they interact with.
While thereâs no shortage of advice on how to deal with matters of the heart, working relationships are rarely discussed until it becomes painfully obvious theyâre not working. In the wake of the #MeToo movement there has been an increasing focus on fostering more respectful workplace environments.
Yet most managers receive little guidance when it comes to building, maintaining and repairing healthy relationships that often foster toxic workplaces. In many instances they evolve into one of three types of supervisor: the buddy, the boss or the bully.
In a study of what makes a manager effective, the quality of their relationships was found to make the biggest difference to their success. Understand how to do relationships well and everything else becomes easier. Feedback is better received, delegation of duties becomes more straightforward and employees find it easier to cope with change.
Individuals who report good relationships with their managers are healthier, happier and have more fulfilling careers. They perform better, put in more discretionary effort, are more innovative, more resilient and more likely to stay with the organization.
Relationships between team colleagues are also critical. For example, in a study of hospital wards in England, teams who worked well together saw a 3.3 percent drop in mortality rates, the equivalent to saving 40 lives per year.
Destructive relationships wreak havoc for individuals and for organizations. Studies show that for three-quarters of employees, the most stressful part of their job is their boss. A 2015 Gallup survey revealed that half of respondents claimed to have left their most recent job due to a poor relationship with their boss.
As well as the human costs, the financial repercussions of toxic workplace behavior can reach the millions. Considering that managers account for 70 percent of the variance in employee engagement, the disengagement caused by bad bosses costs businesses upward of a half-billion dollars annually.
While this is not a new trend (with research dating back to the 1990s showing âjob stressâ related to poor management being cited in 75 percent of workersâ compensation claims) the need to address it has become more pressing in the age of #MeToo.
The Buddy, the Boss and the Bully
Psychologists in 2007 identified a âtoxic triangleâ of factors that foster negative relationships between leaders and followers. The combination of dysfunctional leaders, silent subjects and a permissive environment create a situation where relationships are likely to break down in a detrimental way.
Dysfunctional leaders. Most people have a dark side that comes out, particularly during times of pressure. Without clear guidance on managing the more complex aspects of workersâ personalities, managers often revert to behavioral patterns developed in childhood.
In 1950, psychologist Karen Horney published important research that outlined three patterns of coping behavior that children rely upon in times of stress. Some naturally turn toward people, seeking out closeness in order to feel comforted. Others turn away, preferring to cope independently. The third group actively turn against other people, choosing to fight.
Adults draw on a combination of these coping mechanisms but usually have a preference for one over the other. When taken to its extreme, this preference becomes dysfunctional and can result in some bad behavior.
First, we have the manager who prefers to turn toward others. These leaders want to be everybodyâs friend, seeking approval in order to validate themselves. The manager morphs into the Buddy.
On its face this might seem OK, but this type of relationship can go horribly wrong. Amy Gallo, author of the âHBR Guide to Dealing with Conflict,â warns that these managers can shy away from giving feedback, avoid going to bat for their teams and give in too easily to demands. Their need for approval can create an overly politicized, clique-y organization where personal boundaries are frequently abused.
Then there is the âturn awayâ manager who doesnât care what other people think of them so long as the job gets done. They are the stereotypical detached Boss, interested in delivering to deadline at the expense of everything else. They have no interest in building healthy relationships, believe in reinforcing hierarchy and donât care if they are overburdening people. This focus on results at the expense of relationships means teams are less loyal, less happy and ultimately less likely to give it their all.
The âturn againstâ manager arguably takes the crown as the worst supervisor. They care about relationships but only so they can twist and manipulate them for their own gain. They are the quintessential Bully. They love relationships for the opportunities they give them to take advantage and get what they want.
Bullying and harassment in the workplace are more common than youâd think; considering that three-quarters of employees report that theyâve experienced it at some point in their career. And the worrying reality is that weâre all at risk of straying into these toxic personas from time to time; itâs not just the extreme characters that cause havoc. As people gain more power in their careers, the skills they need to be successful, such as empathy and collaboration, tend to be less important, and so a vicious cycle ensues.
Silent Subjects. For dysfunctional leaders to flourish to the extent that relationships break down irreparably, they need followers who for a variety of reasons avoid speaking out. This can mean conformers â those who are typically obedient to authority, prone to group-think, donât feel that itâs safe to speak up or are unwilling to challenge the status quo. Sometimes people donât even know the behaviors to look out for or what to do when they see it.
It can also be in the form of colluders who see benefit in aligning themselves with a destructive leader. Colluders reinforce the leaderâs bad behavior, repress any would-be whistleblowers and help the toxic cycle continue.
Permissive Environment. A permissive workplace environment is one that permits or may even encourage bad relationships to flourish. If the culture is overly politicized and consensus is valued above all else, the inner Buddy will come to the fore. If itâs a results-driven environment in which targets must be met at all costs, the Boss is likely to emerge. And in a dog-eat-dog culture where aggression and intimidation are par for the course the Bully will come to the fore.These are all extremes, of course, but every companyâs policies and processes as well as the culture, values and norms will nudge its leaders to behave in a certain way.
There are methods to limit the buddy-boss-bully syndrome and create a workplace atmosphere more conducive to building strong manager-report relationships. Here are five focus areas for making a difference to building a culture of good working relationships.
Limit the abuse of power. As an executive, encourage self-awareness and introspection in leaders. The right balance is being respectful of boundaries while also providing descriptive feedback, precision coaching and stretching but not straining targets. Organizations should consider the strategies they use to select their leaders. Is enough being done to weed out the bad apples or are there entrenched, bias-laden approaches that toxic leaders can take advantage of? Organizations might be better off hiring decent leaders than hyper-talented individuals with an uncontrollable dark side.
Establish norms and boundaries. Working relationships work best when managers strike the right balance. Overly focusing on the relationship could allow for goals to slip out of reach. Ignore your teamâs needs though, and commitment to work could falter. Managers need to set standards for their team by role-modeling respectful, inclusionary behavior and being clear on the behaviors that are appropriate and the boundaries that shouldnât be crossed. This applies in every interaction, from giving feedback and dealing with poor performance to inquiring about a team memberâs well-being and sharing personal details.
Contract from the start. In every manager-report relationship there exists a psychological contract about how each should behave, although these rules usually remain unspoken. Managers should be encouraged to have a frank conversation with their reports about what each side expects from the relationship, where you draw the line and any behavioral nonnegotiables. Making these assumptions explicit means thereâll be no room for misunderstanding, and avoids relationship breaking down.
Give permission and voice. The first challenge is helping people see the toxic behavior for what it is. The second is helping them to understand that thereâs nothing wrong with calling out disrespectful behavior in a professional way. With many people, their self-identity can get in the way as there is a dissonance between how people see themselves (successful, confident) and not wanting to appear as the victim.
Repair ruptures. Despite our best efforts, relationships will go awry. When that happens, refer to a quick, effective repair kit. This comes in four stages:
⢠Pause. Step back from the heat of the moment and do whatever needs to be done in order to emotionally reset.
⢠Contain. Address the conflict in the moment and keep it isolated to that specific incident to prevent toxicity from seeping into the relationship as a whole.
⢠Play back. Share thoughts and feelings and be open to hearing what others are saying. Play back whatâs been said so they feel listened to.
⢠Reassure. Remind yourself and the other person that conflict is inevitable, and if handled well can strengthen the relationship in the long run.
Nobody said it would be easy but given the impact of relationships on almost every measure of workplace success, it pays to understand how to make our working relationships work.
Julie Weber, vice president and chief people officer, watches Southwest Airlines soar to the top of the Workforce 100.
Per aspera ad astra is a Latin phrase that translates, âthrough hardships to the stars.â
The phrase serves as a reminder that progress is not always a straight-ahead path. Often there are forks in the road and winding turns that can hinder the journey. How one navigates those obstacles is the essence of oneâs character. The same applies for companies as they strive for HR excellence. For many companies, the journey comes with a fair share of challenges, successes and lessons learned.
Workforce has recognized 100 companies for the past six years that have excelled in people management with the annual Workforce 100 list of best HR practices. Workforce editors and researchers initially partnered with employee review site Glassdoor in 2016 to get an internal perspective of employee satisfaction with their company. Before the partnership with Glassdoor the Workforce 100 list leaned in favor of large corporations and did not take into account the thoughts and responses of rank-and-file employees. Since the partnership began, the list has evolved to include smaller organizations and reveals the value of a strong employer-employee relationship. A companyâs score is calculated using Human Capital Mediaâs Research and Advisory Group and Glassdoor rankings. The inclusion of Glassdoor to the methodology seemingly plays a role in the rise and fall of company rankings.
Over the past six years certain trends have become apparent. Some companies are consistently strong. Johnson & Johnson (No. 11), Salesforce.com (No. 18) and AT&T (No. 45) have appeared all six years. There have been one-hit wonder companies such as Netflix, appearing last year; and the Hershey Co., which only appeared in 2015. Other companies scored high in the first few years and have since fallen in the rankings. One example is McDonaldâs, which scored third in 2014, then No. 17 in 2015 before dropping to No. 94 in 2016. Since then, the Golden Arches has not appeared on the Workforce 100.
While some, like McDonaldâs, have tumbled down the ranks over the years, there have been companies that ascended to the top. One such company is Southwest Airlines. The Dallas-based airline first appeared on the Workforce 100 in 2015, ranking No. 48. The following year, the airline dropped two places to No. 50. Then from 2017 to 2018, Southwest rose from No. 17 to No. 11.
This year, Southwest ranks No. 1.
The Employee Experience
Julie Weber, vice president and chief people officer at Southwest Airlines, has approached human resources with an employee-first outlook. Weber serves more than 58,000 employees, ensuring that they have a fulfilling experience during their employment with Southwest.
âWeâve really put our employees first since the beginning with our founder, Herb Kelleher,â Weber said of the airlineâs late iconic leader. âOur belief is that happy employees make for happy customers, which make for happy shareholders.â
One way that Southwest stands out lies within its centralized hiring practices. Companies in the retail or restaurant industries might look for seasonal employees but Southwest aims for the long haul with its hires. During the recruitment process, Southwest puts an emphasis on matching candidates to the company by attitude and culture fit.
âWe look for entry-level employees who are highly motivated to work with us,â Weber said. Southwestâs continuous emphasis on employees, including their treatment before employment, has resulted in lower turnover rates.
Southwest also promotes a fun, engaging work environment for employees, including companywide Halloween parties. Employees are encouraged to wear their best costumes to work and to bring family members along for trick-or-treating around the office. Company leaders also host meals with employees going through leadership development programs.
âThough we have a highly engaged workforce now, it is ours to lose if we donât maintain a focus on evolving the employee experience,â Weber said.
As companies grow, so do the needs of employees. Maintaining a positive employee experience can take extra effort. With a company as large as Southwest that spans across the country, evolving the employee experience means adapting to technologically advanced platforms. Under Weberâs guidance, Southwest has initiated an HR transformation in order to adapt its practices. One of the initial aspects of this transformation includes widening the scope of the talent-acquisition base to focus on the candidate of the future.
Southwest’s HR team led the airline to the top of the 2019 Workforce 100 list. From left are Kim Hull, senior director; Gregg Thorsen, senior director; Julie Weber, vice president and chief people officer; Danny Collins, managing director.
âWe started with investing in tools that help us with talent acquisition and now we are really looking at the entire employee experience,â Weber said. Her goal with this process is to enhance Southwestâs ability to attract and connect with newer generations of candidates.
This transformation will also involve updating the companyâs HR operating model so that employees will be able to access a one-stop shop. Weber wants to ensure that employees can easily access the HR services available to them, even from their phones.Â
âItâs a big undertaking. It will include investing in new technologies with a whole focus on improving the employee experience.â
While this transformation has been overall positive for the company, with change comes challenges. Part of Southwestâs journey toward transforming its HR operating model has been to keep their leaders and employee population enthused. Weberâs solution has been to maintain strong communication of the companyâs vision and initiatives. Company alignment and visible leadership has ensured that these changes go beyond just the people department.
âWe want to make sure that we are bringing people along with the journey and involving our HR professionals [and stakeholders] with these decisions. That way, we all own this transformation.â
Adapting to Change
T-Mobile is another company that has shown a consistent upward trajectory since debuting on the Workforce 100 in 2016 at No. 72. This year, T-Mobile climbed to 2nd. The telecommunications company is based in Bellevue, Washington, and counts more than 52,000 employees across the nation. Liz McAuliffe, executive vice president of human resources, believes that T-Mobileâs overall success starts with the employee.
âWhat really sets HR apart at T-Mobile is our core purpose. We are stewards of all T-Mobile employees in their personal growth and career success,â McAuliffe said. T-Mobileâs grass-roots approach to the companyâs success relies on creating a culture that inspires its people to not only feel good about themselves but to reflect that goodness in others.Â
âWe approach everything with this mindset,â McAuliffe said. âItâs a game-changer.â
Over the past five years, T-Mobile has evolved its HR operating model in order to meet and exceed the needs of a diverse employee population. To start, theyâve launched an ongoing effort to create a diverse and inclusive environment that will celebrate their employeesâ unique selves.
This investment began in 2014 when T-Mobile launched diversity and inclusion networks nationwide. Today, the membership of those networks across the nationâs 50 chapters makes up approximately 42 percent of the companyâs employee base. To further develop a diverse and inclusive workplace, T-Mobile initiated a companywide learning project called Insight Out. The program involves a combination of in-person and digital interactions to bring awareness to bias in order to create a foundation for more inclusive language, actions and behaviors.
âThis isnât easy,â McAuliffe said. âIt requires courage, awareness, open-mindedness and commitment, but acting on this complex challenge reflects who we are at T-Mobile.â
LiveMagenta is another initiative that aims to transform the traditional face of T-Mobileâs employee assistance program. LiveMagenta would ensure that employees can access resources and benefits through a mobile-friendly app. âLiveMagenta [is] providing everything from financial experts to counseling services and life coaches,â McAuliffe explained.
While McAuliffe reports an overwhelmingly positive response to these initiatives, the company has also experienced the growing pains that come with change. âOne challenge is delivering meaningful services that scale for 52,000 employees while still meeting the needs of employees at all levels and in widely varying roles,â McAuliffe said. Another challenge comes with operating an HR team at the same fast pace as the business itself.
McAuliffe said the solution for T-Mobile was found through a strong collaborative relationship with their business partners coupled with an efficient HR team. Listening to employee feedback has revealed how just how much these initiatives have improved things for the better. â[It] never ceases to amaze me,â McAuliffe said. âItâs truly magical when people can come together and deliver such fantastic results every single day.â
Recognizing Diversity and Inclusion
Goldman Sachs has also risen through the Workforce 100 rankings the past six years. Their trajectory began when they first appeared on the list in 2015 at No. 27. This year the company clocked in at No. 3.
For the investment banking company, the advancement of women and a diverse workplace has not just been a nice to-do. Itâs been a business priority. Goldman Sachsâ Vice President, Media Relations Leslie Shribman offered insight to the companyâs key HR initiatives in recent years. As a commitment to this advancement, the company announced last year that they aspire to have women make up 50 percent of their diverse talent worldwide, and 50 percent of all analyst hires by 2021. âWe have invested in new programming to attract more women applicants to positions at the firm and have instilled accountability measures within our hiring process to review progress against our goal,â Shribman said.
The company also has demonstrated an inclusive atmosphere by implementing programs that focus on working parents. One example is LifeCareâs Milkship program for employees who are breastfeeding. This program offers a free full-service program for employees in the United States to safely ship their breast milk home when they travel overnight for business. Other programs include providing parental leave following the birth or adoption of a child, access to best parenting practices, and medical guidance should a critical situation arise.
Goldman Sachs has also made advancements in their programs to reinforce an inclusive environment. Three of these programs include their Womenâs Career Strategies Initiative, Black Analyst and Associate Initiative, and Hispanic and Latino Analyst Initiative. The programs work to ensure a supportive environment by focusing on the networking and development opportunities for women and minority employees. âWe believe our people are our greatest asset. We invest in their development and provide them an opportunity to work alongside talented colleagues to drive progress across markets, communities and the world,â Shribman said.
These programs are not laurels that Goldman Sachs wishes to rest upon. They have recognized that progress is an ongoing process. As the workforce changes, so must the HR teams that serve it. âWe regularly evaluate how we can improve our programs, offerings and policies to best support employees,â Shribman said. âWe are committed to continuing to provide our employees with the environment, resources and experiences that meet their needs and help them realize their potential.â
Benchmarking Excellence
Except for 2016 when they dipped to No. 14, Deloitte has held a consistent position in the top 10 on the Workforce 100. Based in New York, the professional services company counts 286,000 employees worldwide. Over the past five years, the company has continuously reshaped its HR operating model to keep up with an evolving workplace and workforce. Their focus has been channeled into modernizing their performance experience, promoting a culture of flexibility and well-being, and attracting, advancing and retaining women.
Global Chief Talent Officer Michele Parmelee spoke to the challenges that have come along with maintaining consistent progress of these initiatives. âAchieving gender parity at each level of the organization is challenging for even the most progressive,â she said. âWe are leaving no stone unturned.â
As a company that serves employees across many different geographies and cultures, Deloitte has embraced the uniqueness of its workforce. The connection the company has to its diverse employee population comes with an environment that encourages authenticity. Thus, Deloitteâs main focus for employee experience has been to support its people in creating their own unique talent experience. âWe want to create meaningful opportunities for each person to make an impact, grow, learn and lead at every point in their career,â Parmelee said.
According to employee review site Glassdoor, Deloitte employees have noted that one of the most positive aspects of working with the company has been its work-life balance, which reflects Deloitteâs commitment to a culture of flexibility. âDeloitte places trust in people to decide when, where and how best to work,â Parmelee said. For instance, Deloitteâs unit in the United Kingdom offers a Work Agility program that combines formal and informal work arrangements to support a flexible schedule. Within the United States, Deloitte has expanded its fully paid family-leave policy to offer up to 16 weeks.
âWellness is also a major focus as we find it helps to build a sense of community and a sense of belonging,â Parmelee added. Their programs in Canada reflect this focus, where wellness centers deliver well-being services onsite to Deloitte offices in major metropolitan areas. These services include therapeutic treatments, team-building activities, and onsite quite space.
âEffecting real change is not only a mindset but requires a daily commitment and deliberate action,â Parmelee said.
A group led by Australian technology entrepreneur Tasmin Trezise acquired Chicago-based Human Capital Media, the parent company of business-to-business publications Workforce, Chief Learning Officer and Talent Economy.
Trezise, 26, is the co-owner of Brisbane, Australia-based Tanda, a 7-year-old technology firm that produces time and attendance, scheduling and labor-compliance software.
âI look forward to working with the team as we continue to uphold the dignity, research and empowerment of the working man and woman,â Trezise said.
The Human Capital Media entities will operate separately from Tanda with a shared ownership, said Trezise, who will be president of Workforce, a multimedia publication that covers the intersection of people management and business strategy. Kevin Simpson will remain president of all other Human Capital Media properties, Trezise said.
âThis is about serving the Workforce mission of bringing together HR, learning, engineering, research and stakeholders in the success of working people and I put the call out for them to join us,â Trezise said. âThe vision is to deliver on my promise to resurrect the Workforce history and continue its rightful position as the ultimate source for how the way we work is changing.â
He pointed to the long history of Workforce as inspiration for its planned future. The publicationâs history dates back to 1922 with the founding principles laid out by James R. Angell, former president of Yale University, Carnegie Corp. and the National Research Council, to coordinate the efforts of over 250 scientific, engineering, labor, management and educational bodies. Trezise aims to shape Workforce into the clearinghouse for the most advanced thinking and solutions on the future of work; Â and how to improve the happiness, welfare and efficiency of workers.
âI want to bring my background and experience to carry on the mission that was first formulated in 1922,â he said. âThis means reuniting all engineering and technological bodies with critical research to help people leaders better connect and pursue the application of this knowledge for the benefit of their teams.â
Founded in 1999, Human Capital Media is an integrated information services and market intelligence company whose brands include Human Capital Media Research and Advisory Services, and Chief Learning Officer and Workforce magazines. Terms of the private deal, which closed April 30, were not disclosed.
Adults draw on a combination of these coping mechanisms but usually have a preference for one over the other. When taken to its extreme, this preference becomes dysfunctional and can result in some bad behavior.
