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Common HR Issues For 2024 Small & Medium-Sized Businesses

Common HR Issues Work Environment

In the dynamic landscape of small and medium-sized businesses, HR issues can often be as varied and complex as those faced by larger corporations. As we move into 2024, it’s crucial for managers and employers to stay ahead of common challenges that can impact their workplace. This blog post explores several common HR issues at work that small and medium-sized businesses are likely to encounter in the coming year. We will delve into the nature of these problems, provide insights on how to identify them, and offer practical solutions to manage them effectively. Whether you’re dealing with performance dips, conflict resolution, toxic behaviors, or attendance issues, understanding these common hurdles can help you foster a more supportive and productive work environment. 

 

 

Performance Management

Performance issues rank among the most common hr issues at work that managers and employers encounter, especially within small and medium-sized businesses. Addressing these effectively is crucial for maintaining a productive work environment and ensuring organisational success.

 

Recognising Performance Issues

To effectively manage performance issues, it’s essential to first recognise them. Here are some scenarios that might resonate with managers trying to identify underperformance in their business:

  • Clear Underperformance: An employee who is not meeting the established job standards, which can be evident in the quality and quantity of their work.
  • Minimum Effort: Some employees do just enough to meet the bare minimum requirements, which can stymie growth and innovation within the team.

 

Common Managerial Responses

Managers often have instinctual responses to performance issues, which may not always be the most effective approach:

  • Ignoring Minor Issues: Small performance issues are sometimes overlooked or dismissed without feedback. This can lead to significant problems later, potentially requiring disciplinary actions.

 

Solutions 

Taking action to address current and future performance issues proactively can prevent them from escalating. Here are some strategies to implement:

  • Regular One-on-Ones: Schedule consistent one-on-one meetings to discuss progress, challenges, and feedback. Use these sessions to adjust goals and expectations as needed.
  • Performance Improvement Plans: Once any performance issues are identified, the manager and employee can develop an improvement plan together.
  • Training: Some performance issues could be due to lack of training for the role, or lack of knowledge in efficiencies like time management. Implementing on-the-job training or upskilling with an external provider can help employees improve performance.

Preventive Measures

Having strong systems in place can also help to prevent performance issues from arising Here are some measures to implement:

  • Frequent Feedback: Provide regular and constructive feedback to encourage employee development. Recognise achievements to motivate continued effort and improvement.
  • Structured Probation Management: Implement a structured 30, 60, and 90-day review process during the probation period to ensure continuous evaluation and support.
  • Hiring and Assessment: Conduct thorough screenings during the hiring process to identify potential underperformers. Utilise behavioral interviews and skills assessments to gauge candidate fit.
  • Effective Onboarding: Set clear expectations from the start during the induction phase. Ensure new hires understand their roles and the standards to which they are held.

 

Conflict 

Workplace conflict is inevitable, regardless of the size of the business. Effectively managing conflicts can prevent them from escalating and damaging team dynamics and productivity. Understanding the types of conflicts that can occur—both overt and covert—is crucial in addressing them appropriately.

 

Types of Conflict

  • Overt Conflict: These are clear, open disputes where disagreements or competitive tensions are expressed directly and visibly. Examples include arguments over resource allocation, disagreements about project direction, or open resentment over promotions.
  • Covert Conflict: These conflicts are not always visible but can be just as harmful. Examples include:
    • Passive Aggressiveness: This can manifest as indirect expressions of hostility, such as sarcastic comments, backhanded compliments, or purposeful delays in delivering work.
    • Withdrawal: An employee might become less communicative and withdraw from team interactions, which can be a sign of dissatisfaction or disagreement that they feel unable to express openly.
  • Sabotage: This includes subtle actions taken to undermine the efforts of others. While harder to detect, it can significantly impact team morale and project outcomes.

 

Strategies for Minimising Conflict

  • Establish Clear Communication Channels: Ensure that there are well-defined ways for employees to communicate their concerns and feedback. Regular team meetings and one-on-one sessions can provide platforms for open dialogue.
  • Set and Enforce Ground Rules: Develop clear rules regarding respectful behavior and conflict resolution. Make sure these guidelines are enforced consistently to maintain a healthy work environment.
  • Promote Team Building Activities: Regular team-building exercises can enhance understanding and cooperation among team members, reducing the chances of conflicts.

 

Strategies for Managing Conflict

  • Immediate Addressal: Address conflicts as soon as they are noticed, before they escalate. Delay can often make situations worse.
  • Neutral Mediation: In cases of significant disagreement, involve a neutral third party to mediate the discussion. This can help maintain objectivity and fairness.
  • Focus on Problem-Solving: Encourage employees to focus on the issue at hand rather than personal grievances. Structured problem-solving approaches can divert attention from emotional reactions to practical outcomes.
  • Training and Development: Provide conflict resolution training to managers and leaders. Equip them with the skills needed to handle difficult situations effectively and empathetically.

 

Key Takeaways

Recognising and understanding the various forms of conflict in the workplace is the first step in managing them effectively. By implementing proactive communication strategies and conflict resolution techniques, businesses can not only manage but minimise conflicts, fostering a more harmonious and productive work environment.

 

 

Toxic & Bad Behaviour

Toxic behavior in the workplace can undermine a company’s culture, employee morale, and overall productivity. Recognising and addressing these behaviors promptly and effectively is crucial for maintaining a healthy work environment.

 

Identifying Toxic Behaviors

Toxic behavior can manifest in various forms, ranging from subtle to overt actions. Common examples include:

  • Bullying: Intimidation or aggressive behaviors that can be verbal, physical, or psychological.
  • Gossip and Slander: Spreading rumors or making false allegations to tarnish another person’s reputation.
  • Manipulation: Deceiving or coercing others for personal gain or to disadvantage others.
  • Exclusion: Deliberately excluding certain employees from conversations, meetings, or workplace activities without a valid reason.
  • Undermining Work: Habitually criticising or sabotaging the work of others, or taking credit for others’ efforts.

 

Impact of Toxic Behavior

  • The consequences of allowing toxic behavior to fester in the workplace include:
  • Decreased Employee Morale: Continuous exposure to negative behaviors can lead to a decline in employee morale and job satisfaction.
  • Reduced Productivity: Toxic environments often result in decreased productivity as employees spend more time coping with stress or conflict than focusing on their work.
  • High Turnover Rates: Persistent toxicity can drive employees to leave the company, leading to higher turnover and associated costs.
  • Legal and Reputation Risks: In some cases, toxic behaviors can lead to legal challenges and damage to the company’s reputation.

 

Strategies for Addressing Toxic Behavior

Effectively managing toxic behavior involves several proactive and reactive measures:

  • Clear Policies: Establish clear policies that define acceptable and unacceptable behaviors. Ensure these policies are well communicated and understood by all employees.
  • Training Programs: Implement training programs that help employees and managers recognise toxic behaviours and understand how to address them.
  • Encourage Reporting: Create a safe environment for employees to report toxic behavior without fear of retaliation. Ensure there are multiple channels for reporting.
  • Prompt Response: Act promptly and decisively when toxic behavior is reported. Investigations should be thorough and confidential, with appropriate consequences for those found guilty.
  • Support Systems: Provide support systems for victims of toxic behavior, such as access to counseling or a workplace support group.

 

Key Takeaways

Toxic behaviors, if unchecked, can significantly damage the fabric of the workplace. By recognising the signs early, enforcing strong policies, and supporting affected employees, businesses can create a healthier, more inclusive work environment. Encouraging a culture of respect and accountability ensures that toxicity is minimised and that all employees can thrive.

 

 

Absenteeism and Attendance

Absenteeism can significantly impact the productivity and morale of a workplace. Understanding the reasons behind frequent absences and implementing effective strategies to manage attendance is crucial for maintaining operational efficiency.

 

Understanding Absenteeism

Absenteeism refers to the habitual non-presence of an employee at their job. Patterns of absenteeism can vary, but frequent unexplained or last-minute absences might indicate underlying issues. It’s important to distinguish between legitimate absenteeism (due to illness, family responsibilities, etc.) and problematic absenteeism, which can disrupt work processes.

 

Common Causes of Absenteeism

Several factors can contribute to high rates of absenteeism, including:

  • Health Issues: Both physical and mental health problems can lead to frequent absences.
  • Workplace Stress: High-stress environments can cause burnout, leading employees to take more sick days.
  • Low Job Satisfaction: Employees who are dissatisfied with their job or workplace environment may be more likely to skip work.
  • Poor Work-Life Balance: Inflexible schedules can lead to conflicts between personal obligations and work, resulting in absences.

 

Strategies for Managing Absenteeism

Effectively managing absenteeism involves both preventive and reactive measures:

  • Clear Attendance Policies: Establish and communicate clear attendance policies. Make sure employees understand the expectations and consequences related to absences. This includes clear steps for what happens when paid sick leave is exhausted.
  • Monitoring Sick Leave Trends: Actively track sick leave, especially when taken on Mondays, Fridays, or adjacent to public holidays, as these patterns can sometimes indicate less genuine reasons for absence.
  • Flexible Work Arrangements: Offering flexible working hours or the option to work from home can help accommodate personal needs and reduce unscheduled absences, aiding in better work-life balance.
  • Extended Paid Sick Leave: Implement policies for extended paid sick leave for those facing longer-term health issues, and outline clear protocols for transitioning when sick leave is exhausted.
  • Employee Support Programs: Introduce support programs that promote employee health and well-being, such as wellness programs, counseling services, and health screenings.
  • Regular Check-Ins and Return-to-Work Interviews: Conduct regular one-on-one meetings and return-to-work interviews to discuss any issues faced during absences and assess the support needed for the employee.
  • Disciplinary Actions: If changes to attendance policies and support mechanisms do not lead to improvements, consider implementing disciplinary actions as necessary to address continuous absenteeism effectively.

 

Key Takeaways

Managing absenteeism effectively requires a proactive approach that includes understanding the causes, implementing supportive policies, and fostering a workplace culture that prioritises employee well-being. By addressing absenteeism head-on, businesses can improve attendance, enhance productivity, and maintain a happier, more engaged workforce.

 

 

 

Return to Office versus Remote Work and Flexibility 

As businesses navigate the post-pandemic world, the debate between returning to the office and continuing remote work remains a critical issue for small and medium-sized businesses (SMBs). Balancing operational needs with employee preferences for flexibility requires thoughtful strategy and clear communication.

 

Current Trends and Preferences

  • Employee Expectations: Many employees have come to prefer the flexibility that remote work offers, appreciating the better work-life balance it can provide.
  • Business Needs: On the other hand, certain business operations may benefit significantly from in-person collaboration, leading some employers to advocate for a return to the office.

 

Challenges and Considerations

  • Productivity Concerns: While some roles see increased productivity in remote settings, others might suffer due to less direct supervision and reduced team interaction.
  • Team Dynamics: Remote work can lead to feelings of isolation and disconnectedness, which can affect teamwork and company culture.
  • Technical and Security Issues: Managing remote work also involves logistical considerations, such as ensuring robust IT support and secure data access.

 

Strategies for Balancing Needs

  • Hybrid Models: Implementing a hybrid work model can be an effective compromise, allowing for part-time office attendance while still offering flexibility.
    • Fixed and Flexible Days: Some businesses establish fixed days for in-office work and flexible days for remote work, which helps in maintaining consistency while accommodating employee preferences.
  • Clear Policies and Expectations: Whether fully remote, in-office, or hybrid, it is crucial to have clear policies that outline expectations and responsibilities.
  • Regular Reviews and Feedback: Engage with employees through regular feedback sessions to assess the effectiveness of the current work arrangement and make adjustments as needed.

 

Key Takeaways

The decision between returning to the office and offering remote work flexibility isn’t just about individual preferences but about finding the best fit for the business’s and employees’ needs. By adopting flexible work arrangements and regularly revisiting these decisions, SMBs can ensure they remain dynamic and responsive to common hr issues at work that may arise. Effective communication and clear guidelines are essential to make any work model successful, enhancing both productivity and employee satisfaction.

 

 

Employee Retention & Attrition

Employee retention is a critical concern for small and medium-sized businesses (SMBs) as high attrition rates can significantly disrupt operations and incur substantial costs. Understanding the factors that contribute to common hr issues at work such as employee turnover and implementing effective strategies to enhance retention is crucial for business stability and growth.

 

Understanding Attrition in SMBs

  • Consequences of High Turnover: Frequent employee turnover can lead to lost productivity, increased hiring costs, and diminished morale among remaining staff.
  • Common Causes of Attrition: Attrition can often be attributed to factors such as inadequate compensation, limited career advancement opportunities, poor management practices, and lack of recognition.

 

Strategies for Enhancing Employee Retention

  • Defining EVP: Your Employee Value Proposition should clearly articulate what employees can expect from working at your company in terms of compensation, benefits, career development, culture, and work environment
  • Competitive Compensation and Benefits: Offer fair and competitive salaries along with benefits that could include health insurance, retirement plans, and performance bonuses.
  • Career Development Opportunities: Provide clear career paths and promote from within whenever possible. Offer training and development programs to help employees advance their skills and careers.
  • Positive Workplace Culture: Foster an inclusive and supportive workplace culture. Encourage open communication, recognise employee achievements, and promote work-life balance.
  • Employee Engagement: Regularly engage with employees through surveys, town hall meetings, and one-on-one sessions to gather feedback and address concerns.
  • Flexible Work Arrangements: Continue to offer flexible working conditions where possible, such as remote work options or flexible hours, to meet the diverse needs of your workforce.

 

Key Takeaways

To mitigate attrition and enhance retention, SMBs need to adopt a holistic approach that addresses both the professional and personal needs of their employees. By investing in a supportive and engaging work environment, businesses can not only retain top talent but also attract high-quality candidates, thereby securing their operational capabilities and competitive advantage in the market.

 

 

 

Get in Touch with Inject

As 2024 presents its unique set of HR challenges—from managing complex employee relations issues to navigating the intricacies of workforce flexibility—it’s clear that small and medium-sized businesses need robust support to maintain a healthy and productive workplace. Implementing comprehensive HR strategies is essential but can be daunting without the right expertise.

 

If you are noticing any of the issues discussed here in your workplace, it’s crucial to address them with precision and insight. This is where Inject can make a significant difference. Our team of seasoned HR advisers and experts specialises in identifying and resolving the common hr issues at work that SMBs face. We provide tailored, actionable solutions that are integrated directly into your business operations.

 

By partnering with Inject, you gain access to a team that is committed to understanding the nuances of your business and implementing effective strategies that foster a vibrant, high-performing work environment.

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Business Strategy

Chapter 8 of Building A High Performing Team – Bringing It All Together



I also think it’s important to recap on what we’ve been through, to work through the logical sequence of what is needed.  I have seen it work and not work.  In fact, I have seen it work even if businesses just improve in each of the listed areas and don’t achieve a level of excellence.  This is because there are very few businesses who are achieving a top score on all of these topics.  I know this to be true, don’t believe what other business leaders tell you. 

Before we get into some closing thoughts and what to do next, let’s go through each of the chapters.


Chapter 1: Transitioning your workforce back after COVID-19

The return is not linear.  In this chapter, we covered the Three Bears you needed to tackle as a leader.  There were the Little Bears, which were the smaller questions on how you will return, make things safe and support the physical and mental health of your team.  The Mid-Sized Bear was how you maintain and build on productivity during and after the return.  The Big Grizzly Bear was how you turn this situation into a competitive advantage for your business.  

When you squeeze a lemon, you get lemon juice. Under stress, you’ll see people’s true colours. For leaders out there now is the time when people will see who you really are and what is inside of you when pressure is applied.  For many of us, we are back into lockdown.  Being a leader is not easy and the challenges you will face are often not predictable.  You need to help your team to feel safe if you want them to trust anything else.


Chapter 2: Your Business Strategy

Strategy is about making choices.  If you want to eat the chicken AND the beef, then forget about dessert and don’t even mention dancing.  Too many businesses are unclear about who they are and what they are not.  If you are not clear and disciplined on this, your employees will suffer.  

What is hardly ever considered is that employee engagement can be significantly impacted positively or negatively depending on how clear and disciplined you are with your strategy.  Once you have your strategy clear, your organisational design needs to flow through.


Chapter 3: Your Organisational and Job Design

Organisational Design is not about boxes, titles and connecting lines.  It’s about the organisational energy and how you leverage that energy to deliver value.  You need alignment of people, systems, processes, performance measurement, decision making and rewards to do so.  

The external environment is rapidly changing; through the 4th industrial revolution, the gig economy, along with a reduced need for crystallised intelligence and a greater need for fluid intelligence.  You need to go deeper into how your business operates, including the informal and formal channels that are either enhancing or blocking your progress.


Chapter 4: Your Leadership

Leadership is the one thing you cannot outsource. It’s also the one thing that will kill your business if it is not adequate.  Managers within small-medium businesses often don’t see how much they are destroying the business through their actions or lack of actions.  

The individual contributor who is reliable and knowledgeable and has helped the company grow to where it is might be the worst one of all.  Even if they are the Michael Jordan of your company or industry, if you put them on the bench in a coaching role the team is going to lose.  

Defining what leadership truly means, only promoting people with leadership potential into such roles and investing in the ongoing development of all leaders (especially yourself) is critical to building a high performing team on purpose.


Chapter 5: Your Talent Management

Managers continue to focus on the resume, references and industry experience or technical knowledge as driving factors in hiring talent.  The trouble is that none of these correlate strongly with high performance.  You could have two people who have worked at the same company for the same amount of time, with similar knowledge of the industry – one of them is a high performer and another has just been allowed to bumble along.  

Your talent is one of the most important parts of building a high performing team on purpose.  You need to hire based on talent and mindset, using valid and reliable assessment tools, rather than deciding based on gut feel. 


Chapter 6: Your Learning and Development

Managers love sending people on external training courses with the goal of fixing a skill, knowledge or capability gap.  Employees like going on external training courses and reporting they have learned a whole bunch of stuff.  Sometimes this is true, very often it is not. 

You need a culture of learning that starts with your senior leaders.  If they have a closed mindset and don’t invest in their learning, how can you possibly expect the majority of your team to be open to applying new knowledge?

We are fighting against self-identity, low attention spans and the need for learning to be practical.  Learning needs to be a part of the fabric of the organisation and an everyday activity highly linked to the core strategy of the business.  Otherwise, it is just a tick the box exercise that makes people feel like they achieved something.


Chapter 7: Your Employee Value Proposition

Your Employee Value Proposition (EVP) is the communication and delivery of the total rewards for your people in return for their joining, staying and performance at the organisation.   Be clear on who your target audience of employees are and what they truly value. Because if you try to be everything to everyone or compete on the same criteria as others, you are likely to lose.  

Ensure you cover off a range of topics including career development, leadership and culture, financial rewards and benefits, the work itself and your company purpose. Put yourself in the shoes of your employees and know what you need to dial up or turn down. Make a compelling case that can be articulated clearly. Your EVP may need refining and you may not get it right the first time, so practice this with as many of the target market as possible. 


Summary

In other words, here is a one-sentence simplified explanation of each chapter:

  1. Look out for the safety and welfare of your team as you navigate the COVID-19 world and show you can be trusted as a leader                                                                                                                                                     
  2. Be clear on who you are, where you are playing and what you are trying to be the best at.                                                                                                                                             
  3. Design your organisation around the things you need to be great at, finding ways for each part to be better than the sum of each part                                                                                                                                             
  4. Accept that leadership is essential and needs your time and resources, whilst accepting that not everyone makes a good leader, even if they are great at other things                                                                                                                                             
  5. Hire people based on their talent, attitude and ability to learn                                                                                                                                             
  6. Make learning a core part of your business, not something that sits to the side as a task                                                                                                                                             
  7. Find a compelling reason for people to join and stay with your business, remember to communicate it clearly

Are any of these more important than the others?   Yes, but you need to be doing all of them for it to work.  That is, you can’t just hire great people and lead them poorly.  If you have a clear strategy but people are too worried about their safety then they won’t be paying attention.  You have to be at least “good” on each and preferably “excellent” on a few. 

If you can be excellent in two areas and good on the rest, I would pick Leadership and Talent.  The reason for this is that if you have exceptional talent and lead them well, you can work on the other areas.  That is, great leaders and great talent want to learn and so you will not ignore this.  Great leaders will find a compelling reason for their people to join and stay. 

None of these areas are something that can be done with a quick fix.  Nor are they complete after you’ve worked through the activities in this eBook and feel like you’ve ticked them off.  It is a continual piece of work that never stops – because others are getting better and the landscape continues to change. 


Where to next?

If you’ve managed to get this far, then it is likely that you are interested in the topic of building a high performing team on purpose.  I’ve worked with many businesses across the above topics, as well as others that are designed to help drive performance.  

There are other ideas that help to drive performance outside of these topics, such as process improvement and technology. However, this book has focused mostly on people performance and how you can help them perform at their best in that context.

I’m going to leave you with three final pieces of advice, based on what I have seen business leaders do in pursuit of performance.


  1. Don’t copy your neighbour. So, you hear about someone else’s business and they tell you about what they are doing about a particular business challenge and how well it is working for them.  You should be very cautious about taking the word of any business leader who is telling you this.  It could be true, but in more cases than not, it’s not working as well as they say.  Of those cases where it is working well, remember there is a lot of detail around how they are executing it that you may not be aware of.  Finally, what works for their situation may not work for yours.
  2. Don’t give up if it doesn’t work right away. Knowing the content and executing it effectively are two separate things. The tendency to start something, not see immediate value and then give up is dangerous.  This is very different to objectively stopping a process or project because it is the wrong thing.  Be careful of the comfort zone of yourself and other senior leaders in your company and how quickly people go back to what they are used to.  When people revert to their comfort zone they aren’t playing to win, they are playing not to lose.  This results in mediocrity at best.
  3. Be a student for life. If you read widely and learn more and more about the topic of high performance of people at work, the ideas will start to converge on each other.  Validate what I have outlined here with what other people with knowledge on such topics have also written.  Combine this with genuine empirical personal evidence and continue to refine your mental model.  Know that you might need to have heard about a topic 10 times before you take action and so what I have written could be the first, or third or maybe the tenth. 


Final word

Finally, I want to leave you with this thought.  I hate cleaning – but I love a clean house.  I enjoy the outcome of cleaning, but I have no real passion or interest in the process.  Many people want the outcome of what a high performing team brings their business – money, success, pride and many other extrinsic rewards – but they don’t actually have any passion for building a high performing team.  If this is to work, you need to have an authentic interest in this subject.  

You need to want to do it not for the outcome, but to enjoy the process itself.  When I say “enjoy” it doesn’t mean you are loving every moment at the time.  Enjoyment often comes afterward when you are successful – but I mean enjoyment from the perspective that a marathon runner somehow enjoys it 30kms in when their feet are killing them, they are dehydrated and just want to stop.  It’s sick, but that’s how much you’ve got to love the performance.



Coaching others through the process to build a high performing team on purpose is what I genuinely love to do.  The look on the faces of business leaders when they have much greater confidence in their people is what I aim for.  If you have read through this series and believe this is for you, I would love to discuss your plans with you. Feel free to send me a message and let’s start your journey.

Categories
Business Strategy

Chapter 7 of Building A High Performing Team on Purpose – Your Employee Value Proposition


“So…what is your culture like?”

“Well, we like to go for drinks on Friday nights once a month. Um, we also went bowling last quarter, that was great fun. In the office we like to have a bit of banter, but we all get the job done in the end.”

“Awesome!”

 Yes.  All those things are great fun and who doesn’t like going for drinks, bowling and banter? The trouble with this answer is that:

  1. It is not really an accurate answer about the company culture and doesn’t give much information.
  2. Given this is a similar response to a lot of other companies, it doesn’t differentiate you and therefore is not a source of competitive advantage where it comes to attracting and retaining talent.
  3.  It doesn’t cover the important components of what actually attracts and retains people.

There are a few reasons why most businesses have a similarly vague, non-distinctive and surface-level response to this question.  The reason for this is that most businesses:

  • Don’t properly think through their Employee Value Proposition (EVP)
  • Are not hearing what other managers are saying, because they are not sitting in on their interviews
  • Are not looking objectively at their company in the context of their target market for talent

To this last point, it is sometimes the case that business owners and leaders overstate the attractiveness of their company.  They are viewing it subjectively having grown it with their own blood, sweat and tears.  It’s like their baby and so how could they not think others should love it?  

Conversely, some business leaders don’t think they can compete for top talent, believing that only the big players who pay the large salaries and bonuses can attract the best. 

If you’re going to build a high performing team on purpose, you need to have an approach to attracting and retaining talent.  This requires you to have a clear and compelling Employee Value Proposition (EVP).


What is an EVP?

An Employee Value Proposition is the communication and delivery of the total rewards for employees in return for joining, staying and performing at an organisation.  This is the value that the employee gets from the company.  A good employee value proposition cuts through the rhetoric and clichés and instead, provides a clear message to a distinct group of people. 


Be clear on your target audience

It’s important to be clear on your target market of who you want to attract and what they value.  What is perhaps even more important is who you don’t want to attract.  Does this sound familiar?  If you said “yes”, then you might be thinking about your Customer Value Proposition (CVP) that has similar aspects to it.  

Knowing who you best serve and who you don’t from a customer perspective helps you to deliver differentiated value to your target market.  The same goes for employees.


Think through the below questions:


Is your company more attractive to people who:

  1. Like parties and social functions or to those who love learning?                                                                                                                           
  2. Like earning big bonuses or achieving work/life balance?                                                                                                                   
  3. Prefer a formalised environment or a casual informal environment?                                                                                                                   
  4. Value diversity or are more homogenous in the type of people in the business?                                                                                                                   
  5. Live in and around the city or prefer the suburbs?                                                                                                                   
  6. Love your products and services, or are your products and services agnostic to the enjoyment of people’s jobs (e.g. Widgets R US)?                                                                                                                   
  7. Values speed and fast delivery, versus those who prefer premium and more involved?                                                                                                                   
  8. Embraces technology versus old school approaches?


These contrasts are not always diametrically opposed (e.g. even if you have great social functions, you will of course need people to value learning) and some may not be relevant (e.g. you may have both branches in the city and in the outer suburbs). The point of this list is not to be exhaustive, but a thought starter.  The important factor here is that, much like with your strategic position with your customers, if you try and please everyone, you will please no one. 

It’s important to note that this doesn’t mean you have a one-size-fits-all approach on everything, as having a diverse population of employees with different interests and perspectives is valuable to avoid groupthink.  

Those of you who know me and have discussed the topic may have had the discussion about how paying for gym memberships is usually a big waste of money.  People who want to go to the gym are happy to pay for it and have their preferred club that they choose to go to.  Those who take a free membership tend to be people who think they want to go to the gym, but don’t really. 

What I’m talking about is at the core of your business.  What is the inimitable offering you give your employees that they simply cannot find anywhere else and who are the people who will value this above any other offering or reward?


Place yourself in their shoes

The ability to properly empathise, by placing ourselves in the shoes of others is one of the most important life skills we need.  Business owners and founders in particular often feel misunderstood.  

In fact, the very nature of why they got into business in the first place is often because when they worked in a job, their manager was not forward-thinking enough to take onboard their ideas – so they started their own company. 

The biggest misconceptions about an overall offer to employees are that:

  • It’s mostly about the money;
  • It’s better to have a lower base salary and higher bonus component (because that is what business owners have for their remuneration);
  • People will leave you if they get a “better” offer elsewhere;
  • Millennials have no loyalty; and,
  • You can pay someone lower to begin with, then if they prove themselves, you can give them a pay increase.

I have had people argue until they are blue in the face that paying bonuses drives results.  It’s not that they are lying, they are actually seeing results – but what results are we talking about? 

I won’t cover the correct design of incentive programs here, as it is a detailed topic however, bonuses are used a lot more than they should.  The people implementing them only focus on the outcomes they believe they achieved, rather than what they didn’t achieve and what they adversely affected.  


Turn up what’s important, turn down what isn’t

Are you a learning organisation?   Is that core to your strategy to beat the competition and provide innovation?  Is everything about delivering a premium tailored service?  Knowing who you are as a business and who you are not helps to attract people who value the same thing.  

If you then work hard to offer an employment experience that is better than others in a smaller number of areas and at least ok in all the other important areas, then for those who value what you are best at it’s harder for people to leave and go elsewhere.   More so, they will stay not because they feel they have to, but because they are having a fulfilling experience. 

People often use the example of Steve Jobs, who by many accounts was not a good people leader.  As a thought leader though, he was exceptional.  People who justify why you can get away with not being a good people leader do so in order to support an existing incorrect perspective.  Unless you are Steve Jobs or an equivalent genius, you can’t be as bad of a people leader as he apparently was.  

Also, what we don’t hear about are all the people who probably left due to his behaviour towards him.  Most of us are not the equivalent of Steve Jobs in the forward-thinking genius category, so we need to be at least an ok leader.  Then we need to offer a small number of areas that are better than companies who compete for our talent.

How does what you have to offer compare to other offers your target market is considering?  If you are a small-medium business, it is difficult to compete with larger businesses on their strengths.  If your target market of employee is weighing up working for you versus a larger player, it’s best to focus on strengths they don’t have.  

For example, in a smaller business an employee can have greater opportunities to work on a range of activities faster than in a large business that has much more specialised roles.

Most importantly and what is critical to your Customer Value Proposition, is: what is the problem you are solving for your target market?  What is the pain you are alleviating?  For example, if you are a high potential graduate looking to further your career, typical problems can include:

  • Companies want you to have two years’ industry experience
  • You are concerned about locking in a career without knowing what the work is actually like
  • You won’t receive proper training, mentoring and guidance to learn
  • There is a lack of career development and opportunities

Ensuring that you address these pain points properly and communicate what you do in a compelling way will help you to attract and retain this type of employee.  Compare this to a person of a similar age who is not yet ready to go fully into their career and is more focused on travelling and gaining life experiences.  If this were your target market, your proposition would be different if you wanted to address their pain points.


What should be included in an EVP?

So now that you are getting an idea that you need to be clear on who you are and the type of people you are targeting, who need to have similar values to the core of who your business is, it’s time to get specific on what you are offering as your value proposition.

The company purpose

This is the “why” of your company, as Simon Sinek would say.  People are looking for inspiration and want to be part of something bigger than just making profit, being the “industry leader” or being the best.  What is key to your company purpose?  You need to have a human impact.  

We feel good when we have made a difference to other people, so long as we can have a level of appreciation and affinity with those people.  This doesn’t mean you have to be a charitable organisation, in fact, your purpose shouldn’t relate to your charitable foundations unless you are a not-for-profit.  Your charities and social causes can form part of your overall proposition, but it’s not your purpose in most cases.


The work

The work itself is so important to the enjoyment of work from a day-to-day perspective.   What steps have you taken to make the job enjoyable?  Have you taken out all the unpleasant or boring bits through your processes, technology, outsourcing and/or support structure?  Are you clear and disciplined on your customer strategy so you only deal with customers in your target market who love what you do?  Have you taken what is seemingly an unpleasant job and made it fun?  

Think about the famous Pike Place Fish Market in Seattle where they throw the fish around and yell out at each other.  What sort of person would love working there?  Do you think they need to be paid big bonuses, or do they attract people because of the fun environment, opportunity to entertain, famous name and the chance to be yourself (if you are highly extroverted and energetic)?

Let me put it straight to you: Enjoyable, fun and fulfilling jobs in a great environment are more attractive than crappy, boring, frustrating jobs in an annoying environment.


Career development

A lot of people in job interviews talk about wanting to “grow”.  Often I wonder whether they know what that really means to them and the work required to truly “grow”.   Growth can be challenging and true growth is often not very enjoyable at all.  Nonetheless, many people want to feel like they are getting better and improving their knowledge and capability.  Whether or not they are up for the task of doing so is another story.  

What is important is that you have the opportunity for people to learn and develop in their own way.   Not everyone is capable and willing to climb the ladder.   Knowing this and applying an approach to help people feel they are progressing, without everyone having to reach CEO level is important for most EVPs.  


Leadership and culture

This is a more difficult one to convince anyone of.  Leaders of businesses will often describe what they are doing to create a great culture, but in reality it is often not what takes place.  Think less about the gimmicks that you have in your company. Avoid headlining your culture with your social events unless that is what you want to be known for above most other things.  

What’s more important is the day-to-day.  What are the indicators in your business that demonstrate what people are like and how they work with each other?  What is your approach to giving feedback and performance?  What is your approach to leadership?  How is feedback gained and acted upon?   

All of these things can of course be espoused without actually taking place effectively in real life.  So what’s the difference?  Sometimes it’s the smell test.  Some of you may use observations of candidates when you are hiring as part of your criteria, so observe their behaviour during the process (which is a good thing to do if done properly).  

Many top candidates are also doing the same thing with you.  What is important is that your leadership and culture is authentic to how you describe it.  You will be surprised how much can be revealed by you during your own hiring process.


Financial rewards and benefits

There are important questions here: 

  • What are you rewarding?
  • How are you rewarding?
  • When are you rewarding?
  • Who are you rewarding?

The answers to these questions will communicate to your employees and prospective employees what you value.

Just as a side note, you should avoid Employee of the Month programs.  They are fraught with danger and essentially it is exciting for one person, a non-event for some and demotivating for others.  You are highlighting one person’s efforts for the month and may not be acknowledging what anyone else did for that month. 

In terms of monetary benefits, in most cases I don’t think they should be a primary part of your EVP.  That is unless they form part of your core proposition that is valuable to your target market.  For example, if you are a travel agent and are wanting to attract people who love travel and can talk passionately about travelling adventures, then clearly having benefits related to travel such as significant discounts and extra annual leave is going to align perfectly.  

However, that same set of benefits in another business that doesn’t have the same target market will not be as valuable overall to the employees or company.  It will still be enjoyed, but anything you spend time and money on is in place of something else you could have directed your resources towards. You need to be deliberate and discerning. 

As a general practice these days, lifestyle benefits, such as flexible working, are more important in most cases than financial perks.  Financial perks can be valuable, but again they need to be relevant to the target market.


Articulating your EVP

Much like your Customer Value Proposition, your Employee Value Proposition needs to identify the target market of employees.  You may even have sub-categories of employees based on the different divisions and teams within your business.  To take a simple and commonly used structure, see below:

 For [target market] who are looking to [goal] but [pain point], we provide [value to target employees] because [what makes it true].  Best of all [special sauce]. (“Special sauce” is something extra, that makes the main part of your offering even better).


For example…


For HR and psychology graduates who are looking to develop their careers and spend their days analysing human performance at work, IPX Group provides a learning environment designed to rapidly develop your skills, knowledge and capability.  Here’s what makes this true:

We don’t hire people from the industry, because we invest a lot of time and energy into teaching our team our unique methods.  We therefore hire people who have strong learning agility, a thirst for learning and who are highly interested in human behaviour. 

  • We provide services to small-medium businesses across a large range of HR disciplines, so there is opportunity to learn across a diverse range of topics and find out what you really love. 
  • We work across a range of industries and our model is only successful when we work in strong collaboration with our clients, getting to know their businesses in detail.  This means that you will learn about how the world works through other people’s businesses.  
  • We have a documented and structured competency framework that forms the basis of your development plan, so you will always know your development path and be rewarded for learning. 
  • Because our services to our clients include training and development on high performance behaviours, you get to participate in the same training and development we provide externally, whilst being paid for your time.
  • You are encouraged to be yourself, but the best version of yourself.  This is because part of our offering to our clients is that we are transparent and honest, so there is no need to pretend you are something you are not nor to ever be untruthful to clients.
  • Best of all, because our hiring process is based on the same rigorous methods we use with our clients, you will join a team of like-minded individuals who have all met the same standard.


Key Takeaways

  • Be unique and specific to your target audience of employees. What is it that they truly value and appreciate in a workplace? Also, remember to think about who aren’t your target audience of employees.
  • Empathise. Don’t think that your employees are going to like what you like. It’s about having more than a surface level assumption and to know that even within your target audience of employees there are going to be differences as well. 
  • Whilst you can include multiple rewards, don’t include so many benefits that your EVP becomes diluted. Be clear on what you offer employees that’s valuable to them, that’s unique to your business and play to your strengths rather than trying to compete with other companies who play on their own strengths.


Actions

  • Think about your best employees past and present. Why do you think they enjoy working at your company? Why do you think they’ve stayed? Better yet, ask them. You might be surprised at their answers. 
  • Think through and possibly discuss with others, what is unique about your business and what value can you provide to that group of employees. 
  • What are the alternative options for these employees within or outside of your industry?  What are the strengths and weaknesses of what others potentially offer? Looking through the categories in the section ‘What should be included in your EVP’, what can you offer both present and in the future that can add value to your employees? If you don’t have much in place now, that’s okay. Think about what you want to have in place and make a plan.
  • Draft how you communicate it and speak to someone who has very little understanding of your business and has no reason to tell you it’s good when it’s not and explain it to them.

You can read Chapter 6: Learning and Development by clicking here.

Categories
Business Strategy

Chapter 5 of Building A High Performing Team on Purpose – Your Talent Management

This is part five of the eBook, Building a High Performing Team on Purpose.


Talent Management: Hire and promote candidates based on competencies that support delivering your business strategy

“Excellent” said Mr Burns, pushing the buttons on his imaginary flute with both hands.  Seated at his desk he looked up towards Smithers, instructing his trusted assistant to go out and swoop up all the outstanding talent who had lost their jobs during the COVID-19 crisis.  Smithers gave his typical groan when he knew his boss had given him an impossible task that he had to find a way to work.  Wayland moved to protest to Monty, only to find himself directed to the doorway with a loud “NOW!”  

Besides the fact that no one actually wants to work for Mr. Burns, the groan of Smithers is due to the insight that there is not actually the treasure trove of talent that is assumed to be out there.  What he can count on is the sea of resumes that will crash through his inbox, requiring a lot of work to sift through.  It’s not going to be that easy to find great talent.  They will probably end up re-hiring Homer.


The resume of a poor performer sometimes looks very similar to that of a high performer

Have you ever heard this saying? 

“Nobody got fired for buying IBM!” 

This phrase became famous several decades ago and represents the “safe bet” of choosing computers, much like why no large corporation chooses anyone but a Big Four accounting firm to conduct their audit.  If you choose the safe bet and it doesn’t work out, well you are not to blame and were just plain unlucky, weren’t you?

If you’re a business owner or leader in charge of your own fate, you don’t need to live by this mantra.   There is no butt-covering required and so you are in the box seat to avoid following what everyone else is doing.  I have a feeling you knew this already.  So then why does this candidate profile often ring true?


  • Industry experience  – “our industry is very different and so you need to know who is who and the terminology”.
  • Systems knowledge – “our system can be difficult to navigate and our training is not up to scratch yet”
  • Good references – “Their past employers thought they were good”


In Chapter 3: Your Organisational Design,  I mentioned that managers often focus on “crystallised intelligence” (what a person knows right now, such as the capital of Switzerland), rather than “fluid intelligence” (the ability to seek out and absorb new knowledge) when defining what they are looking for.  This is often due to managers being time poor, or in my language I view that as being energy poor.  They just want someone to come in ready made to “hit the ground running.”  

Sometimes, it is necessary to prioritise crystallised intelligence if there is none that exists in the company or to balance up an inexperienced team.  Also, you sometimes need some crystallised knowledge as a ticket to play regardless of how talented someone is.  It’s just that the requirement is too often overstated and it is not a source of competitive advantage to do so continually as it only catches you up in the short term.  If this is your approach it may mean that you are not organised with your workforce planning and/or your staff turnover is too high.  


Constantly chasing your tail is not how you hire for a high performing team on purpose.

But wait… if a finance person has no idea about Microsoft Excel, that rings alarm bells for me!  In some cases, systems knowledge is more important as an indicator, rather than the specific skill itself (albeit the skills also being useful).  Using this example of Microsoft Excel, if in a finance position, all a candidate knows how to do is SUM, then this is possibly an indication they haven’t really explored its power.  

They don’t need to know how to do a combination IF(AND(OR… statement specifically, you just need to be someone curious and smart enough to figure it out.  It’s a possible indicator of analytical thinking and learning curiosity.  You want to know their natural energy goes towards the important parts of the role.  Hiring for a system specifically (often people think of their ERP) will severely limit the talent pool you can choose from and the most capable people will surpass most others in 6 months anyway.

Another common mistake is to overly prioritise existing industry and product knowledge.  This might help in the short term because the manager doesn’t need to put in much effort to train them.  But this crystallised knowledge is less valuable than learning agility and influencing ability.  There will be many people who have bounced around the industry as sales people and know a lot of terms and technical jargon, but lack the ability to have a proper conversation with a business owner or to learn new products that are required to remain competitive in the market.  The manager may also assume that the industry person knows a bunch of things that they actually don’t, until they find out two years later when the sales results are not there.

Nearly every industry has a challenger brand or one that is looking to deliver a premium product or service to the market.  If this doesn’t exist, there is probably a replacement industry on its way to disrupt the entire market.  Businesses that are looking to build and maintain a competitive advantage, but are stuck in these old ways of looking at prospective employees are missing a golden opportunity.  To amplify how much this is going to become even more important, in a recent World Economic Forum study, they predicted that 54% of employees will require re-skilling and re-training by 2022.


So why are people still hiring on criteria that does not correlate with high performance?  The most common reasons are:

  • Having a short-term view and wanting to just fill a gap
  • A lack of interest in spending time on training and development
  • Missing knowledge on what actually drives performance (even if intuitively it is known)
  • Never having experienced what it is like to hire a true high performer on purpose
  • Because everybody else uses the same criteria

I find that small-medium business owners and leaders are best placed to come to the realisation that hiring based on the resume and references is fraught with danger.  It usually takes a few poor performers for the realisation to set in that there must be a better way.  They are the ones that experience immense pain, due to negative impact on performance, the toxicity of culture and the increased workload and stress for that leader.  


Exercise

Let’s look at a position in your company that you might want to hire for in the future.  I will use an example of a Sales Manager for illustrative purposes (the list won’t be exhaustive).  Write down a list of what you would see from a high performer versus a low performer.

  1. List the things that a high performer does
  • Develops, clarifies and gains buy in for the sales strategy across the executive team
  • Hires sales people based off talent for sales, their attitude and aptitude
  • Work with those not suited to sales or the company to move to a different job
  • Invests in their own personal learning and development, particularly leadership and management
  • Spends time out on the road with the sales team, providing feedback and coaching
  • Makes the right judgement call as to when to step in and when to let a sales person make their own mistakes
  • Work collaboratively with operations and other important internal stakeholders to align their priorities 
  1. What would a poor performer be doing?
  • Spend too much time selling directly themselves
  • Justify to the executive team that the reason targets are not hit are due to poor sales staff
  • Complain about operations, finance, pricing, the market, customers
  • Avoid having difficult conversations with people until it gets to breaking point and then create an environment of fear through constant ultimatums
  • Spend little time coaching and developing their staff
  • Solve problems for customers and then throw their team under the bus
  • Say yes to everyone, including the sales team, customers, suppliers, internal stakeholders

Whether you agree with this list or not isn’t the main point here and each situation will of course be different and so the specific context would change the priorities.  Most would agree that the first list is significantly better than the second list.  But what do you notice?  These are all behaviours that you can observe.  Each list of high performers or low performers could apply to someone from the industry, or outside of the industry. 


Hiring for talent and mindset means leveraging the natural energy of people

It’s better to leverage the natural energy of the person than to fight against it.  Issues are presented if you are constantly using your own energy to try and push this person in the direction you want.  When you give an employee your energy, whether that be effort to help them learn, providing them insight into priorities or to set up the right relationships – you want them to take this and build on it.  You don’t want your energy to just be lost.  This is why so many business owners and leaders are exhausted by their people.  They are expending so much energy on their people and getting very little in return.

If I were to say to hire based on things like talent, attitude and learning agility, well that would make sense right?  Most people would be nodding their heads to that and then say “Yeah, but right now we just need experience.  We don’t have the luxury to do that at the moment.”  Besides the cost of getting it wrong, one bad experienced hire will set you back 6-12 months or even longer.  All the while the person who has the right mindset, who furthers the right positive culture in your company and whose natural behaviours perfectly suit the role could have been learning your business.

The issue with poor performers is that it is never the issue that a manager says that they have an issue with this person due to their current lack of knowledge.  Assuming the issue is not due to the manager’s inability to lead and develop this person, the issue with the employee’s performance is nearly always due to one of the following:

  • The work they are meant to be focusing on is not what they are focusing on.   They seem to find time for tasks that are less important and will justify why they don’t have time for the most valuable activities from the manager or business’s perspective
  • Their attitude towards work is about what they can take from the company, not what they can give
  • Their attitude towards other people rubs them up the wrong way or they are toxic for the culture
  • They are not learning things fast enough, having the repeatedly ask the same question and then still get it wrong

Some of you might be thinking, “So, you want me to hire young and inexperienced people all the time?”  No, that’s not the message.  It’s about the fact that people prioritise the wrong things and so there is a need to push one message to balance the ledger.  

However, to answer this concern more specifically, let’s break down experience for a moment.  The problem with experience (and in particular years of experience) is that it is not specific enough.  One year in Company A working for Manager A may be significantly more valuable than five years in Company B working for Manager B.  Even within Company A and Manager A, Employee 1 took every opportunity to learn and apply what they learnt, whilst Employee 2 sat back and didn’t take in anything.  If Manager A was a great teacher and coach, but not great at moving on poor performers then both Employee 1 and Employee 2 could have similar looking resumes.  

It’s important to know that hiring for talent doesn’t simply mean hiring young people, as sometimes people mistakenly think. The assumption that a young person will be keen and open to learning is not always true.  The strategy to hire for talent works just as well when looking at a fifty-year-old who may bring transferable skills and abilities with a greater thirst for learning than some twenty-year-olds.  The message is that it is about the person, not the piece of paper of where they have been.


Be enlightened enough to know that you are not a genius people-reader

“I’m a great judge of character.”   Said no one who understands confirmation bias.

Some of you may have read an article I wrote a while back on confirmation bias.  In particular, the example of the guy in the red jumper stood out for a lot of people.  The story goes like this…you are arriving at a party and your friend is leaving. You ask how the party is that they say, “Great! Except avoid the guy in the red jumper.” You enter the party and then later on notice the guy in the red jumper. He looks like a creep and you avoid him.

Now change that around and when your friend leaves, they say to you “Great! Make sure you speak with the guy in the red shirt, he’s eccentric but such an interesting and lovely person.” When you see him at the party you are instantly drawn to talk to him. Same guy, different outcome. 

As human beings we hate uncertainty.  The unsettling feeling this gives compels us to find an answer that we can tell ourselves is the right one.  During a hiring process, this is constantly happening with hiring managers.  The first look at the resume.  The first meeting with that person.  Whether you feel positively or negatively about that person you will start to look for reasons why they are right or why they are wrong.  

Confirmation bias is just one of many biases that exist during a hiring process.  When people present a certain way that reminds us of ourselves or someone else we like, we instantly feel good about that person and are more likely to hire them.  Just remember, knowing all of your mates, not all of them would be the best employee, or if they would be, they would certainly not be right for every role you might have.  

Conformity bias is when there are multiple people in a selection process and the majority of people or perhaps the most powerful person gives a view on a candidate.  Once that view is out there, everyone else falls into line and ignores the observations they had that contradict that person’s view.

There is one last bias I will mention which is comparison bias, which results in hiring the best from a bad bunch or missing out on that right person. That is, human beings love the number three for some reason.  Three blind mice, Neapolitan Chocolate and Gold, Silver Bronze.  There seems to be a rule of three that exists in hiring that is we need three candidates to compare and to pick the best from that shortlist.  What if all three are wrong?  What if you only see one person and they are right and you lose them to another company because you were waiting for another two to compare them to.

I could go on as there are at least ten different types of biases that are swaying you towards hiring a poor performer.  Step one is to be aware of them and admit you are not immune.  This will lead you to… 


Use a robust selection process and multiple objective assessments

“Our hiring process has worked for us before.   It’s just that you can never really know.”

Well, even a broken clock is right twice a day.

The assessments that exist today that will help you make a more accurate decision to hire have been around for a long time.  However, the uptake of using those assessments is still relatively low when compared to how many people are hired, particularly in small-medium businesses.  

To make things clear, I need to tell you that I have interviewed thousands of people.  I have reviewed the personality profiles and aptitude results in-depth of at least several hundreds of people, if not in the thousands.  These assessments are from a world leading psychometric assessment company, which yes – it does make a difference.  Most importantly, I have been a part of discussions with managers after the person has been hired to review what actually happened.

I could talk to you about studies that have looked at predictive validity and the strength of aptitude testing, structured behavioural interviews and personality profiles.  Most people I speak with find that direct personal experience is more valuable.  So I will tell you that across the past 20 years that I have a lot of direct data from all the different situations I have seen.  The many success stories of situations where the assessments predicted a high performer have been great.  However, it is perhaps when people have chosen to go against the assessments and instead favour criteria that relates to biases, resumes or simply recruitment fatigue (choosing someone because they want to stop having the recruit) that even more value has been achieved. If I didn’t have people going against the recommendation from time-to-time, then I couldn’t have contrasting data to review. 

So it’s important to use a holistic approach with valid assessments to uncover a more comprehensive view of a person you are potentially bringing onto your payroll.  This is best illustrated by the Venn Diagram below:

Yes, it’s more work and yes, it costs more money.  But if you aren’t convinced that it is worth the effort to hire the right person then you may need more trial and error experiences until you get there.  Seeing what I have seen, I want as many people to stop going through the process of learning from their own mistakes.  The challenge for me to try to get across the message to people that they aren’t a mind reader and that just because they want this candidate to be the right one, it doesn’t make it so.  

We are fighting against human nature here.  What is encouraging though, is that with each business leader we work with who is open to learning new things, who values the right people and has the discipline to apply the right process, that we are slowly seeing a change towards hiring the right people consistently.  This is the most important point around this whole series and for every chapter: When people tell you that you are really lucky to have a high performing team, I want you to think to yourself and to tell them that it was not luck, it was on purpose.


Key take-aways:

  • Challenging the industry with a differentiated strategy requires a different type of workforce, so with a deliberate talent strategy to hire, retain and develop talent that competition is not fishing for can create an inimitable competitive advantage
  • Hiring people more on talent and mindset than on their existing technical knowledge gives you a better chance of building a high performing team
  • In today’s context, knowledge is evolving and roles are changing, so the ability and willingness for employees to learn will be key


Recommended actions:

  • Following the review of your strategy and your organisational and job design, you will have the criteria in which to hire against 
  • Complete forward-looking workforce planning activities to plan out how you will hire for the business ahead of simply replacing exits
  • Hire based off the strategically required competencies, talent, attitude and aptitude
  • Use valid and robust assessments in combination to identify a clear and accurate view of candidates


You can read Chapter 4: Your Leadership here.

Categories
Business Strategy

Chapter 4 of Building A High Performing Team On Purpose — Your Leadership

This is part four of the eBook, Building a High Performing Team on Purpose.


I’m going to one day invent a magic dye, as well as high tech glasses, that show you how the energy can be sapped from people in your business so easily by people in management positions. I will colour energy and inspiration in green, with apathy orange, whilst flat demotivation will be red. You can buy this dye and glasses for a million dollars a pop. Until this amazing product is released, you can read this section for free and it may also be useful, albeit less of a psychedelic experience.


Poor leadership and management is one of the biggest killers of success in any company.  You can have everything else working for you, but bad leadership will destroy that success like someone vomiting on your chocolate souffle.  In a small to medium business where there exists a smaller number of managers, one bad one can destroy an entire company.  

People join organisations, they leave managers.

Remember this old phrase?  It became popular a couple of decades ago and is unfortunately still as true as ever.  The reason is because leadership expectations and the impact of leaders on people appears to be growing faster than the rate of improvement in leadership capability.  

Do you know what could be going on in your business?


Business leaders can unknowingly create the wrong type of tension 

Consider an example of advertising in the Yellow Pages or buying a Commodore 64 computer for your processing – it simply won’t work in 2020 that same way it worked in 1980.  If you are using leadership approaches and standards that were popular 40 years ago, you will be left behind and people will leave your company behind.

The change in generations means that people used to put up with poor leadership and would simply just not work as hard.  This is the thing people don’t get – it’s not that baby boomers were that different as humans, it’s that they didn’t expect to receive praise and assumed that if they didn’t hear anything bad they were doing a good enough job.  The fact they got paid was their reward.  

Even so, I still hear this perspective being strongly held by a number of leaders, who are not baby boomers – from generation X and millennials funnily enough.  Millennials have been taught to speak up if they think something is not right and if they are not happy with something, to change it.  Is it any wonder that they will raise concerns when they don’t feel valued and then leave if nothing is done about it?  Is the preference for employees to simply shut up about it, stay with the company and simply just work the absolute minimum instead?

It’s possible that your actions are unknowingly creating the wrong type of tension in your business.  The wrong type of tension is the type that distracts, divides and makes people apprehensive.  

The leader who is not self-aware will be doing this many times a week.  The opportunity to show you don’t care, to show you blame the staff, to show you don’t think much of someone, to be fake around them – happens all the time.  I know you probably don’t think of yourself this way, but you are the big boss, which means everything you do is magnified.


Are your eyes closed to a bad leader in your business?

Let me ask you if this sounds familiar – you hired someone into a manager position.  They were either a good performer internally or hired externally.  They came with strong technical knowledge and are good at producing great work.  They are still a great technical performer and are producing excellent work…

Unfortunately, “Their team keeps letting them down.  It’s so hard to find good staff and especially with the way these millennials think these days, it’s difficult to get people to take five minutes away from their phones, let along go above and beyond.  The manager is working long hours making sure everything gets done.  I’m so thankful to have them around and whilst they are not the perfect leader, you can 100% rely on them…”

This is the classic individual contributor description who is still doing the same things they did before they were hired into a leadership position.  

We have a group of guys who go on a monthly steak night dinner when we can make it.  The other night was the first in a long time due to lockdown.  After a few beers and a red wine at a local pub, I was having a debate with a friend of mine about Michael Jordan, where I claimed that he was a terrible leader.  The response I received was the argument “you can’t argue against six championships!  His methods worked.”  

Now at this point I was ready to proclaim across the pub “correlation is not the same as causation!”  but I am also an advocate of adapting communication styles to the context.  So instead I referred to the fact that he was the best individual player of all time by far and that they had a great team led by a great coach.  He saw himself as a leader and when interviewed, still views himself as a leader.  

But no, he was just the best player and everyone else was scared of him so they did what he wanted.  They knew that if they crossed him they would end up with a black eye, like teammate Steve Kerr did when he stood up to MJ. Being a high performer at a particular role doesn’t imply they’ll be a great leader for that function.


Good workers don’t always make good leaders 

Another story that has emerged with MJ was a time when Australian Luc Longley had an outstanding first half, scoring 19 points. Jordan gave him praise for the very first time at the halftime break.  In the second half, because Longley had already 3 fouls (you have to leave the game after 6), he didn’t play much and hardly scored. Jordan said to him after the game that he would never, ever praise him again after that. 

I could go on. The point here is that not many people are writing that Jordan was a terrible leader, because they just look at his results. This is exactly what happens when a bad leader in a business is seemingly achieving good results for the company. Sometimes, they are riding the coattails of their predecessor.  Sometimes, the market is going well or others have dropped out. Sometimes, their team is banding together through adversity and just surviving despite their leader. 

The thing to consider is this:

The results of a team are either good or bad depending on what you are comparing them to.  If by your comparison point, of say 7, the results of 8 are good and you conclude that it is due to good leadership, then if your comparison point were different, of say 9, and the results were actually bad, being 8, was the leadership now bad too (even though it was exactly the same)?

Good leadership is essential to building a high performing team on purpose.  Ironically, that Chicago Bulls team did have great leadership from others in the team, as well as their coach.  Their success was not about what the world thinks, or who wins a debate out of me and my steak night buddy.  It’s about the one thing they didn’t do…


Stop promoting Michael Jordan to a role on the bench

It is baffling to still see business owners promoting people into leadership experience mostly based on their individual performance, technical knowledge and tenure.  It is most astounding that they are placed into these roles with little to no training and development in how to lead others. 

But I see this all the time. Many business owners will promote the person who has the best technical knowledge and individual output from the team into a leadership position.  This is because business owners who are flat out tend to value the person who is responsible, who knows a lot and who doesn’t need much supervision.  They want to reward them and that person aspires to be a “manager”.  So they promote them to lead the team.  The business owner feels good because they can go work on growing the business, knowing the team is being taken care of.  But is that really happening or do you just want it to be the case?

People who are strong individual contributors do not always make the best leaders.  But they are disproportionately promoted to a leadership role, where they often just perform their old role and respond to technical questions the team has.  Because they are not developing or inspiring the team, they are not getting better and their workload becomes much greater.  What is even worse is that they now have less time to do what they do best – which is be an individual contributor.  

Before reading the key takeaways and recommendations, click here to take my simple Leadership Assessment quiz for your managers and yourself.


Recommendations

This is what I mean by taking Michael Jordan off the court and now asking him to coach the team from the bench.  He won’t be able to take it and he will put back on the uniform and score baskets in a way only he knows how.  Then he will tell them “That’s how you do it!  Now it’s your turn!”  

First, define what it is to be a people leader in your organisation.  Make sure you are properly informed on what this should look like.  This should be part of your organisational design approach discussed in Chapter 3.  Consider the context that you are in, for instance, Network Performance may be a specific area that will drive value for your business.  This is the competency that is engaging effectively across suppliers, staff and customers to deliver a superior customer experience.   

Second, when promoting people into leadership positions, use a range of assessments to determine their suitability, that are based on your definition of leadership.  This should include psychometric assessments, observations and behavioural interviews.  If people do not have the natural energy towards helping others succeed then they will be limited as leaders.

Third, provide the right development, which should not just be training workshops. Leadership development should include coaching and feedback for the leader to practice new skills and uncover their blind spots.  Learning and development will be covered in Chapter 6 for further detail.

Finally, what is perhaps the most important thing is that you and other senior leaders need to embody the definition of leadership that you have.  This is not a task that you delegate to middle managers.  It doesn’t mean you need to be perfect (good leaders are comfortable admitting their weaknesses), but you need to be overtly striving to be that leader.  If this part is missed, then the rest will not work.  


Key take-aways:

  • The value in investing in leaders is not new and the competencies needed to invest in are also not new, but there has never been a more important time to invest in leadership
  • It’s that the digital context heightens the need to invest in leaders and particular competencies move up the ranks in importance.  
  • On top of this, the changing demographics of having more millennials, more generations and the opportunity for people to leave employment altogether for the gig economy makes the need to invest more in leadership.  
  • Recognise that not all of your employees will make good leaders and avoid the temptation to simply promote the person who is technically strong with good tenure.


Actions:

  • Ensure you are defining your leadership roles accurately, including the competencies required for success, given your context, strategy and organisational design
  • Only promote or hire people into those roles who display the potential to be successful in those competencies (not just based on technical knowledge and tenure)
  • Invest in the development of those people to provide them skills to be strong leaders
  • Invest in your own leadership so that you can support their development and role model the behaviours you are looking for in them


To read Chapter 3 of Building a High Performing Team –  Your Organisational and Job Design, click here.