Personal vs. professional: why today's business leaders need to improve staff engagement Ben Willmott, Head of Public Policy, CIPD The modern workplace is very different to the one predicted for us in the middle of the 20th century. In 1953, Winston Churchill suggested that if economic output doubled then the working man might be able to have "A four day week, and then three days of fun". 1 Twelve years later, in 1965, a US Senate subcommittee predicted a 22-hour working week by 1985, and 14 hours by 2000. 2 The reality, of course, has been very different. Working hours have shortened over time in the UK, to 36 hours per week in 2011 compared to an average of between 40 and 48 in 1952, 3 but a series of trends have combined to ensure that work has not changed in quite the way envisaged by futurologists of the last century. One of the main developments has been technological advance, with the arrival of laptops, the internet, mobile phones and social networking all playing a role in reshaping the modern workplace. Another has been the shift from a predominately manufacturing based economy to a more service oriented one. As workers have left the production line and become more involved in the delivery of high value services, a greater proportion have been able to work outside normal working hours and away from the workplace. These two trends, and others, such as the vastly increased number of women and older workers now participating in the labour market, have blurred the edges between people’s work and home lives and this has profound implications for business leaders who want to get the best out of their people. Perhaps most importantly, our increasingly flexible working practices mean that traditional command and control styles of management have become less well suited to the modern workplace. Managers can no longer rely on ensuring people work a set number of hours and make x widgets per hour as a means of managing performance. Instead, the extent to which organisations are able to encourage their employees to go the extra mile voluntarily has become critical. In order to achieve that goal, business leaders need to create stronger bonds of trust with their employees by doing a better job of engaging with their staff. This is something the UK government has been supporting through the work of its Employee Engagement Taskforce, which was launched last year by the Prime Minister, David Cameron. The 1 'The Diary of Lord Moran, Churchill's Personal Doctor: part II', Life Magazine, 29 April 1966 de Graaf, J & Batker, D (2011) What's the economy for, anyway?: Why it's time to stop chasing growth and start pursuing happiness 3 CIPD Work Audit: Britain at work in the reign of Queen Elizabeth II, February 2011 http://www.cipd.co.uk/NR/rdonlyres/4C4C717A-2EDD-424E-9BD0592367D444A6/0/5758WorkAuditWEB.pdf 2 taskforce is led by David MacLeod, who conducted a review into employee engagement for the previous government. 4 That first review identified four key enablers of employee engagement: • • • • Organisational purpose - introduce a clear organisational purpose that employees at all levels of an organisation understand and buy-in to. Integrity - ensure the way people do business and relate to each other reflects the organisation’s stated values Engaging managers - ensure that managers at all levels of an organisation take an interest in the people they are managing and know how to get the best out of them Voice - create systems that enable employees to feed their views upwards to management and feel as though their views are respected. MacLeod’s four enablers provide an effective starting point for business leaders that want to build an employee engagement strategy. For many organisations this is a very different way of operating and one that will not evolve over night. It requires a different type of leadership, right the way down to front line managers, which enables and empowers employees. Line management in the modern workplace is no longer simply about managing processes and costs - it is increasingly about leadership and the ability to win the hearts and minds of staff. This is something the Chartered Institute of Personal and Development (CIPD) has been exploring in its research on line management and employee engagement. 5 Our work highlights the importance of line managers’ traditional role in setting clear goals and objectives. For example, we found that employees at Standard Chartered value managers and leaders who are consistent and honest with their teams, set clear expectations for performance and give feedback with a positive tone. Our research also shows that engaging managers provide one-to-one support to undertake tasks and act as a coach to their employees. Just as importantly, such managers show consideration and interest in employees’ individual lives – recognising that what happens in people’s lives outside work has an impact on how they perform in work. At Standard Chartered Bank this is already happening to some extent, with employees noticing a change in senior management’s communication style as it has become more personal. Technological, demographic and economic changes will continue to increase pressure on employers to embrace a wide range of flexible working arrangements in order to attract, retain and motivate employees. However, genuine flexibility requires a cultural shift in many organisations that redefines the relationship between employer and employee. Leadership is no longer simply about the charismatic qualities of an organisation’s chief executive. Instead, managers at all levels must become effective leaders. Beverly Alimo-Metcalfe, a professor at the University of Bradford, argues that a new model of leadership is emerging in which, “the emphasis in not on heroism but on serving and enabling others to display leadership themselves. It is not about being an extraordinary person but rather a somewhat ordinary, vulnerable and humble, or at least 4 Department for Business, Innovation and Skills (2009) Engaging for Success: enhancing performance through employee engagement London: BIS http://www.bis.gov.uk/files/file52215.pdf 5 CIPD (2011) Management competencies for enhancing employee engagement London: CIPD http://www.cipd.co.uk/hr-resources/research/management-competencies-for-engagement.aspx a very open, accessible and transparent individual.” 6 Leadership then becomes about building adult to adult working relationships based on the mutual trust and confidence that is essential in flexible and high-performing organisations. 6 CIPD (2008) Engaging leadership - Creating organisations that maximise the potential of their people London: CIPD http://www.cipd.co.uk/NR/rdonlyres/F72D3236-E832-4663-ABECBCC7890DC431/0/Engaging_leadership_STF.pdf