Tag Archives: employee management

How To Cope When You’re Working For Someone Half Your Age

Increasingly employers are looking to fill their ranks with ‘digital natives’, which usually translates to people younger than you. But how do you work for someone half your age?

By Petr Malyshev/ Shutterstock

Millennials (Gen Y) and Post-Millennials (Gen Z) now make up 40 per cent of the workforce.  So, if you are over 36 years of age you should probably get used to the idea you will one day be working for someone young enough to be your son or daughter.  How you deal with that reality can make a big difference to how happy you are at work and your chances of career progression.

Increasingly employers are looking to fill their ranks with ‘digital natives’ which usually translates to people younger than you. At the same time older workers are staying in their jobs for longer or rejoining the workforce after ‘retirement.’  And while every workforce has always been a mix of the old and the young and everyone in between, for many workplaces how that mix is distributed throughout the organisation has been changing.

In a traditional organisational hierarchy a significant part of the reason you were promoted was because of your length of service. This meant that older people tended to be more senior and young people tended to be lower in the chain of command.  Today this structure still very much persists in government organisations such as the Public Service, Law Enforcement,  the military, Health and Education.  But sheer weight of numbers (of younger workers) and a trend towards less structured workplaces has meant that May-December working relationships between a Boss and their direrct reports is more and more likely particularly in industries where social media capability is a requirement.

Naturally psychologists have a term for this. It’s called ‘status incongruence’ and it means a situation where a person’s status is not what you would expect, in this case, because of their age. 

While the phenomena has been discussed by sociologists since the 1950s, it’s only recently that studies on the impacts for organisations have started to appear. One such study was recently performed by researchers from Naveen Jindal School of Management at the University of Texas in Dallas.  One of the lead researchers, associate professor Orlando Richard told The New York Times the research showed “older workers are not as responsive to [a] younger boss, because they feel he or she shouldn’t be in that position,” and, “[they] are less committed to the company. They’re not as engaged in the job. If they’re close to retirement, they may not leave, but they may not work as hard.”

The study also found that organisations with older workers reporting to younger workers needed to adapt their leadership style to take account of that.  Transformational Leadership is popular among the types of firms likely to experience status incongruence.  But the research suggests this style of leadership in particular is likely to be less successful. 

Transformational leadership requires a leader to work with teams to identify needed change, create a vision to guide the change through inspiration, and execute the change in tandem with committed members of a group.  In order for this to work, the members of the team have to believe in the credentials and ability of the leader.  While that is not impossible where the leader is significantly younger than a team member, it is something that needs to be taken into account in how a leader works with the team.  They will have to work harder to establish their credentials, so that workers can see past their relative youth and develop faith in the leader’s abilities.

It is also something that the organization has to bear in mind when selecting a younger person to lead a team. If that person is not capable of convincing the team that they have the credentials to be there then status incongruence is likely to result in a team which significantly underperforms its ability.

For their part, older workers should focus on not being guilty of reverse ageism.  They need to recognise that age, like gender and race does not define a person’s ability.  They should especially resist the urge to give the leader tips on how they would do the job.  They should strongly resist the urge to say “having done this for years …” and leading with ‘in my day’ is not a good plan no matter who your boss is, but it is definitely a land-mine with a younger leader. 

Instead they should use their experience to help their younger boss in a non-threatening way.  Making yourself and your experience valuable is likely to be a pathway to doing better in any company but this is likely to be especially the case in an organisation that values skills over age.

Is Employee Turnover Killing Your Profits?

It’s a good idea to get the bottom of why employee turnover happens and how to limit it.

By KeyStock/ Shutterstock

Employee turnover costs US businesses more than one Trillion (1,000 Billion) US dollars a year.  That represents about 10 per cent of all US corporate profits, so it is nothing to be sneezed at.  It is therefore probably a good idea to get the bottom of why it happens and how to limit it.

According to the latest statistics from the US Bureau of Labor Statistics, the average US business turned over 44 per cent of its employees in 2018 and in some industries it was significantly higher.  It was 87 per cent in the Arts and entertainment and 75 per cent in accommodation and food services. At just under 15 per cent, Federal government agencies experience the lowest turnover.

Gallup research suggests each employee loss costs the business 150 per cent of their salary.  Deloitte Consulting partner Josh Bersin says his research shows that, depending on the position,  it could be as high as 200 per cent by the time you account for hiring, on boarding, training, ramp time to peak productivity, the loss of engagement from others due to high turnover, higher business error rates, and general culture impacts.

Besides those obvious cost cascades there are some less obvious, but no less important costs.  The significant direct costs put real time pressure on an organisation to hire a replacement and get them trained, settled and productive quickly.  The pressured hiring process can often lead to the new hire not being a good fit for the job and leaving (or being let go) within a year, thus compounding the costs.

The Harvard Business Review says that as much as 80 per cent of employee turnover is due to bad hiring decisions.  Similarly Leadership IQ’s Global Management Survey reported that 46 per cent of new employees turn out to be a bad hire within 18 months and only 19 per cent will turn out to be an unequivocal success.  When it came to teasing out the factors behind the failure they found  a lack of technical skills explains only 11 per cent of new hire failures, whereas coach-ability (the ability to accept feedback from bosses) accounted for 26 per cent of failures. 

Employee turnover is very real and very costly, so doing anything at all about it, no matter how small the impact, is likely to be a good investment.  The research suggests that there are some especially important factors that are key to retaining employees (that you want to retain).

Obviously the first rule is don’t rush.  It is important to ease a potential new hire into a job.  Ensure they have a good sense of who they will be working with and what the expectations are well before they are signed on.  This means going beyond the standard probation period clause and pro-actively ensuring compatibility with your culture and team preferably before they start.  Throwing a new hire in the deep end and hoping for the best is likely to be a bad idea.

Pay is also obviously a factor but the research shows that if the only thing you do is throw money at them, you are unlikely to be able to stop a valued employee leaving. While being paid too little for the role will definitely motivate churn, overpaying will not make up for an unhappy workplace.  A workplace survey by Equifax for example found that 44 per cent of workers who leave within a year take a pay cut. They want to get out so bad, the pay is not enough to keep them there. 

Pay does have an effect but it is relatively small. According to Glassdoor surveys, every 10 per cent increase in pay only reduces the likelihood of an employee leaving by 1.5 per cent.  So if you double their pay they are still 85 percent likely to leave. 

On the other hand opportunities for advancement and training are significant factors in employee retention.  Humans like to feel they are getting somewhere. Research repeated shows that role stagnation leads to turnover.  Glassdoor have even put a number on this, saying that every 10 months at an unchanged role increases the likelihood of an employee leaving by 1 per cent. 

According to exit surveys conducted by Gallup, more than half of all exiting managers say that in the 3 months before they left, no one in the organisation spoke to them about how they were feeling about their job or their future with the organisation.  If no-one is talking about your future with the company, it’s easy to come to the conclusion you don’t have one.

Gallup recommend proactive engagement about an employee’s opportunities for growth are key to retaining valuable employees.  They suggest you know the employee’s long term personal goals, allow them opportunities in roles bigger than their past experience and help them to acquire new skills to advance their careers.  In short, treat them as you yourself would like to be treated.  Let’s call that the Golden Rule for Employee Retention.  You could so a lot worse than applying it in your business.


Best of The Blog- Should You Ever Rehire An Ex-Employee?

When you rehire an ex-employee, especially one that was a star, it looks like you are getting a great deal. What you see is what you get. They understand your business and its own unique culture, are immediately productive and bring industry knowledge and new ideas.

pathdoc/Shutterstock.com

Everyone loves a good throwback article, which is why we’re hopping in our time machine to bring you back some of the biggest and best Procurious blogs. If you missed any of the golden oldies, look no further!

This week, we’re revisiting an article by Elaine Porteous who explains why organisations must be very cautious when considering whether to rehire employees. 

The best-case scenario is when an employee wants to return because he has had time to learn new skills and has gained in-depth work experience somewhere else that he can share with you.

The good news about rehiring top performers

Rehiring former employees often costs much less than hiring from scratch, especially since you can cut out the extremely costly recruiting and interview process. When budgets are tight, you can explore this avenue using social media, alumni groups and word-of-mouth to find out who is actively looking.

The potential rehires, also known as boomerangs, are easier to assimilate into the organization and you will save you orientation time. The thinking is that since they know exactly what they’ll be signing up for, they will be likely to stay longer the second time and therefore be less risky, more productive and better for your retention statistics.

There’s also some thought that a rehired person can provide you with a fresh perspective, innovative ideas and some industry intelligence.

So what can go wrong? Quite a lot

Not all former employees are worthy of rehiring. Let’s hope they left for the right reasons and of their own accord. Obviously, you will exclude anyone who was fired, incompetent or unproductive or suddenly has accumulated a criminal record.

Here are a few of the main disadvantages of rehiring former employees:

  •  Current managers and co-workers may feel threatened if the employee returns with a new set of skills, and especially irritated if they come back onboard with a higher remuneration package, which is quite likely. They may feel an employee already had their chance.
  •  The reason that they left in the first place may still be a problem: the boss from hell, lack of benefits, poor promotion prospects and/or lack of opportunities to learn.
  •  There may be unintended consequences if the rehire is appointed at a higher level than his previous role. It may trigger other departures if promotional prospects are blocked, i.e. waiting to fill “dead man’s shoes.”
  •  Returning employees may just not fit in. The climate and culture of the company may no longer be the same. In this case, their new presence may be disruptive and cause tension.

Develop a rehiring policy

A definite success factor is having a firm policy that is applied fairly to all potential “Comeback Kids.” Who is eligible to be rehired should be agreed upon internally and be legally defensible.  Two important elements to include are how long after leaving an employee can return, and  what’s a reasonable maximum time to be away.

In some industries, some employers also refuse to rehire an employee who left to go to a competitor. Other organizations may welcome the broader experience and give preference

to ambitious ex-employees who went off to try their hand at consulting or starting their own business.

Booz Allen Hamilton, a leading U.S. consultancy, is such a staunch believer in rehiring that it sponsors a Comeback Kids program, through which it actively reaches out to past employees and those from the military.

A few more things to consider when rehiring

  • Make sure the conditions that caused that person to leave are not still barriers. Exit interviews are notoriously unreliable. so it’s best to work out why the employee really left. If he undervalued the company before, has anything changed?
  • Is this person really the best candidate for the job? It should not be a quick fix — don’t take the lazy recruiter’s solution.
  • Are you overlooking quality internal candidates? Someone else internally might be just as qualified to do the job. Think about the message you’re sending and the possible repercussions of rehiring instead.

Don’t forget to brief the new employee on how things have changed since he left and any new projects that have come up since.  A “welcome back” interview shows that your company is open to hiring the best people, whatever their job history.

Would you rehire a great former employee? Let us know by commenting on the story below.

The Carrot and Stick Approach to Open Booking

Open booking is a massive problem for organisations globally, and one of the largest compliance challenges facing procurement.

In the US, over 50 per cent of hotel bookings, and 24 per cent of airline bookings occur outside the parameters of corporate travel programmes. The issue costs organisations $36 billion per year, and is one of the largest compliance challenges for procurement.

But what can be done about it?

Travel Management

Ethan Laub knows travel software. He founded a startup called TripScanner, a travel booking system giving clients the ability to book on any travel website while achieving compliance with their organisation’s travel policies. His startup was acquired by Coupa in mid-2015, and Laub now works at Coupa as a Director of Product Management.

Here at Coupa Inspire, Laub is running a session on open booking. Most of the audience members manage travel in some fashion, and all of them are frustrated by compliance issues. The consequences of open booking are potentially very serious. According to Laub, it can effect:

  • Risk management: if there’s an emergency, you need to know where your employees are and be able to contact them immediately.
  • Sourcing: open booking hampers procurement’s ability to negotiate discounts with travel providers.
  • Policy: making sure people are spending smart and within budget.
  • Visibility: not having any data on travel spend, hampering your ability to make decisions. 

What drives open booking?

Laub asks for a quick show of hands on why people would decide to avoid the corporate travel system. The top five reasons are:

  1. Better Deals: employees who claim they “got a better deal” outside the approved system.
  2. Conference Booking: conferences with hotel discounts where bookings must go through the conference portal.
  3. User Experience: people are increasingly confident in booking personal travel and are unfavourably comparing the quick and easy experience with clunky corporate travel booking.
  4. The Sharing Economy: people preferring to use companies like Uber and AirBnB, often unavailable on the corporate site.
  5. Airlines and Hotels Pushing Direct Bookings: otherwise individuals can’t claim loyalty points, free Wifi, or other perks.

What’s the solution?

Having established that open booking is a serious issue, and explained why people are avoiding company travel sites in droves, Laub recommends travel managers take an approach that best suits their organisation’s culture.

Stick Approach

  • Prohibit open bookings and refuse to reimburse.
  • Flag out-of-policy post-bookings.
  • Escalate repeat offenders to managers.

Carrot Approach

  • Improve User Experience

Over the past 10 years, consumer sites have become increasingly user friendly, while the policy-focused corporate booking tools haven’t kept up. There are a lot of attractive, easy-to-use applications on the market that can improve UX for your site. Some tips:

  • Ensure you have as few steps as possible
  • Explain to travellers why things are the way they are (policy)
  • Communicate the realities of the travel program.
  • Nuance the site to enforce your policies behind the scenes: users shouldn’t be able to see the out-of-policy options
  • Show fare comparisons to prove your negotiated fares are the best option.
  • Reward savings

If the employee comes in under their travel budget, the company shares half of the savings with the employee. This can be considered part of the gamification process of employee management.

  • Clear guidelines

Ensuring that you have clear guidelines for your employees is key. Employees need to understand when it is okay to book outside of the system, and when they need to be following process.

What does the future hold for business travel management?

Check out this video from Coupa that shows the exciting future of corporate travel artificial intelligence. This system anticipates all of your needs and is so intelligent that you’ll fall in love with it – in the case of this hapless user, literally!