Month: November 2019
The advancements in technology, paired with globalisation have promoted a trend towards agile working, with workers free to work at a time and location which suits them. In the changing world of work, there is a growing trend for employees to work flexibly and not be required to be tied to their desks in traditional working patterns, with 70% of people globally working remotely at least once a week . There are multiple organisational benefits to agile working, including increased productivity, autonomy and the promotion of work-life balance for employees.
Recently, Microsoft Japan implemented a 4 day working week to much success. Offering its 2,300 employees a variety of agile working styles, Microsoft Japan launched a pilot programme aiming to increase productivity and morale, with a goal to realise the same results with 20% fewer weekly hours. The results appeared to be highly positive: a 40% rise in productivity, happier workers and a decline in days taken off. However, there are often unintended consequences of agile working which organisations should consider in their approach. The introduction of the shorter week came with the introduction of ‘strict new rules’, with managers being ‘heavy handed’ in their implementation, including employees being fined for taking too long on work-related matters.
Taking these dynamics into consideration, the pressure to output the same amount, or the resulting 40% rise in productivity in Microsoft’s case, in a shorter amount of time could have a detrimental effect upon employees wellbeing and long term efficiency.
Organisations such as Tiggertrap and the Los Angeles Times have also suffered unintended consequences when introducing an unlimited vacation policy. On the face of it, this seems like a positive idea which promotes high levels of rejuvenation, empowerment and autonomy. However, in practice often these policies push people to always be ‘on’ and connected, with a Glassdoor survey showing that 61% of workers admit to working despite being on vacation.
In many cases, one of the main disadvantages associated with unlimited vacation policies is that often employees end up taking less time off. Tiggertrap scrapped their unlimited vacation policy after results found that employees had reduced their average number of holiday taken from 28 days to 15. Factors such as unspoken expectations and nobody wanting to be the person who takes the most time off, contribute to spiralling behaviour in which employees take even less holiday than before. Adding to this, the advancement in technology has enabled new ways of working, but has also promoted the growth of an ‘always on’ culture, in which there are potential stresses of constantly being connected to work and never truly switching off.
So, after this reflection of the disadvantages of a more agile approach to working arrangements, why should organisations still consider this strategy as their most future-proofed option?
In the changing world of work, organisations need to adapt their traditional approaches to ways of working in order to attract and retain the best talent. By offering a wider menu of options of working hours, organisations should be able to attract a broader range of people and maintain a stronger talent pipeline. In confronting the unintended consequences, it is crucial that organisations develop policies that will not just allow employees to work flexibly or have time off, but encourage them to do so. If the aim of the policy is to enhance a less frenzied working environment, with reduced burnout and higher productivity, organisations need to tackle the culture in which these policies sit and support individual behaviour that does not promote employees to be ‘always on’ and constantly connected. To approach this, organisations could benefit from considering a more tailored approach, aiming to promote a culture which empowers their employees ‘to communicate when they need time to disconnect’, rather than rolling out a one-size-fits-all policy.
2 Kelly, J. (2019). Microsoft Japan Launched A Four-Day Workweek To Much Success: Is This The Key To Attracting Talent In The Tight U.S. Job Market?. [online] Forbes.com. Available at: https://www.forbes.com/sites/jackkelly/2019/11/05/microsoft-japan-launched-a-four-day-week-work-to-much-success-is-this-the-answer-to-attract-talent-in-the-tight-us-job-market/#4863cf6759ff [Accessed 21 Nov. 2019].
3 Unlimited Vacation Time Policy (2016), Hot Spots Movement. Available at: http://hotspotscdn.blob.core.windows.net/files/1247/unlimited-vacation-time-case-study-160915.pdf [Accessed 21st. Nov. 2019]
4 Future of HR Report (2016), Hot Spots Movement, Available at http://hotspotscdn.blob.core.windows.net/files/1267/future-of-hr-report-final.pdf
Historically, Trust in finance was viewed as fundamental and underpinned the banking industry from its outset – in fact, the word ‘credit’ is derived from the Latin word for ‘trust’.
In more recent times however, the 2008 financial crisis prompted a swathe of mistrust to sweep the financial sector; bonuses had grown bigger and bigger as transparency dwindled and significant regulatory steps had to be taken in an attempt to rebuild faith in the sector.
The poet Robert Frost summed up the sentiment towards financial services institutions; “A bank is a place where they lend you an umbrella in fair weather and ask for it back again when it begins to rain.”1 This is echoed in the 2019 Edelman Trust Barometer which, despite showing a gradual increase in trust over the past five years, highlights Financial Services as the least trusted of the industry sectors2.
There are a number of factors contributing to this view, one of which being the widely reported sums of bankers’ bonuses. Such reports are instrumental in the view that there is no greater Purpose in financial services than profit.
However, this all-consuming focus on profit hasn’t always been the driver of financial institutions. A British economist has highlighted that, “For nearly all of its 2,000-year history, the corporation has combined a public purpose with its commercial activities. It is only over the last 60 years that the idea that profit is the only purpose of business has emerged.”3 This quest for ever increasing financial gains is not a Purpose which inspires trust, nor does it sit well with the regulators.
Time to make a change?
Banking culture is under increased scrutiny by the FCA, whose approach now has a greater focus on culture and governance – as is highlighted in our recent white paper at HSM, which uncovers this in more detail. ‘Purpose’ has been highlighted as one of the four key drivers of culture and behaviour which firms can identify and proactively influence.4 In his outgoing speech as Chief Executive of the FCA, Andrew Bailey emphasised the importance of culture in driving more ethical behaviour: “culture is about encouraging and incentivising good things, not just stopping bad things from happening.”5
Action needs to be taken by many firms in light of these new conditions, to consider and clarify the wider Purpose and to enable the associated values and behaviours to permeate the sector. There is an opportunity to use this moment to more broadly transform the social impact of financial institutions and not merely allow these considerations to become a tick-box exercise.
Adopting a more Purposeful approach
A clear Purpose not only highlights the aims and direction of a firm, but also earns greater understanding and trust from the public. A number of financial institutions have considered their Purpose and taken a more holistic view of their aims and responsibilities for customers, employees and society. They are driving real mindset shifts in their approach to everyday tasks, building a customer centric approach where employees at all levels embody the traits and behaviours of the shared goals, ultimately helping to achieve the progression and betterment of society.
However, we can’t just forget the financial targets; firms need to flourish to be able to achieve their goals. However, financial gain should no longer be the sole objective. Indeed, impact of Purpose is profound and a clear link can be drawn between it and performance, with firms demonstrating a deeply ingrained Purpose correlating strongly with ten-year shareholder returns.6
Financial Institutions have the ability to play a significant part in the inclusion, growth and enrichment of society; but this has to be reflected in their Purpose. It may just be that the power of Purpose could be the catalyst for rebuilding trust, better businesses and a more sustainable society.
I’d love to hear more about your experiences of the power of Purpose. If you would like to have a discussion, please get in touch with me at firstname.lastname@example.org