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Increasing Retention Through Cross Training

In my last article I talked about some of the strategies you, as a business leader, can implement to “recession proof” your organization.

This time I’d like to share another strategy – cross training – that can help you get through the bad times, and also has myriad benefits – for both the organization and employees – during the good times.

Benefits to the organization:

Increased organizational agility – i.e., the ability to quickly fill a skill gap when an employee leaves. Replacing an employee can cost nearly one and a half times the employee’s salary, including recruiting, hiring, and training costs, plus the cost of lost productivity. Having someone cross-trained and already up to speed to fill the role – even temporarily – can reduce or even avoid those costs.

Greater “big picture” business operations knowledge among employees. When employees have the opportunity to broaden their company knowledge beyond their specific role it gives them a better appreciation of others’ contributions and increased understanding of the various interdependencies in the workflow. It can also spark ideas for improvements and increase interest in growing with the organization.

Increased engagement and potentially reduced turnover. Often, employees who are dissatisfied with their job immediately look elsewhere without considering a lateral or upward move within the organization. By giving them a “taste” of internal opportunities, they see a future for themselves within the organization and are less likely to jump ship.

Bigger pool of employees who can be promoted from within. Hiring from the outside takes time. Having a pool of cross-trained employees who come fully equipped with company and process knowledge can avoid the lag time while a newbie gets up to speed and prevent the loss of existing talent.

Preparation for future talent needs. If you anticipate that a particular function in your business may be phased out, cross training employees who will be affected by that is a great way to get them ready for the change and keep them on board.

Benefits to employees:

New skills and opportunities. Employee surveys indicate that key dissatisfiers for employees are lack of opportunity and lack of development. Cross training can address both of these concerns by giving employees new skills and exposing them to opportunities within the organization.

A chance to demonstrate their value beyond their current role. If the cross training includes working with a different leader or different team, the employee has the opportunity to show their skills and qualities in what may be a future opportunity.

Increased motivation and reduced burnout. They say a change is as good as a vacation. Learning something new and developing new skills or using skills that were underutilized in their current role can spark increased motivation prevent burnout.

A couple of additional benefits for both the organization and employees is that you, or the employee, may discover hidden talents that have been dormant while performing their existing role, and learning about each others’ jobs can create a more cohesive team.

If you need help in setting up a cross training plan, please reach out to me at michelle@connecttohr.com.

Simple and Timely – Keys to More Effective Performance Management

As I wrote in my last article, the traditional annual performance review process is not working. Leaders and employees dread it. And there is little indication that the current model results in improved employee motivation or better business outcomes.

It’s time for a change. It’s time to make performance management a process, not just an event. It’s time to make it simple, timely, and meaningful – for both the employee and the organization.

Here are some examples of alternative approaches to the outdated annual review.

Adobe abolished the annual review several years ago in favor of more regular, informal “check-ins.” Managers and employees meet at the beginning of the year to mutually outline expectations for the year. This clarifies for both the manager and employee what the employee is being held accountable for. Managers have regularly scheduled one-on-ones with employees to provide feedback throughout the year. In addition, employees may also receive feedback from peers and other partners across the company.

Another process – Catalytic Coaching – uses 3 simple forms, 4 types of meetings, quarterly check-ins, and the leader as coach as the basis for leader/employee conversations that:

Identify employee strengths and development areas from both the employee and leader perspectives
Give the employee the opportunity to provide feedback to the leader
Facilitate a discussion of the employee’s career goals
Result in the employee’s personal development plan
Include follow up and coaching from the leader to support implementation of the development plan

A third approach is based on the traffic signal metaphor: stop, start, continue. These are one-to-one conversations or check-ins held throughout the year (or on-the-spot, as appropriate) to determine what the employee should stop doing, start doing or continue doing to improve performance, advance development, achieve career goals, etc.

These are just a few examples of different approaches to performance management. Whatever approach you ultimately decide to use, the following features are key:

Giving regular, timely, specific feedback. If there are performance issues, address those issues “in the moment.”
Recognizing strengths rather than just focusing on weaknesses. Give employees opportunities to build on their strengths and develop in the areas where they are not as strong, relative to the needs of the organization and their own career goals.
Adopting a coaching mindset. Feedback should be a development tool, not a report card. Make the process forward-looking rather than backward looking. Train all managers to be coaches rather than evaluators.
Asking for their feedback. Create an environment where employees seek feedback and view it as a growth opportunity. Do this by setting the example. Ask for their feedback – “What can I do better?” “How can I help you?” – and then act on it, as appropriate.
Having the career conversation. Show interest in your employees and their aspirations by having a career conversation. You may find that they have under-utilized skills or interests that you could leverage elsewhere in the company or call upon for a new project or business opportunity. The career path doesn’t necessarily have to be vertical; especially in smaller companies, providing cross-functional experience can be beneficial to both employees and the organization.

Have you taken a hard look at your performance review process lately? Are you giving your employees feedback only once a year or (worse) not at all?

Employees need to feel challenged and recognized. If you’ve been doing the same old, same old, when it comes to your performance review process, I highly recommend that you consider “disrupting the process” to create a feedback strategy that is simpler, more real time, and more effective.

If you are ready to review and change your performance management process, I’d love to work with you. Please contact me at michelle@connecttohr.com.

For These Companies, Giving is a Year-Round Event

As I discussed in my last blog, consumers and job candidates are increasingly looking to do business with and/or work for companies that demonstrate they care about their communities. Do they give back? How do they treat their employees, customers, suppliers and partners? What are the company values and are they adhered to?

For many, these factors are key in their decision process. Companies that are socially responsible have a better public image – with consumers and in the media; have more engaged employees, are able to recruit higher quality talent; and are better able to attract and retain investors. In fact, 55% of consumers say they are willing to pay more for products from socially responsible companies. And, according to a study by Cone Communications, 62% of Millennials would be willing to take a pay cut to work for a socially responsible company.

Here are some examples of companies that practice giving and social responsibility year-round.

Kendra Scott. Kendra Scott grew her jewelry company from a $500 home project to a billion-dollar fashion brand, all the while keeping philanthropy as one of her core values. The company’s annual impact includes more than $4.5 million in monetary donations, $10 million in in-kind contributions, 2,000 employee volunteer hours and more than 10,000 philanthropic partnerships.

cuddle + kind. cuddle+ kind is a family-run business that sells handmade knitted dolls. For every doll sold, the company gives 10 meals to children in need. Not only that, each doll is handcrafted by women artisans in Peru, providing them with a sustainable, fair trade income.

TOMS Shoes. TOMS’ social responsibility model started with them giving a pair of shoes to someone in need for every pair of shoes sold. TOMS’ giveback model has since expanded to include coffee (providing water where needed), bags, eyewear and apparel. “With every product you purchase, TOMS will help a person in need. One for One®.”

Glassybaby. Glassbaby provides glassblower artisans the opportunity to continue their craft, and donates 10% of every glassbaby to the Glassbaby White Light Fund to help people, animals, and the planet. Glassbaby gives back almost $2 million annually. Glassbaby employs more than 80 glassblowers at their locations in Seattle and Berkeley.

As you think about your organization’s plans and strategies for next year, give some thought to how you can create and maintain a culture of giving.

“We make a living by what we get. We make a life by what we give.” – Winston Churchill

Empathy: An Essential Skill for Leaders

Over the past few months I’ve been talking about the skills required to be an effective leader. So far I’ve talked about listening, self-awareness and conversational intelligence. Another skill that is being increasingly recognized as an essential leadership skill is empathy. Although we’re not seeing it demonstrated much on the national stage, empathy has been called THE skill for the 21^st Century.

A recent Forbes article describes empathy as “the ability to understand, recognize and appreciate the way others are feeling, even if it is different from what you are feeling.” A more visual description is from the book To Kill A Mockingbird, when Atticus Finch says, “You never really understand a person until you consider things from his point of view – until you climb into his skin and walk around in it.”

Learning to understand others’ point of view – to figure out “where they’re coming from” – has myriad benefits in the workplace and in life in general. It improves interpersonal relationships, teamwork, negotiations, collaboration, sales, customer service, even parenting!

And empathy (which is one of the components of emotional intelligence) can be learned, according to a study conducted by Cambridge University. In the largest study ever conducted to determine whether the ability to show empathy is based on genetics, results showed that the ability to do so is only 10% genetic. So…90% of the time empathy can be learned.

It requires practice. So how do you do it? International Executive Coach Dr. Melinda Fouts has developed an Empathy Self Audit to help “assess your empathy and do some self-reflection.” Here are a few of the questions in her self-audit:

Are you aware of how others are feeling? Or are you oblivious?
Do you try to avoid hurting the feelings of others?
Do you respect the way others feel, or do you put them down or tease them?
Do you care about the feelings of others?
Does the display of strong emotions bother you, or do you understand and appreciate what they are experiencing?
Are there times you are not sensitive to someone’s feelings? If so, why?
Can you reflect back what you heard the person saying using the same adjectives that the person used to express their emotions?

Spend some time thinking about these questions. What stands out to you? Do your mounting responsibilities, deadlines, or stress get in the way of your being sensitive toward others’ thoughts and feelings? If so, take a step back and think about how you can practice empathy. As a leader in the 21^st Century, it’s a key gateway to your personal and career success.

Next time I’ll share some examples of how integrating empathy into the culture leads to organizational success.

5 Key Characteristics of an Effective Leader

For an organization to succeed, it needs quality products or services, engaged employees, and effective leaders – at every level.

But what makes a leader effective?

In the work I’ve done with leaders over the years in both corporate roles and as a consultant, I’ve identified five common characteristics among those whom I consider to be effective leaders. That is, whose employees are engaged and loyal, whose teams are high-functioning, and whose organizations are thriving.

Effective leaders communicate often and well. One of the key causes of poor employee engagement is the lack of communication from leadership. Effective leaders share information and knowledge on a regular basis with their teams and individual employees. Through town halls, one-on-ones or casual conversations, they keep employees in the loop. They share successes and they share problems (and their solutions) openly and honestly.

Effective leaders are good listeners. They know that to build trust and loyalty communication needs to be a two-way street. They seek feedback from employees on issues and they solicit ideas for solutions. They provide opportunities for employees to express concerns, share ideas, ask questions and they listen to and, whenever possible, act on employee input.

Effective leaders are inspirational. They create and communicate a vision and inspire others to follow. They articulate how each employee’s role ties to the vision and to the overall success of the organization. They recognize the achievements of individuals and teams on a regular basis. They create a culture that is diverse, inclusive and that encourages employees to take risks and learn from mistakes.

Effective leaders are emotionally intelligent. Emotional intelligence (EQ) is the ability to manage your own emotions and the emotions of others. It is made up of four core skills: self-awareness, social awareness, self-management and relationship management. Emotional intelligence is the foundation for critical skills like empathy, stress tolerance, decision making, anger management, flexibility, social skills and others.

Effective leaders grow their people. Jack Welch said: “Before you are a leader, success is about growing yourself. When you become a leader, success is about growing others.” Effective leaders know that to keep their employees engaged and happy, they need to help them learn and grow. They need to provide employees with opportunities that build on their strengths and that nurture new skills and capabilities.

“If your actions inspire others to dream more, learn more, do more and become more, you are a leader.” – John Quincy Adams

Improve Company Performance Through Diversity and Inclusion

There has been much discussion recently about the disparity in pay and opportunity for women and minorities across a variety of industries. And although Silicon Valley companies have created many initiatives over the years to close the gap, the gap in hi-tech remains. But here’s the thing. Those companies who have successfully increased diversity and inclusion – especially at the senior management level – are significantly outperforming those who haven’t.

According to a recent McKinsey & Company report, companies that ranked in the top quartile on executive-level gender diversity outperformed their less diverse peers by 21%. Companies with the most ethnically diverse executive teams outperformed their peers by 33%. Conversely, the report showed that the least diverse companies underperformed their industry peers by 29%. Clearly there’s a correlation between diversity and the bottom line.

In addition to improving financial performance, proactively creating a culture of diversity and inclusion improves employee engagement and helps attract new talent. Companies that embrace differences and provide opportunities for all are far more attractive and motivating workplaces. This is important for leaders to remember, especially now that we’re in an environment where there’s competition for talent.

Although the McKinsey report looked at diversity primarily through the lens of gender and ethnicity, I think it’s important to consider a broader definition. All too often leaders fall into the trap of hiring someone very much like them – similar personality, similar background, similar way of approaching a problem or decision. Yet there is so much to be learned and gained from building a team and organization that includes a variety of personalities, backgrounds, and approaches. When different viewpoints and approaches are brought to the table it spurs innovation, which contributes to the organization’s competitive edge.

Creating a culture of diversity and inclusion can also help attract customers. Today’s consumers have myriad choices, and many are looking to do business with companies that demonstrate they care by providing opportunities, development and advancement for all.

Next time we’ll talk about some things you can do to promote diversity and inclusion in your culture and hiring practices.

Motivate Employees Through Cascading Goals

Once you’ve decided on your theme and overall goals for the organization, as I spoke about in my last blog, the next step is defining the specific objectives and activities (with due dates) that will help you achieve those goals. A critical activity in this process is communicating company goals and what needs to be done to achieve them to employees. Employees are, after all, the engine that will help drive the organization toward those goals.

As you work with your employees to set their goals, be sure they understand how their individual and team goals tie to the organizational goals. Employees are more likely to be motivated and engaged when they can see how their work impacts the organization as a whole.

When you set goals, be sure they are SMART goals. Effective goals are Specific, Measurable, Achievable, Relevant and Time-bound. In our dynamic work environments, organizational goals (and team goals) may shift as priorities change during the year, so be sure to have periodic reviews with employees to update goals as needed. This also gives you the opportunity to understand cause and effect if something slips.

It’s important to keep goals visible. Too often they get tucked away in a PowerPoint – out of sight and out of mind. Consider giving employees a chart or graphic of organizational goals that they keep at their desks to remind them of the destination and inspire them to engage in the journey.

Provide employees with support in terms of resources and guidance as they work on their goals. Are they having trouble getting the input, effort or approvals needed from others in order to complete the goal? Are there roadblocks? Use this as a coaching opportunity and work together to develop a path forward.

When goals are achieved, recognize the achievement. For especially challenging or stretch goals, spend some time with the employee discussing his or her approach, lessons learned, and/or things that could have been done differently.

Cascading and communicating goals may seem like a no brainer, yet so many organizations fail to do so. In his book The 8th Habit, Stephen Covey shared the results of a survey of 23,000 employees drawn from various companies and industries:

Only 37% said they have a clear understanding of what their organization is trying to achieve and why
Only 1 in 5 was enthusiastic about their team’s and their organization’s goals
Only 1 in 5 said they had a clear “line of sight” between their tasks and their team’s and the organization’s goals
Only 15% felt that their organization fully enables them to execute key goals

Be ahead of the curve and motivate your employees by cascading goals!

Corporate Social Responsibility: Do Better by Doing Good

American consumers, and increasingly, American workers, have many choices these days in terms of the companies they choose to buy from or work for. And many are making their buying and/or employment decisions based on a company’s social responsibility. How does it give back to the community? How does it support sustainability? How does it treat its employees, customers, suppliers, and partners? How does it rate in integrity, valuing diversity, and gender equality? What are the company values and are they adhered to?

These are all questions that ten years ago or so we may not have factored into our buying decisions. Or thought about when we were searching for our next job opportunity. But these are very important questions today. In fact, 55% of consumers say they are willing to pay more for products from socially responsible companies. And, according to a 2015 Cone Communications study, 62% of Millennials would be willing to take a pay cut to work for a socially responsible company.

Companies that are socially responsible have a better public image – with consumers and in the media; have more engaged employees, and are able to attract higher quality talent; and are better able to attract and retain investors.

Here are a few examples.

Starbucks. Starbuck’s social responsibility is based on: community, ethical sourcing and environment. They develop community stores that partner with local nonprofits. They’ve pledged to hire at least 10,000 veterans and military by 2018, and they focus on diversity and inclusion in the workplace. They are committed to ensuring that their coffee, tea, cocoa and manufactured goods are responsibly and ethically produced and purchased. They build LEED certified stores, recycle, conserve water and energy, and strive to be environmentally friendly in every aspect of their operations.

Companies that do good do better. According to the CECP 2016 report, Giving in Numbers, companies that increased total giving by at least 10% between 2013 and 2015 saw increases in revenue and pre-tax profit, as opposed to all other companies, which saw decreases in both metrics.

“Creating a strong business and building a better world are not conflicting goals – they are both essential ingredients for long-term success.” – William Clay Ford Jr.

Mentoring Programs Benefit Both Employees and Organizations

One of the most frequent comments that comes up on employee surveys is that employees want more opportunities for growth and development. And studies show that companies who provide those opportunities have more engaged employees, higher retention rates, and better business results.

Providing your employees with learning and development doesn’t have to involve costly training programs. It can be as simple and cost-effective as transferring knowledge through mentoring relationships.

A mentoring program involves matching a less experienced employee or manager (mentee) with a more experienced employee or manager (mentor) for guidance and development. In most mentoring programs mentees do not report to their mentor, which often allows the mentee to be more candid about issues and concerns. Mentoring relationships provide development for the mentee and also benefit the mentor by helping them develop or enhance their leadership skills. Often the experience helps the mentor regain passion around his/her work and thus become more engaged and productive.

There are also myriad benefits to the organization. A mentoring program:

Shows employees that the company is willing to invest in its people
Conveys to the outside world that the company values its employees
Reduces turnover by increasing loyalty among employees (saving replacement costs)
Creates a more positive work environment
Helps mentors develop leadership skills
Provides growth opportunities for employees
Promotes a sense of cooperation and harmony within the organization

There are different schools of thought about the process for matching mentors and mentees. Some recommend that the pairings be allowed to evolve naturally. Others ask for volunteers to participate and then manually match mentors and mentees based on function and/or location. Others use software tools to do the match.

If you are thinking about developing a mentoring program, here are some tips to help it succeed:

Select mentors who are positive role models and enthusiastic about the program.
Establish clear expectations for the mentoring partnership, such as minimum number of meetings, length of partnership, who is responsible for initiating meetings and driving the relationship, etc.
Include at least one check-point to evaluate the relationship.
Encourage mentors and mentees to create specific goals for the partnership.
Orient mentors with best practices and guidelines around goal setting, giving feedback and basic relationship skills such as open communication, active listening, being accessible, building trust, sharing knowledge and ideas, and working together to resolve differences.
Develop a process for obtaining and incorporating feedback from both mentors and mentees about the program to ensure continuous improvement.

I had the privilege of starting a mentoring program for a large organization some years ago. We established it initially for 6 months, with a kick-off, mid-term event, and Mentor/Mentee luncheon with all participants at the end of the period. The program was very successful, and we were able to track the progress of participants. Several of the mentees received promotions. Another mentee decided to go back to school to obtain an advanced degree. Another mentee decided to make a lateral transfer to a different position that would provide the experience he needed to achieve a promotion. The mentors also benefited from the program. They felt more engaged and motivated in their jobs. They were very proud of their mentees and the progress they saw. Several of the mentoring pairs continued their mentoring relationship beyond the end of the pilot.

If you need help initiating a mentoring program at your company, please feel free to contact me. In my next blog, I’ll talk about establishing affinity group mentoring programs and give you some success tips for mentors and mentees.

5 Tips for Managing Transitions Effectively

One of the skills that often comes up in discussions of leadership capabilities is “managing change.” As I noted in my most recent article, though, the role of the leader is more about managing the transition required by employees as they adjust to the change. In his book, Managing Transitions: Making the Most of Change, William Bridges described that transition as a 3-phase process:

Ending – letting go of old ways and the old identity.

The Neutral Zone – that period where the old is gone but the new isn’t fully operational.

New Beginnings – employees adapt to the new ways/identity and find the sense of purpose that makes the change work.

Here are some tips for guiding employees through this process effectively.

Determine how behaviors and attitudes need to change to make teams work effectively as a result of the change. Who stands to lose something under the new system, and how will you handle that?
“Sell” the reason for the change. What is the problem that the new process/organization will solve? Help employees see the problem from the customer or business perspective. People will be more adaptable if they understand the “why” versus having to accept change “because I said so.”
Get to the root of resistance to the change. Talk to individuals to understand their concerns. Explain to employees the phases of transition, and that it’s a natural process. Hold skip level meetings. Listen.
Hold employee meetings / forums to discuss how you will move forward together in the new organization / process. Include and empower employees to help with the transition.
Celebrate the new beginning. If it’s the formation of a new team, for example, create a new team logo. If it’s a new process that solves a customer issue, share positive customer feedback. Have a “We Did It!” event. Acknowledge employees for successfully completing the transition.

To ensure that your transition goes as smoothly as possible, here are some things you should avoid.

DO NOT turn everything over to individuals as a group and ask them to come up with a plan.
DO NOT break the change into smaller, sequential changes. This would require employees to go through the transition phases multiple times. Introduce the change all at once with a well-thought-out plan.
DO NOT pull key employees together as a model to show others how to do it.
DO NOT keep changing plans if one doesn’t work.
DO NOT threaten disciplinary action if employees won’t quickly adjust to the change.

If you would like some help developing a transition plan, please contact me.