Citation
Nolan, S. (2013), "A look at current trends and data", Strategic HR Review, Vol. 12 No. 6. https://doi.org/10.1108/SHR-06-2013-0070
Publisher
:Emerald Group Publishing Limited
A look at current trends and data
Article Type: Research and results From: Strategic HR Review, Volume 12, Issue 6
Story 1
Research reveals some shortfalls within a positive leadership outlook
A study of management opinion reveals that although businesses are facing tough economic times and unprecedented challenges, 84 percent of managers are upbeat and say their organization is well placed to survive and thrive post-recession. But while the leadership outlook is generally positive, the report also identifies worrying shortfalls in communications, succession planning, virtual working practices and trust.
The Ashridge Management Index (AMI) 2012/13, carried out by Ashridge Business School, is a barometer of workplace opinion that assesses the attitudes of over 1,100 managers in key areas of working life. Although over half of managers surveyed say their organization has suffered in the recession, the majority, nearly two-thirds, say that motivation and employee engagement levels are being sustained.
Shortfalls in leadership and management
The report does however reveal a number of shortfalls in management and leadership. For example, excellent communication skills are essential to effective leadership, but respondents indicate that top managers need to communicate more often and more clearly. Only 49 percent of top leaders spend enough time communicating with staff, and just 52 percent of top leaders are rated for communicating clearly.
Another cause for concern is that many businesses are failing to future-proof their leadership teams – 48 percent of managers say their organization is not doing enough to develop the next generation of leaders.
Managers faced with new challenges
Managers roles have changed radically dramatically since the first Ashridge Management Index was published in the 1990s. A key trend is the growth of virtual teams – 77 percent say that increasingly they are required to manage cross-functional and virtual teams. However, only 45 percent feel that their organization provides sufficient support for virtual team-working.
A 24/7 business culture is having a negative impact on many managers. Over half of respondents (52 percent) feel “snowed under with too many e-mails and voice-mails, with 66 percent of those who manage large teams feeling overloaded.
Levels of work/life balance indicate that many managers continue to operate in a demanding, pressured work environment. The majority of respondents work longer than 48 hours each week and most managers (64 percent) say they regularly take work home.
The need to build trust
With the ongoing debate about levels of trust in politicians, bankers and wider business since the economic downturn, the survey explores organizational trust for the first time. Trust is vital in business, but only 55 percent say there is a strong culture of trust in their organization.
Businesses must ensure that core operational strategies deliver the right approach in dealings with staff, customers and investors to develop values and standards that promote honesty and transparency. Managers must recognize that trust is built not only by their reputation, but also their day-to-day behavior when working with others.
A largely positive environment
The report findings indicate that there is largely a positive environment in most organizations, which may be partly due to the fact that the majority of respondents are at senior levels:
Leadership is highly rated by the majority of managers – 81 percent believe their immediate manager is effective, and 75 percent say their top leaders are effective.
Employee engagement levels are high – 80 percent would recommend their organization as a good place to work, and almost all (92 percent) are proud to work for their organization.
Most managers feel valued – 75 percent believe top leaders value their contribution, and 89 percent say their own manager values their contribution.
The success of change initiatives – 62 percent of managers believe their organization achieves the benefits anticipated for change initiatives and 90 percent of managers say that leading or managing change is a significant part of their role and responsibilities.
For more information
The Ashridge Management Index 2012/13 is written by Fiona Dent, Vicki Holton and Jan Rabbetts. The report includes in-depth interviews with a number of organizations on the issues of trust, values, change and motivation. For more information visit: http://www.ashridge.org.uk
Story 2
Mobile technologies can enhance workplace services in emerging markets
According to the Vodafone Connected Worker report, six identified mobile services could have wide financial benefits for organizations, saving them $30.6 billion by 2020 through improved productivity, while providing $7.7bn of financial benefits to workers. The study was commissioned by Vodafone with research undertaken by Accenture across 12 markets (DRC, Egypt, Fiji, Ghana, India, Qatar, Lesotho, Mozambique, Kenya, South Africa, Tanzania and Turkey).
Giving users greater financial control
Mobile money payroll (mPayroll) could enable secure, cost-effective wage payments to be made to millions of unbanked workers by 2020. The report says this would reduce corruption, lessen the risk of payday robbery and reduce the time spent travelling and waiting to receive cash wages. mPayroll will give people greater control over their finances, enabling simple onward payment of bills and remittances to family members using mobile money without having to pay “cash-in charges, says the report. It says mPayroll could be used by 48 million workers, as well as offer business savings of US$2.8 billion annually.
Improving safety in emerging markets
Vodafone Connected Worker also highlights that mobile phones can be used to improve and, potentially, save lives in global supply chains. High mobile phone penetration in emerging markets enables purchasers to conduct anonymous text-based surveys quickly and cheaply across their supply chains to gather information on safety and work environment issues, says the report. Companies are increasingly focused on ensuring working conditions and pay in their global supply chains are acceptable.
Enhancing security, recruitment, productivity and training
Other mobile solutions identified in the report include:
mIdentity solutions can be used to enhance corporate security and provide authentication for workers when dealing with customers. By 2020, this could reach 16 million people and offer organizational benefits of US$1.5 billion annually.
Job Finder offers a subscription-based service to match workers to jobs. It has the potential to reach 49 million workers and could match 12 million workers to jobs annually by 2020, improving livelihoods by US$5.6 billion.
Fieldforce Enablement provides remote access to corporate systems and facilitates better scheduling, enhancing the productivity, safety and effectiveness of workers. These services could reach over 30 million users, delivering organizational benefits of US$24.9 billion annually by 2020.
mLearning could deliver basic skills training in literacy and numeracy as well as job-related training via mobile. mLearning has the potential to reach 12 million workers and benefit organizations by US$1.4 billion annually by 2020.
For more information
Story 3
Leaders in financial services struggle to adapt to new environment
Financial services firms are struggling to adapt to their new environment, as prevailing leadership, reward and recruitment practices hold back performance, according to research from global management consultancy, Hay Group.
Financial services (FS) firms have been at the center of a deep economic and confidence crisis since the recession. According to Hay Groups report, Appearances Can Deceive, recent times have been marked by comparative underperformance in both quantitative and qualitative measures. Comparing financial firms performance to other industries reveals a gap of up to 40 percent since Spring 2011 in market capitalization.
Also, for the first time, the sector no longer features in Hay Groups latest top 20 Best Companies for Leadership (BCL): global research that ranks organizations against dimensions such as ability to meet customer needs, agility, collaboration and innovation.
The core of the challenge
According to Hay Groups research, leaders in financial services heavily rely on a coercive leadership style, asking their employees for narrow actions and results, rather than engaging, enabling and nurturing their peers and team members. While the coercive style is effective in a crisis, over-use erodes the innovative capabilities of a workforce and can lead to rebelliousness among employees. It also creates a stifling environment where initiative, innovation and even whistleblowing are strongly suppressed.
FS firms also typically attract and recruit individuals with high IQs and achievement drive but relatively low emotional intelligence. This has created an incoming generation of managers more focused on their own achievement than inspiring others, which has been cemented by reward practices that support short-term results.
Low levels of innovation and client focus
According to Hay Groups research, prevailing internal practices are also contributing to lower levels of innovation and client focus in the financial sector than other sectors. A total of 61 percent of FS employees state that their firm offers good quality support to customers – 14 percent lower than seen in high performing firms across all sectors (as ranked in Fortunes Worlds Most Admired Companies). Only 72 percent believe that their organization seeks to understand the customers needs, compared to 82 per cent in high performing firms. In addition, just 53 percent of FS firms score well for innovation, compared to 70 percent in high performing companies.
A look in the mirror
The Hay Group report calls on FS leaders to reflect on, identify and address the traits holding their organizations back, in order to break the cycle of underperformance. Unfortunately, Hay Groups research identifies an endemic over-confidence among FS leaders, which makes it difficult for them to recognize the need for transformation. Managers in the sector consistently score themselves higher than their colleagues rate them in all of the 12 competencies that constitute emotional and social intelligence.
Graeme Yell, director for the financial services sector at Hay Group in the UK, comments:Success in this new market will come to those who are able to rebuild trust with customers, employees and society at large. To do this, leaders in financial services must take a long, hard look in the mirror and examine their own leadership, reward and recruitment practices. However uncomfortable and challenging this may be, it will allow them and their organization to adopt fresh practices and perspectives.
For more information
Visit: http://www.haygroup.com
Story 4
Over half of employees use social media for internal communication
The explosion of social media use in the personal lives of many people has led over half of employers to use social media tools to communicate and build communities with their employees, according to a survey by global professional services company Towers Watson. The research also found that among those employers that have embraced social media technology, there is little consensus as to which tools are most effective.
The 2013 Towers Watson Change and Communication ROI Survey was conducted in April 2013. A total of 290 large and midsize organizations from across North America, Europe and Asia participated in the survey. It found that 56 percent of the employers surveyed currently use various social media tools as part of their internal communication initiatives to build communities – creating a sense that employees and leaders are in it together, and sharing both the challenges and rewards of work. However, when asked how they would rate the effectiveness of social media tools, only 30 percent to 40 percent of respondents rated most of the tools as highly effective – see Table I for effectiveness of social media tools. Only four in ten (40 percent) rated the use of social media technology as cost effective.
Potential to connect with remote workers
The Towers Watson survey also found that while four in ten employers (41 percent) claim to be effective at building a shared experience with their employees, only half of those employers (23 percent) achieve the same level of community building when it comes to remote workers. Social media tools could help connect remote workers with their leaders, managers and colleagues.
For more information
Visit: http://towerswatson.com
Sara Nolan