Category: human resources

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Why Does HR in the Caribbean Need a Major Reset?

A New Contribution| A Fresh Reputation

You are a Caribbean HR Professional who has noticed the respect finance professionals receive in the C-Suite. What they say seems to matter.

As a result, your colleagues in the finance department can see a clear path for themselves to the C-Suite. From accounting analyst, to manager, to director, to CFO, to CEO/MD.

But the same isn’t true for you. In fact, the total number of HR managers to gain a promotion to the CEO level in anything other than a small company is negligible.

By contrast, a recent survey showed that some 52% of UK CEOs have finance backgrounds. But this wasn’t always the case.

Back in the 1980’s accountants were just not that important in companies. They were merely the bookkeepers.

However, they undertook a deliberate effort to upgrade their profession. Using technology and analytics, their value increased as their contribution became essential. New regulatory requirements didn’t hurt.

In other words, they undertook a reset.

What would it take the HR Profession in the Caribbean to do the same?

Fortunately, they have a business partner. According to research, most CEOs want more from HR Departments. But when surveyed, they only complain “HR is not being strategic enough.”

But what can you do with that vague level of feedback? Here are some specifics gleaned, in part, from my experience hosting the CaribHRForum community and also from leading executive team retreats for two decades.

Evidence-Based Diagnosis

Data is a common element in all great strategic plans. Fortunately, this aligns with most HR Professionals who also would like to use more than anecdotes. The importance of data is something that they now recognise. But, it’s not enough.

I have seen a pattern that repeats itself in over 50 strategic planning retreats. HR presentations are seldom based on analytics and data. Why?

It’s a fact: many HR jobs below the C-Suite don’t need these skills. The result? Before joining the executive ranks, HR professionals have had little practice.

As such, a significant gap may become apparent when they are promoted. Other departments are now competing for the same resources and attention. The counterparts have already been using evidence-based and analytical language to gain approval from top-level executives.

By contrast, CHROs struggle. A vicious cycle can even occur when they request better software but are repeatedly denied. Why? They can’t make the case for a positive ROI…because they lack the data the missing tools would provide.

Unfortunately, CEOs are not likely to identify this problem independently. Like Finance before it, HR must establish a strong business case for a major reset to stop the vicious cycle.

Transformational Innovations

But these analytic capabilities are just the beginning. The Caribbean experiences a significant loss of productivity due to invisible friction. HR has an opportunity here.

For example, workers who struggle to predict their commutes accurately are prone to showing up late. If their on-time presence is required to start work, then the cost of being tardy is high.

The conventional HR approach would be to conduct interviews with employees and encourage them to leave for work earlier. But a department focused on analysis would recommend investing in a minibus exclusively for employees.

HR should keep their focus despite the possibility of objections that the move encourages laziness. Why? The actual inquiry is whether the expense is a worthy investment, based on a clear cost-benefit analysis.

HR needs to take a proactive stance as shown in this example, which is the approach CEOs want. It’s a fact that most departments have people-problems that they can’t solve alone. They require the help of HR professionals with advanced skills and predictive data.

The way the company operates can be changed by these interventions. The crucial point is that they anticipate the needs of the executive team like CFOs are expected to do.

People Predictions

HR can begin planning the organisation’s strategic future once practical measures and data are in place. For example, the Caribbean has a demographic problem looming. Our current population is not being replaced due to insufficient childbirths.

Most HR professionals are unaware of this fact. Does it matter?

Yes – the trend points towards a future with more competition for talent. This has the potential to cause wage inflation. Or a decrease in migration from the region. Or more migrants from other countries. To say it another way, there’s a potential strategic threat forming.

This fact was mentioned during a recent long-term strategic planning session. But not by HR.

However, as an HR Professional, it’s important to track these types of predictions and impacts. In fact, you could function like a CFO, but for everything regarding people.

Your company will find you indispensable if you acquire these skills. However, you will also have the opportunity to experience the gratification that comes with conquering a difficult challenge in your journey towards becoming a respected professional. Or even a member of the C-Suite.

This article was based on a Jamaica Gleaner column published on 8/20/2023.

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Why People Analytics Isn’t Just for HR

Your company is aware of people analytics. It wants to use these techniques to increase productivity. But it’s not clear who should champion this transformation: HR or another unit?

In companies across the world, COVID has accelerated the call for data-driven innovation. Consequently, managers in your organization are concerned. Productivity has fallen due to work-from-home arrangements, but are they thinking about improving it in the best way?

The traditional approach to determine knowledge-worker productivity is borrowed from the factory floor. Put people together in tight quarters. Keep a close eye on them. Then, make sure their bodies are doing the right things.

However, COVID has blown a hole in that practice. Now, it’s obvious that, unlike physical work, knowledge work can be performed anywhere. But this fact hasn’t stopped your managers from campaigning for a return to “the good old days”.

Fortunately, stale, inefficient ways of full-time face-to-face working aren’t coming back. Also, companies which insist on treating employees as if they are manual workers will see their best people leave. Why? Top performers prefer to work with colleagues who trust them to do their finest work, regardless of physical location.

Case in point: a local colleague conducted a search for a remote job. His queries uncovered a company on the US West Coast. Consequently, this A-class worker quit his government position for an organization 3000 miles away.

If this transition is one your best people also wish to make, your organization should beware. Consider the growing use of People Analytics as a productivity tool to help workers and managers become more effective and engaged. Here are three steps.

  1. Retire Old Productivity Indicators

Before COVID, everyone knew a Chatty Cathy who talked a good game in the office. This polished extrovert speaks well. Studies show that her tendency to pipe up first is seen as a sign of leadership ability.

Some Cathys also make it their business to remain highly visible. They attend all meetings involving executive exposure. They never stay quiet, so their voices are known.

Finally, Cathys always arrive to work early and leave late. And on weekends, email threads never lack their input.

In summary, Cathys play into the weakness of managers who judge productivity visually. This lazy method of assessment promotes Cathys, even if their actual work is only average.

Unfortunately for them, COVID has changed the game. Gone are the visual cues Chatty Cathy used to wow managers. And the old flawed ways of measuring her productivity may never return.

  1. New Productivity Challenges Being Ignored

If you have never heard of “People Analytics” you may not realize that it’s an update to the notion of “HR Analytics”.

They are used everywhere employees can be found…not just in HR. For example, metrics are being gathered to reverse productivity losses in two nagging areas: email and meetings.

Both problems have become worse due to COVID according to research by Harvard Business School. In spite of the negative impact, companies treat them like rush-hour traffic – something we all hate but can do nothing about.

Today, rudimentary analytics tools are measuring both.

For example, your company could end each meeting with a smartphone survey of attendees. This should improve its quality.

Email effectiveness can also be surveyed manually, but that’s not all. Sites like emailanalytics.com measure an individual’s message volume and responsiveness automatically.

For instance, it helps you see that a manager who has 3,456 unread email messages is not just “bad at email”. He is a nuisance to his colleagues and an unproductive detriment to the bottom line.

I mention these two areas because they are relatively easy to measure. All it takes is a serious commitment to productivity. Plus a willingness for managers to use data to identify their lack of efficiency.

  1. HR’s Capacity to Lead People Analytics

Your HR Department may not be thinking in this way yet. It may not even have tools or skills available. The truth is that few are ready to lead their companies in this area.

Instead, HR has earned a reputation for being numbers and technology averse. This is a bigger problem than ever given the growing requirement for managers to use People Analytics. They want to impact every aspect of worker performance, not just productivity problems.

Eventually, managers will find the analytics they need even if they must do the search themselves. But this isn’t the best solution.

The revolution in your company’s People Analytics needs to start from HR Departments who understand how and why workers work. The future beckons professionals in HR to stay abreast and get ahead if they intend to remain relevant.

Francis Wade is the author of Perfect Time-Based Productivity, a keynote speaker and a management consultant. To search his prior columns on productivity, strategy, engagement and business processes, send email to columns@fwconsulting.com.

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How to Manage a COVID-era Ineffective Employee

Is there at least one staff member in your office whose lack of productivity has been exposed by COVID? Before the pandemic, you had a favorable opinion, in general, of the person’s performance. But once they began to work from home, their output plummeted. How should you intervene? Is it worth the time and effort?

The fact is, you may be in a bit of shock. In each company, there are employees with diplomatic skills who excel in social gatherings, are constantly active via email and get along with everyone. They’re always available to help, playing the role of a consummate corporate professional. Some dress and speak with authority, enjoying a first-hand relationship with members of the C-Suite.

However, working from home has been a breakdown for them. While you couldn’t imagine an office without their daily presence, the pandemic has taken away their ability to impress. Now, they are being judged solely by their most recent outputs. Unfortunately, since March 2020, you can hardly point to anything they have created of significance. While others have shined, they have disappeared.

As you look back, you wonder. The truth may be that their performance was always lacking. Perhaps they just didn’t keep up with technology. Or new knowledge. A few were living on past successes, reminding everyone of their historic value.

Sadly, you conclude that they had become experts in “keeping” rather than “doing” their job. Now, you must make a decision about their future. Here are some steps to follow.

  1. Get the facts

Oftentimes in Caribbean companies, low performance goes unflagged because managers are unwilling to have difficult conversations. The result? Years of performance reviews which produced stellar reports. In short, there may be no written record or warning of any issues whatsoever. Any discussions which hinted at a problem are, in the past, forgotten.

If this is the case, in the absence of any other information, it’s safe to assume that the employees have no idea they have fallen behind. While they may have personal, private suspicions, don’t speculate. Most employees care about doing a good job and have some degree of anxiety regarding their continued employment. Don’t presume an emotional state.

Instead, focus on the facts and separate them from any interpretations which you have added. If you need to write them down for the sake of clarity, do so. By the end, each factoid should pass the video-tape test: visible actions that could have been recorded if a camera were available.

If you recall incidents which took place before COVID versus those which showed up after, all the better. However, if you have no facts; stop. You can’t take further action until you can satisfy yourself (and others) that it’s all not just a figment of your imagination.

  1. Prepare for the Conversation

With the facts in front of you, take time to prepare to have a difficult conversation about what they mean. If you have never used a feedback model before, find one you feel comfortable with. I prefer the Observation-Impact-Suggestion framework as a kick-starter. It begins with the observed facts, continues with their impact, and concludes with a suggestion.

Practice this conversation opener with a colleague. Ask them for coaching to make it as effective as possible, even as they roleplay extreme reactions.

When the time comes, be ready to have a lengthy exchange with your employee to come to some sort of agreement on a way forward. Be prepared to help.

  1. Confront the Work from Home Reality

Beyond this individual’s performance lies the reasons why this discussion must be conducted in the first place. Performance management in most regional companies is weak, a fact which COVID has revealed. In response, some managers are itching to go back to the way things were, when they didn’t have to confront low-performers.

Make no mistake: the newly exposed low-performers also want to return to the safety of the office. Hence, both parties are in an awkward spot. But they will receive no mercy from the high-performers, who have found ways to motivate themselves during the pandemic. Freed from micro-management and wasteful commutes, they have shined brightly; some for the very first time.

What would it be like to have a full complement of self-motivated staff? If you commit to such an outcome, don’t simply lapse into business as usual, acting as if COVID was just an unwelcome interruption.

Instead, grasp it for the opportunity it is to transform the culture of your workplace. This bump in the road could be a catalyst for breakthrough results. Perhaps it’s an answer to your prayers.

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Why CEO’s Want HR to Transform Itself

Human Resource departments are facing an unprecedented demand to become analytic and data-driven. But few are answering the call. What should HR practitioners and consultants do to respond?

A few years ago, I substituted for a VP-HR of a major company who died suddenly. For four months, I attempted to pick up the pieces while seeking a replacement. I discovered that he didn’t leave much of a structure behind. Everything, it seemed, was in his head.

Fast forward to today, and HR organizations are under increasing pressure due to the COVID-era need to digitize functions. CEO’s have longed for HR Departments which look more like Finance, Operations and Sales, whose employees are digitally savvy.

Unfortunately, there are few HR teams I have worked with who have sufficient skillsets and mindsets to embrace technology, analyze data and provide dashboards. Case in point: after facilitating numerous strategic planning retreats, only a single presentation by HR stands out in these areas.

Such was the situation before COVID. Now the pandemic has widened the gap. HR, with low tech skills, has stayed in the same position, watching others surge ahead with new capabilities. This observation is backed up by global research from the Academy to Innovate HR (AIHR). Some 60% of HR Professionals say they are falling behind their more tech-savvy colleagues in terms of efficiency and impact.

What can local Human Resource Practitioners do to catch up and close the gap?

  1. Embrace the CEO’s Perspective

Perhaps what scares C-Suite leaders more than anything else is that the pandemic has made HR’s role more important than ever. But, it’s also annoying them at the same time. Why?

They don’t have visibility into staff-driven operations. While most agree they must make fresh investments in people to thrive in a new economy, they lack the data.

For example, while they are painfully aware of talent gaps, HR usually cannot predict what happens after key roles are filled. Will individuals stay? For how long? And should they be paid at the 25th or 75th percentile of the average wage? To what effect?

When such quantifiable questions can’t be answered, it’s easier for executives to invest in a new piece of equipment. After all, it usually comes with an easy-to-understand cost-benefit ratio.

Unfortunately, I only know a couple of CEO’s in the Caribbean who have HR backgrounds. As a result, most leaders don’t intuitively understand the invisible tradeoffs HR must make. And without data, no-one can offer a clear, numbers-driven explanation.

The solution is for HR to think like CEOs who need to implement big, fact-based decisions.

  1. Hire and Train

Maybe not surprisingly, the AIHR survey showed that the best place to develop such talent is at the bottom of the organization. Often, the newest and youngest employees in HR are the most digitally proficient. They are the ones who should drive improvements by picking up new capabilities and teaching them to others.

At the same time, hiring savvy mid-career HR professionals may help fill critical gaps – if they can be found. But the most difficult choices surround those HR team members who don’t have the capacity to grow fast enough. Their future might be grim as their lack of quantitative skills makes it hard for them to find employment.

All these changes add up to a major investment in talent acquisition and development within HR. However, most organizations have not recovered from the deep cuts made in training budgets during the 2008 recession. Arguably, this led to the problems we see today.

  1. Be Strategic

The fact is, most HR departments aren’t in a position to advocate for these investments on their own. They need the company’s entire strategic plan to call for a transformation in staff and talent in order to thrive in the future.

This kind of widespread change requires informed leadership from the top. Consequently, HR must focus on educating other executives using tools such as analytic reports and dashboards. This approach could ultimately lead to the game-changing decisions that can drive any or all other strategies the company pursues. As CEO’s know from painful experience, trying to make big changes with the wrong people in place will fail.

What would it be like to have a top class HR function in your organization? While the global standard has suddenly been raised without warning, take this as an opportunity rather than a rude surprise. Everyone will benefit when HR steps up to the challenge of transforming itself to use analytics. While it probably won’t be the first unit to do so, it has the potential to influence all company functions.

Francis Wade is the author of Perfect Time-Based Productivity, a keynote speaker and a management consultant. To search prior columns on productivity, strategy, engagement and business processes, send email to columns@fwconsulting.com.