INNOVATION [SPONSORED]

Building a Culture of Innovation and Intrapreneurship to Compete

30 October, 2018

Remington Tonar
Head of the Innovation Practice at Brandsinger

“Organizations under pressure from more nimble startups must find ways to harness and direct employee ambitions to catalyze growth and future-proof.”

As venture capital continues to flow into growth markets, incumbent companies of all sizes will be forced to contend with increasing competition from fast-growing disruptors. Asian venture investments, for example, represented the bulk of global venture capital growth from 2016 to 2017 and are on track to account for over 40 percent of all VC investment in 2018, according to data from PitchBook. This influx in investment has fueled the emergence of unicorns across the region—from India’s Oyo Rooms and Big Basket to Southeast Asia’s Traveloka and Tokopedia to China’s Didi and Lu—threatening established firms in industries ranging from retail to hospitality to transportation to finance.

As in the United States, incumbent companies have responded to this boom in well-funded upstarts by making their own early stage investments. This corporate venture capital (CVC) leverages a critical, but often misallocated asset enjoyed by many large companies: cash. As of last year, per CB Insights, Asian companies accounted for over a dozen of the top 50 CVC firms and constituted nearly 30 percent of deals—up 8 percent from 2016. Yet, for some companies, wading into the VC landscape can seem complex and risky. CVC often forces executives to think differently about their growth strategy, hire consultants and investment bankers, and even question the viability of their business model and the nature of their marketplace.

Despite its popularity, CVC isn’t right for every company in every instance. Many companies often overlook the ideas and ambitions that already exist within their employee base. If the worldwide surge in side hustles tells us anything, it’s that workers’ current positions are not adequately fulfilling their financial and existential needs. According to a 2017 GoDaddy survey, for example, 77 percent of Filipinos, 54 percent of Singaporeans and 37 percent of Hong Kong residents have side hustles. Decision makers at companies under pressure from more nimble startups must find ways to harness and direct the excess ambition of employees to help catalyze growth and future-proof their organizations.

Accomplishing this requires cultivating a culture of innovation and intrapreneurship that can produce new ideas and new ventures. The strategy required to build this type of culture cannot be entirely organic, however. It has to be carefully designed and actively managed. This entails implementing systems and programs that encourage and incentivize employees to ideate, collaborate, experiment, and even dream—and then ensuring they can share in the upside if their idea is implemented, commercialized or spun off.

One way of approaching these types of programs is to borrow the criminal justice adage of means, motive and opportunity. In order to take action that’s mutually beneficial to the company and the employee, employees must have the means to act, the motive to act and the opportunity to act. What does this entail more specifically?

  • — Providing the funding, knowledge, tools, and authority necessary for employees to conceive an idea, establish the right team, build the business case and develop and test the idea. This may mean creating an internal venture fund or pitch contest, holding intrapreneurship or design thinking workshops.
  • — Inspiring people to think beyond their immediate job function, incentivizing them to take risks within a predefined framework and allowing them to participate in any financial upside that may result from their work. This may mean giving employees a bonus for ideas that merit further investigation, ensuring they receive royalties for inventions or allowing them to retain an equity stake or leadership role in a subsidiary.
  • — Creating time and space for ideation and collaboration, enabling them to work on their internal side hustles in balance with their primary responsibilities. This may mean creating an internal startup incubator, setting aside time each day or week for intrapreneurial initiatives or providing essential workspace and equipment.

It’s not enough for companies to simply encourage employees to innovate from within. They have to implement programs and processes that give workers the means, motive and opportunity to do so. Beyond this, however, inculturating an intrapreneurial mindset requires that people at every level of an organization rethink the purpose of work and the parameters of the workplace. In decades past, it would be anathema for an employee to spend more time developing a new idea than fulfilling their primary function. Yet, in today’s environment, that new idea may end up creating exponentially more value than the employee’s day-to-day work product.

While a balance needs to be struck to maintain productivity and manage risk, it behoves leaders to begin rethinking how human capital should be deployed. Are your human resources more effectively used to sustain your core business so you can survive today or evolve your business so you can thrive tomorrow? The need to wrestle with these questions is especially acute in many growth markets where workplace norms and organizational structures skew traditional.

As the number of new entrants rises across growth markets, established companies are going to have to take proactive measures to stay relevant and competitive. While some have turned to corporate venture capital to gain upside exposure, CVC isn’t for everyone. In concert with a CVC strategy or in lieu of it, companies should look inward for innovation. Employees often prove to be ready and capable intrapreneurs in need of the means, motive and opportunity to develop their ideas. Not every company has to invest in startups to secure growth in changing markets. Forward-thinking companies will invest in the ideas and talent native to their organizations to unleash a startup culture that can help them grow from within.

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Pulsing with a purpose: building an effective employee research program
Katerina_Psychopaida Patrick Hyland |27 Jun 2019

In recent years, a growing number of organizations have started implementing pulse surveys to complement or replace their annual employee engagement survey. Intrigued by technological advances, the power of Big Data and the promise of artificial intelligence, many leaders, managers and  HR professionals are eager to gather employee feedback on a  regular basis, using short assessments to evaluate workforce  attitudes and engagement levels on a quarterly, monthly, weekly or even daily basis. Gathering regular feedback from employees in today’s dynamic business environment makes sense for many reasons.  When pulse programs are well designed, they can generate valuable real-time insights about employee engagement levels, core concerns, performance barriers and emerging organizational problems. But we have also noticed that many organizations are pulsing without a plan, naively assuming that more data will lead to better insights, better management and better performance. Without a well-designed research strategy, we have found that frequent pulsing can actually overwhelm leaders and managers and decrease employee engagement. If your organization is currently conducting pulses or you are about to embark on a pulse survey campaign, it is critical that you have a robust research strategy in place — one that starts with your business priorities and considers everything from research methods to analytic techniques (See Figure 1).  In this paper, we highlight five critical questions to consider before launching your next survey. WHAT ARE YOUR STRATEGIC BUSINESS PRIORITIES? Over the past two decades, the world of work has become increasingly volatile, uncertain, complex and ambiguous. Based on our research, employees are definitely noticing. 30% of employees do not have a clear sense of where their organization is headed. 32% are not confident in their organization’s ability to adapt to external changes 44% do not have a good understanding of their future career path. Source: Latest Mercer | Sirota global norms These results suggest that in many organizations, a good number of employees are feeling confused, concerned and disoriented, and the future of work looks murky at best.   Considering these conditions, getting a regular read on the employee experience makes good sense. The savviest leaders realize that evidence-based decision-making, advanced people analytics, organizational sense making and organizational learning are all critical in today’s business environment. As a result, many leaders and decision makers are eager to gather feedback on an ongoing basis with the hope of gaining a deeper understanding of employee attitudes, concerns and observations. But some organizations make the mistake of rushing into pulsing without having a clear idea of what they really want to learn, assuming that a series of quarterly employee-engagement pulses will suffice. If your organization is having a motivation, commitment or retention problem — and leaders are taking steps to address these issues — quarterly pulses focused on engagement might make sense. But if not, this approach may not generate much insight. When we work with clients to design employee research programs, we start by focusing on the business first. What are the biggest internal and external challenges your organization is facing? What are your main strategic priorities and challenges? How efficiently is your organization operating? How effectively is your organization changing and evolving? What are your main people priorities? By exploring these questions with our clients — before even considering what items to include on a survey — we can help them think carefully about what they need to learn as an organization. We have found this information is the critical foundation for any successful employee research program, providing the basis for more tactical decisions about instrument design, sample selection, administration techniques, and report and action plans. <a href="https://www.asean.mercer.com/what-we-do/workforce-and-careers/talent-strategy/employee-engagement.html?utm_source=vog&amp;utm_medium=banner&amp;utm_campaign=sirota" target="_blank" title="SIROTA"><img src="/content/dam/mercer/vog-site/ad-images/6009873-ad-vog-publications_ad1_v1_ap_3.png" width="100%" /> GETTING STARTED For modern organizations, developing an effective employee research program is a strategic imperative. In today’s complex business environment, evidence-based human resources, advanced people analytics and ongoing organizational learning are all critical for organizational performance. Central to these practices is the employee perspective. Without regular feedback from the workforce, you will find that leaders, managers and decision makers are flying blind. If you are about to launch a pulse program, you are in a unique position to help your organization explore its most pressing people problems, performance challenges and strategic priorities. But pulses are not a panacea. Without a clear plan in place, they can backfire — producing more noise than signal. The best employee research programs are carefully designed from start to finish. By clarifying your business priorities, developing a clear research agenda and thinking deeply about instrument design, survey administration, results reporting and post-study actioning, you can ensure that your research efforts are relevant, rigorous and have a real impact on the way your organization operates. The best way to do that, we’ve found, is to think through each step of the process. The five questions presented in this paper can help you get started. Before conducting your next pulse, we recommend giving careful consideration to each. If you don’t have clear answers, you may not be ready to conduct a successful study. Download POV

Building a Culture of Innovation and Intrapreneurship to Compete
Remington_Tonar Remington Tonar |30 Oct 2018

As venture capital continues to flow into growth markets, incumbent companies of all sizes will be forced to contend with increasing competition from fast-growing disruptors. Asian venture investments, for example, represented the bulk of global venture capital growth from 2016 to 2017 and are on track to account for over 40 percent of all VC investment in 2018, according to data from PitchBook. This influx in investment has fueled the emergence of unicorns across the region—from India’s Oyo Rooms and Big Basket to Southeast Asia’s Traveloka and Tokopedia to China’s Didi and Lu—threatening established firms in industries ranging from retail to hospitality to transportation to finance. As in the United States, incumbent companies have responded to this boom in well-funded upstarts by making their own early stage investments. This corporate venture capital (CVC) leverages a critical, but often misallocated asset enjoyed by many large companies: cash. As of last year, per CB Insights, Asian companies accounted for over a dozen of the top 50 CVC firms and constituted nearly 30 percent of deals—up 8 percent from 2016. Yet, for some companies, wading into the VC landscape can seem complex and risky. CVC often forces executives to think differently about their growth strategy, hire consultants and investment bankers, and even question the viability of their business model and the nature of their marketplace. Despite its popularity, CVC isn’t right for every company in every instance. Many companies often overlook the ideas and ambitions that already exist within their employee base. If the worldwide surge in side hustles tells us anything, it’s that workers’ current positions are not adequately fulfilling their financial and existential needs. According to a 2017 GoDaddy survey, for example, 77 percent of Filipinos, 54 percent of Singaporeans and 37 percent of Hong Kong residents have side hustles. Decision makers at companies under pressure from more nimble startups must find ways to harness and direct the excess ambition of employees to help catalyze growth and future-proof their organizations. Accomplishing this requires cultivating a culture of innovation and intrapreneurship that can produce new ideas and new ventures. The strategy required to build this type of culture cannot be entirely organic, however. It has to be carefully designed and actively managed. This entails implementing systems and programs that encourage and incentivize employees to ideate, collaborate, experiment, and even dream—and then ensuring they can share in the upside if their idea is implemented, commercialized or spun off. One way of approaching these types of programs is to borrow the criminal justice adage of means, motive and opportunity. In order to take action that’s mutually beneficial to the company and the employee, employees must have the means to act, the motive to act and the opportunity to act. What does this entail more specifically? Means — Providing the funding, knowledge, tools, and authority necessary for employees to conceive an idea, establish the right team, build the business case and develop and test the idea. This may mean creating an internal venture fund or pitch contest, holding intrapreneurship or design thinking workshops. Motive — Inspiring people to think beyond their immediate job function, incentivizing them to take risks within a predefined framework and allowing them to participate in any financial upside that may result from their work. This may mean giving employees a bonus for ideas that merit further investigation, ensuring they receive royalties for inventions or allowing them to retain an equity stake or leadership role in a subsidiary. Opportunity — Creating time and space for ideation and collaboration, enabling them to work on their internal side hustles in balance with their primary responsibilities. This may mean creating an internal startup incubator, setting aside time each day or week for intrapreneurial initiatives or providing essential workspace and equipment. &nbsp; It’s not enough for companies to simply encourage employees to innovate from within. They have to implement programs and processes that give workers the means, motive and opportunity to do so. Beyond this, however, inculturating an intrapreneurial mindset requires that people at every level of an organization rethink the purpose of work and the parameters of the workplace. In decades past, it would be anathema for an employee to spend more time developing a new idea than fulfilling their primary function. Yet, in today’s environment, that new idea may end up creating exponentially more value than the employee’s day-to-day work product. While a balance needs to be struck to maintain productivity and manage risk, it behoves leaders to begin rethinking how human capital should be deployed. Are your human resources more effectively used to sustain your core business so you can survive today or evolve your business so you can thrive tomorrow? The need to wrestle with these questions is especially acute in many growth markets where workplace norms and organizational structures skew traditional. As the number of new entrants rises across growth markets, established companies are going to have to take proactive measures to stay relevant and competitive. While some have turned to corporate venture capital to gain upside exposure, CVC isn’t for everyone. In concert with a CVC strategy or in lieu of it, companies should look inward for innovation. Employees often prove to be ready and capable intrapreneurs in need of the means, motive and opportunity to develop their ideas. Not every company has to invest in startups to secure growth in changing markets. Forward-thinking companies will invest in the ideas and talent native to their organizations to unleash a startup culture that can help them grow from within.

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Engage Brazilian Employees With Personalized, Digital Experiences
Stefani_Guerrero |27 Mar 2020

The Fourth Industrial Revolution is transforming employee satisfaction and career management through customized digital experiences and modern employer branding strategies. As technological advances continue to reshape workforces, and the need for digitally savvy workers grows, individual employees are taking a more proactive role in their own professional development. This is especially true in Brazil, where people view jobs as opportunities to grow both personally and professionally. In fact, according to Mercer's Global Talent Trends 2019 report, Brazilians seek greater control over their careers and rank being recognized for their contributions, having access to learn new skills and technologies, and being empowered to make their own decisions as their top three workplace concerns. Employers in Brazil must internalize the evolving needs of their Brazilian workers and implement processes and strategies that encourage professional development and harness the power of individualized career paths. The Power of Employer Branding   To attract top talent in their respective industries, Brazilian businesses must focus on building strong internal brands. Employer brands are built on a system of values that should permeate every aspect of workplace culture — from onboarding practices and everyday meetings to telecommuting policies and, especially, career development opportunities and digital experiences. Employers that cultivate a reputation for investing resources into an employee's career journey entice the best job candidates and will have employees who are more productive, successful and engaged with their responsibilities. According to Mercer's HR 2025: Talent, Technology and Transformation Magazine, &quot;Thriving employees are three times more likely to work for a company that understands their unique skills and interests. And 80% of thriving employees say their company has a strong sense of purpose.&quot; Creating a clear and powerful mission statement that defines a company's purpose and how employee growth is a key element of that purpose will result in a more aligned and dynamic workforce. Employer brands must communicate and deliver career advancement opportunities to employees in ways that suit their personalities and individual sensibilities. Bespoke Career Management   In Brazil, employees are not only playing a key role in their own professional development, they are also pressing employers to offer more streamlined digital experiences and customized learning opportunities utilizing a variety of resources. Mercer's Global Talent Trends 2019 report explains, &quot;In an environment where knowledge is widely and freely accessible, the corporate learning function must shift its focus to continue adding value. Curated learning is not new; what's changing is how it is being used to shape content relevant to a particular ambition, close a known skills gap, or build connections among peers who can share expertise.&quot; Employers can leverage digital experiences to address the uniqueness of each employee's goals, talents and learning styles. Online web portals, smartphone apps and other digital training materials can be customized according to the user's preferences, skill sets, learning ability and career goals. These digital experiences offer employees the chance to learn at their desired pace and develop skills that will lead to greater responsibilities and opportunities to advance their careers and income. The same Mercer reports explains that, &quot;When curated learning works well, people stay and progress through the organization because their learning helps them accelerate their career.&quot; The Digital Transformation of Human Resources   Robust benefits portals, personalized training and educational digital experiences are only a few hallmarks of how digital transformation is revolutionizing human resources in Brazil. By creating digital tools that map and guide an employee's developmental journey, businesses can also better understand the overall health and value of their workforces. Cloud-based systems that use Software as a Service (SaaS) models are creating unprecedented transparency within the employer-employee relationship. However, for large multinational companies in Brazil, implementing these resources can be exceedingly difficult. Legacy systems, aging applications, technical incompatibilities and unintuitive interfaces pose serious challenges to effective implementation. Finding ways to navigate these technical obstacles is critical to future success. Digital transformation is redefining the roles and capabilities of HR departments and revolutionizing workplace cultures. Skilled, upwardly mobile workforces are not only more productive and add value to the bottom line, but also provide businesses with effective ways of differentiating their brand, services or products from competitors — a key advantage in competitive marketplaces. Employees who feel engaged, listened to and valued make their employers more competitive. Mercer's HR 2025: Talent, Technology, and Transformation Magazine elaborates, &quot;Organizations typically pore over compensation and benefits numbers. Yet it is often the actions beyond salary — such as promotions, transfers and healthcare spend — that have a greater impact on business outcomes. Understanding which elements make a company competitive, and which are differentiators, can go a long way in delivering an employee value proposition that resonates.&quot; By investing in the futures of employees and their careers, employers in Brazil are also investing in their own long-term success.

Continuing Business When Business Continuity is Interrupted
Kate_Bravery Kate Bravery |26 Mar 2020

As with all unforeseen threats, COVID-19 is prompting individuals, small- and medium-sized enterprises, and large corporations to reevaluate habits that have long gone unchallenged. The outbreak is stress-testing our resolve and our resilience. Those that will emerge fighting fit will balance tough economic decisions with empathy. For, while the pandemic remains foremost a human tragedy that requires constant vigilance and swift action, thoughts about the way we work are also coming to the fore. Who can work remotely? Do we really need that conference? How can we make virtual meetings more engaging, inclusive and productive? How ready are we to embrace digital working? Even before the crisis, one in three employees said they were anxious about job security, data from Mercer’s forthcoming 2020 Global Talent Trends Study reveal. The novel coronavirus will do little to calm those fears. And so, while organizations prepare to ensure business continuity in response to different scenarios, we find ourselves needing to experiment with new work patterns. Companies ahead of the curve will be those that place empathy at the heart of their mandate. It is the balance of empathy and economics that will win in an evolving and unpredictable world — in other words, companies that care enough to put people and productivity metrics side by side, both while confronting COVID-19 and its economic fallout, and further ahead as they build better, brighter futures. This year’s forthcoming Talent Trends Study points to how companies can respond to the pandemic and focus on what matters by applying the new decade’s empathetic imperative. Commit to stakeholders &nbsp; With the vast majority of business leaders (85%) agreeing that an organization’s purpose goes beyond shareholder primacy, now is the time to match actions with words and make decisions with empathy and equity for all stakeholders. This includes supporting supply chains and the economies that rely on the company. For example, Microsoft has committed to paying normal hourly wages to non-employees (such as bus drivers and cafeteria workers) whose pay might be interrupted by the many Microsoft employees working from home. Another imperative is to provide a sense of security and trust. Indeed, trust is a significant factor in employees’ sense of thriving. The 2020 study found that thriving employees are seven times more likely to work for a company they trust to prepare them for the future of work and twice as likely to work for an organization that is transparent about which jobs will change. Building a strong community around a common purpose and sharing the vision is vital to communicating that the company cares and has a plan for different scenarios. How employers respond to well-being issues like stress, burnout, and uncertainty will be a hallmark of their attitude towards responsibility and sustainability And as people worry about their health, this is the time to confirm the organization’s commitment to well-being. Calm messaging, employee assistance, and mental health apps all have their place day-to-day. It also may be prudent to reexamine the relevance of company benefits: virtual yoga sessions or discounts for online shopping might become highly valued. The good news is that 68% of employers are likely to invest in digital health in the next five years. And if the pandemic lasts for a long time, fundamental issues of well-being will be at stake. Epidemics are historically associated with a rise in depression and anxiety. And this year a clear majority of employees said they feel at risk of burnout before 2020 even got started. Are employees’ partners covered by income protection? Do benefits extend to family members? What financial advice is on offer? For instance, outdoor retailer REI has modified its paid leave policy to guarantee the income and benefits of employees who miss work or have to care for family members. All these need to be communicated clearly. How employers respond to well-being issues like stress, burnout, and uncertainty will be a hallmark of their attitude towards responsibility and sustainability — a critical attitude given that 61% of employees trust their employer to look after their health and well-being. Kick start skills &nbsp; Executives are swiftly adopting future of work strategies to compete in response to a possible economic downturn. If macroeconomic conditions continue to be unfavorable, companies see this as an opportunity to double down on new ways of working such as strategic partnerships (40%), using more variable talent pools (39%) and investing in automation (34%). Front of mind is modelling supply and demand under various scenarios and interventions, such as how to manage variable and fixed costs.&nbsp; With the quickened pace of automation, it’s no surprise that executives and employees are reflecting on how this will impact careers. The Mercer study reveals that business leaders rank reskilling as the top talent activity capable of delivering ROI this year, while employees say the #1 factor in thriving is the opportunity to learn new skills and technologies. Yet, for employees the biggest hindrance to learning is lack of time, according to our study. In this respect, the current crisis may offer the opportunity to kick start reskilling. Providers such as General Assembly and edX offer on-point courses and, with potentially more time to spare, employees can take advantage of online learning to explore new directions. But to realize learning’s full benefit, organizations will have to be transparent with employees about the new roles reskilling could lead to. Take the time to have clear career conversations with employees about the skills required to move along a pay range and/or qualify for other jobs within or across departments. People who feel well-informed about their future career path are more likely than others to take up reskilling opportunities (83% versus 76%) and are more likely to stay with the company (54% versus 46%). Share what you know &nbsp; In the last five years, HR has moved data up the value chain and seen a significant jump in its use of predictive analytics. This is a major development in the growth and value of workforce analytics. Finally armed with insights, organizations are shifting their focus toward gaining measurable value from analytics and honing their market-sensing and analytics capabilities to enhance talent management practices. But as companies weigh the impact of the disease, are organizations measuring the right things? This year, the study shows 53% of companies are tracking the drivers of engagement, yet insights on training (down 6%) and burnout risk (down 25%) declined in prevalence. Digital ways of working bring more data sets we can mine, but also challenge our models of workplace success. Exploring what metrics are most relevant and sharing them with employees provides insight into productivity inputs in a new remote working and distracted climate. Many employees would be happy to receive meaningful findings and advice on how they are working or on their well-being indicators. Finally, as the workforce science discipline gathers force, it can supply vital forecasting insights to build future business resilience. Key to workforce forecasting is an enterprise-wide culture of experimentation. HR can work closely with executives, finance leaders and data scientists to explore how to mitigate the productivity and well-being fallout of such scenarios. Promote the remote &nbsp; For many organizations, the novel coronavirus has been a wakeup call to the possibilities of remote working and its impact on the employee experience. JPMorgan Chase, Twitter and Sony’s European offices are just some of the many companies asking employees to work from home. The challenge has been that only 44% of companies assess every job for its ability to be done flexibly. So what helps? Thriving employees say the most important factors for successful flexible working are: colleagues that are supportive of people with flexible work arrangements, a company culture that encourages flexibility, and managing performance on results not hours worked. Design thinking with pilot teams working remotely are critical to seeing what needs to change to better suit these times. Still, if not done well, remote working can exacerbate challenges with inclusion, accessibility and emotional support. Some simple tips for staying connected in times of social distancing can help: Inclusive teaming when working remotely requires effort. To make sure every team member’s voice is heard, communicate expectations and agendas in advance, encourage people to be visible on the call, ask people to come with comments/questions, and set up discussions by hangouts and chats in between calls. Pre-brief senior people in your team to be vocal and embracing. Create an informal climate up front with small talk. Remote calls require a redesign of the meeting. As a rule of thumb, halve the time you would allocate for a face-to-face meeting for a call where people are dialing in. Leverage pre-reading to ensure those who are more introverted or reflective feel ready to contribute. Small group preparation and post group actions are vital to building team spirit. Establish new rituals. &nbsp; Take time to address the emotional, not just the practical. Take a few minutes at the start and end of a call to find out how everyone is feeling. Pulse-checking questions people can type responses to in a chat function (e.g. “Use one word on how you feel about what we’ve just shared”) can be a great way to take a temperature check. Communicate that managers are still accessible by phone, even if not in person. Use old and new technology (phones as well as video conferencing services) to stay personal, especially with workers not used to working remotely. Don’t let email (and even chat) be the only way you communicate. The volume can become deafening if not managed. Leverage community sites and project boards to train people in how best to stay connected. In our study, 22% of employees believe that some necessary human interactions have been lost, so finding ways to inject warmth and a bit fun into exchanges is a good idea. &nbsp; The social distancing required in response to COVID-19 has, rightly, got many companies reexamining their digital work experience. Forty-seven percent of executives are concerned about employees’ digital experience — or the energy-sapping nature of not having it. Nearly half of employees believe there is room to improve on digital transformation: 20% of employees today say HR processes are complex, and a further 29% say they have been simplified but still have a long way to go. In the longer term, it will be valuable to revisit the company’s EVP and interrogate how technology-enabled HR processes are today and how capable working tools are with coping with mass remote services. Intermediaries such as ServiceNow, Mercer’s Mobility Management Platform and digital outplacement solutions can help. How we care is how we win &nbsp; Employees are understandably concerned about the health of their families and communities and organizations are quite rightly putting the health of their people first (their #1 workforce concern this year). But financial market volatility, and the impact on individuals’ jobs is a mounting concern that is weighing on people’s minds. Meanwhile, businesses are examining whether their practices are agile enough to withstand unpredictable events such as COVID-19, if they are resilient enough to sustain themselves through this period of hardship, and innovative enough to stimulate demand afterwards. We’re being challenged to do things differently — in companies big and small, on new platforms and with new technology, and we see emerging new ways of caring for one another. And in their wake we will not go back to how we operated before. Necessity breeds innovation. We are on the cusp of new ways of working and living that, if executed well, will build a bright future.

A Way Forward Towards Purposeful Job Titling
Dr._Sebastian Dr. Sebastian Fuchs |26 Mar 2020

Everyone’s job has, in some form or another, a job title. Be it a Brick-layer, Accountant or CEO. The common understanding is that the job title depicts the respective job and its roles and responsibilities. Our work with different clients of different sizes, with different structures, maturity levels, and in different economic and cultural environments, however, suggests that there is much more heterogeneity in job titles than one would suspect. In one organization, for example, an Accountant is called ‘Financial Advisor’ whereas in another organization, s/he is called ‘Finance Officer’. In Mercer’s 2019 Global Total Remuneration Survey, on a sample of 182 organizations based in the United Arab Emirates, as an example, the Mercer Job Library position ‘Accountant–Experienced Professional’ is tagged against more than 180 different job titles. This suggest that more than 99% of organizations included in the data set label this type of job in a unique, idiosyncratic manner. In a similar vein, Mercer’s 2019 data from Australia shows more than 360 different job titles across 313 organizations. A similar report for India from 2019 shows over 520 different job titles across 360 organizations for this type of job. In Brazil, Russia and the UK, the same analyses produced very similar results. This means, to be specific, that similar jobs even in the same organization are often labeled in a heterogeneous, unconcerted way. Problems associated with purposeless job titling   While the Accountant example provides some insight into the actual responsibilities of the role, we often see organizations labelling jobs in less meaningful, purposeless ways. For instance, we find job titles such as ‘Senior Supervisor Financial Accountant’, ‘Business Analyst’, ‘Finance Executive’ or, more recently, creative titles such as ‘Accounting Guru’, ‘Accounting Ninja’ or ‘Accounting Rockstar’ in this area of organizational life. In our view, this creates five key issues: 1.   In markets that are suffering from employee disengagement, the rise of passive job seekers and a growing appeal of self-employment and entrepreneurship[1], a job opening with an inaccurate job title faces two key problems. Firstly, the job applicants may be over or under qualified for the position at hand and, secondly, potentially suitable applicants may not apply as they believe the job is not a good match. 2.   Breaches of the psychological contract between employees and their employer may occur. To be precise, “the psychological contract encompasses the actions employees believe are 1.      expected of them and what response they expect in return from the employer”[1]. To this end, a purposeless job title may provide an inaccurate view on the actual roles and responsibilities to be performed by the new joiner. For instance, a ‘Financial Advisor’ may execute on the classical accounting tasks, such as processing accounts receivable and payable, but the job title, however, indicates that the job holder would spend some time interacting with stakeholders and provide advice on financial matters. The lack of defined possibilities to engage in such activities may constitute a psychological contract breach, leading to cynicism towards the organization, turnover, job dissatisfaction, reduced commitment and an overall decrease in performance. 3.   Another important issue to consider is an employees’ propensity to boost their current job title. This is linked to two mechanisms. Firstly, boosting one’s job title ultimately serves to enhance one’s status and self-identity[1]. Secondly, an enhanced job title is likely to attract attention on the external job market. 4.   Perceptions of fairness may decrease due to inconsistently labelled jobs. For instance, a job may be called ‘Finance Lead’ that is, in terms of roles and responsibilities as well as qualifications required, very similar to a ‘Head of Finance’. For most people, a ‘Head of Finance’ is classified as a higher ranked job despite both jobs being very similar in nature and potentially having the same job grade. This can create perceptions of injustice leading to employee turnover, lower levels of extra-role behavior and greater levels of withdrawal, deviant and retaliatory behaviors[2]. 5.   Purposeless job titles may also be detrimental for internal and external communications. Internally, there might be a certain degree of ambiguity to what the hierarchy level of a an incumbent is and consequently how messages should be phrased. Externally, purposeless job titles may further lead to misunderstandings in terms of authority levels and responsibilities an employee holds. Reasons for purposeless job titling   The reasons for these five issues are manifold. First and foremost, only few organizations seem to have adhered to a coherent, up-to-date and intuitive job titling framework. In fact, in many organizations job titling is either left to the line manager or, in some cases, left to the job incumbent. This, by definition, is likely to create a certain degree of heterogeneity among job titles. In addition to that, even in leading organization, there is often no clear, well-defined organizational process in place to govern this element of organizational life. We advocate, and outline in greater detail below, that there should be a process in place including clear roles and responsibilities in terms of who sets and ultimately approves the titles of jobs. We also see that organizations often seek to develop job titles that adhere to the specific cultural contexts in which they operate. This, as a consequence, also adds to a certain degree of incoherence in job titling. Lastly, the high degree of change to which many organizations across the globe are exposed to, also contributes to incoherent job titles. To be specific, when organizations adopt new structures and amend roles and responsibilities of their jobs, job titling should also be considered. However, for many organizations this is an issue of limited importance of the time of restructuring so this tends to get neglected. As a consequence, especially with numerous rounds of re-structuring, a heterogeneous, incoherent landscape of job titles is likely to emerge. Conducting purposeful job titling   The above-mentioned observations raise the question of how organizations can move forward to actually create purposeful job titles. Meaningful or purposeful job titles usually consists of two key elements. Firstly, purposeful job titling should indicate the actual function and with this associated roles and responsibilities the job incumbent is tasked with. If an employee in Finance is responsible for maintaining the Finance IT systems, then the job title should indicate that this employee looks after IT for Finance, as opposed to more generic IT activities. Secondly, a purposeful job title also indicates the hierarchical level, or, to be more specific, should hold reference to the actual job grade the job has been mapped onto. In our work across the globe, we see a certain degree of inconsistency and incoherence in this respect. Frequently, strict hierarchical levels are used to create job titles, even though the job evaluation may not indicate such job titling. For instance, the responsible job incumbent for managing financials in a country managing set-up of a small to medium sized enterprise owned by a multinational corporation may be called ‘Chief Finance Officer’. This job title indicates a fairly senior position. In reality, however, such a job more closely resembles the activities of a ‘Financial Accountant’ or a ‘Finance Manager’. Such discrepancies between the actual roles and responsibilities of a job and its titling typically become clear when job evaluations are performed. As such, we advocate a certain adherence to job grades when it comes to job titling in order to derive purposeful job titles. In Figure 1, we outline how an approach to purposeful job titling could look like. It indicates the main components of a job title, i.e. (a) what the job’s hierarchical level in the organization is, (b) its function or area of expertise, (c) to what organizational unit the job belongs, and (d) what the actual scope of responsibility of the job is. For instance, a ‘Senior Vice President Finance EMEIA’ uses the elements A, B and D of the framework. Element C, the organizational unit, in this case is not required. For professional jobs, as another example, an ‘Advisor Finance Downstream Abu Dhabi’ would have all elements in her or his job title. This way, the same protocol and nomenclature for different job titles is applied universally across the organization, and thereby meets the requirements of purposeful job titling set out above.                           Figure 1: Mercer’s Purposeful Job Titling Framework In addition to adopting such a framework, organizations should consider who owns and governs job titling. The governing department should make sure that there are employees who have ownership of this process, and that no job requisition and its related activities as well as any internal re-structuring fails to comply with the framework. This way, purposeful job titling gets embedded and institutionalized in the organization. Sources: 1. 2017, ‘The talent delusion: why data, not intuition, is the key to unlocking human potential’, Tomas Chamorro-Premuzic, Piatkus. <a href="#"> 2. 1994, ‘Human resource practices: administrative contract makers’, Denise M. Rousseau and Martin M. Greller, Human Resource Management, 33-3, page 386. <a href="#"> 3. 2005, ‘Understanding psychological contracts at work: a critical evaluation of theory and research, Neil Conway and Rob B. Briner, Oxford University Press.<a href="#"> 4. Ibid. <a href="#"> 5. For an interesting review see: 2019, ‘The five pillars of self-enhancement and self-protection’, in the Oxford handbook of human motivation, Constantine Sedikides and Mark D. Alicke. <a href="#"> 6. For a good overview please refer to: 2001, ‘The role of justice in organizations: a meta-analysis’, Yochi Cohen-Charash and Paul E. Spector, Organizational Behavior and Human Decision Processes, 86-2.