Why Resenteeism Can Be More Harmful Than Quiet Quitting

Workplace engagement saw several waves of change in recent years from The Great Resignation to The Great Reshuffle, and a rise in presenteeism and quiet quitting. Now, a new buzzword has cropped up: Resenteeism.  

Following from quiet quitting, resenteeism is an active response to frustrations at the workplace, dropping all facades of being satisfied or even apathetic at work. As the labor shortage continues to plague CxOs across industries, the percentage of workers who are actively engaged in work is gradually declining, from 36% in 2020 to 32% in 2022. Given concerns of a looming recession, a rise in disgruntled employees poses a threat to overall productivity and business success. 

We spoke to Yvonne Alozie Obi, Director of Global Diversity and Inclusion Specialist at Standard Chartered Bank and Marjolijn de Boer, organizational psychologist and founder of The Human Factor about the root causes of resenteeism, how leaders can measure its impact, and the best strategies for creating a work culture that supports employee well-being.  

 
Yvonne Alozie Obi is a Certified Diversity & Inclusion Specialist and current Director of Global Diversity and Inclusion, Standard Chartered Bank where she plays a pivotal role in delivering the Global D&I strategy. Yvonne has received several awards and recognition for her contributions to business and society, including being named one of the Top 50 Women Leaders in Africa by Forbes Magazine in 2020.
Marjolijn de Boer is an organizational psychologist with over 15 years of professional experience in coaching, consultancy, and training. She is the founder of The Human Factor, an organization that partners with businesses and individuals to help them become high performing.
 

What is resenteeism? 

Marjolijn: With resenteeism, people may still be productive at work but do not feel valued or appreciated. This can happen within industries where many employees were laid off – those who end up staying for fear of not finding another job will pick up the slack and become overworked and resentful. This is very harmful to organizations. These employees usually talk about their dissatisfaction to other colleagues which creates an environment that is far from positive. 

Yvonne: Sometimes there are external factors as well, such as global economic situations that are resulting in layoffs. This can make employees feel resentful as well. Further, in the diversity and inclusion space, we see a lot of injustice happening and employees may feel resentful towards their companies for not responding in the way they want. This can fester over time and lead to resenteeism as well.  

M: Things are changing very rapidly but this has been happening for decades already. What you see in the workplace, in the worst cases, is that managers have very few conversations with their employees and teams. If you do not have a dialogue with your team as a leader, it can get out of hand very quickly because this can spread through the organization. Before you know it, there is a negative atmosphere. Management may think employees are being very productive, but in reality, they are not happy at all. 

How have your organizations dealt with managers that are not taking concrete actions to address resenteeism effectively? 

Y: It’s all part of the change management process, especially when a reorganization is happening, and people are disgruntled. It’s about planning to make sure that potential questions are answered and that organizations are as transparent as possible. Usually, town halls are held by the leadership.  

We need to equip leaders and managers to have challenging conversations and learn how to keep spirits alive.  

“Leaders must know how to get loyalty and engagement from employees who are not yet resentful – because it can catch on like wildfire.”

M: Sometimes, people may become resentful when you don’t utilize their potential to the fullest. This can lead to a drop in productivity when employees do tasks that are not fulfilling. You do see a productivity incline if you utilize the team’s potential. I agree with Yvonne that leaders must have open and deep conversations. This is a teachable skill. 

Who has these tough conversations with resentful employees and what is usually discussed? 

Y: In Standard Chartered, we have a group of coaches. It’s important to look inward first, so we make sure these employees do not project their own triggers onto the organization. Next, we also help the employees understand what is truly under their control. It could be they don’t have a healthy work-life balance, not because of the job demands or lack of resources, but because they may not personally be equipped to effectively balance these two aspects. It’s always important during coaching to help employees think through the patterns they may need to break out of.  

M: Speaking of the environment, no company is perfect. Of course, there are narcissistic leaders. In this case, a different kind of approach is needed. 

How can leaders spot resenteeism early? 

M: If you want to preventatively know what your team is feeling, you need to be vulnerable. Do check-ins with your team and be honest about your own feelings and challenges. 

Y: I think it’s important for organizations to improve and embrace not just the typical biannual appraisal ratings but continuous performance feedback. With regular conversations, managers can begin to spot where things start to become issues. Some people can be good at masking, but it’s a skill for leaders to go in and see what’s going on and be vulnerable as well. If leaders start role-modeling, they will have a team that feels comfortable sharing when they are not ok.  

 M: Because it’s behind closed doors, I think intuition in leaders goes a long way. When you’re in a meeting and something feels different, that’s your first signal. If you see people are less happy at work, that’s another signal. Use your intuition to look at non-verbal behavior while also starting conversations with your team. 

What kind of leadership style fits best to solve these issues? 

M: In my experience, a lot of leadership styles can be extremely effective. In fact, we always think leaders have to be extroverted. I think introverted leaders are extremely good for keeping the peace.  

“Leaders must be able to balance a people-focused approach to leadership while setting clear boundaries.”

Y: I agree. I don’t think there’s a one-size-fits-all leadership style that can manage resentful employees. I think self-awareness in a leader is key. A self-aware leader knows when they need to or can help, and when they need to ask for help. They can also draw boundaries. One thing we try from a D&I angle is to equip our leaders with inclusive leadership skills. Empathy is also important. It takes a lot of intentional empathy from a leader to manage a resentful employee. 

What is the importance of coaching and well-being programs within an organization? 

M: It’s extremely important because, firstly, people have a misconception about stress. We have stress but we also have a system to reload. If we don’t take enough time to reload, that’s a problem. Preventively talking about this with your leaders and employees – about taking rest times – is good. For example, writing emails in the evening or not taking lunch is a bad idea because there’s no time to recuperate. That’s an important message.  

Y: We have questions related to well-being in our annual surveys and we see more colleagues reporting that they do feel more included and are getting more manager support. We see the scores for psychological safety increasing. What we try to do is solve innovatively to improve business processes. If there are functions that operate inefficiently and keep stress levels high, we see how we can intervene and improve some processes. 

What steps can leaders take to reduce the stigma around mental health and create a culture that encourages employees to seek help when needed? 

M: When I do cultural transformational programs within organizations, I always start with management. That goes a long way and takes a lot of time and precedence over work long-term. 

Y: There can be huge power imbalances due to underrepresentation or employees being from a marginalized background. This is where psychological safety is key in ensuring optimal well-being among the workforce to be able to have difficult conversations. But it’s a very complex topic. That’s why organizations should introduce other resources such as employee assistance programs and coaching programs – a third party they can talk to when the situation becomes so unbearable that they can’t talk to their managers about it.  

We are a company of 85,000 employees. Building trust is an ongoing conversation. As an organization, we do everything we can to equip our people and leaders to have challenging conversations and get the skills they need to lead effectively. We’re trying to improve the role modeling of senior leaders. Additionally, we try to get people ambassadors who role model some of our valued behaviors. It’s an ongoing cycle. Trust also means different things across different markets. So, we also try to align with our country heads and make sure that the key messaging is repeated. It’s a marathon, not a sprint. 

What is a key takeaway you have about resenteeism and its impact on the business? 

M: The key takeaway is to invest in your leaders. How do you have conversations and build trust? How do you build personal leadership? It’s a fair step because in this case, it really does start with leadership. 

Y: Organizations should also begin to examine how they can be more influential externally, especially in complex situations. In the UK right now, the public appointments board is trying to get seasoned professionals from the private sector to apply for public boards. As a senior leader, it can help you to advocate for things that would benefit your workforce. Many employees, especially the newer generation, are value-based. It’s important for organizations to think about advocacy

*Answers have been edited for clarity and length.

Shell’s CIO and CISO Allan Cockriel: How to Win the Tech Talent War 

IT leaders from start-ups to multinational corporations continue to struggle with a lack of tech talent. In this exclusive interview, Allan Cockriel, CIO – Global Functions & CISO at Shell; shares expert insights on the elements of good global talent management, strategies to attract and retain tech talent, steps on how to scale culture in a global organization, and more.  

*This article is a recap of the session, CIOs Winning the Global War of Talent with Leadership Competencies. 

 
Allan Cockriel has been the Vice President & CIO – Global Functions and Chief Information Security Officer at Shell since July 2020. He is also part of the IDT Executive Leadership Team and leads the IDT organization to ensure maximum business value delivery through complex digital transformation across all corporate functions; and oversees the continuous improvement of the Information Risk and Cyber Security posture for Shell.
 

What is your definition of good global talent management?

I’m a big believer that organizations with the best teams will win great talent.” 

Doing great work and delivering for customers is the way companies are going to succeed now and in the future. Shell, like every other company, is out there competing for the best and the brightest globally to join and stay to grow their careers. From an employee value proposition perspective, it’s a very compelling mission. Does the company have a mission that you want to be part of?  In the case of Shell, it’s powering progress.  

We’re committed to net zero emissions by 2050 or sooner. We also want to have great work. Does it excite you? Does it get you out of bed? Are you passionate about the work you do each day? From a CIO and technology perspective, are we giving our teams and our stakeholders the right tools and technologies to be successful? Do we have an allergy to bureaucracy and waste?  

We constantly figure out ways to simplify and find ways to create better work environments for the organization. Next is an environment where you can bring your whole self to work. So, DEI (diversity, equity, and inclusion) needs to be part of the fabric of the organization. Anyone can show up at Shell and have great career value for who they are. Their diverse opinions can help us to create the best possible product. We also have a culture of trust, transparency, and focus on value.  

 

What sets Shell apart from other enterprises?

Shell is a technology company, so we have some of the best tools, technologies, and capabilities in the oil and gas industry.  

When you come to Shell, you have access to phenomenal talent and capabilities, and a genuine passion to digitalize.” 

Next is care for people. This organization has a tremendous focus on work-life balance and helping people have great work and personal lives. We’re doing great things.  

The world also needs clean energy. I personally find a lot of passion in being a digital leader who is driving forward the clean energy agenda. When we’re speaking to students all the way up to executives, being part of that journey has been incredibly attractive for a lot of technology leaders who want to join the company. 

I think we have a more compelling story compared to other large corporations in the oil and gas and energy industries. A lot of people don’t know that we are going to have half a million EV charge points in the near future. We have a very large battery business in Germany. We’ve installed some of the first and largest hydrogen electrolyzers globally.  

 

Can you explain the importance of purpose for employees?

There are two dynamics at play there. Firstly, when we went through the COVID experience, people wanted to do work that mattered. There was the Great Resignation and the Great Turnover, among others. I think people realized through the pandemic, that they want to do things that matter. That’s the focus on vision and mission. Next, if you look at the generations that are coming up through the leadership ranks, the Gen Zs and the millennials, they inherently want to do things that matter as well. They want to be part of something good, something big. Those two are the trends that I see driving change, or more appropriately, a focus on mission, and the quality of the work that they get to do.  

 

Tell us more about the remote worker management at Shell.

Shell operates in over 180 different countries – that’s everything from the forecourts where you go to fill up your tank or charger all the way through to assets that are producing hydrocarbons and electricity around the world to our major hubs in North America, Europe, and Asia. From that perspective, the reach of the organization is larger than most organizations in the world. From a talent perspective, we want to be able to reach out to that network and identify great talent as a business. But as a technology function we want to find that talent, either business proximate so they’re out near our assets, or they join one of our hubs in North America, Europe, or Southeast Asia. 

 

What is the bigger challenge: attracting or retaining talent?

If I have to pick one, it’s attracting talent. Some people look at Shell as an oil and gas company and they don’t understand the amount of technology and innovation that we have as an organization and the amount of focus that we put on digitalization. When people hear our story, they see the technology that they’re exposed to, and they want to join. From a retention perspective, we have folks in the organization that want to be part of this journey. 

 

What is the biggest struggle in retaining good IT talent?

In the technology space, particularly in cybersecurity, great talent knows their value, and they want to be part of something big.” 

It’s very difficult to find great talent. At Shell, we’re committed to investing in the net zero emissions future. We’re out there in the markets every single day trying to find great Shell leaders to drive our programs and our transformations. It’s tough because there are a lot of options for tech talent out there. The way you work, where you work, and the culture of the organization have a lot more value than ever before. We’re out there competing to get the best and the brightest for the company. 

 

How do you manage different employee needs and preferences in terms of work-life balance?

I think COVID taught every industry a big lesson on flexible, remote, and hybrid working. I think the hybrid working concept is going to stay with us, which I’m a big supporter of. From an approach perspective, Shell adopted a hybrid work policy. We asked our employees, “Where are you most effective in line with what your business needs?”  

Given the breadth of Shell, we have some organizations where you have to be in the office five days per week, it’s just part of the expectation, it’s part of the ways of working, and that pivots all the way to individuals who go to work one to two days in the office. But again, valuing that sense of place value in that area for collaboration, but then affording a tremendous amount of flexibility for people to work where they are most effective, and recognize that people have complex lives. Hybrid working unlocks a lot of that capability for people to live great lives. 

 
Dive into the latest trends and technologies impacting tech leaders in the Executive Insights sessions. View upcoming sessions here.
 

How do you define good leadership in this era?

The game has changed. As I mentioned earlier, people want to work for a great company, and they want to do work that matters. They want an environment where DEI is part of the fabric of the organization so they can be present and have their voices heard. I think it’s incredibly powerful. As an organizational culture, we want to foster and support innovation.  

We want to make sure that people can take chances and fail forward as technology leaders throughout their careers.” 

From a development perspective, we want to invest in our capabilities, both the red threads of how we do business as Shell and how we work as Shell. From a technology perspective, you have very clear and well-supported paths as a leader, whether it’s in technology, operations, or HR. People can see themselves long-term with Shell with tremendous value to add to our customers. 

 

Can you elaborate on the fail forward concept?

If things go well for a project, you take it, scale it, and monetize it. But in certain cases, things aren’t going to work out. Through that process, as long as you approach that from a learning mindset, where you’re learning from the experience, you’re finding a different way, and maybe that specific pilot or action didn’t work out, the learning through that process is incredibly valuable. When I say fail forward, you’re stopping whatever tactical exercise you’re working on but the learning and the value through that experience is what I want to make sure you take into your next experiment, program, or initiative. 

 

How do you keep your team involved in innovation projects?

If I do a scan of our competition, I don’t think we’re competing against other oil and gas companies.  

“I see us competing against tech companies, start-ups, and the small agile organizations that can innovate.” 

That’s where I see our main threats. From a culture perspective, we invest in smart risk-taking. This is everything from rewards and recognitions for people who are taking risks where you can fail forward without worrying about reprisal. We’ve pivoted that where we celebrate on a regular basis where people took bets. In certain cases, it worked. In certain cases, it didn’t work, and we celebrate both equally.  

Finally, it’s continuous investments in innovation. I have a pot of money that I’ll take and invest in ideas where people come up with a great way to use ChatGPT, for example. They go out and experiment, they find something that they can potentially pilot and scale. If it works, that’s fantastic. That innovation fund puts our money where our mouth is in terms of valuing innovation and risk-taking. 

Things could go wrong – people operate within the bounds of compliance and integrity. Our security controls are non-negotiable. But taking a new technology and finding a different way to monetize it will be something I’ll invest in every single day of the week. 

 

Cultivating culture becomes difficult when an organization goes global. How do you ensure that the culture can scale?

From a technology perspective, we have a few global hubs around the world. I believe that the office, or more appropriately, a space for collaboration, has tremendous value for big global organizations. When you join Shell, there’s a lot of training, there’s support, and there are groups that help you to assimilate into the organization. We do value people who come into the office on a regular basis and find ways to collaborate with their teams and pick up the Shell culture. 

There’s also an investment in training, or immersion workshops, where there’s dedicated training to help the employees know what good delivery looks like, the way we act as leaders, and how the organization values their contribution. It’s incredibly important because that training allows us to scale the organization quickly with the right level of horizontal consistency from a culture and working perspective. We invest heavily in the office environment as well as in these training capabilities. 

 

What has changed about the skills or competencies of a good leader?

I think one is being an empathetic leader. Listening, being human, and creating an environment where people can feel safe.  

Also, successful technology leaders in the last 10 to 15 years have been financially savvy business partners who recognize and monetize great technologies. Last but not least, is continuous learning. The average shelf life of a technology leader is a few years.  

“Individuals who are curious and eager to learn will find themselves very successful throughout their careers.” 

 

How can leaders balance compliance risk controls and the drive for innovation?

It’s similar to asking whether a car needs a bigger engine or a better set of brakes. I think they are symbiotic. You need both. I think the answer to the question is having a risk-based conversation.  If you’re a risk or an IT professional, you need to have an open dialogue with your business partners on the compromises you want to balance with operational effectiveness and efficiency with security. When that conversation is balanced with a sense of trust, you find yourself in a place where you can keep your data and customers’ data safe while innovating at pace. I think it’s achievable, but it starts with that dialogue. 

 

What can CIOs and CISOs do differently tomorrow?

Stay humble and stay hungry. I live by those values every day to help me to stay focused and move at the right pace. Next is empathy. Show that you care, be a person, and create a great environment for your teams. I believe that it all starts with empathy and trust. 

 

*The interview has been edited for length and clarity.  

HP’s Formula to The Future of Work: Co-Creating with Employees

Director Future of Work at HP Olga Martens-Stuurman, takes us through HP’s experience of creating a future-ready workspace, the importance of co-creating a future with employees, and the role of leadership in establishing an ever-evolving and inclusive culture.  

 

What was the philosophy behind HP’s Future of Work initiative? 

 

The questions we asked ourselves were what does it take as a company to be ready for the future? And how can we do it in a sustainable manner? 

The future of work is not so much about hybrid work, although there are some hybrid implications. It is really about rethinking what is important for you as a company. When you talk about the future of work, do not limit yourself to where people work. Instead, look at why they work, what kind of work they do, when, and with whom. 

The focus is also on empowering future-ready people. People are the center of many things that we do and if you want to be future-ready, you need to make sure that you offer enough growth opportunities for your employees.  

Though there are lessons to be learned from the hybrid work model, what the pandemic taught us is that people can change and stretch quickly. We saw a lot of collaboration and creativity. Of course, there were also challenges. It was important for us to take the learnings from this hybrid period and ask ourselves how we can capture those learnings. 

 

What are some key principles when it comes to preparing for the future of work? 

 

When we look forward to the future of work, we follow three principles: empathy, a focus on culture and talent, and co-creation.  

Empathy really starts with the assumption that not everything can be the same. One size does not fit all. The key is listening well to what your employees need because it is easy to implement something globally but often, you need to look at local rules and needs. 

We have different generations in the same workforce, and they have different needs. Also, people are at different parts of their employee lifecycle. There is no single way that will lead to success.  

We need to understand how we can create the best conditions for everybody to deliver their best work and that demands a lot of scenario planning. No one knows for sure what the future will look like, but you can prepare.  

What is clear is that this is an iterative process. One of the things we learned from the pandemic is that we really need to adapt and learn. This is our culture.  

Culture is not something that you just say, it is something that you do. It is something that we co-create together with our employees.  

If you are going to ask employees for input, you had better do something about it as well. At the same time, make sure that you are very transparent because there is no way you can do everything that everybody wants.  

Be clear that some of the skills that you currently have might not be enough for the future. So, you may need to upskill and have people undergo agile training while also allowing them to help you overcome challenges together. The most important thing is to keep the conversation going

People are passionate about the future, and people are passionate about the company, but they need to have a voice. You have to make sure that these voices are not processed in silos without coming together.  

 

How do you ensure people feel safe to share their ideas? 

 

Psychological safety is not something that you just describe, it is something that you really need to ingrain in the culture.  

It is really an important part of our culture at HP that we can be authentic, that we respect each other, but also that we are there to challenge the status quo and challenge each other. We focus on making sure that people really respect each other’s opinions and are inclusive in the way they invite others in and act upon that feedback. It is also something our leaders and employees talk about regularly so that it keeps improving.  

 

How do you balance employee flexibility and organizational values?

 

Certain values are non-negotiable. That is really the heart of our company goals. But flexibility and values do not have to be in contradiction. There are times in a business environment when you need to save cost and invest, you need to optimize and increase. That is the same with flexibility. I do not think you need to choose. There are some core values like human rights, respect, dignity, et cetera you can never compromise on, but those do not conflict with flexibility.  

Still, it is important to be aware of the challenges that come with flexibility and how to overcome them. There may be certain unforeseen or unwanted implications of flexibility that you may need to discuss and then adapt to.  

 

What is an initiative that you implemented as part of your Future of Work program that was most successful? 

 

I was doing this for customer support, and I asked everybody a simple question: Are you ready? 

That had a huge impact on the leadership. Am I ready for the future as an organizational leader? What kind of trends maybe do I need to follow? How will my business remain relevant? And those questions were very true for managers and employees as well.  

Some of our leaders said that we should make our own plan or someone else will do it for you. As an employee or first-line manager, life is already pretty complex. There is a lot to manage, so thinking about the future is a bit overwhelming. But the idea that maybe somebody else will make your plan for you might motivate you to free up your agenda a bit and think about some of the trends or expand your learning. That was a big aha moment in customer support. 

We had so many people trying to invest in their learning and pick up new skills. And this was contagious in a way. People were so enthusiastic to get ready for the future. There was so much passion to learn and share, to get better together. 

Sometimes a simple question – ‘Are you ready?” – can have a huge impact on an organization. 

 

What are the challenges and opportunities in creating flexibility and autonomy, and how do you overcome them? 

 

I think many people want to work for companies that offer flexibility. So, it is a way to attract and retain talent. There is much more technology now that makes it possible such as new working tools, asynchronous working, and remote mentoring. Also, employees have shown that they are very capable of stepping out of their comfort zone to do something new and challenge themselves. So, I think there is an opportunity to tap into a talent pool that maybe was not used before. 

On the other hand, some people may not feel completely included or might have difficulties building up a network. It could also be that people work a bit too much and that can have an impact on work-life balance or work-life integration. You must be careful with the potential digital burnout. We need to be disciplined on how to say no and determine what is really relevant and what should be a priority.  

So while flexibility opens opportunity, it also depends on people’s ability to deal with it as an individual or as a team. It is something that should be reviewed occasionally. You need to remain alert so that you do not miss some symptoms of fatigue or a lack of wellness for employees.  

I think you need to be transparent and clear in your prioritization and really offer enough support to your employees so they can feel empowered and work flexibly. 

 

How do you make sure these efforts for creating an agile, future-ready workplace are successful? 

 

If something is important in your culture, you should model it. You should do it early, and you should do it often. Also, avoid big words and big concepts. Your message needs to be clear and simple. It should also be relevant for people in their local situations.  

The other important thing is to remember not to strive for perfection. Sometimes you need to move quickly, so you may have to say “I do not know that yet” or “We will come back to that”. People appreciate that clarity.  

Beyond that, communicate and be aware of how you do it. For example, younger generations communicate in different ways. You may need to try different mechanisms for different groups because even with the best intentions, you might have missed something.  

Culture is not one thing you can define. It is evolving just as people evolve. We want to move fast, we want to learn, and we want to adapt. So, we cannot just talk about it. We need to show it in the culture. We need to keep on engaging with employees and building on that shared purpose

 

How do you build the next generation of organizational leaders? 

 

I do not think there is one simple answer, because I think context is always very important. Where are you leaders now? Where do you want them to go? Is there a big gap? Do you have time to close it? 

I think it is important that you get some idea of what your current status is and where you want to be in the future. From there, you have different routes to choose from such as upskilling, reskilling, or hiring new talent.  

It is critical to realize that what we need in the future will be different than what we need now from leaders. There is probably more attention now on power skills. I think it is important that we focus on empathy. On the other hand, there are a lot of technological changes as well, which means you also need to be at least digitally savvy. 

Either way, ensure that you are not standing still and that you are willing to learn and adapt.  

 

What do you think the future of work looks like? 

 

I think the future of work looks bright for those people who are starting to prepare for it. I think there will be huge changes in why people work, where they work, when they work, how they work with whom they work, what kind of work they work on, and how much they work.  

Also, employee expectations will change a lot. You will need to be able to listen well to employees, to adapt to their needs while keeping a good balance of growth that is sustainable. I think that is one of the keys to success. 

 

*Answers have been edited for length and clarity.

How Spotify Successfully Approached the Future of Work

In a globally competitive and rapidly changing environment, organizations are determined to create a seamless employee journey during the digital HR transformation. Spotify’s VP of HR Freemium and GUs, Anna Lundström, takes us through their approach toward the future of work during our online insights session.  

As one of the architects behind Spotify’s work-from-anywhere approach, or what they like to call the ‘distributed first work experience’, Anna mentions three key factors to how they developed this formula.

 

Offering Full Flexibility

 

Though it is already a flexible employer, engagement feedback showed that Spotify employees wanted even more flexibility. This led to the company starting work on this work-from-anywhere program back in 2019. Of course, the pandemic in 2020 accelerated their efforts which led to the initiative being officially launched in February 2021.  

Anna noted that everything was based on their philosophy to “become a distributed-first company, enabling our talent to create value for Spotify independently of where they work and remove constraints from scaling the platform”. 

Here, Anna emphasized that every organization would differ in its goals and philosophies.  

 

 “My advice is not to copy just another program and call it a day, but really take a step back and think about what your culture is, what will work for you, and define it with one belief.”

– Anna Lundström 
 

At Spotify, the belief is that work is not something that people come to the office for, it is something they do. This led the organization to put together a whitepaper and a handbook for this new approach of work-from-anywhere. 

Ultimately, they came up with different work modes they could offer their over 10,000 employees around the world. First is a Home Mix where employees spend most of their time working from home with the option of a couple of days in the office per week. The reverse of that is the Office Mix. In regions where there isn’t an office, a Co-working Mix is offered.  

Full flexibility also means that Spotify offers employees the option to work from another state or country where the company has a legal entity. To make this easier, employees are also grouped into different regions – the US, EU, and Asia.  

To ensure that the program runs as smoothly as possible, Anna and her team spent plenty of time before launch to consider every possible question and constraint that might come up. They spoke to management and stakeholders to understand the different jobs and roles within the company and what they can offer in terms of flexibility. For example, some jobs may be tied to specific regions and wouldn’t be able to get full flexibility. However, the majority of roles do have that option.  

For tax purposes, Spotify also instated a 12-month commitment for employees who want to move. Meaning they have to commit to their new address for at least 12 months. Anna noted that this gives the organizations more security in not only knowing where their employees are but allowing them to stay compliant with local regulations and tax requirements.  

 

Adopting a National Compensation Benchmark 

 

With the idea of allowing employees to move anywhere within a specific region came the question of compensation. Do they keep the same salary? The short answer is yes. Spotify opted for simplicity because a complex compensation structure would be difficult to scale, according to Anna. The team worked closely with HR, legal, and finance to consider every angle of approach including compensation policies and travel philosophies. 

For example, a Spotify employee in New York who wants to move to Minnesota would keep the same salary instead of having it adjusted to the regional market rate. This is because Spotify has moved into what they call a national salary band. They wanted to solve any potential issues that might crop up if they lowered salaries when employees moved. 

However, if an employee moved to another country – for example from England to Spain – they would get to keep the same take-home salary in the new currency. Anna stressed that everyone is taken care of when this is done as they are able to make the same level of pay that fits the new market conditions that they are in.  

For now, Spotify is in over 40 different countries – giving employees a lot of choice and flexibility in terms of where they want to work from. If they do decide to move, Spotify will also handle the cost and processes of the visas and employment-related paperwork. The organization is also continually assessing where it would like to establish an entity. Most recently, they established an entity in Ireland.  

Anna mentioned that Spotify has seen incredible results from this level of flexibility and preservation of compensation including reduced attrition and increased applications by top talents. The company also reduced the time taken to fill a position from 48 to 42 days. 

Remarkably, Anna also noted that her team was able to answer every single question that was raised by employees when the program was first launched thanks to how thoroughly they had thought about everything in the playbook beforehand.  

 

“That was the key to success… There were not a lot of things in our program or policy that we had to update or change because we thought it through early on.”

– Anna Lundström 
 

Creating A Dynamic Workplace 

 

Another aspect of the work-from-anywhere program in Spotify is their introduction of a new way to design or think about workspaces more dynamically. Anna talked about how the organization’s workplace services team spent time with stakeholders across the business to understand what drives them and how they work in order to come up with the best set-up for everyone. For example, engineers get plenty of screens while creatives get more space for whiteboarding. Other examples include focused spaces, spacious cafeterias, and social spaces.  

Anna stressed that the goal is to create an environment that fits all employees regardless of their roles because there are employees who work on a range of different things within the company. This kind of thoughtful design enhances collaboration and innovation, she added.  

One of the challenges with such high levels of flexibility and remote working is maintaining company culture. It’s something Spotify takes very seriously. When asked about how this is done, Anna explained that every new employee gets to visit Spotify’s headquarters in Stockholm to spend a few days being introduced to the company culture and leadership, and to familiarize themselves with the organization’s strategies and goals. They also conduct several different virtual sessions throughout the year, including with top management, to nurture and cultivate the company culture.  

Anna pointed out that it is also important to allow culture to evolve while ensuring you remain steadfast to your organization’s values. Trying to stick to the same company culture that was developed at the beginning while you are scaling up – i.e. still using that start-up mentality – will present many challenges. Evolution is key. 

 

Practicing Trust and Transparency 

 

When asked about how Spotify balances the interests of employers and employees when offering flexibility, Anna mentioned trust. Being a values-driven organization, Spotify has a performance development philosophy in which employees drive their own development with the support of the organization.  

 

“We support their growth and we put a lot of trust in our employees to drive it. We emphasize self-leadership.”

– Anna Lundström 
 

Beyond that, Anna mentioned transparency as being another key to empowering employees. This can look like being open with employees about the state of the company, goals, targets, long-term vision, and OKRs. This must happen at every level from the executive team right down to line managers and team members. 

Consequently, Anna notes that advocacy comes into play as well. While employees are given the freedom and power to shape their growth, some may require or prefer a bit more structure otherwise they risk burning out.  

This is where mental health and wellbeing is prioritized. The team at Spotify is focused on destigmatizing discussions around mental health and creating a safe space for people to talk about their struggles and ask for support when they need it. Some questions that Anna notes are important for leaders to ask include: Do they have the right technology, processes, and support? Is there enough investment in important tools to prevent burnout? 

Work-life balance and mental health care have to be modeled by leadership, according to Anna. For example, if a manager chooses to work late at night, they shouldn’t expect their teams to be pulling the same hours. Anna stressed that empowering employees is about being clear on what the priorities are and offering support, as flexibility alone isn’t the answer. 

 

Final Takeaway: Experiment and Adapt 

 

In the end, Anna’s advice for leaders who are trying to prepare for the future of work is to “think as a futurist, build scenarios of the future, and make bold choices” to fit what is best for your organization. Instead of copying a program, make it your own.  

She also stressed that leaders should not try to do everything at once as they will surely fail. Instead, take it as a journey of learning where mistakes will be made. It is more important to experiment and adapt as that is the only way to create the best possible future for everyone.  

Zana Busby: Chief Psychology Officers Add Value to Every Level of Business

Many global organizations have a Chief Psychology Officer – sometimes known as a Chief Psychologist or Chief Behavioral Officer – who uses applied psychology to help improve nearly all business processes. As the role continues to expand into the mainstream, we spoke to Zana Busby, Chief Psychologist at Retail Reflections, about what CPOs bring to the table and where they fit into the organizational structure.  

Zana Busby is a Business Psychologist and Chief Psychologist at Retail Reflections. She specializes in consumer behavior, employee mental health and wellbeing, and executive coaching. Zana is also the founder of ZANA.B Psychological Studio – an integrated consultancy. She has been featured in various media platforms including BBC Radio.

 

Major companies like Google, Microsoft, and Uber have had some version of a Chief Psychology Officer. What value does a CPO add to an organization?

 

There are many benefits to organizations that have a Chief Psychology Officer. Firstly, these professionals can identify business goals and challenges that can be reached and resolved through the science of applied psychology. The most important value that a CPO brings is helping organizations get the best out of their people.  

There are many principles of psychology that can be applied to the workplace that help manage the challenges and obstacles of the business world. Some pertinent areas include talent management, inclusion and diversity, and employee mental health and wellbeing, which are very important nowadays. There is also change management, employee engagement, leadership, as well as coaching and development. Basically, working with individuals and teams to raise awareness of their strengths, abilities, and values. For example, you can work with a CPO to discover how people react under stress and pressure and what are their individual decision styles and resilience characteristics. You can gain a deeper understanding of your employees. Of course, all of this has to be aligned with the organization’s vision and mission.  

Psychologists are there to help your organization and people realize their full potential by applying psychological principles to influence workplace behavior.  

– Zana Busby
 

Is a CPO more effective for customer experience or employee experience? Is it better suited for an internal- or external-looking portfolio?

 

I would say a CPO is effective for both. It would depend on their expertise and area of focus. For example, any consumer-facing business certainly needs a psychologist. 

As consumers, we know that we are more driven by emotion rather than logic. Psychologists understand how emotions influence behavior and what triggers certain emotions. We can advise companies on the best possible ways to use that emotion in order to build strong customer relationships and provide a better customer experience at every touchpoint of the customer’s journey. A psychologist can help you better serve your customers by understanding how they make decisions based on internal and external psychological factors.  

That is when it comes to customer experience. Also importantly, employees have certain expectations from employers such as providing a safe working environment, recognition, career development, work-life balance, personal wellbeing, and other benefits that inspire them to become fully engaged with work. Consulting with a psychologist about all these things can bring valuable insights and strategies that greatly enhance employee experience.  

 

What are some characteristics of an effective CPO?

 

Whatever their area of specialty, they must inspire change and motivation. They must energize individuals and organizations to move forward and achieve success. So basically, you need a business psychologist who works in organizations and understands organizational cultures and workplace factors that may have an impact on the psychological health of employees. It is important to start by having a keen interest in human behavior. Great communication skills with active listening are also very important because they create strong connections and constructive relationships with clients and colleagues.  

As a psychologist, you must have high levels of emotional intelligence and be prepared to understand the unique requirements of the organizations you work for. Often, it is a complex and personal assignment. Part of a CPO’s contribution as a psychologist is to leverage their experience about what is necessary, practical, realistic, and what is the best practice.  

No matter what you specialize in, you have to be a good diagnostician. You have to make correct judgments about key issues in the organization and offer solutions. You cannot have a solution if you have a wrong diagnosis of the problem, which can happen if you do not understand the true nature of the problem.  

I would say that there are many values, capabilities, and skills that business psychologists have, and they can specialize in different areas. For example, I specialize in employee mental health, consumer psychology, emotional intelligence, and building strong relationships between clients and organizations.   

 

What industries would benefit most from a CPO and how?  

 

I think every industry needs ongoing people and business development to remain relevant and successful in today’s competitive market. We can have sectors as diverse as hospitality, pharmaceuticals, health, financial services, and retail industry. The COVID-19 pandemic has brought so many challenges and stress. There have been financial, business, and human effects of the pandemic. Many businesses have unfortunately closed; some entered administration. One of the aspects that the CPO can do is support the mental health and well-being of staff.  

The latest report from Retail Trust in the UK shows that employee mental health has deteriorated during the pandemic which led to many people suffering long-lasting mental health problems and symptoms of mental illness. Retail employees also suffered the lowest mental well-being of any employee group covered in the research. This is really serious. A Chief Psychology Officer in an organization can help tackle the stigma and increase the degree of transparency and open communication within an organization by creating a culture of openness where people feel psychologically safe. They can also enable employees to increase their coping skills through resources like stress management, mental health awareness, and other well-being training.  

Nowadays, we know that looking after employees’ mental health, morale, and happiness has to be at the top of the agenda. Regardless of industry, employers have a responsibility to support the health and safety of employees including mental health and wellbeing.  

 

In terms of employee well-being, how can a CPO work with CHROs and other HR leaders in optimizing employee experience?  

 

CPOs can support HR leaders in creating and implementing agile solutions and long-term strategies for all HR challenges. We know that happy and engaged people are most profitable and productive. They sell more. There is less absenteeism, less presenteeism, and low turnover. One of the most important assets in any organization is its people. In order to create sustainable, high-performing organizations, HR and CPOs definitely need to observe high levels of collaboration.  

For example, psychologists can help plan policies, and carry out screenings and training sessions. Additionally, there is often a power dynamic at play between line managers and HR professionals – CPOs can help manage these relationships and streamline interactions and collaborations as well. They can also work in partnership with HR on different associated issues like culture, change, and individual and team development. CPOs can also create and implement a holistic employee well-being and mental health strategy in collaboration with HR. 

Together, they can develop a culture of psychological safety and a sense of belonging. We know that people try when they feel valued and safe in the workplace. This synergy between CPO and HR makes it easier to create and implement business- and people-focused interventions to optimize employee experience. I would say that such partnerships can systematically improve everything from performance to effectiveness of employee collaboration, engagement, and well-being. 

 

What are some factors organizations must consider when looking to hire a CPO?  

 

The best Chief Psychology Officers are psychologists at all stages. Their role is not restricted to advice. Instead, they should also be able to intervene and implement solutions, tools, and techniques. They should be able to deliver successful assignments.  

You also need to look for people who are the best at what they do. They also need to have the right chemistry not just with the decision-maker but with the whole organization. They should be a professional whom you and the rest of your team feel you can confide in.   

 

CPOs are there to help you navigate strategic shifts and challenges in your organization. So, they must be focused on inspiring positive changes in individuals and the organization. 

– Zana Busby
 

What do you want attendees to take away from your Executive Insights session, “Behavioral Analysis: Why Do Retailers Need a Chief Psychology Officer?” 

 

I would like attendees to have a clearer understanding of the role of a Chief Psychology Officer, what they can bring to the table, and how they can make organizational and individual success a reality. Psychology is critical to the workplace in that it creates a better culture. Healthy behaviors increase productivity and that increases the effectiveness of organizations. Business psychologists have the right tools, knowledge, and experience to help you get the best from people and make lives easier.  

CPOs work with sophisticated human beings and communities in a complex organized commercial world and the main aim is to deliver pragmatic business benefits. Who can be a better fit than a CPO to help you gain a decisive competitive advantage?  

The Art of ‘Quiet Quitting’ in Employee Management

Quiet quitting, reverse hustle, work-life integration, acting your wage, working at work, morale-adjusted productivity – these are the different terms for the concept that has taken the business world by storm.  

Reintroduced to millions by an engineer on TikTok, the idea of quiet quitting is now seen as a further residual impact of the COVID-19 pandemic. Some say it is the next stage of the Great Resignation.  

As leaders, how do you identify quiet quitters? How do you manage them to avoid major negative impacts on your business? Is quiet quitting a threat to organizational success? 

We took these questions and more to our Business Buzz Outlook session with Ira S. Wolfe to uncover his insights on quiet quitting and how leaders can best manage this situation with their employees.  

 
Ira S. Wolfe is a Top 5 Global Thought Leader in the Future of Work and HR, Workplace Futurist, TEDx Speaker, and best-selling author. He is also known to his peers as the Certified Prophet of Workplace Trends.
 

Quiet Quitting Looks Different to Everyone 

 

Whether you’re the employer or employee, the definition of quiet quitting can vary. From a manager’s perspective, it can have a negative connotation of employees quitting on the job and not taking the initiative to hide it. This is similar to the idea of presenteeism, where people show up and don’t do their jobs at all or only do as little as possible. 

On the other hand, quiet quitting from an employee’s perspective is giving 100% at the job they were hired for, not more or less. They are showing up but not giving 110% of their performance for just 100% of the pay. 

Ira noted the high level of burnout and overwork that people are experiencing since the pandemic. Coupled with more options being available, people are quitting. They’re also reflecting and evaluating their lives and trying to reset.  

“It was really people just trying to set boundaries, healthy boundaries, for themselves. They did take care of themselves, and when employers are short-handed, they didn’t like that,” said Ira.  

He added that the definition with the best intention is that people are setting healthy boundaries. It doesn’t mean they are trying to get away with just 70% of the work for 100% of the pay. Instead, they are willing to do the work but they’re also going to set boundaries.  

Ultimately, the pandemic prompted employees to reflect on the “hustle culture” that they were living before the lockdowns forced them to slow down. They realize they want more out of life.  

Another major transition that came with the pandemic is that many baby boomers left the workforce – whether due to retirement or COVID-19 deaths. This means millennials and Gen Z, who have a different work attitude, now make up the greatest proportion of the workforce. 

 

“Baby boomers live to work, younger generations work to live,”

– Ira S. Wolfe 
 

Another point he made was that many quiet quitters tend to have multiple jobs. So, it’s not that they are neglecting their work so much as they have to leave to do other things – whether that’s unpaid labor like caregiving or a second job.  

“They’re not quitting. They’re just not willing to give you that extra push, they’re not willing to do it for you for the same level of pay,” he stressed.  

However, he added that it’s not always about pay. Sometimes it’s a feeling of disrespect or detachment from their leaders that causes them to be less likely to invest more in work. 

 

Employers Must Change Their Mindset?

 

When asked if there’s a positive spin to quiet quitting, Ira responded that this is a chance for reflection. Given that many organizations are experiencing a skilled labor shortage while challenged by an aging population and declining working-age population, they have to pivot.  

 

“We should be taking care of people and we shouldn’t be burning them out,”

– Ira S. Wolfe 
 

Citing the World Health Organization’s classification of burnout as a legitimate mental health condition as a result of people putting in more than 100% at work, Ira stressed that living to work is not the best thing for humans or for the planet at large.  

 

What can employers do? 

 

With all that in mind, how can employers make this work for them? Ira suggests simply starting a conversation.  

Though this isn’t a fix for a complex problem, it is a good place to start. He encouraged leaders to check in on their team members, ask them how they’re doing, and have conversations about what inspires them and what they want out of life. This is especially pertinent for younger employees who are more willing to talk about these things.  

Ira also pointed out that employers focus on experience and education when hiring someone, but people are actually looking to make a difference with their work. They want to work for an organization that allows them to feel like they belong to a cause and a community. Yet, those aren’t the conversations that hiring managers have with candidates.  

“It’s simple. Just have a conversation with your employees,” Ira said.  

How Much Should Employers Monitor? 

On the question of whether monitoring employee performance could be effective in solving the issue of a lack of employee engagement, Ira says trust should be the foundation. Monitoring can be beneficial to all parties but it can also seem like too much or overbearing if there is a lack of trust between employees and employers. He described it as a George Orwell dystopic culture.  

 

“When employers are [monitoring employees] to squeeze out every bit of performance, that to me is where it breaks down because there’s a lack of trust”

– Ira S. Wolfe 
 

However, a lack of monitoring means a lack of data on how productive or effective employees and processes are. Ira stressed that when monitoring is done properly with good intentions and the right analytics, it can also be beneficial in helping everyone set healthy boundaries.  

For that to happen, employees must be able to trust that they are not being monitored just because their leaders don’t trust them to be working.  

“I don’t think it’s as much of a problem of invasion of privacy and over-surveillance as it is a lack of trust, which needs to be addressed,” he stressed.  

Leaders should have open conversations with their employees about the kind of monitoring that is being done and how it can benefit the whole organization. It must be made clear that employees are not being taken advantage of and that managers do care about their teams. Still, this is an uphill climb. 

Ira said: “We are entering this level of transparency and authenticity and trust, and the importance of trust in the workplace. But organizations have a long way to go, managers have a long way to go on how not only to build that.” 

Ira added that companies that have cultivated a safe space can have honest conversations with their employees about surveillance – from the importance and benefits to figuring out when it is overstepping.   

“Very few organizations have that and very few managers have been trained, mentored, or coached on how to achieve that,” he explained.  

 

It’s all about healthy boundaries 

When asked whether people who are passionate at work are at a higher risk of overworking, Ira made a distinction between good and bad stress.  

“When people are passionate, when they feel that they’re making a difference and they belong to a community, they will overwork but it’s not stressful,” he elaborated. 

“It’s a healthy level of stress that we’re excited, we’re inspired, we put effort into it”.  

The important thing is to create boundaries around work and change the mindset that an 80-hour work week is a ‘badge of honor’.  

Misel Ahom: D&I Enables Competitiveness, Agility & Innovation & Beiersdorf

Diversity & Inclusion has evolved from being a side project to a key business imperative. We speak to Misel Ahom, the Global Director of Diversity & Inclusion at Beiersdorf on what goes into successful D&I efforts, how to hold leaders accountable, and the challenges of pushing this agenda forward. 

 
Gain more insights from Misel Ahom’s speech during the ME Executive Day in Frankfurt on how Beiersdorf has made D&I a key pillar in driving innovation and success.
 

You are on the advisory board of BeyondGender Agenda, the D&I network in Germany. On their website, you said that diversity and inclusion are a global imperative that requires great partnerships and focused efforts. Can you elaborate on the kind of partnerships you’re talking about?  

 

I firmly believe that we are stronger together. Partnering with external organizations – be it other leading companies, networks, or NGOs – will help us to collectively advance the D&I agenda and enable us to more powerfully shape the impact of D&I both within and outside of Beiersdorf. For example, being a member of LEAD or BeyondGenderAgenda, networks that are both actively driving D&I, gives us a platform where we can exchange, share best practices, and partner with like-minded individuals and organizations that share similar ambitions. This ensures that we do not reinvent the wheel and instead focus on where we can have the biggest collective impact. All members are working towards a common goal but bring in different levels of expertise, experience, and perspectives, and bringing that together provides a strong catalyst for change. 

Diversity and Inclusion is extremely complex and multi-dimensional, so you need the expertise of others to make an impact. 

 

How can business leaders start forming those partnerships? 

 

It starts with a will and the first step is wanting to form partnerships, either internally or externally, and acknowledging that when it comes to D&I it is tough going at it alone. In order to become more inclusive and equitable, most organizations need outside partnerships to really move the needle.  

Once the will is there, the next step is approaching a potential partner that shares the same vision or ambition. It is important to go out there and start making connections, and there are many ways to do so, either via a strong personal or professional network, attending conferences and events linked to D&I etc.   

Once the partnership has been established it goes without saying that you have to commit to building and nourishing the partnership so that it becomes a mutual-beneficial, sustainable relationship that helps both parties to successfully move towards achieving their ambitions. 

In an organization like Beiersdorf, forming sustainable partnerships is really embedded in our overall approach. It is fundamental to our corporate agenda and essential to our corporate commitment to driving a more equitable organization, which in turn will drive a more inclusive society. 

 

Some of your work is around LGBTIQ+ representation in the workplace. What have been the most common challenges faced by companies in trying to create an inclusive environment for this community?  

 

 
Because there are often so few role models that are openly and visibly part of the LGBTIQ+, particularly at the more senior levels in an organization, there is still a long way to go, and many barriers that continue to exist. 

One of the biggest barriers is when people perceive the corporate culture not to be safe, resulting in a fear that coming out at work might potentially have negative consequences, either in terms of their acceptance within the organization or a detrimental impact on their career. It is important for organizations to create an environment where people feel enough psychological safety to be who they are, and that they can be their authentic selves with no fear of consequences. If colleagues are having to hide part of their identity, it impacts us as an organization because they are not able to thrive to their full potential. 

Another common challenge is that different people in the organization are at different stages of awareness and understanding of the challenges that LGBTIQ+ colleagues are facing in the workplace and not having strong allies openly taking a stand. Therefore, education is key, as is the importance of taking a clear stand as an organization both internally and externally. Additionally, it’s also important to provide people with the tools needed to really live inclusion in this space all day, every day, and all year round. 

A key success factor in addressing the challenge of LGBTIQ+ inclusion is to ensure that the right people have a seat around the table, they are being seen and their voices are being heard.  

In Beiersdorf, we are tremendously supported by our very strong and active grassroots community called Be You, consisting of both members of the LGBTIQ+ community as well as allies, who represent the voices of our employees that identify as LGBTIQ+ and help us to shape an agenda to build a more inclusive culture. Bringing it back to partnerships, this is critical as well. Bringing in the expertise of organizations striving for equity for the LGBTIQ+ community is crucial in elevating your efforts

 
Gain more insights on HR leadership with the 90Minutes Insights webinar series.
 

How can HR leaders hold the rest of their organization’s top management accountable for D&I outcomes? 

 

There are several levers we are pulling to increase the accountability of our leadership within the context of D&I, though there are undoubtedly more. The more diverse and inclusive we become, the better we can tailor to the needs of our diverse global consumer base by developing compelling product propositions, and the more attractive we will be for the future generation of leaders, so it’s a win-win-win. 

As such, we work hard to establish the mindset within the organization that Diversity & Inclusion is not only an HR topic – it’s a business topic that is relevant for the whole company because of the benefits it brings not just from a people perspective, but a business perspective.  

D&I is a key pillar within our overall corporate strategy and is fully endorsed by top management because we are convinced that it enables us as an organization to be more competitive, innovative, agile, and flexible in this increasingly volatile world. 

We also define crystal clear leadership expectations when it comes to our D&I agenda and set specific goals, objectives & KPIs both on a corporate level and embedded within individual leadership objectives, partly linked to financial rewards. The old adage “what gets measured gets done” does hold true. By making the data transparent and measuring progress against set KPIs, it is easy to identify where the pain points are, hold individual leaders accountable, and ensure action plans are defined to close the gaps.  

We place great value on the actual lived experience of our employees, and we want to give our employees the opportunity to reflect back to us if we are being successful in creating a more inclusive culture where they feel a stronger sense of belonging. This is why we run employee engagement surveys and include questions on diversity and inclusion.  This is the organization telling us whether we are doing a good job and getting better. There is almost no greater sense of accountability than that. It’s about hearing the voices of our employees and actioning their feedback

 

What do you think the future of work looks like in terms of D&I? 

 

Simply stated, those organizations that do not embrace and embed D&I as part of their overall corporate strategy will lose their edge and ability to attract the right talent. I really believe it’s the only way forward both for organizations as well as society. 

I am also convinced that when it comes to Diversity and Inclusion, we will continue to make progress, otherwise, I would be in the wrong job. I do believe it is an ever-growing movement and that the understanding of why it is important is also growing. Coupled with the fact that we live in a world that is so interconnected, the potential for change is encouraging and it’s what motivates me to keep going

But, it is a work in progress and an ongoing journey. Whilst I am hopeful because I do see traction, we should aim for a transformation because there is a long road ahead. 

 

What is one thing you hope attendees will take away from your speech, People Drive Innovation: From Diversity and Inclusion to a World Class Product Portfolio, at the ME Executive Day?  

 

Representation matters, a lot. We need diverse representation both in communication and in catering to the needs of our diverse global consumers.  From a communication perspective, we have a tremendously global media platform and with that comes the responsibility to shape the imagery that people see and demonstrate what an inclusive society looks like.  

In terms of catering to the needs of our consumers, everyone uses skincare products, everyone wants to feel good in their skin and we need to ensure that everyone can, and no one is left behind. If we get that right, everyone will benefit. 

*Answers have been edited for clarity. 

How Organizations Are Tackling the Skills Gap

The skills gap problem plagues every industry across the globe. Partly due to the rapid digital transformation wave, many organizations are still struggling to find the right people with the right skills for specific jobs.  

A global survey by McKinsey found that nearly 87% of organizations say they are facing a skills gap while the rest expect to experience it within the next five years. Additionally, McKinsey predicts that roughly 375 million workers around the world will have to switch jobs in the next 10 years to meet shifting organizational demands.

 

Which industries have the biggest skills gap? 

 

The biggest skills gap that businesses are struggling to close is data analytics, IT, executive management, and HR and talent management. The need for these talents is ever-growing but it seems unlikely that the demands will be met in the near future.  

In fact, IBM found that in Europe, the AI skills gap alone is growing with about 23% of tech recruiters having trouble finding the right candidates for a career in AI. This is a problem that will only become worse as AI moves into the mainstream.  

Additionally, the 2022 Global Talent Shortage report noted that the top five in-demand roles are IT & Data, Sales & Marketing, Operations & Logistics, Manufacturing & Production, and Customer Facing & Front Office. This shortage is seen almost evenly across industries from education to banking & finance, retail, F&B, and construction.  

The problem is well documented. However, bridging the gap is proving to be a challenge. Though organizations say that closing the skills gap is a priority for them, only a few are prepared to actively respond to the problem. McKinsey noted that only 28% of respondents say that their organizations are making effective decisions on how to close the gap, while only 41% said that they have a clear understanding of the roles in their company that will likely be disrupted.  

For those organizations that want to tackle this issue head-on, what can they do? 

 

Skills training & development 

 

One of the key approaches to addressing the talent gap is by reskilling and upskilling the current workforce. As new technology makes its way into industries, workers need the right support and training so that they can continue to contribute to the organization’s success.  

For example, German giant Henkel offers targeted learning programs to its over 50,000 employees around the world. Its Digital Upskilling Program started out with just IT and Finance learning journeys. It has now expanded to include learning programs tailored to marketing, sales, purchasing, and corporate communications, with more in the pipeline.  

Henkel’s training program functions in tandem with the organization’s Digital Talent Experience and Digital Talent Sourcing programs which include talent management and sourcing functions. The company is able to monitor and manage the talent lifecycle while redirecting the employees to roles that best fit their skill profiles and interests.  

Another example is the Urban Renewal Authority (URA) in Hong Kong which consciously cultivated a culture of learning and development by introducing a learning platform that allows experts to share their experiences and knowledge in interactive e-learning programs for their staff to access at any time. URA has also implemented mandatory learning programs which are constantly reviewed to ensure that employees are being equipped with the right skills at the right time.  

Beyond that, they are also using people analytics to build a skill-based pool and understand where they are lacking in terms of talent placement and which employees are best suited for those roles. With the use of an HR system and people analytics program, the URA can fill in its skills gap more efficiently.  

 

Apprenticeship programs 

 

Besides investing in developing existing talent, organizations are also introducing and expanding apprenticeship programs. The benefit of an apprenticeship program is that talent can be nurtured from scratch and with tailored development based on the organization’s needs.  

Siemens in the US noted that “the skills gap cannot be correct by a strong economy; it can only be correct by a strong community” which they are building via their apprenticeship program.  

Through the Siemens Foundation’s STEM Middle-Skill Initiative, the organization works with various partners in the US to build a nationwide support system to help them scale their apprenticeship programs.  

Similarly, DHL Supply Chain in the UK and Ireland has expanded the types of apprenticeships that it offers to develop the next generation of talent for the logistics industry. They also have a leadership apprentice program that aims to develop future logistics leaders. 

 

Partnering with educational institutions 

 

Externally, organizations are also playing a more active role in cultivating talent outside of the organization via educational programs. For example, Siemens USA has granted billions of dollars to various educational institutions such as the Rutgers Engineering School to help equip students with the tools and skills of the future they need before entering the workforce.  

Global finance firm JPMorgan Chase & Co is doing the same by investing over USD 350 million in its New Skills at Work initiative in an effort to address the global skills gap and prepare future talent with the right skills. The company has worked with community colleges to design a curriculum that is aligned with in-demand skills for jobs of the future.  

Similarly, DHL Supply Chain also engaged with schools, colleges, and universities to help develop employability skills and support career education within the logistics industry. The company’s VP of Talent Acquisition and Learning & Development noted that the business hopes to inspire interest in careers within the industry through its partnerships with educational institutions.

 

Tapping into the gig economy 

 

While digital transformation is part of the reason behind the skills gap, it can also be the solution – at least in the short term. Increased global connectivity has opened a whole new world of talent for organizations and boosted the gig economy to new heights. According to Eurostat, there are roughly 27.6 million freelancers in the EU alone as of 2020.  

When there is a talent shortage that cannot be filled by reskilling or upskilling, organizations are now able to cast a wider net and look beyond their geographical borders for the right skills. While they may not be long-term hires, freelancers could be the solution for some jobs that require highly specialized skills.  

An Australian software company did just when they realized they didn’t have the right developers in-house and decided to hire freelancers instead. This enabled them to not only improve their products but scale them as well in a short period. The freelancers had the exact skills that the company needed at that time.  

 

Bridging the skills gaps requires proactive solutions 

 

As industries continue to transform, the type of skills required from the workforce will evolve as well. Organizations and business leaders are at the forefront of trying to figure out the best ways to bridge the skills gap and secure the future of their companies.  

Raisa Ghazi: What’s the Long-term ROI of Diversity, Equity, and Inclusion (DEI)?

In this exclusive interview, Raisa Ghazi reveals the challenges and long-term benefits of diversity, equity & inclusion (DEI) initiatives; provides insight on the rising importance of ethics in technology, and why female leaders are essential in the 5th Industrial Revolution.

 
Raisa Ghazi is a public speaker and executive coach focusing on inclusive and ethical leadership in technology as well as women’s leadership. She is also a member of the Forbes Coaches Council and the Dutch Social and Economic Board for high-achieving women. She was recently awarded Best Ally Europe by the international non-profit organization WOMEN IN TECH – Global Movement for her work as a public speaker, entrepreneur, and activist.
 

What are the common challenges faced by organizations with DEI initiatives?

There’s a lot of resistance from the people who attend workshops on DEI. They are confronted with something that’s very hard to deal with — the fact that they are probably biased. What doesn’t help is that many of these workshops and talks, even the ones I give, are forced on employees by HR, and people don’t want to be there. Some speakers will also criticize the company a lot and leave them just like that, with no suggestions for improvement. That creates a negative attitude towards DEI.  

So, there are techniques to make them understand what it’s like to be discriminated against. It’s very important to work with a speaker who can also spark that empathy. For example, as a speaker, I need to also be honest about my own biases. The way some speakers talk can cause a lot of aversion from the dominant group in the workforce, which are men, sometimes even attacking them verbally.  

On the other hand, companies must not make DEI a single event. It needs to happen back-to-back and be visible in the behavior of leaders, company policy, and employees. Just like how big tech companies like Microsoft and Google promote the growth mindset to thrive and be successful. There are reminders of the growth mindset everywhere in their offices. If you want to imprint something positive on your employees, you must go beyond having one Diversity Week or having just one talk.   

 

What are the long-term benefits of consistent DEI efforts for organizations?

There’s been so much research on this. Companies that are more inclusive and diverse make more money. They are also more innovative and ethical.  The fact that I have to mention money to convince a company to do the right thing, to be decent human beings, is unfortunate. But I also understand how the world works and C-levels need concrete results to report back when it comes to DEI.  

In addition, DEI has to go beyond recruitment. It must have a bigger commitment. It’s a vision for how you want your products to be built, how you want your people to behave, and how you want them to market themselves. When it’s not done in a genuine way, it’s always visible one way or another. If it’s not an employee who messes up, it will be a product or event or marketing message that completely misses the boat. If companies don’t want to do DEI the right way, they will be forced eventually. I am sure about that

 

In your Forbes article, Why the World Needs More Women in Leadership, you wrote that companies with more women on the board make more ethical decisions. Can you elaborate on that?

Women are more risk-averse, and that makes them more ethical because they’re going to think twice before risking someone’s life for example, or the environment. But women are also more community driven. After a decision is made, they will think about all the stakeholders that could be affected, not just their partners but people in general who are affected by their work. When it comes to the 7 global tech revolutions such as IoT, cloud computing, and blockchain, women consider the dangers that are associated with these technologies.  

What’s important is that we take the right precautions to make sure people are safe, and that’s why women are needed. It’s very important that they are involved, but it’s also for their own benefit. If you look at virtual reality and augmented reality, which are used a lot in education, women can’t use them well because they have been made for men. Therefore, women need to be involved to make sure that these technologies are developed in an inclusive way.  

 

You specialize in helping companies and governments develop more ethical and inclusive technologies. Can you tell us more?

The ethics in technology field is so new. Stanford University, in the heart of Silicon Valley, only started teaching this in 2018. Therefore, companies that hire me usually want to discuss the basics of DEI. It’s nowhere near getting into the ethical side of technology, and I don’t think they will unless the government forces them to.   

The Dutch government has been a trailblazer in this area over the years that I’ve hosted conferences and training for them. They are discussing inclusion and diversity on a level most companies are not. They’ve been doing the work for years and it’s not a one-time thing. Most companies will just ask me to speak at their Diversity Day and it ends there.  

I’m very interested in measuring DEI outcomes in companies but in the Netherlands, there’s a lot of legislation that prevents effective assessment of inclusion and diversity. Another challenge with measuring DEI outcomes is that it’s an in-depth process that requires plenty of effort and money. Most companies don’t think it’s worth it.  

 

What do you hope attendees will take away from your presentation at ME Executive Day?

I hope to inspire the decision makers and show them a different side to diversity and inclusion. I want to spark a curiosity in what is about to happen in the next century and the changes to expect when it comes to diversity and inclusion in technology. These people are the best of the best and they want important information. I want to give it to them so that they are prepared to be visionaries in their organizations.  

 

*The answers have been edited for length and clarity. 

Stephanie Stanislawski: HR is Changing the Rules of Engagement

Stephanie Stanislawski, Senior Platform Product Manager at Personio and TEDx speaker, provides insights on the future of Human Resources (HR) and employee engagement, strategies for how HR teams can become key business advisors, and how to shift from reactive to proactive recruitment. 

 

The Future of HR is Content and Branding

 

I want to share with you a few things that I know are coming your way in terms of the future of HR. The first thing is that the old recruitment ways are dead. We cannot assume that job boards work the same way as they used to. We cannot assume that great talents are actively looking for jobs. The best talents are usually not looking, and they may not even want to be approached for a job.  

The new generation also does not want to stay in a company for 15 years. What used to work before in terms of benefits like having an amazing office with full pantries and a ping pong table are no longer alluring because people prefer to work from home.  

The other thing we’re seeing is that content is becoming more important than ever. One of the main things that new generations consume is content as we move towards a content-based society. So, companies need to change their focus quite a bit and become more proactive with recruitment efforts.  

Obviously, employer branding is directly linked to this. The content you create has to be connected to your overall employer branding.  

I think the role of recruiters and HR professionals will start to evolve to meet these new demands from being passive or reactive to proactive and strategic.  

 
Keep up with the latest trends and technologies with our 90Minutes HR Insights webinars featuring industry experts and thought leaders.
 

Nurturing A Global Network of Talent

 

Companies also must move towards long-term nurturing of global networks of talent – which they can build via content creation. This includes building videos around company culture, blogging, and creating courses. They need to find ways to engage the global community and build a network of talent.  

There are already some systems in place, and new ones coming up, that allow HR professionals to assess these global networks to find the right talent. These companies, like Pymetrics, are already helping you sort out talent by skills, knowledge, and preferences. There is more focus on skills rather than academic performance.  

That then gives you a pool of passive and engaged talent that are ready to go when you need them. So as soon as you have a vacancy, you can tap into your talent pool and find the right person to fill the seat. This entire process of skills assessment is becoming automated, which helps tremendously in predicting future organizational needs and ensuring that companies are ready for it.  

There are also tools that track internal team structures and communications to measure engagement. With that, you will be able to quantitatively support recruitment efforts by identifying risks, learning opportunities, and skills that will perform best in specific roles.  A data-driven approach can help match the right skills to the right roles. 

 

HR as a Disrupter 

 

HR will stop being a liability or drain on resources. Instead, HR can start to build new sources of income. For example, by charging for courses or becoming part of a global network of talent. 

Beyond that, HR becomes a disrupter and changes the rules of engagement. This can look like allowing people to choose the kind of benefits they want, or even renting out talent to NGOs or other companies.  

With the rapidly changing landscape, HR professionals must upskill their own profiles. One thing they can do immediately is to learn as much as possible – about employer branding, content creation, and the evolving technology ecosystem. Keeping an eye on these changes and starting to build that talent network is crucial. Even if you’re not offering them a job, just initiating a connection first could pay off in the long run.  

 

Talent Mobilization Will Be Crucial

 

We know that Europe, Canada, Australia, and some other regions will very soon see a significant need for fresh talent coming from other geographies where there is plenty of young talent but a lack of opportunities.  

With this, I do see a need for mobilization. Global mobility will remain an important discussion, and hopefully governments will figure out an efficient process around taxes, migrations, and visas.  

Additionally, remote work will continue to be the norm. If companies want to engage talent from wherever they are in the world, they can. Because it may be difficult for people to move countries for various reasons. This will be a growing trend and we will see plenty of development in this area.  

 

Modernize Recruitment Strategies to Attract Younger Talent 

 

Gen Z will be approached through content. It’s extremely important for them. Even marketing is changing. They no longer care if celebrities like Britney Spears have the latest Adidas shoes. They just want to see influencers, people like them to whom they can relate.  

So, I think companies need to focus on engaging that talent in a more human way through content like videos and talking about the benefits of working in a company via reviews. Essentially, things that are working in e-commerce will probably also work for talent and engagement. HR teams must step it up in terms of employer branding, content creation, and even looking to influencer programs to engage the younger generation.  

 

*The transcript has been edited for length and clarity.