EMPLOYERSGlobal Best PracticeAN EXECUTIVE APPOINTMENTS SPECIAL FOCUS www.ft.com/recruit | @FTCareerMgmt on Twitter

Golden rules are tolisten and measure

Human resources hasbecome part of the hard-ware of a company and HRprofessionals need to meas-

ure the effects of their policies on thebusiness.

This is the view of the chief execu-tive of an organisation that conductsan annual survey of HR best practiceat leading companies around theworld.

David Plink, chief executive of theCRF Institute, says creating the rightconditions for employees, being con-sistent in communicating and imple-menting them, and measuring thereturn on investment in policies suchas training are the golden rules fortoday’s top employers.

“We believe an employer must offerthe best conditions for employees toreach their full potential. People nowdemand individualised programmesfor them to grow; diverse and chal-lenging work; and growth that can belateral, not necessarily vertical,” hesays. “Everyone has their owndemands and companies have to lis-ten and be consistent.”

To earn a place in the boardroom,HR professionals have to think howthey can serve as a profit centre, hesays.

“It used to be that after completinga training course, employees did a testand filled in a questionnaire. But thattest could be done again in sixmonths, or a year, to ensure theknowledge is still there,” he says.

“The career development of employ-ees can be tracked to discover thelong-term effects of investment inthem. In big companies, the number

of employees is large enough to getgood data.”

The CRF Institute’s survey meas-ures companies against a number ofcriteria. Those achieving the bench-mark are awarded a Top Employerscertificate. About 11 per cent of thoseapplying this year failed during thecertification process, sometimesbecause benefits were not formalisedin policy, because employees did notknow about them, or companies sim-ply did not offer as much as expected,says Mr Plink.

Companies are assessed on primarybenefits, which covers monetary bene-fits, pay policy and performance pay;secondary benefits and working condi-tions, which includes non-monetarybenefits, work-life balance andemployee well-being; and training anddevelopment, which covers talent

management, employee competenciesand development programmes.

Also covered are career develop-ment, which includes succession plan-ning, career paths and performancemanagement; and culture manage-ment, which covers an organisation’sability to establish a strong culture,employer branding and induction.

Over the past year, 780 companiesin 45 countries were surveyed andmore than 70 questions were askedcovering aspects such as absenteeism,turnover, women in executive man-agement, mentorship, flexible work-ing arrangements, HR priorities,annual leave and growth in staff num-bers.

This year’s survey highlights inter-

esting differences across Europe,Africa and China. Companies in allthree regions make talent manage-ment and employee engagement theirtop priorities, but their third prioritiesvary: in Europe it is learning anddevelopment, Africa prioritises organ-isational change, and in China it isleadership development.

China’s staff turnover rate is 20.1per cent, compared with Europe’s 10.5per cent and 12.3 per cent in Africa.But China has an absenteeism rate ofjust 1.8 per cent, compared with 3.7per cent and 3.6 per cent in Europeand Africa respectively.

Mr Plink says staff turnover islower in companies with a clear“employee value proposition” – thebalance of rewards and benefitsreceived by employees in return forperformance.

There are plans to expand the sur-vey to Latin America and the Asia-Pacific region, followed by NorthAfrica and the Middle East.

Global companies that say they useestablished HR best practices to com-pete for talent include Infosys, the IToutsourcing group based in India;Japan Tobacco International, ownerof several leading cigarette brands;and software giant Microsoft.

They combine these with specificincentives that might be regional andpromoted as the company’s uniqueselling point.

For example, the Infosys LeadershipInstitute is promoted to develop apipeline of senior executives; JTI citesemployee recognition of core culturalvalues across the company; andMicrosoft in Africa finds flexibleworking to be an attraction.

The Infosys institute has alreadyproved its worth in attracting andretaining talent, says Matt Barney, itsvice-president and director: “Leaderstell us the institute’s combination ofscience and practical training per-suaded them to join the company.”

JTI says employee surveys show its

values have been absorbed by the vastmajority of its 25,000 employees. “Weare proud to say we have the rightstrategy in place,” said Ilona Alonso,JTI’s human resources vice-presidentfor western Europe. “Where we aredifferent is in furthering our cultureand values, and our employees livethose values.”

Mark Phillips, JTI’s HR vice-presi-dent for central Europe, says the com-pany’s emphasis on internal promo-tion ensures employees feel they havea stake in the future: “People movefrom the developed world to the devel-oping world but also the other wayround, because talent is talent. Withthese possibilities, people have asense of purpose.”

Cherise Mendoza, Microsoft’s HRleader for West, East and CentralAfrica and the Indian Ocean islands,says she is able to use cross-companytools and tailor them to her region: “Imanage 49 countries in sub-SaharanAfrica and it would be a luxury tooffer training and development ineach. But I can use our virtual toolsand connect via technology.”

Many of the multinationals operat-ing in Africa have benefited fromtheir experience in more establishedmarkets, allowing them to escape HRmistakes of the past, says Mr Plink.

“There are specific challenges wher-ever you go in the world but there’s asimple rule: listen to your employees,”he says.

Sharmila Devi reports onthe key findings from anannual certificationprocess that identifies theworld’s Top Employers

Inside

‘You don’trealise howmuch yourconfidenceandcommunityrely on beingemployed’

A senior leader with the UK’sNational Health Service once told Les-ley Uren, a talent management expertat PA Consulting Group, that clini-cians found it easier to tell someonethey were critically ill than to have aconversation with a colleague abouttheir performance or career potential.

“The reason was because the doctordid not necessarily have an in-depth,personal or long-term relationshipwith their patients, but did with col-leagues and this goes to the heart ofthe issue,” she says.

“Having a great conversation is ahighly skilled task and we are askingline managers to develop a skill set ona subject that actually takes theexperts years to master.”

For many employees, “the organisa-tion” is represented by their line man-ager, who today is expected to act as amentor, champion and one-person HRdepartment to each of their reports.

This can have the effect of distract-ing managers from their business crit-ical functions and stifling personaldevelopment as they seek to hang onto their best people by blocking move-ment to other departments.

Meanwhile, HR chiefs are seeking abigger role in business strategy. Butsome experts, such as Ms Uren, havesuggested instead a bigger role for HRin managing and developing talent,having the difficult conversationsabout performance, and guiding andmentoring individuals towards careergoals and greater satisfaction within

Bossesexpected tomasterHR skillsLine managersSharmila Devi meets anexpert who argues thatdeveloping talent shouldbe a specialist task

Continued on next page

China’s staff turnover rateis 20.1 per cent; in Europeit is 10.5 per cent. ButChina has an absenteeismrate of just 1.8 per cent

David Plink, chief executive of the CRF Institute, says of the institute’s TopEmployers programme: “It recognises excellence in the strategic management ofpeople in the triple bottom line – people, planet, profit – in the world’s leadingorganisations. These organisations have proved HR is strategically important toreach their business goals. The certification itself sends a strong signal tostakeholders and the marketplace that the organisation’s employment practicesare globally competitive, attracting the best talent. We see that spending at thebest organisations has not declined in the field of employer branding or HRcommunications, even in the current economic climate.”

Missing the workplace

2 ★ FINANCIAL TIMES THURSDAY APRIL 11 2013

Benefits of a job go beyond pay packets

Explaining how a company’spension scheme works isnever going to be an easytask. Dry, technical and, for

younger employees, a distant pros-pect, pensions rank among the leastengaging of topics.

Other equally valuable benefits,such as a medical plan or life assur-ance provision, can also be a difficult“sell”.

Yet companies spend vast sums ona wide range of employee benefitsand, while they might not be thedeciding factor in persuading some-one to join a company, they can formpart of the mix that makes a desirablenew “hire” join one business ratherthan the opposition.

“Employers spend millions ofpounds providing employee benefits,”says Tessa Wishart, senior communi-cations consultant at Towers Watson,benefits consultants. “If they putmore thought into communicatingwith staff, they would be more likelyto get payback for the moneyinvested.”

One company that had traditionallyadopted a staid, paternalisticapproach to benefits revamped itscommunications strategy to make itmore accessible and incorporate feed-back from employees. Previously, only2 per cent of workers had respondedto the company’s messages; the newapproach prompted a 40 per centresponse rate.

“People said that this was the firsttime they had really understood theirbenefits,” explains Ms Wishart. “Peo-ple struggle to understand pensionsand when the penny finally dropsabout how much they will receive onretirement it can come as a shock. Ifthey understand where they are, theycan do something about it.”

As company and taxpayer-fundedpensions around the world comeunder increasing pressure, the chal-lenge of choosing a pension plan thatdelivers a decent standard of living isincreasingly shifting towards the indi-vidual employee. The move in the UKfrom defined benefit to defined contri-

bution company pensions makes itessential for employees to understandand monitor their scheme.

For companies with cross-borderoperations, benefits arrangementsmust reflect local legislation and prac-tices while fitting into the overall cor-porate philosophy. “The overarchingmessage of companies that we haveworked with is about risk and manag-ing uncertainty,” says TamasineFryer, principal at Mercer, the bene-fits consultancy.

The common feature of effectivecommunication strategies is that theyattempt to engage staff instead of sim-ply providing them with information.Ms Wishart offers the example of aclient: “Presentations used to have avery corporate look and feel. It wasdeath by PowerPoint. In no way werethey seen as engaging or fun. Webrought in a very open, cleaner, morestraightforward approach.”

The answer, she says, is to makecommunicating a benefits programmemuch more of a two-way process. “It

used to be about pushing out informa-tion and not about encouraging aresponse or providing an opportunityfor feedback. It should be aboutemployees joining the conversation.”

An increasingly popular way ofensuring employee engagement is“gaming” – incorporating importantinformation in a playful context thatconveys a message painlessly. Toovercome the problem of people sit-ting at the back of presentations, fid-dling with their BlackBerrys, partici-pants at one company were providedwith handsets and set a series of ques-tions, for example.

“We didn’t talk about life expecta-tion,” says Ms Fryer. “We asked peo-ple to guess the life expectancy of alabourer in Bethnal Green in the 1830s– 16 years – and compare that with amember of the landed gentry – 36years. There were gasps from partici-pants. Then we asked them what lifeexpectancy was now. They could seewhat answers their colleagues weregiving so they did not feel silly notknowing.

“That is the same approach as that

adopted by a good educator in school.You make it compelling, interestingand memorable. As people’s attentionplan shortens it is increasingly impor-tant to enable people to share infor-mation and experiences.”

A danger of involving everyone inthe conversation is that forceful indi-viduals can have a disproportionateimpact on their colleagues. One com-pany discovered that an unusuallylarge number of its pension schememembers were invested in particularfunds. On investigation, it found onemember of staff had persuaded manyof his colleagues that this was asound investment, so they had all fol-lowed.

As well as engaging staff, benefitsmessages must be kept up to date aslegislation changes, employees livesmove on and new employees join.“You have to repeat your messages ifyou want to maintain interest and getpeople to take action,” says Ms Fryer.“You have to develop your pro-gramme and respond to feedback.”

Dimension Data, an IT services com-pany, updates its UK hosted website,called Valued, each year in responseto changing conditions and to bench-marking exercises carried out againstother companies in its field. Regularemployee surveys are carried out andrecently led to changes to maternity

benefits for staff. “It is a continuouscommunication,” says Jane Wood, HRdirector for Europe.

Communicating benefits provisioncan be a tricky part of a company’srelationship with employees but bene-fits rarely stand alone. They usuallyform part of the wider dialoguebetween management and staff that isvital to maintaining morale and com-municating a sense of direction.

Virgin America, an airline servingdestinations throughout North Amer-ica, reconfigured its method of com-municating with its 2,700 staff at morethan 20 locations.

“We had had an intranet platformfor several years but we knew we hadto revamp the way we communi-cated,” says Ben Eye, manager ofteammate engagement and communi-cation. “We had to deal with the 90per cent of teammates [staff] who areremote, so we designed it to foster asense of involvement.”

The company’s previous platformcontained a lot of information butlacked two-way communications sodid not make it easy to obtain feed-

back. It was not mobile-friendly andwas proving difficult to maintain.

Working with Appirio, an IT serv-ices provider, Virgin America custom-ised the Salesforce “Chatter” platformto allow a merging of social mediawith business processes. Part of whatVirgin America calls its VX Connectplatform is devoted to HR topics,including an explanation of the com-pany’s benefits package. It alsoincludes customised forms that allowstaff to enrol in a pension plan andapply for medical leave.

Queries can be submitted to mem-bers of the benefits team online.“Because the entire department ismonitoring what comes in they get ananswer more quickly,” explains MrEye. “But this is broader than justbenefits: it stimulates the level ofengagement. We have a very openenvironment and we see that as ourdifferentiator in the airline industry.”

Ms Wishart says: “Technologyallows you to be more effective andtargeted in your approach. Communi-cation can be effective without havingto go too far in terms of cost.”

Bosses expected to master HRthe workplace. This might increasetheir value to an organisation andenhance their experience at work.

“What we know is that althoughperceived wisdom is that this is theline manager’s ‘job’, most organisa-tions will tell you that their line man-agers find this part of their role par-ticularly challenging – indeed, creat-ing a culture where great conversa-tions happen between the individualand the line manager is almost the‘holy grail’,” she says.

“Consider as well that we have his-torically attempted to close this gapby building line manager skillsthrough training programmes of oftenquite short duration. Putting this incontext, this often means that weneed to build the capability of linemanagers to understand seven techni-cal concepts about performance,potential and development and atleast four different types of conversa-tional skills – each of which havemore complex sub-sets.”

The search for talent and develop-ing it are indeed seen as an importanttask for managers in large companies.

“Development of our people by man-agers is part of their day-to-day job,”says Mark Phillips, human resourcesvice-president for central Europe atJapan Tobacco International. “We sitdown with teams in a region or coun-try to ensure everyone understandsthe need to release talent. We go togreat lengths to explain what itmeans to develop people and maketalent available.”

Company leaders at Infosys, the IToutsourcing group based in India, arealso aware of the perils managersface, particularly when it comes tofeedback.

“There are many, many ways to getleadership development wrong,” saysMatt Barney, vice-president and direc-tor of the Infosys Leadership Institute.“Studies show that one-third of thetime, feedback can make things worseand another third of the time it does

nothing at all. But look at the thou-sands of pounds, euros and rupeesspent on this.”

A study by PA Consulting in 2011asked organisations what theythought their talented individualswanted and what they offered them.They also asked talented individualswhat they really wanted from theirorganisations.

There was only 45 per cent align-ment between what talented individu-als wanted and what their organisa-tions offered them.

Those organisations more aligned towhat their talented individualswanted had a total shareholder returnof up to 44 per cent higher than thosethat were less aligned. “Open, honestand transparent” communication wasone of the issues rated most highly aspart of an individual’s relationshipwith their organisation.

The four key elements of a balancedconversation are: suspending assump-

tions, listening, inquiry and advocacy,according to “The role of HR in con-versations”, a PA Consulting reportreleased recently.

Ms Uren believes HR professionalsare “missing a trick” in their keen-ness to get involved with businessstrategy and should reclaim theground as experts in conversation andperformance dialogue and the lost artof pastoral care.

“HR talks about the need for a seatat the table and it deserves to be abusiness partner,” she says. “At theheart of that, HR needs to prove it cancreate value and we can prove thatspending time on quality conversa-tions does make a substantial contri-bution to the bottom line. Provenengagement, not a once a year conver-sation with a line manager, drivesperformance.”

Having a “quality conversation”means focusing on an individual’sfamily, interests and long-termdreams as well as their career – thishelps to ensure the organisation has abetter understanding of the personand clarifies their career direction.

The HR function of the futureshould reclaim a role in leading onthese quality conversations andshould extend its influence to act asthe broker to move people around theorganisation. This would result in HRreturning to its roots as employeechampion and trusted adviser. HRexperts would feel comfortable in fourmain roles: a technical professional,employee lobbyist, organisation archi-tect, and business leader.

Ms Uren says a client who workedin the fast-moving consumer goodssector had decided to “throw away thebook” to spend more than half hertime on one-to-one conversations withindividuals about their career and hadhad 70 meetings so far.

“Not all managers have a naturalpredisposition to lead,” she says.“They wanted to be an accountant oran engineer but ended up leading oth-ers and it becomes tough grafting onadditional skills.”

Benefits usually form partof the wider dialoguebetween management andstaff that is vital tomaintaining morale

Employers: Global Best Practice

Continued from previous page

Missing the workplace Being unemployed brought loss of confidence and self-worth

Piers Graham, a 42-year-old TV visioncontroller with New Zealand’s TV3channel, knew he was taking a riskwhen he quit his job there to join hisgirlfriend in the UK.

But he had worked in the UK beforeand never had a problem findingemployment through one of the largerecruitment agencies.

However, even allowing for theeconomic downturn and its impact onthe UK jobs market, he was surprised

at the time it took to find a job thatmatched his areas of expertise. He hasnow passed an initial interview andbeen signed up in a “pool” ofcandidates for a job – though there isno guarantee – with an independentcompany servicing the largebroadcasters.

A vision controller ensures TVprogrammes go out on time with theproper titles. The proliferation ofchannels in the UK has increased the

demand for such expertise.But being unemployed for such a

long time has been stressful, MrGraham says. It is not so much aquestion of the lack of a corporatestructure and support as the loss ofstatus that being without a job implies.

“There is a definite loss of self-worth.You don’t realise how much yourconfidence and your community offriends relies on you being employed. Iwould get a sinking feeling when

people asked me what I was doing. Iworried that people perceived me ascoming here to live off someone.”

A particular challenge was posed bythe fact that so much recruitment isnow done online, a development thatMr Graham, who has an “ancestralvisa” allowing him to work in the UK,found particularly alienating.

“I thought I would ring up theagencies and talk to them. But I had toemail my CV and then I didn’t hearback from anyone. At best I got amessage saying: ‘Thank you but weregret to inform you...’

“I hooked up with the agenciesonline and they seemed fairlyinterested. But it quickly dawned onme that it was not going to be easy.Even though I had used them beforethey were not as forthcoming or asopen as they used to be.

“There is no human contact unlessthey are interested so you can’t ‘sell’yourself to anyone. It made mequestion everything. Was I doinganything wrong? What were peopleseeing in my CV that was causingthem a problem?

“The agency websites advise you notto apply for jobs that you don’t havethe right skills for so there must be alot of people sending their CVs all overthe place.”

Nearly four months spent looking fora job made Mr Graham questionwhether employers would see him astoo old for the job he was seeking andwhether he had acquired enough skillsto make the grade. “You get a lot ofjob adverts looking for enthusiastic,career-driven young people. I alwaysthought I was in that category but Iam 42.”

He also worried that his lack ofcontacts in UK TV would work againsthim. “Connections go a long way in themedia world and I had none overhere.”

Even for someone used to aperipatetic lifestyle and a workingenvironment that was not particularlypaternalistic, the past few months haveproved challenging for Mr Graham. It isa relief to him that that period ofuncertainty now appears to be ending.

CommunicationCharles Batchelor looks athow organisations get themessage across toemployees about thepositive side of work

Lesley Uren: ‘quality conversations’

FINANCIAL TIMES THURSDAY APRIL 11 2013 ★ 3

4 ★ FINANCIAL TIMES THURSDAY APRIL 11 2013

Companies strive to avoid uniformity

Human resources profession-als could learn a lot frommarketing in how to getand keep the loyalty of tal-

ented individuals, says David Richard-son, managing director of People inBusiness, an employer brand consul-tancy.

“Marketeers understand the con-sumer, how to attract and retain theirloyalty, and we in HR need to do thesame in the world of work,” he says.“It is a lot more complex than theconsumer relationship and we don’tmeasure it or quantify it as well butHR should take the opportunity tothink as marketeers.”

Such a move would enable compa-nies to differentiate themselves amidincreasingly common best practicesthat run the risk of making globalentities appear uniform as they seekto attract talent.

Mr Richardson says a careful blendof science and art is needed. The sci-ence part is making sure a company

has the right elements, such as proc-esses, pay, career development andmanagement. A review could easilyspot gaps.

The art involves thinking about peo-ple, not processes, he says. “Best prac-tice doesn’t always bring out whatpeople feel. For example, a lot of com-panies talk about innovation and haveit in their messaging but do theyknow what it looks like and how tobring it to life?”

GE, the US manufacturer, focuseson “lean manufacturing”, so its peoplelook for opportunities to do things dif-ferently at all times, he says. Disneytakes a cultural approach, in whichpeople think constantly about how todeliver their “magic”. Meanwhile,Channel Four, the TV company, ismore about “making trouble”, so itsbrand of innovation centres on creat-ing debate. “Everyone has their ownapproach to bringing innovation tolife,” says Mr Richardson.

Cherise Mendoza, Microsoft’shuman resources leader for West,East and Central Africa and theIndian Ocean islands, says some har-monisation of best practices was nec-essary for any big company operatingon the global market but this neededto be coupled with differentiation toprovide competitive edge.

“One of the benefits of being a glo-bal company is that so many of ourpolicies, such as talent managementand succession planning, are set on a

global basis – but we can localisethem in specific regions,” she says.“In Africa, flexible working has beentested and it’s one of the most impor-tant factors to our employees so wegive them the tools and resources to

work from home.”Other important differentiating fac-

tors involve offering a career for thelong term and giving opportunities tosee the world and experience differentmarkets in one of Microsoft’s manyglobal divisions, she says. Meanwhile,feedback, particularly through anannual poll of Microsoft’s 95,000employees, is taken seriously.

Japan Tobacco International, whichhas about 25,000 employees in morethan 120 countries, also says it listensto employees and is heartened by theresults. It found in an employeeengagement survey conducted lastyear that 88 per cent would recom-

mend the company to a friend while94 per cent were willing to make extraeffort to help the company succeed.

“The survey proved to us thatwhat’s very important is that we lis-ten to our employees and that makesa big difference with other compa-nies,” says Ilona Alonso, JTI’s HRvice-president for western Europe.

An average of 80 per cent of JTI’sleaders are appointed internally andsince 2004, the number of interna-tional assignments has quadrupled.Ms Alonso says: “One of our strengthsis very robust succession planning.”

“People are seen as important asbrands because brands are created by

people,” says Mark Phillips, JTI HRvice-president for central Europe.

Infosys, the IT outsourcing com-pany based in Bangalore, says it aimsto set its legacy for the next 100 yearsthrough the Infosys Leadership Insti-tute, which focuses on developingmore than 800 leaders.

“We are unique, to the best of ourknowledge, in focusing on senior lead-ership through science and our workwith academics as we seek to rebrandthe company around leadership andaround the world, not just India, witha move into consulting and entrepre-neurship,” says Matt Barney, vice-president and director of the institute.

“We treat our senior leaders likegold medallists and our 330-acre cam-pus is the Taj Mahal of education. Weoffer psychometrics and a customisedportfolio of knowledge based on thelatest science on thought leadership.We treat our leaders like a privatebanker would treat high net worthindividuals,” he says.

It also tries to be eclectic and fun. Agame, “Grandmasters of Influence”,seeks to develop the principles of cli-ent relevance and ethical influence,says Chitra Sarmma, the institute’ssenior manager for leadership andorganisation development: “There arefoibles and fun and we’ve found thatthe science and practical haveblended well together and help lead-ers to achieve in the real world.”

Mr Richardson says the institute isone of several initiatives he has seenin the developing world that aims tofoster local talent and leadership.

In more mature markets, as compa-nies cut budgets for training anddevelopment, they risk missing anexternal focus to the company: “Ifpeople aren’t being sent off to Har-vard or wherever, they miss out onmaking strategic alliances acrossbusinesses and industries,” he says.

The value of benefits changesat different stages of life

The range of employment benefits onoffer is diverse – from life insuranceto on-site opticians and reflexology.Yet it is surprising that as the eco-nomic downturn continues to bite, themost prized benefits relate to a moreflexible work-life balance rather thanfinancial rewards.

Clive Davis, director at recruitmentspecialist Robert Half UK, agrees thatbenefits around flexible working arethe most desirable: “The ability towork flexibly from home is often val-ued above a greater salary. Even theoption to carry leave days over to thenext year is appreciated.”

The Chartered Institute of Person-nel and Development found in its 2012Reward Management Survey that flex-ible working was the most desiredemployee benefit followed by gener-ous annual leave and training andcareer development.

Ben Willmott, the CIPD’s head ofpublic policy, believes the businesscase for providing flexible working isclear, with benefits includingincreased retention, lower levels ofabsence and higher levels of job satis-faction and engagement.

However, employers also need toensure managers are equipped withthe skills to manage people workingflexibly: “The current debate aboutthe need for staff to be visible at workto be truly productive shows flexibleworking is still viewed with suspicionin some organisations.

“HR leaders need to highlight thebusiness case for providing flexibilitywhere the requirements of the busi-ness allow. Managers also need to getbetter at managing flexible workers –for example, managing performancebased on output and contribution andnot time spent in the office.

“People need to feel they are beingdeveloped at work. Employers tell ustraining spend will reduce – two-fifthsof our survey respondents anticipated

a reduction in learning and develop-ment in the next year.”

The John Lewis Partnership isfamous for its employee partnershipmodel. As co-owners, partners aresaid to be able to enjoy the benefits ofthe business’s success. In March thisyear, all partners were awarded abonus of 17 per cent of their salary –equivalent to nearly nine weeks pay –following strong trading throughoutthe past financial year.

By being co-owners, partners knowthat they will directly benefit fromtheir hard work and as a result, thebusiness model helps to increaseemployee motivation

Smaller organisations also embracesimilar models. At Make Architectseveryone is a partner and has a say inownership so the business cannot besold without employee approval. Theownership is held by an employeebenefit trust which holds the issuedshare capital of the company.

As Barry Cooke, finance director,

explains: “This model gives people asense of responsibility – the oppositeof a culture where people struggle tothe top and climb over others on theway. If someone is failing, people rallyround. It’s not ‘dog eat dog’, wherepeople stand aside and let them fall.”

Make’s benefits programmeincludes private healthcare, childcarevouchers, a cycle to work scheme,generous non-contributory pensionscheme and enhanced maternity pay.

Company size can determine therange of benefits. Clive Davis of Rob-ert Half explains that the larger thecompany, the more likely employeeswill be able to pick from a menu ofbenefits. He notes that in mid-sizedorganisations, offering discounts withleading brands via group purchasingschemes is popular and recalls oneperson claiming that their family hadsaved more than £3,000 that yearwhen buying household items and a

holiday through such a scheme.In terms of financial reward, Mr

Davis sees more individual bonusschemes based on performance, ratherthan the company-wide bonusschemes that were tied to the organi-sation’s performance. Deferred shareoption schemes and enhanced pensioncontributions are also common.

However, Richard Pibworth, vice-president of European HR at SamsungElectronics, points out that givingemployees the flexibility to enhancelife insurance cover to double thestandard benefit rate – or more – isalso popular. He is witnessing a trendfor “financially sound” companies toimprove their benefits packages.

Employees tend to value differentkinds of benefits more at different lifestages. The opportunity for spa mem-bership and 4pm finishes on Fridaysis later replaced by the wish for child-care vouchers or the chance to men-tor apprentices.

In terms of meeting the wish-list ofyounger employees, Jane Wood,Dimension Data’s European HR head,finds they are less concerned withfinancial reward and more keen onopportunities for involvement in cor-porate social responsibility. The com-pany developed a “Head, Heart andHands” programme, which givesemployees the chance to volunteer aday a year, supporting local communi-ties and charities.

The company has also introduced a“Bring Your Own Device” initiative,which enables staff to choose whetherto accept a company device or use oneof their choice.

Whatever benefits are on offer, MrPibworth says employees need to feelthey are in control: “The key thing isto make people feel they are empow-ered by offering a bespoke package,”he explains.

“This ability to choose mattersmore than the range of benefits onoffer. The banking, consulting andfast-moving consumer goods sectorshave been the most creative in thebenefits area so, for us, as the con-sumer electronics sector grows in sig-nificance, we need to meet the expec-tations of the talent joining us fromthose areas. Companies should usethe technology available to showemployees a ‘dashboard’ of benefitsavailable. Those that do will have acompetitive edge.”

Art and science: inspiring loyalty is said to involve a mixture of ‘the right elements’ and ‘thinking about people’ Dreamstime

Employers: Global Best Practice

The opportunity for spamembership and 4pmfinishes on Fridays is laterreplaced by the wish forchildcare vouchers or thechance to mentor others

Organisations do not exist inisolation. Their “stakeholders”include local residents, politiciansand, of course, employees.Embedding a sense of the purpose ofthe organisation, its values and itsrole in the community can mean asmuch to staff retention as agenerous benefits package.

Ruth Colling of Nicholson McBride

business psychologists recallsteaching schoolchildren while atWarburg Bank: “Corporate socialresponsibility has existed for years.If you work for a company whereyour values are mirrored in yourwork, then the sense of ‘fit’ is better.You understand your role and yoursense of purpose.

“This sense defines the culture andvision of the organisation and this iscascaded down so people understandthe competencies and behavioursneeded to deliver that vision.”

Ben Willmott, head of public policyat the Chartered Institute ofPersonnel and Development,emphasises the importance ofcompanies having a strategicnarrative that everybody can

understand: “The issue of cultureand values has never had a higherprofile as a result of the breakdownin trust in the City, as well asscandals like phone hacking andconcerns over the National HealthService.

“Of course, values are only worthmore than a passing reference on thecompany intranet if they actuallyinfluence how people behave. Seniorleaders need to hold a mirror up totheir own behaviour and consider itsimpact in setting the overarchingculture.”

CSR programmes include enablingemployees to become schoolgovernors and reciprocalarrangements between sectors.

Barry Cooke of Make Architects

adds that, at interview, architects areattracted by Make’s aim ofpreserving and enhancing theenvironment as far as possible.

Jane Wood, Dimension Data’sEuropean HR head, says executivesvalue such opportunities: “We stageda leadership event for 80 leaders inMunich which involved buildingbikes for a local orphanage.”

According to Lynne Weedall, groupHR and strategy director atCarphone Warehouse: “Whenengaging with employees we stressthe ‘why?’. Our mission is to makemore people’s lives better throughconnected technology.

“Different teams devise bespokeactivities which fit this vision. Oneteam chose to run sessions for older

people on how best to usetechnology. We ask employees to beclear about our purpose andchallenge them to bring it to life.

“We brought 1,200 managerstogether via a live satellite challengeand they transformed a local libraryinto a community ‘hub’.”

The impact of such communityinvolvement can be measured.Brewer SABMiller sees its businessesas part of the local communities inwhich it operates. It commissionedresearch by Professor EthanKapstein of Insead Business Schoolthat showed that for every person itemploys in Uganda, the company’spresence supports a further 200 jobsor more in the wider economy.

The company’s “Ten Priorities,

One Future” programme defines theenvironmental, social and economicissues that are most material to itsbusiness. Andy Wales, senior vice-president for sustainabledevelopment, says: “Our activity ismore than local philanthropy. Itneeds to be aligned to the corebusiness strategy.

“One example is in Colombia,where our local business runs theentrepreneurship programme‘Destapa Futuro’, and employeesmentor the beneficiaries of theprogramme.

“In 2011 we measured employeeperception among 400 UK staff andfound 95 per cent of respondentsagreed the company is serious aboutits responsibility in society.”

Culture, values and vision create common purposeEngagementMaxine Boersma talks toorganisations about theirefforts to create a clear‘strategic narrative’

Employee satisfactionMaxine Boersma looks atwhat is on offer tomotivate staff – and findsflexibility and bespokepackages are popular

DifferentiationOrganisations seeksimultaneously to adoptbest HR practices whileprojecting a unique brand.Sharmila Devi reports