Pilar Jerico

Our working life is increasingly going to resemble a relationship, or a marriage, with the odd separation thrown in for good measure; and this is going to happen, whether we like it or not. The world is changing, and our working lives will change in step with it. A few years ago, the management consulting firm, McKinsey, said that in 1990 a person would work on average for two companies throughout his/her working life, but that by 2010 the figure would rise to ten. This estimate now seems excessive in the light of the current economic crisis which has put a brake on people changing jobs (which makes the life of many human resources departments easier, and has conversely made life more difficult for the many people seeking new pastures). That being said, the pace of change is such that no manager can feel confident that he will hold down the same job all his working life. This has profound consequences both for companies and for employees.

As regards companies, the fact that they cannot guarantee a job for life is not a justification for playing on people’s fear of being dismissed. We all need a minimum degree of security to give the best of ourselves, and the constant threat of losing one’s job is harmful both to the company and to its staff. If a company cannot guarantee long-term job stability, it will need to implement strategies which increase its employees’ emotional commitment to the company, such as a good atmosphere at work, and innovation at all levels of leadership. I wonder how many companies are actually doing this…

As far as employees are concerned, they have no alternative but to manage their own careers. Sitting with our arms folded, waiting for the company to decide what is best for us, no longer cuts the ice. We have to take responsibility for our own training, and make ourselves as employable as possible. If you’re currently in a dead-end job, you have to take measures to get out by studying, looking for alternatives, etc., etc. You mustn’t lose sight of your ultimate professional goal: if you happen to be fired (or your job is excess to requirements, as the current euphemism goes), you must be employable elsewhere. Unfortunately, the current crisis has caught many people unawares, and they keep on blaming the system when for years they’ve been doing exactly the same job. Let’s hope that the difficult circumstances which pertain at the moment will help us all to realise that our future in the end lies in our own hands, and that we should only commit ourselves to things which are beneficial for our development, both personal and professional. The rules of the game have changed, and our way of understanding work will need to adapt to this new context.

What lies in store for people management in the coming year? In this post, I’d like to share those ideas which I think will have the greatest impact on human resources management this year. Of course, some of these ideas will be more appropriate for some sectors than for others; and only time will tell if these predictions turn out to be prescient…

1. Leadership 2.0: A new style of people management, more open and less distant, is gradually making headway. The creation of this new culture is being helped by Web 2.0 applications that focus on cooperation, new ways of perceiving value in companies, and the presence of a digitally literate workforce. However, this culture change will not be achieved primarily because of technology, but because of a different conception of managing people; in particular, a more cooperative, transparent and less distant type of leadership. As happened with Internet at the beginning, some companies will be quick to embrace new styles of management facilitated by technological advances, while others will be mere passive observers. When we talk about a 2.0. approach, we do not just mean having a blog (!), but far more profound changes in management style.
2. Change and transformation management: Many companies are embarking on profound changes, and will need to implement a shift in the company culture for a variety of reasons: they are entering the 2.0 world, they will have to keep on downsizing their workforce, or they’re trying to recover after a bad 2009. No one knows what will happen in 2010, but one thing is for sure: we won’t go back to where we were before the crisis. Therefore, the need for change and transformation is inevitable.
3. A NoFear style of management: Many people are feeling dejected because of the crisis, and it will be a real challenge to manage them in such a way that they stay motivated. Unfortunately, fear is on the increase, and many managers who previously nurtured their staff’s talent are now returning to more coercive practices. However, such a management style is incompatible with creativity and with a state of mind which allows people to give the best of themselves.
4. Mentoring: Many less-experienced managers are finding the current exacting circumstances very difficult to negotiate. For this reason, companies such as Banesto are implementing talent development programmes which use more experienced members of staff as guides, or mentors.
5. Informal learning: A few years ago, one of the difficulties of e-learning was the lack of access to Internet, or people’s lack of ability to use it. This problem largely no longer exists, and we now have the opportunity, and the challenge, to provide cooperation-oriented resources which enable people to develop professionally.
6. A client-focused approach: Human resources departments need to fully understand they are at the service of external and internal clients; they should also think about using basic marketing skills in their communications with the rest of the company, as their internal image often leaves much to be desired. All of the foregoing will serve to place the human resource department more in line with the basic aims of the business.
7. 2.0 communication: Social networks are assuming increasing importance in intra-company communication. Indeed, some of the more innovative companies are now replacing intranets with this type of tool. Communication needs to be increasingly horizontal, and in all possible directions, both within the company, and externally.
8. The end of rigid demarcation: Divisions between departments will be gradually diluted thanks to technology and the need to work as a team. As complexity grows, rigidly separated departments make less sense. Detailed lists of functions that are set in stone will gradually become meaningless owing to the rapid pace of change.
9. More performance-related salaries: The percentage of total remuneration which is allocated to meeting objectives may increase, especially in times of crisis like the present. While it is true that companies cannot afford to lose talented people, it is equally true that they are not in a position to pay the salaries offered before.
10. A better work-life balance: An increasingly popular way of improving employee motivation is to implement policies that help staff meet the demands of their professional and personal lives. Such motivation-enhancing policies are all the more important in an environment where salaries may well stagnate.

In times of uncertainty, it is vital for companies to develop closer relationships with customers, to get everyone in the organization pulling together, and to make sure that all available talent is put to the best possible use. Underpinning this, the idea of commitment is of central importance.

1.Commitment means giving the best of oneself. Commitment is at root a personal decision, whether at work or at home. It rests on three main ideas: giving the best of oneself, going the extra mile, and not abandoning the situation you find yourself in.

2. Commitment produces results. This was clearly demonstrated in a study carried out by the Corporate Executive Board. People who are highly committed make 57% more effort, outperform by 20% and are 87% less likely to leave a company compared to employees with a lower level of commitment.

3. Commitment is a free decision, not an imposition from above. people are changing jobs less, but does this mean that they are more committed to their companies? Hardly. The fact of the matter is that there are fewer vacancies going and people are more and more afraid of not being able to make ends meet. Although people are sitting at their workstations, this doesn’t mean that their mind is not somewhere else. Commitment is not a duty, it springs from a freely taken decision. This is something which managers should never forget.

4. Emotion, the most powerful ingredient of commitment. A few decades ago, psychologists identified two different types of commitment, rational and emotional. Recent research has shown that changing jobs is related to rational commitment. However, the desire to contribute or to look for another job is also linked to the emotions. When someone isn’t happy they abandon ship, either mentally or physically.

5. Commitment is nurtured. Commitment is not won or created overnight. It takes time to nurture it, yet it is very easy to lose. Why? Commitment is based on trust, and trust is like a glass. Once it’s broken, it’s very difficult to put it back together again without the cracks showing.

6. Commitment is influenced by day-to-day contact. Team leaders are the key to generating commitment. Quite often people do not leave a company, they leave their bosses, especially in Latin countries where the atmosphere at work is an especially important factor. In large companies, commitment is not generated by the pronouncements from head office. It is. however, reinforced in the day-to-day atmosphere at work, in relationships with colleagues and one’s boss, and in the interest produced by the job which one does.

7. Commitment is not eternal. Values change and the job market is much more dynamic than in the past. The consultants McKinsey report that in 1990 the average number of times people changed jobs in their life was two. In 2010 they predict that it will be ten. The challenge for companies is to make sure that while employees stay with them, they are as committed as possible.

8. Commitment starts with the company. If we want employees to be committed, senior management needs to lead by example. It is impossible to expect workers lower down the scale to be committed if management does not set the standard.

9. Last but not least, coherence. The hoary expression “our people are our number one asset” is often flatly contradicted by reality. Without coherence, there is no trust or commitment. In the words of Molière, “All men seem alike when judged by their words; it’s their deeds that set them apart”. In the specific case which concerns us, it is deeds and not good intentions which help to generate commitment.