Posts Tagged ‘McKinsey’

01
Feb

Goodbye job for life, hello employability

Posted by Pilar

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.

09
Jun

Nine ways to foster commitment

Posted by admin

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.