Showing posts with label Reward. Show all posts
Showing posts with label Reward. Show all posts

Saturday, 11 April 2020

HR Exchange Network podcast: Rewards Transformation






We talked about Brexit too - the episode was recorded at a point it was just becoming clear this was a non-issue (temporarily perhaps) compared to Coronavirus.



info@joningham.com, +44 7904 185134


Monday, 20 January 2020

For Love or Money 4: Impacts on Reward




I've had a chapter on reward included in MuseumEtc's book, 'For Love or Money': Re-engineering the Way Museums Work. However, I would hope the content will be relevant for people working in other sectors too.


For many museums this type of re-engineering may mean a need for less core employees, but with these and other staff being higher paid, as well as for looking at new opportunities in broader reward and recognition.

As shown in figure 4, Barker Langham expects to see:

   The core workforce receiving most of their pay through a high base salary with progression being based on time served and the acquisition of skills to compensate this group for their ongoing commitment and involvement in a broad range of discretionary activities. They may also receive some variable reward linked to overall organisational performance to support their collaboration with other staff in projects, communities and networks but this is likely to be quite limited as incentive pay is not generally a key motivator in the museum sector.

   Peripheral staff receiving a lower base than core employees with pay progression based upon their overall contribution in their jobs and on projects, with, where it makes sense, additional variable payments based on the performance of their departments or the whole organisation.

   Contract staff being paid mainly on a project basis, either for their time if an employee, or for their outputs if a contractor, with pay in either approach reflecting the value of their accumulated experience and expertise. These staff may also be given additional retainers to keep them linked with the museum between projects.

   Contingent staff paid mainly for completing tasks and projects as well as maybe some payments for ideas and innovations and other impacts. These staff may not be paid that much by any one museum, but have the potential to generate high levels of revenue from across their broader portfolio of work.


Museums also need to ensure these different reward approaches are seen as fair by each of the different groups. This will be aided by greater pay transparency, enabling each group to understand the different reward approaches used for each group, if not the actual pay structures used within them.

To support collaboration across the workforce we expect to see reducing pay differentials within museums so that on an overall balance sheet based perspective, there is both a reasonable pay ratio between the most valuable core employee, and perhaps the lowest paid contingent worker (on a pro rata basis), and that this ratio is also perceived as fair within each of these different categories. This will also respond to increasing shareholder and public concern about executive pay and increasing pressure on both minimum wages and the immigration of cheap labour in some geographies, including the US and UK.

However, as identified earlier on, pay is not the only motivator in any organisation and museum staff in particular are motivated by a range of other factors. We therefore expect to see more use of benefits and other personalised support, helping to meet the varied needs of a more diverse workforce, together with increased use of recognition and maybe other approaches like gamification to maintain levels of engagement, for at least as long as levels of pay remain low.


Summary

Re-engineering the work and staffing of museums aided by digital technologies and approaches offers the potential for museums to find ways of moving from a focus on efficiency and saving money (a bad jobs strategy) to one focused on value and experience (a good jobs strategy). Whilst museums should follow this approach to ensure their own success and engage more customers positively in their domain, it would also support fairer rewards for the staff working in this sector.

Tuesday, 10 December 2019

For Love or Money 3: Opportunities for Re-engineering




I've had a chapter on reward included in MuseumEtc's book, 'For Love or Money': Re-engineering the Way Museums Work. However, I would hope the content will be relevant for people working in other sectors too.


The changes required to support both customers and employees / workers are often going to be very significant and may require radical re-engineering rather than more incremental improvement (although implementing these radical changes in an ongoing, agile manner is often the very best approach).

As shown in figure 3, re-engineering means developing new processes and services to meet particular objectives, without being constrained by the way things are currently done. However a key requirement in today’s digital age is that these objectives now need to refer to employee expectations as well as business and customer needs. In addition, redeveloping processes and services to meet these needs will often benefit from including design thinking, personas and journey maps to help ensure interactions with employees at key touchpoints within or around the process are as positive as possible.

Once processes and services have been redeveloped it is possible to identify new roles and skill requirements to support these, allowing staff appropriate discretion to identify new ways of meeting customer needs in order to provide exceptional experiences.

These roles can then be grouped together to provide new jobs and gigs to be performed by people acting in the different segments of the workforce. These jobs and gigs need to be supported by the use of digital technologies such as artificial intelligence, robotic process automation and robotics (Jesuthasan and Boudreau, 2018), as well as outsourcing, to ensure core, contract and peripheral staff can concentrate on the most valuable activities, as well as the digital gig working platforms required to support contingent workers.

These jobs and gigs can then be grouped together into an updated organisation design. Whilst most organisations, in the museum sector and elsewhere, have traditionally organised themselves using functional and divisional structures, they are increasingly using new organisation models (Ingham, 2017) based on project teams (the main opportunity for contract and especially contingent staff), and communities and networks (core, peripheral and contract staff). They are also increasingly using new approaches such as self management. Museums should also look at using these more modern approaches, particularly as they tend to support people’s sense of purpose and empowerment, helping them to add value to their customers.

Based upon the above steps, museums can then check whether they have the right people working in these redesigned roles and reselect people into them as appropriate. Museums should also think more broadly about recruitment pools which may help them improve the diversity of their workforces.

They also need to set up mechanisms to support changes in the workforce, such as the HR and management processes required to support the various workforce segments. One particularly important requirement is to update the museum’s reward strategy and practices.

Thursday, 28 November 2019

For Love or Money 2: Changing Requirements of Staff




I've had a chapter included in MuseumEtc's book on reward, 'For Love or Money': Re-engineering the Way Museums Work, writing as an associate of Barker Langham.

However, I would hope the content will be relevant for people working in other sectors too.


This is part 2 of the chapter. Part 1 on the changing context of work was here: http://strategic-hcm.blogspot.com/2019/11/for-love-or-money-1-changing-context-work.html.



Changing Requirements of Staff

Managing staff more smartly is also more important because the expectations of the workforce in many areas of the world have changed. People want and increasingly demand a sense of purpose and meaning from their employment as well as connection with others in the workforce. Employers in all sectors already need to respond to this demand and this will become an absolute requirement if we ever see the widespread introduction of something like universal basic income. This will mean that people have a more realistic opportunity to take on work that they want to, rather than have to do and will potentially provide a significant opportunity for employers like museums working in the creative economy.

People also want more flexibility, often including the need to work part vs full time, to work at home, and increasingly to work for multiple organisations as freelancers, or by developing ‘side hussles’ on top of their main employment. Importantly, these expectations are not limited to generation Y / Z or their global equivalents, eg China’s post-80’s, but are increasingly expressed by people of any age.

Organisations therefore need to focus on meeting these workforce needs as well as their business and customer ones. Sometimes this can be quite easy. For example museums often need project based staff to design exhibitions and this short-term focus often fits the aspirations of people who want to work in this role.

Similarly, museums’ increasing need for flexibility often means they need to get work done by temporary employees, contract or ‘gig’ workers, and consultants. This contingent workforce is an increasingly common addition to the traditional organisation. For example, as shown in the above figure, Charles Handy’s shamrock organisation model (Handy, 1995) now needs to be considered to have four constituent parts (or leaves):

   A core workforce with specific skills and a high alignment with a museum’s mission and domain who want a long-term relationship with the museum. The core workforce may include curators, conservators etc, but also front of house / visitor experience staff where excellent as opposed to average performance, for example by offering and personalising explanations on exhibits, can make a huge difference to customer experience.

   A contract workforce of key talent who do not fit the above profile but are still really important for the museum’s future. Handy suggests this may include people who have previously been employed by the organisation. Web designers and other digital staff may also fall within this category.

   A peripheral workforce who will probably be employees rather than gig workers, but who may bring a ‘gig mindset’ (McConnell, 2018) to their work, meaning that they are more focused on their own development and career rather than loyalty to their current and short-term employment. This workforce segment will include staff working in generic functions such as Finance and Marketing as well as areas like security and food and beverage if these are not outsourced.

   The additional leaf provided by the contingent workforce of gig workers and other short-term contributors. This group could include people working in a range of different areas but where it is easier and more effective to rent rather than own capability. As opposed to the contract group, these staff will not generally provide a strategic differentiation and this means they may need to be managed with rather more focus on efficiency.


Each of these different workforce segments have different requirements and expectations and will need to be treated differently, though to the same extent in terms of the relative quality of the approach.

Meeting each of these segment’s needs can also be fairly easy as the flexibility required by an organisation often relates to the flexibility desired by individual staff. However, the challenge is often in matching the two. For example Glassdoor reviews from staff on UK’s zero hour contracts, show a significant difference in perspective depending on whether these arrangements have been designed to meet employees’ as well as the employer’s needs (Ingham, 2015). In addition, staff need to be participants in the design of the flexibility to ensure it really does meet their needs.

Organisations also need to focus on providing suitable integration between these workforce categories in order to avoid tensions between them (McIlvane, 2019), as has been reported recently at Google (Wong, 2018).

Other ways of meeting the workforce’s new expectations include providing more involvement in the core domain of the museum. For many staff, this will be a core reason that they work in the sector and most museums could make much more out of this alignment than they do, maximising the opportunities for intrinsic as well as just extrinsic motivation. For example, museums could develop internal communities enabling staff to contribute outside of their specific job areas.

The role of volunteers in many museums shows the potential provided by people who want to contribute to a museum’s cause, separate to any financial compensation for doing so. A good example here is the London Transport Museum which has a large volunteer workforce, including roles which might usually be standard paid positions, including research, IT, helpdesk analyst, curators, and event stewards. The museum even takes this approach a stage further forward by using volunteering as a means to meet the museum’s broader mission, providing volunteering experience as a means for people to develop into transport engineering careers with other employers through the museum’s Enjoyment to Employment programme.

However, it is also important that this opportunity is not taken too far. Providing broader and more altruistic benefits can never be a good excuse not to pay people appropriately!

The above strategies should also help museums improve their diversity as moving towards more personalised approaches also makes it easier to meet an increasingly varied range of requirements and hence appeal to non-traditional recruitment pools. However, making this approach work also requires an effective approach to inclusion, ensuring a more diverse range of people are able to contribute and work together effectively.


I'll be posting parts 2 and 3 of the chapter over the next couple of weeks.

Jon Ingham,
Top 100 HR Tech Influencer - Human Resources Executive

Mover and Shaker - HR magazine

info@joningham.com, +44 7904 185134

Monday, 18 November 2019

For Love or Money 1: The Changing Context of Work



I've had a chapter on reward included in MuseumEtc's book, 'For Love or Money': Re-engineering the Way Museums Work. This was on behold of Barker Langham, a culture sector consultancy I've been doing some work for.

However, I would hope the content will be relevant for people working in other sectors too.


Introduction

Many museums have been trying to minimise their staffing budgets by reducing headcount and keeping their employees’ salaries low. But this strategy is not sustainable. It is a bit like trying to lose weight – you can focus on your diet and lose a few pounds, but are most likely to end up putting the extra weight back on. Instead of this, most people find the best way of losing weight is to change their lifestyle. The same type of thing is true in organisations too so what museums really need to do is to change the way they organise their work and their people. The supplementary benefit of this approach is often that museums will need less people. Many times, they will also be able to pay their people more appropriately too. This article reviews the opportunity for this re-engineering, supported by digital technology, and its impact on the types and levels of staff rewards.


The Changing Context of Work

Organisations across all sectors are currently undergoing major transformation due mainly to the impact of digital technologies. Many museums are introducing guides and apps to help people explore and learn about their collections. Good examples include new devices such as the Van Gogh Museum’s multimedia guide allowing visitors to walk at their own pace whilst accessing tour guide-like support (Van Gogh Museum, n.d.) and mobile games such as the Victoria & Albert Museum’s Secret Seekers which enable families to uncover facts about the V&A through a social gaming experience (Price, 2017). An even more innovative approach is Cooper Hewitt’s Pen which allows visitors to create and collect their own objects (Cooper Hewitt, 2014). Other institutes in Detroit (Detroit Institute of Arts, n.d.), Cleveland (Moore, 2015) and elsewhere are using virtual and augmented reality to provide exciting new immersive opportunities to interact with their displays. Increasingly, museums are looking at the internet of things and better use of data to provide even more personalised and engaging as well as educational experiences.

However digital transformation is rarely just about technology. All the above examples potentially disrupt these museums’ business models and allow or require the development of new, broader organisational ecosystems. For example, many museums have partnered with Google Arts & Culture (Google, n.d.) to extend their audiences and allow people to view new items or access collections in different ways.

Digital technologies also allow organisations to get closer to their customers as well as other stakeholders in order to better understand and meet their needs. Many museums are developing even deeper, longer-term and more collaborative relationships with their customers, embedding themselves within their communities. They also need to become more customer centric, including through the use of human centred design techniques such as journey mapping, personas, participatory design, user testing and prototyping.

These approaches are particularly important in museums which often find themselves in a rather unfortunate paradoxical position. The positive aspect of this is that the work museums do is increasingly recognised to lie at the centre of strategic culture, knowledge, creative and tourist industries all of which provide significant economic benefits. However, at the same time, museums’ outputs are often under valued by publics and governments which leads to reduced funding and greater pressure on being self financing, pushing museums to reduce salary levels too.

Dealing with this situation requires museums to become even more entrepreneurial and commercial as well as digital and customer focused in order to find new ways to provide a compelling experience for their customers. Museum staff need to be at the centre of this approach.

People have always been the main basis for success in any organisation. This is probably best explained in a classic Harvard Business Review article on the service profit chain which demonstrates how satisfied employees provide satisfied customers and high profits (Heskett et al, 2008). These days, we tend to focus on employee experience, or the level of satisfaction provided by the nature of people’s jobs, and the physical, cultural and digital environments in which they work (Morgan, 2016). We need to provide people with a compelling employee experience to provide the sort of compelling customer experience which was addressed above. And providing a compelling employee experience requires the same sorts of techniques, like journey mapping, which was described earlier, as well as organisational and managerial activities which are just as employee centric as the externally facing ones focus on customers.

As shown in figure 1, it is also useful to recognise that new opportunities for performing activities are often best identified by people acting near to where the work is done rather than by those doing it, for example by customer facing employees rather than customers for external opportunities, and by HR generalists or business partners rather than employees for internal ones.


Looking specifically at the retail sector, which is another area in which organisations often aim to reduce the numbers and pay of staff, Harvard professor Zeynep Ton promotes a good jobs strategy as a basis for an uncommonly employee centric way of operating (Ton, 2014). This is based on an ongoing cycle in which good quality and quantity of labour leads to good operational execution which then provides high store sales and profits which in turn allows high staffing budgets to provide the required labour. In particular, a good jobs strategy allows organisations to maintain a certain level of slack resourcing which enables them to respond to new requirements and opportunities.

Ton’s research suggests this strategy provides significant business benefits over a ‘bad jobs’ approach, and that the strategy works in other sectors too. For example, Toyota has been more successful than many manufacturing companies because its well trained and empowered workers are able to implement standardised management processes which enable the company to deliver excellent quality.

In the museum sector, a good jobs strategy needs to involve quality employees working in a flexible way. This will often require moving away from the standard 9-5 work day and a single location to being more available when and how customers want access, for example with more varied staffing patterns responding to peaks and troughs around exhibitions. Staffing also needs to respond to new and more quickly changing skill requirements, which include more commercial focus, customer service, partnership working, and the broader mindsets and abilities required to provide value. Increasingly, staff will also need to work in cross functional teams and internal or external networks.

One live example at the time of writing is a transformation taking place across the seven museums run by Leicester City Council where four curator posts are being replaced by a new audience development and engagement team, aimed at attracting new and more diverse audiences (Adams, 2019).

Therefore, although digital may reduce, and will certainly change the demand for staff, together with increasing people centricity, this will make people even more important to museum success. Museums need to invest in their core domains as well as putting an increasing focus into digital access and often into locating their physical displays in attractive buildings and facilities. But they need to invest in smarter and more tailored ways of managing their staff too.
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