Doing the same for everyone means you are treating people equally. But your people are not all in the same position. Treating people fairly means that you do the right thing for that person, so you are meeting their individual needs. Giving everyone the same may feel fair, but it isn’t.
The cost of living crisis will not impact all your people equally. Higher earners will be better insulated to survive. How do you, as a CEO, implement support that helps the people that need it, without ostracising the people that don’t?
Doing the same for everyone means you are treating people equally. But your people are not all in the same position. Treating people fairly means that you do the right thing for that person, so you are meeting their individual needs. Giving everyone the same may feel fair, but it isn’t.
Equal treatment (i.e. the same) doesn't always produce an equitable outcome
If you’ve got a gender pay gap (and you probably have) and/or an ethnicity pay gap (which you also probably have and may not even measure) take care not to increase inequality through your actions.
Don’t assume low use of an existing benefit means it’s not valuable
If you’ve got a gender pay gap (and you probably have) and/or an ethnicity pay gap (which you also probably have and may not even measure) take care not to increase inequality through your actions Not every benefit needs to have majority use to be valuable. Removing a low-use benefit might have a significant impact on some team members.
For example, a health cash plan, which gives cash back for dental, optical, and other routine health appointments, might be disproportionately beneficial to working families or those with long term health needs. Be sure to check the impact of your decisions with a formal Equality Impact Assessment and by listening to your team before you act.
We are passionate about finding ways to help bosses do the best they can to look after their people. Some of what we’ve outlined here is simple, but implementing activity that’s targeted to help those that need it most often gets businesses in a pickle. Primarily because they get bogged down about treating all employees the same. If you need help to work how to support those that need it in a way that’s fair and legal, then please drop us a line. We’d be happy to talk to you.
What is the difference between treating people equally and treating people fairly?
One off payments may benefit higher paid staff more than lower paid colleagues
One off payments may increase your gender pay gap
You may inadvertently create a wider gender and ethnicity pay gap
Don't know where to start when it comes to supporting your team through the Cost of Living Crisis?
Tag: Performance
HR myths busted: “Formal annual appraisals are more important than informal check-ins”
There was a time when it would be considered a clear mark of a rubbish employer if there wasn’t a structured yearly appraisal in place. But the modern workplace recognises that a date in the diary once a year, coupled with a fat form to fill in, is nowhere near as effective as regular informal feedback.
Too many businesses conduct annual reviews in a way that is overly formal, creating unnecessary paperwork and ticking a box, without really getting to the heart of the employee’s performance.
Lots of big companies, such as Adobe, have scrapped the yearly appraisal after realising the huge investment in the process often fails to hit the mark.
At Adobe, after a staff consultation, the old performance management system was replaced with check-in discussions at least once a quarter with less paperwork and proper space to review contributions, reward achievements and gather feedback.
It’s a great example, and is starting to be adopted by many forward-thinking companies.
Formal box-ticking appraisals are a barrier to good performance and development
How often should performance be reviewed?
There is no magic formula, but regular and meaningful is a good rule of thumb.
- Don’t save things up for a yearly formal review
- Involve employees in decisions to reprioritise workloads in real time, and explain why it’s necessary.
- Meet monthly for a structured review and if that’s not possible, no less than every six months.
Daily feedback is 6x more likely to be meaningful than annual feedback
How should I be managing and developing performance in my organisation?
- The key to managing performance is open and transparent conversations, where the employee feels in control of their own destiny.
- Both employer and employee know what’s expected of them, what they’re great at, and where they need support. It’s not rocket science, this approach builds engagement, which is better for business.
- Research shows engaged employees generate 43% more revenue than disengaged counterparts. High engagement can also lead to a tripling in profit growth, an 87% reduction in staff turnover and a 20% improvement in performance.
It's not rocket science: higher engagement = improved productivity and performance
What’s the starting point for a new system?
Make sure both the employee and manager are clear about what their performance is being measured against.
You will need:
- A job description that’s real, not aspirational! It should outline responsibilities, and accurately reflect the job that’s being done.
- A clear understanding of what’s expected at work.
- A rock-solid connection between individual goals and the goals of the business.
- With these basics in hand, managers can agree clear objectives and work out with employees how to regularly measure performance.
Have regular conversations to create a high performance culture
What does a good performance review system look like?
A system that’s working well will increase staff moral, engagement and productivity. It will nip problems in the bud by dealing with anything that comes up quickly, and will prevent the company from spending huge chunks of time on the paperwork that traditional annual appraisals generate.
Top tip: use a blend of formal reviews and informal development conversations
How can I design the right approach for me?
- What works for you will depend on your business, there is no one-size fits all, although as a general guide everyone could benefit from creating a process that:
- Reviews energy, engagement, wellbeing, resilience, skills, personal development and priorities.
- Creates a balanced scorecard which measures WHAT’s been achieved and progress made.
- Gathers feedback from colleagues, customers and managers on HOW the employees’ approach their work.
- Outlines goals and commitments …what’s happening next and how will the business support this.
- Moving from a yearly appraisal system to more regular check-ins may be a huge change for your organisation and managers may need lots of additional training and support.
- Managers may need training and support to give regular and meaningful feedback
Organisational wide forms, systems, templates and guidance are a good idea, including making best use of HR self-service and HR systems. Above all, managers need to be self-aware and understand how to tailor their approach to the needs and wants of each team member.
Managers may need training and support to give regular and meaningful feedback
Organisational wide forms, systems, templates and guidance are a good idea, including making best use of HR self-service and HR systems. Above all, managers need to be self-aware and understand how to tailor their approach to the needs and wants of each team member.
Don’t know where to start when it comes to supporting your team through the Cost of Living Crisis?
We are passionate about finding ways to help bosses do the best they can to look after their people.
Some of what we’ve outlined here is simple, but implementing activity that’s targeted to help those that need it most often gets businesses in a pickle. Primarily because they get bogged down about treating all employees the same.
If you need help to work how to support those that need it in a way that’s fair and legal, then please drop us a line. We’d be happy to talk to you.
HR myths busted: “You only see HR when someone’s about to be hired or fired”
“Want to experience real power? Walk along the shop floor with a file and clipboard. It’s the signal that a termination is about to happen.”
So then, what else does HR do?
- Much of what HR teams do is invisible to the majority of people within a company. We take for granted that when we apply to join an organisation, there will be a careers portal and online application process. Similarly, when we are offered a job, we expect to be sent a contract and a set of instructions for our first day. It’s usually someone in HR who makes those things happen.
- We also take for granted that our workplace will be safe and not contribute negatively to our health, wellbeing and performance. Again, someone in HR had a hand in how the workplace was designed and how wellbeing is supported at work.
- Many employees only see HR when there’s bad news to be delivered, or when a challenging conversation needs to take place. The truth is that HR teams work constantly to help everyone be at their best.
When you’re being considered for a role
- HR is the custodian of fairness, equality and inclusion in any business. This means that they’ll put systems and processes in place to make sure that you’re not discriminated against. You may not see them at any point during the selection process, but if you’re treated with dignity and respect, we’ve done our job right.
When you’re on a course or training session at work
- HR includes Learning & Development, a team of professionals whose sole purpose is to improve your knowledge, skills, qualifications and understanding, so that you can take your career where you want it to go.
When you’ve been given a bonus, incentive or reward
- HR might not be there when you get the news, but reward and recognition are a key part of any positive organisational culture. It’s HR’s job to make that happen.
When you’re being promoted or moved into a new role
- HR makes sure that this process is fair and equitable. They’ll update the legal documents and contracts so that you’ve got what you need, they’ll instruct payroll to increase your pay (if that’s part of the job change), and they’ll support your manager to provide any additional training or resources you need in your new role.
How can managers and leaders get more from their HR teams?
- Firstly, don’t see your HR team as a blocker to getting things done at work. They’re not there to tell you what you can’t do; rather, HR teams are chomping at the bit to help you do what you want to do.
- Proactive HR teams want to partner with you, understand your business and enable your people to give their best. Of course, there are times when we need to tell managers why something can’t be done for either a legal or regulatory reason, but this isn’t a negative thing: it’s preventing you from wasting your time and effort on activities that don’t stack up.
- Secondly, keep a regular and open dialogue with your HR Team – it’s a two-way street. HR practitioners have access to lots of tools, information and ideas that can really help you and your business to fly.
- Work with your HR Team on your strategic plan. We can help you with better (and often streamlined) ways to set up your teams, set performance expectations, reward and recognise good performance, deal with challenging issues and help build a positive culture at work.
In short, by treating your HR team as a business partner and not a barrier, you’ll get a ton of value back in return.
Don’t know where to start when it comes to supporting your team through the Cost of Living Crisis?
We are passionate about finding ways to help bosses do the best they can to look after their people.
Some of what we’ve outlined here is simple, but implementing activity that’s targeted to help those that need it most often gets businesses in a pickle. Primarily because they get bogged down about treating all employees the same.
If you need help to work how to support those that need it in a way that’s fair and legal, then please drop us a line. We’d be happy to talk to you.