Getting a new business initiative approved can feel like pulling teeth. HR practitioners often hit a wall in the form of budget restraints, unrelenting leadership or a workplace culture averse to change.

In the current economic environment, this can turn into a Catch-22. In times of skills shortages, technological disruption and shifting regulatory landscapes, large-scale people initiatives are often necessary for survival, but these same issues are driving many executives to tighten their purse strings.

As a result, HR practitioners without the necessary influencing skills risk letting their best strategies remain forever as ideas on a page.

To avoid this, HR practitioners can develop the skills to speak executives’ language, cultivate advocates and develop a deep understanding of a business’s needs and pain points.

A research-backed approach to executive buy-in

When pitching for executive buy-in, an approach that combines human skills with business acumen is key. 

In an article for Harvard Business Review, professors Susan J. Ashford and James R. Detert provide a detailed breakdown of how to gain executive buy-in based on their research. 

In their research, Ashford and Detert identified the tactics of a successful “issue seller” (their name for a person seeking buy-in).

“Issue sellers who accomplish their goals, we found, look for the best ways, venues, and times to voice their ideas and concerns – using rhetorical skill, political sensitivity, and interpersonal connections to move the right leaders to action,” they write.

They break this down into seven key tactics:

1. Tailoring your pitch – this was the key success factor. They say it’s critical to become familiar with your executive’s “unique blend of goals, values and knowledge” and use these insights to customise your pitch according to who you’re speaking with.

2. Strategically frame the issue – this is the stage most HR professionals would be familiar with: building a business case. Not surprisingly, the researchers found this was more effective than moral framing (e.g. trying to convince people to ‘do the right thing’).

3. Manage your emotions – passion, they said, was proven to help in achieving buy-in, but passion can easily spill into anger and this inevitably works against issue sellers. Emotional regulation is key.

4. Choose your timing wisely – pitch ideas when there’s a groundswell from employees, when a business’ priorities are shifting (we’re in such a time right now) or when a new leader is at the helm.

5. Don’t do it alone – the researchers found having a group of people involved in seeking buy-in made it happen a lot faster, as each individual brought their own experience, relationships and social pull.

6. Tailor your approach– understand how various executives like to receive information. Do they prefer formal presentations to a casual coffee catch-up, for example? Or, does anecdotal data sourced from employees have more impact than referring to external statistics?

7. Have a solution – it seems obvious, but don’t suggest changing a process without providing what the researchers call “thoughtful fixes”. Come prepared with a well-researched solution, but be willing to make changes and seek feedback from others to ensure diversity of thought.

Read the full HBR article for further explanation, advice and examples backing up the tactics.

HR influence in action

Gaining executive buy-in requires HR to strike the right balance between human skills such as emotional intelligence with technical skills such as business acumen, says Shirley Vella CPHR, Executive Director of HR at SPV Consulting.

Based on her experiences getting HR strategies over the line, Vella offers three key tips for HR practitioners hoping to boost their influence among the executive team.

1. Speak executives’ language

For HR practitioners, the engagement, wellbeing and/or capabilities of the workforce tend to be the number-one goals of any new initiative. So, when pitching to executives, it’s often HR’s first instinct to lead with workforce benefits. 

However, it’s important for HR to put themselves in executives’ shoes and demonstrate that costs and business context have been prioritised in the strategy, says Vella.

“In my experience, executives really want to do good things for the employees, but, at the end of the day, the business needs to be sustained,” she says. 

“You need to understand your audience. If they’re looking at the bottom line, then you talk about the bottom line. Look at the ROI and what’s in it for the business.”

To get this right, it’s essential for HR to upskill themselves in the fundamentals of finance, she says, such as the right way to do a cost-benefit analysis or return on investment forecast.

“HR is fundamentally about people, but it also requires a strong focus on the profitability of the business. So you need to have that business acumen.”

“In my experience, executives really want to do good things for the staff, but, at the end of the day, the business needs to be sustained.” – Shirley Vella, Executive Director of Human Resources, SPV Consulting

Vella recalls an instance where she put these skills into practice to get executives at a previous organisation on board with a new HR information system (HRIS). 

“The company had never done it before. And they [looked at] the subscription fees and implementation fees first and asked, ‘What’s good about it?’

“The first thing I did was [demonstrate] the ROI of having the system – for example, [pointing out that] leave management and performance management could all be done through the system, so it’s saving a lot of HR time [to be reinvested into more high-value work]. Also, regulatory compliance is all set up in the system, so, for example, if an employee had an expired or invalid license, the system comes up with an alert, which reduces the risk to them. So we’re using those points and converting them into dollar signs.”

2. Divide and conquer

When cultivating the ability to influence executives, it’s important for HR to remember that each executive will have their own unique language and priorities.

“When you’re trying to get executive buy-in, use a divide and conquer [model],” says Vella. “Try to map your stakeholders first.”

For example, when she pitched the HRIS mentioned above to her company’s executive team, she first made a list of the leadership team members and determined who was the most computer-savvy and systems-focused, and approached them first to demonstrate the benefits.

“If you get their buy-in first, then they will become your advocates, and they will spread the word.”

Once initial advocates are onboard, leverage their support to influence other executives, she says. Many executives will be more convinced of an initiative’s benefits if they hear about them from more than one source, and this can create a positive knock-on effect that lends momentum to your proposal.

3. Start small

As well as building advocates within the executive team, Vella says that the greatest advocates for launching or sustaining HR initiatives are often the employees participating in them. 

Similarly to executives, employees are often more swayed by word of mouth than by formal presentations from the HR team.

For this reason, Vella suggests launching every important initiative through a pilot program in an area of the organisation where it’s likely to have the most impact.

“Whoever you pilot with will become your advocates too,” she says.

She offers the example of a lunch and learn initiative she recently launched in her current role.

“Everyone was fairly sceptical at first,” she says. “First of all, I [convinced] the executives to buy in, but they couldn’t force staff to go. So the next step was [convincing] the frontline managers, who are always busy. I personally went to them and said, ‘Come for five minutes, and if you don’t like it, you can leave.’

“Some of them who never wanted to join [in the first place] just came in to have a look, and  ended up  staying for the entire hour. The positive feedback was enormous and, slowly, they started to talk about [rolling] this out to other teams as well.”

By using these strategies to cultivate advocates among both the executive team and the broader workforce, HR can ensure their ideas translate into meaningful change.

A version of this article was originally published in June 2020, and has been updated with fresh insights from Shirley Vella CPHR.

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Executives in Australia are increasingly turning to talent analytics to derive insights on outcomes such as employee attrition, performance and sentiment to influence talent and business decisions. While many leaders value the availability of this data, few feel confident their organisation is maximising its potential.

According to Gartner research, 78 per cent of HR leaders say their organisation relies more heavily on talent data to make decisions compared to four years ago. However, 71 per cent agree that current team structures and capabilities limit their ability to use these insights effectively.

To be successful, HR leaders need to focus on developing the skills of their HR team members to help them become:

1. Analytics experts who manage and prepare the data to produce insights 
2. Decision enablers who interpret the information and apply learnings
3. Strategic consultants who influence broader business priorities as tactical communicators.

Doing so will enable talent analytics to influence HR’s biggest functional decisions and act as a central driver of innovation throughout the organisation by providing objective and timely advice.

Building a culture of analytical learning

Skilled talent analytics experts play a crucial role within any organisation. They are responsible for maintaining data, effectively analysing it and supporting an integrated approach to workforce planning and risk management, among other strategic activities. 

To develop analytics experts, HR leaders must build a culture of technical learning within their team. This can be achieved by fostering collaboration between those responsible for talent analytics and the learning and development (L&D) team. 

This will help HR leaders identify technical skills gaps within the team and create learning pathways that ensure employees stay ahead of new methods and technologies. 

Rotational programs with IT or data and analytics functions can also be introduced to bolster technical skills and knowledge. 

“Traditional earning mechanisms won’t be enough. A core competency that drives effective decision enablement is the business acumen that can only be gained through experience.”

Using data-driven HR to develop strong decision makers

Gartner research reveals only nine per cent of HR leaders feel their department has been truly successful at arming their team with data to enable them to support workforce-related business decisions. 

Given that talent processes can be disrupted by external changes and technology, HR decision-makers need uninterrupted access to relevant data to gain a deep understanding of HR’s priorities and activities. 

The L&D function can also be an invaluable partner here by facilitating regular knowledge exchanges on priorities, emerging trends and insights between talent analytics experts and HR leaders. 

However, traditional learning mechanisms won’t be enough. A core competency that drives effective decision enablement is the business acumen that can only be gained through experience.

Developing true business acumen and the underlying competencies of industry, organisational and financial knowledge is best achieved through a combination of classic development activities combined with high-impact, hands-on learning moments.

For example, providing HR team members with the opportunity to work in cross-functional teams to lead change initiatives, build and execute business cases or play a significant role in delivering a solution can transform by-the-book thinkers into strategic problem solvers and innovators.

From tactical directives that respond to changing business conditions to supporting the entire employee life cycle, this approach ensures leaders can make data-driven talent decisions with confidence.  

Becoming a strategic partner

Executives and business leaders often face many competing priorities, particularly when managing the interests of shareholders, internal stakeholders and customers. As a result, HR leaders can struggle to effectively influence their decision making, even when equipped with data or insights.

According to a Gartner survey, 81 per cent of talent analytics leaders state that it’s important for their team to be proficient in strategic consulting. However, less than half (47 per cent) are currently satisfied with their team’s proficiency.

Rather than focusing on relationship management approaches designed to drive stakeholder satisfaction, strategic consultants should build and hone skills such as persuasion and storytelling with data, which can empower HR to be more effective in their dealings with stakeholders. 

To do this, consultants need to develop a deeper understanding of their business stakeholders’ needs and drivers, along with demonstrating the impact of their interactions. 

Feedback from business stakeholders and measures of consultants’ performance should go beyond the basics of capturing face-to-face time to collect real evidence of when HR insights have resulted in action.

Similarly to decision enablers, strategic consultants benefit from connecting with other department leads or C-suite members, fostering partnerships between talent analytics and other functions. Creating these relationships allows for the sharing of best practices and can help inform talent analytics teams about which HR technologies (e.g., data visualisation tools) are the most effective for sharing insights with stakeholders.

HR leaders who can implement these steps will be well-placed to grow their talent analytics function, increase their credibility, influence innovation and drive critical business decisions. 

Robin Boomer is a Senior Director, Advisory in Gartner’s HR Practice. He provides strategic advice and insights to support HR leaders and strategic workforce planning teams.

Understand the principles of data-driven decision making and learn to apply a data-driven mindset to HR strategies and challenges with AHRI’s foundational short course in People Analytics. Take the advanced course to elevate your workforce data management and analytical skills in a business context.

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Many of the issues faced by today’s HR practitioners in Australia are being dealt with by HR teams the world over, from managing changing employee expectations to keeping up with digitisation. What insights can Australian HR teams take from their global peers to enhance their own HR strategies? 

In celebration of International HR Day 2024, HRM interviewed four international HR leaders to learn more about the most pressing issues facing HR in their respective countries and how they are helping their organisations navigate the modern world of work. 

How HR practitioners in New Zealand are building culturally inclusive workplaces

The unique cultural landscape in New Zealand means that a nuanced approach to diversity, equity and inclusion (DEI) is essential, says Nick McKissack, Chief Executive Officer at Human Resources New Zealand (HRNZ). 

“The landscape of DEI has expanded over recent years, with greater attention being given to a wider range of communities,” he says. “For example, the needs of the Rainbow community and neurodiverse [employees] have been receiving far greater efforts by organisations committed to fully utilising their talent and creating positive workplace cultures.”

Support for Indigenous people and culture has been a top priority for some time, he says, and increased recognition of the unique needs and challenges of this cohort has been a welcome development.

“Employers are increasingly reflecting a commitment to te tiriti o Waitangi [the Treaty of Waitangi] and Māori cultural values in their diversity and inclusion programs.  

“It is predicted that one in five working age adults in the [New Zealand] workforce will be of Māori descent within 20 years. There’s a recognition that there are a range of systemic issues that work against Māori succeeding and achieving their potential in the workplace. Tackling these systemic issues takes a high priority in many organisations and is seen to improve equity more generally.

“The combination of shifting generational perspectives and Te Ao Māori values mean that organisations with a strong purpose and an authentic commitment to their people will be best positioned for future success and sustainability. HR professionals can play a critical role in helping their organisations to achieve this.”

“It’s a disorientating time for organisations, with changes in technology overlapping with broader societal changes and shifts in the world of work. The profession will be at the heart of the response and drive for better.” – David D’Souza, Director of Profession, Chartered Institute of Personnel and Development (CIPD)

Innovative approaches to employee wellbeing in Canada

According to Anthony Ariganello, Chief Executive Officer at Chartered Professionals in Human Resources (CPHR) Canada, managing employee wellbeing effectively requires HR practitioners to take a holistic approach which acknowledges the various facets of the employee experience which impact mental and physical health.

HR practitioners have a responsibility to assist teams in finding meaning in their work and ensuring they feel valued and worthy, he says. This includes helping employees recognise the tangible impact of their contributions, foster harmonious relationships with their peers and team members, guide their personal and collective growth and support them in maintaining work-life balance.

“HR professionals need to find incentives and get creative on what strategies will work for their respective organisations. There is no one-size-fits-all approach. It’s important to ensure that whatever is introduced to support employee wellbeing is reflective of that organisation’s culture and modus operandi.”

Many Canadian organisations are experimenting with new ways to support employee wellbeing in a way that acknowledges the diverse needs of their workforces, he says.

“A few examples we have heard of are organisations introducing flex health spending accounts,  which allows employees to pay for healthcare costs with pretax dollars.

“Employees choose the contribution amounts made to an FSA, which are then deducted from their gross pay and, hence, reduce their taxable income for that year. Since the employee doesn’t pay taxes on this money, they save an amount equal to the taxes they would have paid on the money they set aside.

“Employers may make contributions to a FSA, but they aren’t required to.”

Ariganello says it’s also common for organisations to introduce health-based rewards to help employees achieve their wellbeing goals.

“To ensure its not cookie-cutter, [organisations] offer employees a customised wellness plan that could include overcoming challenges, access to webinars and health consultations and creating a way of sustaining those efforts through a cadence of events, or via an Intranet, specific portal or App with ongoing updates to employees.

“Another example is offering annual monetary mental health benefits to every employee and their dependents. The plan could cover access to psychologists, registered social workers, psychoanalysts, psychotherapists, clinical counsellors, and marriage or family therapists.”

How HR is shaping flexible work in the UK

The landscape of flexible work in Australia has evolved drastically over the post-pandemic period. According to David D’Souza, Director of Profession at the UK’s Chartered Institute of Personnel and Development (CIPD), as HR professionals in the UK manage a similar shift, the narrative around flexible working is becoming increasingly complex.

“There is growing appreciation that we need to be more flexible when thinking about flexibility,” he says. “Whether it’s thinking about how roles are crafted or how flexible we can be with the working week, it makes sense to be open to different ways of attracting and enabling talent to flourish.

“We are also starting to see employers feel that the social and psychological contracts may have been stretched too far. It’s important to acknowledge that the expectation and reality of that flexibility varies by role and sector, often creating situations where remote or hybrid work may be possible for some within an organisation, but not others. 

“It’s important the principle of flexibility is applied in a broad and inclusive way across economies, with a focus on good work and outcomes for organisations.”

Organisations in the UK who are less equipped to offer hybrid and remote working options are developing their offerings to ensure they can remain competitive in a challenging talent landscape, he says. 

“It’s important to think about how to help people flex their careers and development. If you can’t pay upper quartile you can still concentrate on upper quartile levels of care and support for people’s careers.”

The evolution of flexible work in conjunction with a range of other pressing challenges means that the HR function is more critical to UK organisations than ever before – and HR professionals must rise to the occasion. 

“The profession needs to continue to work in partnership across a range of functional areas to drive ever better outcomes for people and organisations. 

“It’s a disorientating time for organisations, with changes in technology overlapping with broader societal changes and shifts in the world of work. The profession will be at the heart of the response and drive for better. It will be challenging, but exciting too.”

How recruiters in Singapore are navigating a challenging talent landscape

Recruitment professionals in Singapore are grappling with similar complex skills challenges to those faced in Australia and worldwide, says Alvin Aloysius Goh, Executive Director of the Singapore Human Resources Institute. 

“Although recruitment has always been about finding the right people, the definition of ‘right’ has evolved significantly in recent years,” he says.

“The challenge is that it’s no longer enough to simply ensure a candidate meets the technical requirements on a job description. Companies need to seek candidates with a strong combination of competencies, attitude, knowledge and experience (CAKE).”

As skills needs grow in complexity, the talent market in Singapore continues to shift from an employer-centric model to one that favours candidates with the right skills, he says.

“These candidates have more options and can negotiate for better salaries, benefits, and work-life balance.

“While competitive compensation and benefits are still important, companies in Singapore are recognising that today’s top talent seeks a more holistic work experience. This has led to a surge in innovative recruitment strategies that go beyond traditional job postings.”

Recruiters are not only diversifying the platforms they use to reach candidates, but also adapting the content of their postings to attract discerning talent, he explains.

“We are seeing more companies using social media platforms like LinkedIn and Instagram to create engaging content that showcases their company culture and commitment to social responsibility. 

“They also leverage engaged employees to share positive experiences on these platforms, attracting others who might resonate with the company’s values.”

Through strategic employee attraction, retention and support, HR can strengthen and protect their organisations through the changes that lie ahead, he says.

“Not only will HR need to be strategic, it will also have to be adaptable to respond to these changes quickly. This includes embracing new technologies, adapting to various work models (such as flexible work arrangements), and continuously refining our people strategies to ensure short-term gains whilst building long-term value.”

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With the HR function playing a more strategic role than ever in many organisations, the ability to make evidence-based decisions has quickly become a critical skill for practitioners.

As HR leaders know well, in an era defined by rapid change and disruption, the stakes are too high to rely on gut instinct alone. By grounding strategies in evidence, HR practitioners can offer clarity amid uncertainty and ensure their efforts are aligned with the broader business goals.

In recognition of this, recent years have seen the concept of ‘evidence-based HR’ (or EBHR) grow in popularity. Evidence-based HR is an approach that emphasises the use of data, research and empirical evidence to make decisions about HR practices and strategies.

The term has become increasingly recognised in the HR community, with many employers placing more focus on data-driven decision-making. The rise of AI and more sophisticated analytics tools has also made it easier to collect and analyse large amounts of HR-related data to inform an evidence-based HR practice. 

According to Tanya Hammond FCPHR, Founder and Chief Collaborator at Tailored HR Solutions, while the increase in awareness of evidence-based HR is a welcome development, there is still some progress to be made in terms of how HR harnesses the right evidence in the right way.

“What we’re observing is that evidence still means ‘what we can get out of an HR system’,” she says. “But I think the world has evolved beyond saying that people analytics is something that’s purely systems-based – it’s way bigger than that.

“It’s about unlocking the data in the HR system, and being comfortable asking questions and considering the data against a variety of factors to draw out meaningful insights,” says Hammond, who will be speaking about reconfiguring a healthy, resilient and high-performing organisation fit for now and tomorrow at AHRI’s National Convention in August.

What does evidence-based HR look like?

One of the most important principles of evidence-based HR is to incorporate a variety of sources and forms of evidence into decision-making. Relying too heavily on one system or process as a single source of truth can prevent HR from noticing subtleties behind workforce trends.

“This will include unlocking relevant information from HR information systems, but also branching out further to leverage other sources of evidence, such as external expertise and research findings,” says Hammond.

In a report published last year, the Corporate Research Forum broke down the sources of evidence typically drawn on by a well-rounded, evidence-based HR practice into a four-part framework, as shown below:

Source: Rob Briner and CRF

As an example of evidence-based HR in action, picture a scenario where an organisation finds its employee engagement scores have declined significantly over the previous year. 

Using the principles of EBHR, HR gathers data through engagement surveys, focus groups and individual interviews to understand the main drivers behind this decline. 

They identify that employees feel a lack of recognition and growth opportunities. They then examine research on effective recognition programs and talent development initiatives and decide to pilot a new program focusing on employee recognition and career advancement. 

The program tracks engagement metrics before and after its implementation, showing an improvement in employee engagement and satisfaction. HR then scales the program company-wide and continues to monitor its effectiveness through regular engagement surveys.

“Drawing on a broad range of evidence allows HR to effectively define the problem and help identify important nuances behind organisational opportunities, issues and trends,” says Jaye Matheson, Chief Insights and Transformation Expert at Tailored HR Solutions.

“People analytics or evidence-based HR is a method to uncover the root cause of an issue, and by gaining varied perspectives, you’re going to get better insights and a more impactful solution. Sometimes you need to slow down to speed up,” says Matheson, who is also speaking at AHRI’s National Convention and Exhibition.

Getting started with evidence-based HR

One thing that can hold HR practitioners back from embracing the shift towards EBHR is the misbelief that they need to be experts in data and analytics. 

“In fact, many HR practitioners have the right capabilities, tools and resources to undertake EBHR, like problem-solving, a curious mind and strong business acumen – all foundational elements for effective HR decision-making,” says Matheson. 

“Often, people want HR or people data to be perfect before they do anything,” she says. “But you can’t let perfection get in the way of making a start and delivering something impactful. If you want to run a marathon, you’ve got to start running.”

The more evidence HR is able to leverage, the more likely they are to uncover places where data is being reported inaccurately or inconsistently, and support continuous improvements.

“Instead of saying, ‘My headcount doesn’t line up,’ ‘My turnover numbers are wrong,’ and letting the conversation end there, we should be using this information holistically to help answer a question,” she says.

“When faced with inaccurate data, people often decide to stop there,” says Hammond. 

“[Maybe] it’s wrong by two or three per cent because it’s live data, and it’s constantly changing. But even if it’s [slightly] wrong, a trend is a trend. And it’s not ‘wrong’ for the purpose in which we’re going to use it.”

“You can’t let perfection get in the way of making a start and delivering something impactful. If you want to run a marathon, you’ve got to start running.” – Jaye Matheson, Chief Insights and Transformation Expert at Tailored HR Solutions

Given the sheer volume of evidence considered in EBHR, both Hammond and Matheson advise HR to ensure they are dedicating enough time to assessing and acting on the information and insights.

“The tension is the desire to move quickly,” says Matheson. “There tends to be a bias to action. People tend to want to go forth and solve a problem. 

“But, if they want to make the right decisions and know with confidence that they’re investing in the right initiatives to achieve their desired outcomes, they need to take the time to exercise diligence to fully examine the information from various different perspectives.”

Risks and ethical considerations

As with all branches of data collection and analysis, employers need to be aware of the relevant legal safeguards and their ethical responsibilities to their people. 

“You need to understand the basic foundations of people analytics and the principles to make sure you’re thinking about data ethically,” says Matheson. 

“[With evidence-based HR], the world is your oyster. But just because you can [use some sorts of information], it doesn’t mean you should.”

She recalls an example of a large organisation which, in an effort to optimise its supply chains, gave its employees wearable devices to track their work tasks. In addition, they also captured how long employees spent taking breaks, which was then used to manage employee performance. 

This example demonstrates an instance where data can be collected to solve an intended problem (supply chain optimisation), but can also be used in a way that may contravene the original intent, leading to questions around the ethical use of data.

“Think about what information is going to have a positive impact on the business and a positive impact on the workforce,” she says. 

The recent proliferation of new AI technologies means that HR is now able to gather and assess information at greater speed and volume than ever before. However, these machines cannot yet replace humans’ ability to think critically about data and spot ethical nuances like this.

As a result, getting the most out of this technology will mean striking a balance between harnessing its processing abilities and maintaining a critical human eye.

Given their expertise in all things people, HR is in a prime position to manage this balance, says Hammond.

“Ultimately, it’s about how we source the greatest people, and how we ensure that people perform at their best,” she says.

“If we don’t use evidence-based HR in the work that we do, then we’re not providing the services that are truly required – we’re not being that trusted, critical, credible partner that our organisations need.”

Understand the principles of data-driven decision making and learn to apply a data-driven mindset to HR strategies and challenges with AHRI’s short course in People Analytics.

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Have you ever presented information to your peers and colleagues with confidence and then presented that exact same information to a group of senior stakeholders and felt completely out of your depth?

If so, you’re not alone. Feelings of Impostor syndrome or a sudden onset of self-doubt are incredibly common when engaging with executive and board-level leaders for the first time. Often, it’s the absence of executive presence that makes it more challenging.

“The more self-aware, comfortable and confident you are within yourself – when you’ve done some personal or professional development work and when you have a good [understanding of] how you add value – you’re more likely to have that grounded sense of confidence,” says Fiona Pearman, facilitator, coach, author and c0-founder of Quantum Impact Group, alongside Kate Boorer.

Executive presence means you’re less likely to get “hijacked by your nerves” when you find yourself in a situation where you need to demonstrate leadership and influence, she says.

Acquiring these skills takes time, but there are small things you can start doing today that will help you build these critical leadership behaviours over time. Pearman shares five key tips below.

1. Ask really good questions

People often underestimate the value in asking a really good question, says Pearman.

While she warns against over-preparing, Pearman suggests taking the time to understand the environment you’re entering – who’s in the room? How do they communicate? What are their end goals? – and then thinking about some of the questions you might ask to help move the group towards their end goal. 

This can be a great way to cement your presence as a considered, strategic and big-picture thinker. For example, if you’re with a team that is problem-solving, you might ask questions such as:

• What might we be missing here?
• Have we gathered sentiment from anyone who’s not in this room?
• If we asked someone to identify a flaw in our plan, what might they say?
• Are we able to clearly articulate the problem we’re trying to solve?

“The more we can resource ourselves to understand what the parameters are, the less likely we are to [experience] the derailers of executive presence, which are things like self-doubt, the nervous system going into fight, flight or freeze, or being worried that people are going to judge us if we say the wrong thing,” says Pearman.

2. Consider your communication style

As you’re working on developing your own communication style, Pearman suggests taking the time to notice how other executives hold themselves.

“Notice what they’re doing, but also what they’re not doing,” she says.

For example, they might avoid being the first to speak in a meeting, or perhaps they’re restrained when it comes to offering a solution to a problem and instead ask the right questions to help people get there on their own.

The way you communicate matters too, says Pearman.

“If you notice people with executive presence, one of the things you often hear is less is more.

“They don’t pad and they don’t fill. They’re actually pretty comfortable with silence. They’re not trying to people-please, and the absence of that gives them that gravitas and executive presence.”

That doesn’t mean you shouldn’t do the preparation work that you’re naturally inclined to do, you just don’t need to explain everything, she says. Let your confidence speak for itself and be prepared and available to go deeper should the situation call for it.

Read HRM’s article on how to make your communication more impactful.

3. Don’t feel you need to be the subject matter expert

Many people have an internal bias telling them they’ll look weak or incompetent if they have to ask questions or admit to not knowing something, says Pearman.

“What happens in our early career and leadership journey is that we often rely on our subject matter expertise. We rely on working really hard and knowing our stuff. Particularly for women, we keep thinking that another course or another degree will be the fastest track to executive presence, and yet it never is.”

This isn’t on the individuals, she adds. It’s the result of systemic, social pressures that often hold people back, especially women.

“We keep thinking that another course or another degree will be the fastest track to executive presence, and yet it never is.” – Fiona Pearman

But these challenges occur for all genders, she adds. Pearman has done a lot of coaching work with MBA students through Macquarie Business School and says it’s “phenomenal” how far-reaching these confidence issues are.

“These are all talented, high-potential leaders, and they were hoping their degree would be the ticket to the next stage, yet there was this whole piece around the way they were showing up with their executive presence that, for many of them, was undermining their ability to communicate, engage and inspire people.”

When Pearman works with clients, she has to do a lot of “course correction” to overcome this expertise-versus-presence challenge.

“It’s about getting people back in touch with that inquisitive, curious part of themselves. Being able to ask for help from a place of personal power is very different from tentatively asking questions nervously.”

A great example of this in action is seen in an article HRM published last week. Clare Murphy FCPHR, Executive Director Organisational Enablement at EACH, wrote about how she recently took on responsibility for the finance, IT infrastructure, quality and risk units in her organisation, as well as maintaining her former HR responsibilities.

Murphy noted that she wasn’t a subject matter expert, especially with IT, but she was able to utilise her well-honed HR leadership skills to her advantage.

“Not having an IT background can have its benefits, as I had to ask a lot of questions to understand what was needed, and that enabled a roadmap and communications strategy that has been translated into language everyone can understand and relate to,” she said.

“The most critical skills are the ability to listen, bring together different people and perspectives to work collaboratively together. My general approach is to put out what is proposed and ask people to tell me what’s wrong with it or what’s missing. If you listen to their responses, you can make better decisions.”

4. Have a meeting before the meeting

Executive presence can flow from appropriate consideration prior to an important meeting.

Say you’re presenting to the board and know they’re interested in seeing progress around your employee retention strategies, for example, but perhaps you’ve seen an increase in turnover or what you proposed last time isn’t quite working.

This might feel like a challenging thing to present back to the board, but, as AHRI’s National President and Chair Michael Rosmarin FCPHR said in a previous HRM article, the board is there to help you.

“It’s often a good idea to seek out the Chair and speak to them before the meeting and say, ‘I’ve got something challenging that I’d like us to discuss in the meeting.’ These meetings aren’t about just presenting your work for approval; they’re about getting input and feedback and often working through challenges together,” he said.

Pearman agrees that a “meeting before a meeting” can be a smart way to not only allay any personal nerves, but also get senior stakeholders on side, as you can learn about their priorities and communication styles and tailor your response to them.

“Learn who will be in the room and the dynamics that might be at play,” she says. “What sort of questions might you be asked?”

Read HRM’s guide to developing social capital in the workplace.

5. Develop commercial business acumen

There’s an expectation on leaders that they’ll be able to engage in a robust commercial discussion, says Pearman.

“If you have shied away from understanding a P&L or balance sheet, spreadsheets or financials, that is an area to expand your knowledge on, because even mid-level leadership roles are expected to have a good understanding of the financial implications of choices and decisions.”

This means even when you’re viewing a citation through a people lens, you’re talking about costs, she says.

“When we speak [executives’] language, when we speak into their budgets, into their constraints, into the challenges they have, then we’re solving a problem together. It’s not like HR are coming with their own view of the world. You’re coming into their world and figuring out how you can support them to be more effective in achieving their commercial goals.”

Want to learn more about effective leadership and management? Sign up for AHRI’s short course to understand your leadership style and learn how to create key performance indicators.

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I have encountered first-hand the reluctance within organisations to fully leverage the strategic value of HR professionals in boardroom deliberations. 

Despite the undeniable significance of human capital-related issues in shaping organisational success, the lack of HR expertise at the board level remains a prevalent challenge.

Korn Ferry’s 2019 findings revealed that a mere three per cent of Fortune 1000 board members have a background as senior HR executives. 

Global human capital expert and Professor of Practice at UNSW Dr Juliet Bourke, who will be speaking at AHRI’s National Convention and Exhibition in August, says the resistance towards appointing board directors with human capital backgrounds is often explained as the board needing ‘generalist’ rather than ‘specialist’ skillsets. She says that represents a misunderstanding about the breadth, complexity and strategic thinking chief people officers require.I agree with her. Here’s why.

How HR leaders can demonstrate board legitimacy   

In Australia, Generation Z (born 1995-2009) will comprise almost a third of the workforce (27 per cent) by 2025, according to Gartner. Baby Boomers (born 1946-64), who currently hold the lion’s share of senior executive positions, comprise a quarter of today’s workforce (25 per cent), but as they are reaching their retirement years, they will account for just eight per cent of the workforce by 2025. 

This represents not just a change in percentages, but a radical change in the human capital landscape, and it implies that a future-fit board must have currency in, and legitimacy with, the changing workforce.

One of the primary obstacles I see lies in a misunderstanding about what an HR professional does; their remit is certainly not confined to traditional personnel matters. This narrow and outdated perception disregards the strategic acumen and operational agility that HR leaders bring to the table, perpetuating misconceptions about their suitability for board roles. 

“HR professionals offer a nuanced understanding of organisational dynamics and human capital imperatives that is indispensable in guiding strategic decisions.” – Samantha Martin-Williams, Chair and Non-Executive Director

As a champion of contemporary, inclusive governance, I recognise the importance of challenging these entrenched perceptions and advocating for the transformative potential of HR expertise within the boardroom.

Organisational dynamics and external factors also contribute to the reluctance to fully embrace HR representation on boards. Traditional paradigms of corporate governance, dominated by individuals with finance and operational backgrounds, often overlook the critical expertise that HR brings to strategic decision-making. 

Despite the undeniable importance of human capital-related issues, some chairs persist in overlooking the invaluable insights that HR professionals offer, leading to missed opportunities for sustainable organisational relevance and overall success.

To overcome these challenges, it’s imperative to foster a deeper understanding of the strategic work of HR and advocate for the transformative impact of the people profession’s expertise in the boardroom. 

By championing contemporary, inclusive governance and challenging entrenched perceptions, organisations can harness the full potential of HR to drive organisational excellence and sustainable growth.

How HR leaders can navigate the complexities of board dynamics

I’ve witnessed first-hand the invaluable contributions HR leaders make to boardroom deliberations. Beyond their traditional remit, they possess a wealth of experience that uniquely qualifies them to navigate the complexities of board-level governance.

As a Chair of People, Culture and Remuneration Board Committees, I have witnessed the critical role of HR expertise in managing risk – such as those related to talent attraction and retention, upskilling and reskilling – and the impact this can have on organisational culture. 

HR specialists bring clarity to complex issues, ensuring that the human element isn’t overlooked in risk management strategies.

“I’ve witnessed first-hand the invaluable contributions HR leaders make to boardroom deliberations.” – Samantha Martin-Williams, Chair and Non-Executive Director

For example, most board packs include a dashboard-style report or reports. The dashboard combines financial and non-financial metrics as a means of managing risk appetite. I believe the true health of an organisation lies in non-financial metrics, such as key person risk, talent pool attrition, engagement and sentiment scores.

Human capital specialists bring a unique ability to interpret these metrics, providing a deeper understanding of the human side of the business. This nuanced interpretation goes beyond the purview of generalists, offering a comprehensive view of how the workforce is adapting to changes and areas of concern.

In my interactions with non-executive directors, I have emphasised the holistic perspective that HR professionals offer, transcending functional boundaries to inform strategic decision-making. 

By leveraging their extensive repertoire of skills honed through change initiatives, merger and acquisition activity, remuneration negotiations, and compliance imperatives, HR professionals offer a nuanced understanding of organisational dynamics and human capital imperatives that is indispensable in guiding strategic decisions.

Want to learn more about how to develop executive presence to enhance your HR leadership? Sign up for AHRI’s webinar on this topic on 1st of May. Free for AHRI members.

HR’s board impact underscored

According to research, companies with diverse executive boards enjoy a 36 per cent higher return on equity and a 25 per cent higher likelihood of financial outperformance, underscoring the business impact of HR representation. 

Through mentorship programs, cross-functional collaboration and continuous learning initiatives, HR can enhance their efficacy as strategic advisors and champions of organisational excellence. 

My own journey as a non-executive director with a deep skill set in human capital has been characterised by a steadfast commitment to inclusive governance and transformative leadership. 

I was very encouraged to see the 30% Club Australia and Deloitte Australia take up this cause via the publication of its recent report Green Shoots of Change in the Boardroom (March 2024). This report identifies the importance of boards broadening their composition to be more future-fit, and profiles examples of directors from human capital, customer/marketing and digital backgrounds. 

Disappointingly, as Bourke observed, “There were far fewer appointments of directors from human capital backgrounds even though the talent pool is full.” She added, “Changing the status quo requires energy and persistence. It also requires impetus and inspiration.” 

The report is definitely worth a read, and my hope is that it will help turn the tide so that having boards with human capital skillsets will soon be the convention. 

A version of this article originally appeared in the April/May 2024 edition of HRM Magazine.

Samantha Martin-Williams FAICD FGIA is an experienced non-executive director and Chair, and a former CEO and commercial lawyer. She is the Deputy Chair at Newcastle Airport and Vice Chair of the Supply Chain and Logistics Association of Australia Board. She is Chair of the People, Culture and Remuneration Committee at NGM Group Australia and a Director at Fishburners, Australia’s largest startup innovation and entrepreneurial community.

The post The value of HR leadership at a board level appeared first on HRM online.

The rise of remote work and virtual teams has accelerated the demand for trust while also intensifying the challenge.

Fewer ad hoc social interactions between team members means people have less chance to demonstrate the three core elements of trust: benevolence or psychological safety; competence, and dependability or integrity.

Teams and high performance expert Rob Cross says the loss of face-to-face, complex communication means mistakes could be made more easily.

As Senior Vice President of Research for i4cp and Edward A. Madden Professor of Global Leadership at Babson College in Wellesley, Massachusetts, Cross says misintent or misunderstandings were common with the loss of social cues from remote work.

“It really cuts across all three forms of trust,” he says. “You might mistake when somebody’s committing to you, or mistake their abilities to do something, or you mistake their intent in what they’re saying. I think that’s a big deal.

“Also, the transience of people moving across organisations more rapidly and shifting across roles inside organisations more rapidly [creates challenges]. There’s less time to just rely on serendipity and hope to build trust in different places.”

Eroding social bonds

Remote work has created a raft of challenges for HR, including employees struggling with lower motivation, informal learning and engagement.

Social bonds are eroding, with Gallup’s latest State of the Global Workplace report finding 67 per cent of Australian and New Zealand respondents were emotionally detached from their employment.

About 11 per cent were classified as “loud quitting” and actively disengaged, demonstrating a breakdown in trust between employees and their company. Daily anger and stress were reported by more hybrid employees than those based onsite.

While employees are keen to retain the flexibility of the home-office location, organisations are seeking new ways to overcome its constraints.

This comes back to clear and consistent systems to enable productive work and impact, coupled with regular feedback that is actioned.

“You might mistake when somebody’s committing to you, or mistake their abilities to do something, or you mistake their intent in what they’re saying. I think that’s a big deal.” – Rob Cross, Edward A. Madden Professor of Global Leadership, Babson College

Cross says some people are naturally more adept at rapidly earning trust, by providing proof points to demonstrate their competence.

“They have a tendency to issue some kind of evidence like, ‘Okay, here’s what we’ve done before, how could this apply here?’ They also talk about the boundaries of their expertise versus what they’re good at. This all creates trust more rapidly.”

When social cues are lost, we need systems

At an organisational level, more formalised structures, processes and even metrics can be implemented quickly to support people to form trusting relationships within their teams, says Cross.

“We have the analytics. I can go out and see where trust is breaking down, but companies haven’t adopted it yet,” he says. “As time goes on that will become an important feature that allows people to see [if they are] curating a culture of trust or not, and what do they need to do.”

What is not working are the attempts from many organisations to impose electronic surveillance of remote employees, termed “productivity paranoia”.

Research published in Harvard Business Review found the monitoring for control eroded supervisor-subordinate relationships and could be counterproductive.

“Our results show that when supervisors used monitoring for control purposes, employees were more prone to engage in deviant behaviour (e.g., time thievery, inattentiveness, cyberloafing, tardiness, etc.) and their performance decreased,” the report says.

Instead, Harvard Business School expert in leadership Amy C. Edmondson, Novartis Professor of Leadership and Management, says trust must be explicitly and deliberately built in remote environments.

“You’ve got to name the reality of uncertainty and interdependence as a challenge, then problem solve together to figure out the best strategies for overcoming it,” she says.

She points out that trust and psychological safety must be paired with accountability, or a sense of psychological ownership and commitment to excellence, to generate effective performance.

This type of framework involves clear, regular and constructive communication between members of remote teams.

Starting with an explanation of the challenge and an appeal for shared responsibility, managers can then lead their teams in building trust by being open and candid themselves.

Edmondson says managers should also be vigilant to group dynamics and provide feedback and ongoing input to maintain transparency.

Develop the necessary skills to build and sustain a high performing work team and tap into the full potential of team members with this short course from AHRI.

Work-life balance or blur?

The transition to remote working over the past decade – from phones to the internet and mobiles, and now fully remote practices – has blurred the line between people’s work and social lives.

This raises the structural risk that the trust and reputation earned by a company over years of effort may not be demonstrated by an individual worker dialing into a meeting when in “home mode”, for example, from the train or from home.

Melbourne Business School Professor of Leadership Will Harvey said there is an increased organisational risk of misalignment of words and deeds.

“You’ve got to name the reality of uncertainty and interdependence as a challenge, then problem solve together to figure out the best strategies for overcoming it.” – Amy C. Edmondson, Novartis Professor of Leadership and Management, Harvard Business School

“There is a blurring of boundaries,” he says. “What people say and do, and how they behave outside of the work context, could actually create some tension between what that organisation is trying to do in terms of projecting both internally and externally.

“There is a risk that they undermine some of the messaging of the organisation.”’

He says HR professionals must make people aware of the risks and urge employees to carefully consider their actions outside the workplace.

Solutions to build trust

To reap the benefits of a high-trust culture – be it remote or in person – you first need to assess if there are potential risk areas to be aware of. With this information at hand, you can put measures in place to mitigate the risk of polarisation. Edmondson and Cross, plus other experts cited in this HBR article, share some insights.

Consider: Are there any existing weak spots in your culture that could grow into larger challenges, such as criticisms of certain leaders?

Actions to take:

• Identify groups that are standing on pre-existing fault lines, and design programs to bring them together on a regular basis.
  
• Encourage different employees to speak up each time you host a meeting, so people become more familiar with other voices in the company.

Consider: Do employees know what kind of behaviours are likely to build trust? Do you train for these skills already?

Actions to take:

• Help colleagues see each other as people to go to for transparent, credible expertise.
• Actively encourage colleagues to critique each other’s work in a safe environment.
• Help people connect over non-work matters.
• Coach team members to admit what they don’t know.

Consider: Are we inadvertently encouraging a culture of virtue signalling or zero-sum thinking?

Actions to take: 

• Appoint a ‘devil’s advocate’ in each meeting (and change this person each time) to normalise healthy dissent.
• Recognise and reward people who share their differing opinions in appropriate ways.
• As a leader, ask others to poke holes in your ideas and share alternative approaches.

AHRI members will have access to further discussion on the topic of trust, featuring insights from Amy Edmondson and Rob Cross, in this month’s edition of HRM Magazine. Not yet an AHRI member? Sign up today to receive a bi-monthly print magazine and access to a range of other benefits designed to support your HR career.

The post How to build trust in a distributed team appeared first on HRM online.

When considering solutions to Australia’s lagging productivity levels, our minds often turn to innovation growth, optimising workforces to operate in a streamlined manner and upskilling workers with critical skill sets. 

While these factors are all important and will play a part in getting Australia to meet its OECD counterparts’ productivity levels, there’s a more impactful lever that needs to be pulled which we often ignore.

“We should think about productivity as a concept that’s much more dispersed. Every person, everywhere, in every organisation, every day, plays a significant role,” says Christina Boedker, Professor at the University of Newcastle, who has researched the impacts of poor management practices via the Australian Workplace Index.

The Index found that in the past five years, Australia’s productivity growth has dropped to half of its 25-year average. The impact this is having on our economy reaches into the billions of dollars. For example, staff turnover alone is leading to a $3.8 billion-dollar loss to productivity.

Professor Boedker says when we think of productivity as more than just an innovation agenda, that gives us much more opportunity to intervene at an organisational level – and it positions HR leaders to design capability uplift programs that will have an impact.

How to measure management

In 2004, John Van Reenen, academic at London School of Economics and MIT, and Nicholas Bloom, Professor of Economics at Stanford, were among the first researchers to offer robust evidence on management quality’s effect on an organisation’s bottom line, when they established the World Management Survey (WMS). 

For nearly 20 years, the WMS team – which now also includes Raffaella Sadun (Harvard), Daniela Scur (Cornell) and Renata Lemos (Senior Economist at the World Bank) – has collected and measured management practice information from hundreds of medium-sized firms around the world.

They’ve found that managerial practice is strongly associated with productivity, profitability, stock market valuation and organisational survival. Following a wave of surveys in 2023, with data that spans 20,000 interviews across 35 countries, the key takeaway from nearly two decades’ worth of research was that around a third of global productivity gaps can be attributed to poor management.

“What’s stunning is how consistent the patterns are across industries and nations, and over time,” says Van Reenen, who is Ronald Coase School Professor at the London School of Economics and Digital Fellow at the Initiative for the Digital Economy at MIT.

“We’re starting to call some of these patterns ‘the natural laws of management’.”

Crucially, management scores are also strongly correlated with the wider economy and GDP per capita. For example, Van Reenen attributes management, or lack thereof, to around half of the gap between the UK and the US. 

“Given that low productivity is probably the number-one economic problem in the UK, this shows you how much could be gained from moving the dial on management.”

Kieron Meagher, economist and Professor at the Australian National University, who also contributed to the Australian Workplace Index, says the WMS is one of the most realistic measurements of management’s impacts on productivity.

Often public discourse around management’s impacts on productivity is solely focused on labour productivity data – the output per worker, he says.

“That’s because total factor productivity, which is how much you get for all the inputs you use, is very hard to measure, especially in service industries which [account for] about 80 per cent of the economy,” he says.

“[Management training] is usually something we do when things have gone wrong. It’s not something that all organisations will proactively invest in. Then they don’t understand why people are leaving or why they have low productivity.” –  Christina Boedker, Professor at the University of Newcastle

“But the thing is, labour productivity goes up with more capital regardless of whether it’s a good idea for the business to invest in the capital… because if you’re not counting the capital as an input, you get more output, then labour productivity has to go up even if you’re wasting those resources.”

But that’s not what the WMS has done; its researchers have encapsulated labour productivity as well as labour inputs, skill levels of the managers (based on those who’ve secured an MBA) and the capital investment of the organisations.

However, the WMS measures of management are mainly focused on management practices such as setting goals, monitoring people, providing them with incentives, holding employees accountable and hiring good people.

“They don’t really measure the psychological side of management. If you consider that, the productivity impacts could potentially be even larger. So I would view their numbers as somewhat conservative in that regard.”

Van Reenen’s 2017 research also shows Australia’s management scores lag behind those of most other developed nations.

Good management is directly correlated with improved business performance, says Van Reenen. This is why he believes management training should be a top priority for businesses in 2024 and beyond. 

“As an economist, I am flabbergasted at just how many badly managed firms there are. For example, businesses failing to collect sensible data on what they’re doing, setting impossible goals and promoting based on connections rather than ability and effort.

“There are some clear drivers of better management practices, so the good news is that there are many ways that business leaders can up their game.”

But how can HR help them get there?

Leadership empowerment

HR leaders have a role to play in addressing these challenges via targeted training programs fit for the modern-day worker, which need to account for the fact that work is becoming less routine, says Professor Meagher.

“People often think of this production-line type of economy, but we left that behind a long time ago. We now have a large proportion of people who are knowledge workers doing complex jobs.

“As a supervisor, you’re not just looking over people’s shoulders to see how fast they’re screwing the wheels on in the Ford production line. You can’t even tell what they’re doing because it’s all in their heads.”

Professor Boedker says part of the solution lies in moving away from prescriptive leadership styles and empowering employees to “be the custodians of their own productivity”.

“[Australia] is still far off in terms of the attitudes that most supervisors take. Scandinavia, for example, has been a lot more progressive in institutionalising and bringing into leadership this idea that people can think and act independently,” she says.

People management 101 needs to be the foundational skill set that we develop in future leaders and managers, she says, but we often just promote those who are technically accomplished and think of people skills as a secondary training element – and that’s if we consider them at all.

“[Management training] is usually something we do when things have gone wrong. It’s not something that all organisations will proactively invest in. Then they don’t understand why people are leaving or why they have low productivity.”

Empowering leadership styles are the answer, she says. The Australian Workplace Index found that if all Australian managers and leaders adopted an empowering mindset, we could reduce Australia’s work-related mental health costs by $1.7 billion, increase staff productivity by 10 per cent and reduce employee turnover by 25 per cent.

On a smaller scale, Professor Boedker says just a 10 per cent increase in empowering leadership translates to:

• A seven per cent increase in job satisfaction
• A 10 per cent reduction in employee turnover intentions
• A 6.5 per cent reduction in emotional exhaustion
• A six per cent boost to emotional wellbeing.

Putting insights into action

Professors Boedker and Meagher share key areas to focus on, both from a training perspective and in order to set the right conditions for managers to thrive in. These include:

Helping employees find meaning in their work

Employees who feel their work is meaningful have improved energy, health, resilience and satisfaction in their work, according to research.

“If you can see the point in your work in a moral sense or derive personal satisfaction from it, then that can make your job easier to do. You feel like there’s less drudgery,” says Meagher.

Action: Read this HRM article about how to help employees search for meaning in their work.

Set long-term KPIs for managers

“When managers are given short-term goals to meet… they might sacrifice the long-term interest of the workers in order to achieve their short-term goals,” says Professor Meagher.

“We hear about CEOs doing that stuff all the time, right? Like stock price manipulation by doing something with the books. But middle managers can do that kind of stuff too.”

Action: Review management KPIs with the leadership team and consider adding in people-centric goals, such as ‘How many employees received a promotion in your team?’ Or ‘How many new skills have you introduced to the company via your coaching efforts?’

Make work less difficult for people

By removing friction points and ensuring employees have the resources, skills and information they need, employees are enabled to work in more streamlined ways. 

Action: Encourage managers to include a recurring agenda item in their one-on-ones to check that employees have the information they need to do their work for the week ahead and help them to remove any roadblocks that are in their way, such as excessive meetings or technology challenges.

Facilitate discretionary effort

Discretionary efforts are dipping in Australia. Gartner found that change fatigue paired with cost-of-living pressures could be contributing to this. We also know that engagement levels are currently low as employees continue to wrangle increased workloads, uncertain economic circumstances and more complex work tasks, among other things.

“Consider what motivates us to put in that discretionary effort,” says Professor Boedker. “It’s the relationships we build, right? Yes, there’s a job to be done, but people come to work because they have good relationships and feelings of being supported and recognised.

“We can’t underestimate the relational elements, and I think some managers tend to forget that.”

Action: Sign your managers up to AHRI’s Leadership and Management short course to help them learn the fundamental skills required to be an effective manager in 2024.

Weed out the bad apples

We know that the negative impacts of a bad apple in the workplace can be far-reaching, and it’s even worse when that bad apple is in management.

“The side of management that we don’t talk about enough is the negative sides of [managers’] behaviour. The ‘Dark Triad’ is psychopaths, Machiavellian behaviour and narcissistic behaviour.”

These personalities are huge productivity detractors. Rather than just adding more ‘good leaders’ into the mix, it’s more effective to either weed out toxic players or put in the work and structures to change their behaviours, as organisational psychologist Adam Grant pointed out in this article on ‘givers’ and ‘takers’ in the workplace.

Action: Read HRM’s article ‘How to turn a bad boss into a strong leader’ and ‘The three types of narcissist you might encounter at work‘.

“These are all skills that some people might be born with, but for most of us it might require training, so I think there’s a role for HR to help managers to be thinking about those,” says Professor Meagher. “These [factors] aren’t peripheral extras. They’re key to modern management.”

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When Natasha Cuthbert MAHRI explained to her children what she did at work, she used to say, “I help people be happy in their jobs.” 

It’s a simplistic description that echoes her professional purpose: to create a workplace where everyone can be their best self.

“It’s important to be our authentic self at work rather than having a work persona and a home persona,” she says. “Creating a diverse and inclusive environment is what really drives me.”

Happy employees are also good for business, she adds, which is why Cuthbert feels frustrated when people label HR a “soft profession”.

“HR people have to have a really strong backbone and commercial background. It’s about getting the best out of people to get the right commercial outcomes, but doing the right thing by them while you do it. I think making that connection is the most powerful thing you can do as an HR professional.”

Cuthbert’s achievements as Chief People and Culture Officer at Viva Energy Australia led to her winning AHRI’s 2023 HR Leader of the Year Award, a recognition she describes as “very humbling”.

“It’s a very positive endorsement of the great job we’re doing in terms of looking after our people, making the employee experience amazing and delivering our business strategy through a really great people strategy.” 

Of Cuthbert’s win, the AHRI judges said she “clearly understands the importance of listening… in developing HR activities”.

“Her capacity to truly ‘hear’ the voice of her workforce has led to the design of a meaningful EVP framework, leadership framework and D&I framework, which has created true business impact,” they said.

While Cuthbert has no doubt the award will benefit her career, she confesses she had to be “coaxed” into the nomination. 

“While I’m always very keen to make sure that our Viva Energy LinkedIn profile highlights the great things we’re doing on gender equality, flexibility or family, for example, I’m not really someone who personally works ‘out loud’,” she says.

An unexpected passion for inclusion

Though it could appear Cuthbert was always destined for a career in HR, it wasn’t her first ambition.

“My initial degree was in Zoology. I wanted to care for endangered species. I was very passionate about the environment and conservation,” she says.

But then a working holiday role in the UK after university gave her a taste of HR. She dipped her toes into performance management and wrote disciplinary reviews, which she found surprisingly interesting. 

“It’s in those challenging environments where you can really make a difference as an HR professional.” – Natasha Cuthbert MAHRI, Chief People and Culture Officer, Viva Energy Australia

Returning to Australia, she worked for a consulting firm that guided organisations on their strategic vision and values, before working on graduate and mid-level leadership programs.

“I became fascinated by organisational dynamics, team culture and how to get the best out of people at work – so human behaviour, as opposed to animal behaviour.”

Three years later, an offer from Coles Myer gave her the chance to work within the heart of a business, and she revelled in new opportunities to manage operational HR through the supermarkets business and then move onto more corporate programs, such as improving Indigenous employment across supermarkets, early work on the gender pay gap, and starting to think about how to embrace LGBTQIA+ Pride.

But after 15 years at the retail giant, she was hankering for “a really big challenge”.

When an opportunity came up at Viva Energy in 2020, it was the perfect marriage of her environmental passion and desire to make a real difference to people’s lives.

“Oil and gas has to change; we won’t be putting petrol in cars forever,” she says. “And the only way a business like Viva Energy is going to thrive in the future is to have a really strong transformation plan. 

“[The company] has a very clear vision of how it needs to change and I wanted to be part of driving that transformation. For the first time, I have the whole HR department reporting to me. That has been instrumental in reshaping how the people and culture agenda impacts the company. To be given that opportunity has been pretty special.”

Challenging assumptions about gender equality

Passionate about diversity and gender inclusion, Cuthbert also knew that in such a “male-dominated industry that has a bit of a blokey culture”, she could have a real impact. While there was already a push underway to recruit more women, there was a long way to go.

“In our 2020 employee engagement survey, there were comments like, ‘Why do you have to be a female to get a job around here? Men do a better job. They’re better qualified.’ I could see it wasn’t great and that there was plenty of work to do on changing attitudes.”

Fast-forward four years and it’s a completely different picture.

By challenging the assumption that these roles need to be performed on a full-time basis and that prior industry experience is necessary, the representation of women in frontline shift-based roles at Viva Energy’s Geelong refinery has increased from nine per cent in 2018 to 26 per cent in 2023 – an increase that impressed the AHRI judges.

Furthermore, Cuthbert has broadened its diversity pillars from Gender and First Nations to also include Culture, Families, Abilities and Pride.

Among other initiatives that helped secure her the title of AHRI’s HR Leader of the Year, she introduced the ‘Say it Again’ campaign, designed to give employees a safe phrase to use if they experience casual sexism or racism; extra domestic and family violence leave, which is paid time off for employees to find safe and secure housing; and culture and ceremonial leave, which enables team members to observe a religious or cultural day of significance.

“HR people have to have a really strong backbone and commercial background. It’s about getting the best out of people to get the right commercial outcomes, but doing the right thing by them while you do it.” – Natasha Cuthbert MAHRI, Chief People and Culture Officer, Viva Energy Australia

“If people see that our organisation supports MidSumma Pride March, that we’re working with specialist autism services, that we love to see people dressed up in traditional Indian clothes for Diwali, inclusivity feels real and genuine,” she says.

“In our employee engagement survey we no longer see comments about why you’d hire a female over a male. Instead, we see comments like, ‘I have a gay daughter and it’s amazing that I feel that I can talk about her freely at work.’”

While Cuthbert says there’s “always work to be done”, she’s very proud of Viva Energy’s progress.

“It’s in those challenging environments where you can really make a difference as an HR professional. That’s rewarding.”

A values-based approach to transformation

Cuthbert has further challenges on the horizon in terms of Viva Energy’s transformation journey. The company took over Coles Express in May, which brought the number of people across the business from 1500 to 7500. With its more recent acquisition of convenience store operator On the Run, the number of employees will swell to 15,000 later this year.

Cuthbert’s team will be tasked with uniting the three different businesses.

“Each business unit will have a unique culture – the convenience and mobility unit will be different to the culture in our infrastructure business, and that’s okay.”

As the world moves into more sustainable fuels, Cuthbert is aware that business will need to evolve.

“How we morph into a different organisational shape in terms of purpose and vision is very much on our minds.”

She’s confident her Smart with Heart concept will help to cultivate Viva Energy’s leaders of the future. This is a framework defining the competencies that enable its leaders to be successful, and includes things such as: safety first, strategic vision, customer centricity, collaboration, performance and accountability.

“We have a lot of clever people here, but if you’re smart without the heart, you’re not going to get cut-through. We want people to be business leaders and people leaders. So we built a set of smart competencies and heart competencies that frame our leadership program.”

Cuthbert believes a good HR strategy is not only about attracting and retaining top talent, but also about asking the right questions. 

“Getting the complete picture is crucial whether it’s a personal or an organisational matter,” she says. “That’s how we find solutions and create a positive impact.”

A longer version of this article first appeared in the February/March 2024 edition of HRM Magazine.

Need support enhancing your HR capabilities? Take AHRI’s capabilities analysis test to learn where you can enhance your skill set and receive a personalised report outlining what your AHRI learning journey could look like. Learn more here.

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When we think about high performance, our minds often wander to superstar athletes or the intellectual geniuses. But we all have the potential to be high performers in our fields, we just sometimes miss the crucial support needed to raise our own bar.

“I think about hidden potential as the capacity for growth,” says Grant, a US-based organisational psychologist, author, podcast host and Professor of Management and Psychology at the Wharton Business School in Philadelphia.

In a recent visit to Australia, as part of an event hosted by Growth Faculty, Grant shared

some research-backed practices to help employers uncover hidden potential in themselves and their teams. Below, HRM shares a summary of some of his advice.

1. Identify your givers

All workplaces have givers and takers, says Grant.

“The givers are people who are constantly asking, ‘What can I do for you?‘ Takers are the opposite. They want to know, ‘What are you doing to do for me?'”

Givers are worth their weight in gold, as they’re often helping people uncover their own capabilities.

“[Givers] share their knowledge. They teach their skills, they mentor junior people, they volunteer for unpopular [tasks],” he says.

This could lead one to believe that you should exclusively hire and build teams of givers. But keeping toxic ‘takers’ out of an organisation has proven to be much more effective, says Grant.

“If you bring one giver into your team… more often people are like, ‘Great, that person will do all my work’. So effective hiring and selection is less about bringing in the givers and is more about weeding out the takers who destroy the collective potential of the group.”

Action point: Create reciprocity rings

Grant cites the work of Australian researcher Sharon Parker, ARC Laureate Fellow at Curtin University and Director at the Centre for Transformative Work Design, who has helped shape his research over the past 25 years.

Proactive generosity in a work context is relatively rare, Parker’s research found.

“It turns out that 75 to 90 per cent of helping behaviour starts with a request,” says Grant. “Somebody saying, ‘I’m stuck on this. Could I get your advice? Can you help me solve this problem?’ 

“But a lot of us don’t ask. We don’t want to be too vulnerable. We want to look competent and self-reliant. If you’re a giver, there’s an extra barrier which is that you like to be on the giving end of every interaction. You don’t want to be a burden to others.”

Cheryl Baker, co-founder of Give and Take Inc, and her husband Wayne Baker, professor at the University of Michigan, came up with a solution for this called the ‘reciprocity ring’. 

Essentially, you gather a group of people who don’t know each other too well and invite them to make a request for something they need but feel they can’t get/do on their own. The whole group is then tasked to use their collective knowledge and networks to fulfil each other’s requests.

For example, employees might seek exposure to a mentor, expertise to build something new, or support getting a pitch over the line with the executive team.

Grant refers to an example of a pharmaceutical company that conducted a reciprocity ring. One researcher was trying to synthesise a strain of PSC alkaloid, but they didn’t have the budget to continue the work.

“Someone from a different unit said, ‘I have some slack in my lab at the moment and this sounds like it would be a great learning opportunity for my team. We can do it for free.’ And that saved the company 50 grand.

“I think this is a great exercise… because when everyone is asked to make a request, the givers start asking [for help], and when everyone is expected to help, the takers start giving. In one study, we found that takers tripled their contributions during this activity.”

2. Challenge assumptions

Learning how to find a diamond in the rough is a critically underrated skill, says Grant. In one of his former roles, Grant was in charge of hiring a team of salespeople for a travel company.

“I remember one [candidate] stood out to me as being a horrible fit for the job. This guy who applied was a maths major and built robots for fun… it was probably the worst interview I’ve ever witnessed. Afterwards, I made the decision to reject him.”

When he was debriefing with the company’s president and going through the list of candidates, she queried him on this decision.

“[She asked me], “Why did you reject him?” I said, “To be perfectly honest, he didn’t make eye contact for the first 45 minutes of the interview. There’s no way he’s going to have the social and emotional intelligence to be good at sales.” And our President said, “You realise this is a phone sales job, right?””

This was somewhat of a ‘light-bulb moment’ for Grant. He had an idea of what a ‘successful’ sales representative looked like and didn’t take the time to consider if this candidate might have other valuable skills to add to the mix. Perhaps he was neurodivergent, quiet or introverted, all of which carry their own unique benefits to an organisation.

Action point: Rethink job interviews

Grant decided to give this candidate, and others who’d been unsuccessful, a second chance. He also changed how the interview was conducted. Instead of asking them questions, he gave them a chance to sell something: a rotten apple.

“We figured, if you can sell us a rotten apple, you can sell pretty much anything. My all-time favourite pitch was someone who came in and said, “This might look like a rotten apple, but this is an aged, antique apple. And you know how they say, ‘An apple a day keeps the doctor away?’ Well, the nutrients that have formed in this apple during the ageing process mean you only need to eat one per week.’

“I hired him and he was the single best salesperson in our company, he broke multiple company records and he studied maths and built robots in his spare time. That was a great lesson for me.”

“When you ask for advice, people become more specific. They become more actionable. They give you suggestions that you can actually put into practice.” – Adam Grant

This experience has led Grant to believe that all job interviews should come with a do-over.

“There’s an entrepreneur, Guy Winch, who… at the end of the interview, asks, “How do you think it went?” And if you weren’t happy with your own performance, if you feel like the company didn’t give you a chance to shine, they invite you to try again. That is an incredible way to find people who have hidden potential.”

3. Normalise not knowing

Often, we think of imposter syndrome as a debilitating, chronic disease, says Grant. But, in certain circumstances, it could help us.

He refers to the research of Basima Tewfik, Assistant Professor, Work and Organisation Studies at MIT, who studies impostor thoughts, such as: ‘Am I good enough? Should I be here? Am I ready for the next step?’ 

“What the data suggests is that the more often you have those thoughts the better you perform. Basima studied investment professionals, military professionals and medical professionals, and [the results] showed that more frequent impostor thoughts lead to more persistence.

“And [it also leads to] better learning because you feel like there’s a gap between what other people expect of you and where you are right now. Also, you know you don’t know everything, so you become curious and start to let other people coach you.”

Action point: Encourage employees to stop thinking of impostor syndrome as ‘pathology’

While Tewfik’s research isn’t suggesting that Impostor Syndrome is a good thing, it does encourage employees to perhaps “dampen the initial stress and anxiety that comes with impostor thoughts by showing that there’s an interpersonal silver lining,” she said in an article for Harvard Business Review.

4. Consider the ‘second score’

The second score concept was first introduced to Grant by Sheila Heen, Thaddeus R. Beal Professor of Practice and Deputy Director of the Harvard Negotiation Project.

“When somebody gives us a D minus and says, ‘Your performance was terrible,’ we try to argue with that and convince them to change the first score. But we can’t change the first score because it has already been determined by the performance you gave yesterday.”

The second score, which you give to yourself, is about receiving an A+ for how well you took the challenging feedback.

“I think about this pretty much every day. Whenever someone tells me something I’ve done poorly or need to improve at… I’ve got to figure out how to prove myself and the best way to do that is to show that I’m willing to improve myself.”

Action point – turn your critics into coaches

Resist the temptation to tune out negative feedback, says Grant, as you don’t want to create a situation where “people are lining up to tell you comfortable lies instead of the unpleasant truth”.

We need to turn these “unpleasant truths” into important coaching.

To get people who’ve given you ‘negative’ feedback to coach you to do better next time, instead of asking for feedback ask for their advice, he says.

“The problem with feedback is people are backward-looking and will tell you what you screwed up yesterday. That doesn’t tell you anything helpful. What you want are coaches who look to the future and tell you what you can change.

“When you ask for advice, people become more specific. They become more actionable. They give you suggestions that you can actually put into practice.”

Need support uncovering your hidden potential as an HR professional? Take AHRI’s capabilities analysis test to learn where you can enhance your skill set and receive a personalised report outlining what your AHRI learning journey could look like. Learn more here.

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