Blog Article

The Changing Face of Reward – What typifies the less successful organisations? – eighth in a series

Posted by John Branch

John Branch

In my last post  I explored what differentiates the successful organsations, below I outline what typifies the less successful organisations.

In our experience working across the GCC, we often see organisations that fail to leverage their human capital potential.

In a recent case study for a financial institution within the GCC where business performance was suffering in parallel with an increasingly disengaged and frustrated workforce, four key factors stood out as significant. Whilst pay was identified as slightly above market, and overall the organisation was offering strong job security, benefits and clear policies and procedures, employee engagement and loyalty especially at middle grades was below the market norm by over 40 per cent.

The resulting outcome was an organisation, where the trust relationship between leaders and employees’ had broken down – in effect, the leadership had a no confidence vote with nearly 70% of staff not trusting their own senior leaders.

Key learnings;

  • Clear direction: The organisation lacked a shared vision and direction, frustrating staff who felt they lacked context and broader understanding to effectively make day to day decisions – the degree to which they and their teams were empowered to execute strategy.
  • Transparency: There was a distinct concern from other staff and managers that the organisation was not open and honest in sharing good or bad news with staff.
  • Two-way communication: An unwillingness to listen to communications from the line, especially if it was bad news – or take on board constructive suggestions or ideas on how to improve things from staff.
  • Fair use of policies and procedures: An absence of true commitment towards rewarding performance and offer equal opportunities to all staff.

Now that I have looked at what typifies both the successful and unsuccessful organisations, in tomorrow’s post I will begin to look at the implications that these factors have in regards to both HR and reward.


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