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The opportunities and challenges for fast-growth businesses building multi-generational workplaces

We often hear the phrase – ‘your greatest asset is your people.’ This is true in any company; without them, you will fail! But fast growth in businesses can all too often come at a high cost to the people on your team, and it’s hard to grow organically and consistently without some things going under pressure.

In a study conducted for Hawthorn, we spoke to leading executives across high-growth businesses to understand their challenges, the opportunities that exist, and the continued need to put people first.

The findings identified four key areas of focus for fast-growth businesses:

  • Attracting and retaining talent
  • Building and maintaining culture
  • The changing face of leadership
  • Ensuring effective communication

These are challenges being faced by many organisations, but they are exacerbated by the pace at which businesses are growing.

Attracting and retaining talent

How you treat your people is paramount. People now expect much more from their employers, and so employers must work harder to attract and retain top talent – it’s no longer just about pay and bonuses, they are looking for career growth, a positive work culture, and work-life balance.

A third of respondents said they have experienced challenges attracting talent to their fast-growing company. Over three quarters said they have found employee retention to be more of an issue since the pandemic, with almost a third saying that retaining the right people has been a significant problem for their business.

At the same time, business leaders are facing a subset of challenges created by a multi-generational workplace. Despite the reported challenges with Generation Z fueling the Great Resignation, respondents said that Millennials and Generation X were the two generations they find most difficult to retain, leaving them with skills and experience gaps in their businesses.

Despite all of this, 71% of respondents have not changed their methods of employee retention over the last 12-18 months, which is surprising considering the clear need for fast-growing businesses to retain top talent.

Businesses would do well to now focus on factors that will contribute to workers’ overall experience, and ensure they have an up-to-date and relevant Employee Value Proposition that meets the needs of their current and future talent.

Building and maintaining culture

Building and maintaining culture is reported as a key challenge for fast-growth businesses. This is likely a result of leadership being more firmly focused on growing their business, coupled with the fact that once you’ve surpassed a certain number of employees, your culture begins to change and becomes more difficult to control. This is further exacerbated by workers of different generations bringing their expectations, core values, and ideas of what constitutes a positive workplace culture.

More surprisingly, three-quarters of respondents felt this is an area that is already taking up too much of their time, and they would like to be able to spend less time focused on it.

The changing face of leadership

The findings clearly show that people and culture are two of the main challenges faced by fast growth businesses. They also indicate that dealing with these issues are among the most important roles for leaders in the business. Therefore, it is surprising that only 15% of respondents felt that defining a purpose, vision, and goals were an important role of the leadership team in a growing business. In fact, it was last on the list!

However, when asked what the impact had been of the challenges they faced when growing fast or at scale, 23% of respondents cited poor leadership.

Leaders must work together to meet the needs of the business, building an inclusive and high-performance culture, discussing growth regularly, engaging employees on their journey, and communicating any changes.

Ensuring effective communication

As befits the current and future need for emotionally intelligent leaders, respondents identified communicating at pace as the most important aspect of all the duties of leaders in fast-growing organisations. Additionally, 24% of respondents identified being a good communicator as the foremost quality a good leader should have.

Yet, the findings indicate that this aspect of running a fast-growing business may have been overlooked. Just 15% of respondents said that they have improved communications to address the challenges they’ve been facing as they’ve grown, making this the least common response. This is despite the generational problems they are facing regarding talent attraction and retention, and the fact that 28% have struggled to manage different communication styles in a multi-generational workforce.

Conclusion

High employee turnover and poor communication has an impact on culture that cannot be understated. Indeed, according to respondents, the biggest negative impact of the challenges they are facing centres around culture. Specifically, 25% said they either found it difficult to maintain culture or prevent a toxic culture from developing. Interestingly, only 15% have improved their communications in response to this. Not only do these directly affect a business’s ability to perform, but they could also severely affect its reputation.

Despite the acknowledgment that leadership plays an important role with regard to people and culture, and despite the challenges they are facing in these areas, respondents feel that they cannot afford to spend any more time addressing these issues.

An organisation’s culture is embodied and maintained by its people. Take every opportunity to engage with your workforce, understand them, and capture their views on how the company is performing. Ensure you have leaders with the new skills and capabilities needed to lead and inspire your workforce because effective leadership will help you make the most of the opportunities creating sustainable growth for the future.

Amid all the excitement and potential of business growth, it can be easy to lose sight of what initially made your venture special and set you on the path to success. Recognising and understanding the potential challenges and how to overcome them is essential if your business is to continue to grow and thrive. Not doing so, will continue to have a negative impact on your business as it grows, as it will become much harder to resolve the more time goes by and the larger the business becomes.

If you would like to know more about the findings of our study or how we at Hawthorn can help you identify and address these challenges, then please contact our Head of Employee Communications & Engagement, Sarah-Jane Wakefield at s-j.wakefield@hawthornadvisors.com.

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Managing the Ripple Effects of Strike Action: Three Strategies for Businesses

Over the last few months, we’ve witnessed a rising wave of strike action and unrest not seen since the 1980s miners’ strikes. Action has been taken by people across several different industries including rail workers, teachers, academics, NHS staff, Royal Mail, Border Force, and the Civil Service staff, with more announced for the coming weeks.

Whilst companies with striking employees will be the most negatively affected, this action is causing concern and disruption across most businesses.

According to economists at the Centre for Business and Economic Research, the strike action is expected to cost the economy close to £100m, with absences among those who cannot work from home and rely on the train network to commute, costing an additional £26m.

With expected long-term disruptions the impact is not just being seen in financial turnovers, the loss of clients, and employee absences, but also in employee productivity, morale, and engagement. Just as businesses are suffering due to these strikes, employees are also struggling with potentially devastating disruptions to their commute, caring arrangements, healthcare appointments, emergency healthcare, and long-awaited holidays.

So, how can organisations support their employees and maintain productivity?

  1. Take a flexible approach

As a result of the Covid pandemic, businesses and individuals alike are generally better placed to cope with ongoing disruption. Moreover, for companies that have adopted flexible working, or are able to introduce some form of flexibility, the impact will be felt less. Enabling and helping your employees to work from home means they can avoid travel disruption, and as a company you can maintain productivity and performance.

Flexible working is not just about location. Providing flexibility in how, when, and where employees work will also lessen the impact of these strikes. With teachers and NHS staff striking some of your employees may be struggling with childcare, caring for loved ones, or navigating moving appointments. Enabling them to adjust their hours of work will show you care and want to support your colleagues, but again means the work still gets done.

Unfortunately, not all businesses can take a flexible approach, particularly those in the hospitality, leisure, and retail industries. In these instances, it’s important to understand the personal circumstances of your employees and find a solution that works for both of you. You may also consider:

Agreeing with employees to take a period of annual leave.

Agreeing with employees that they should use any banked time off in lieu.

Covering the cost of alternative accommodation or transport.

Re-arranging shifts, where possible.

Changing core hours employees need to be onsite.

Taking the time to understand the difficulties your people face and working to find a solution will build goodwill, loyalty, and commitment. Following this, your employees will want to support the business in return, and ultimately performance should not suffer.

  1. Keep listening and communicating

As with any period of uncertainty, disruption, challenge, or crisis, regular transparent communication is critical. Communicating effectively with your people will ensure they understand what is expected of them, what the needs of the business are, and what support is available to them. It’s also important to communicate frequently, as the strike action is a dynamic situation and things can change overnight.

At the same time, it’s just as important to listen and understand how the strikes will impact your people, and provide opportunities for two-way engagement and feedback.

It’s important to remember that for some – particularly in those sectors that can’t easily adopt a flexible approach and whose performance is heavily impacted – this environment can drive concerns around job security. Consequently, line managers have a key role to play in reassuring colleagues, understanding their personal circumstances, and discussing the most effective way the strikes can be navigated for both the individual and the business.

  1. Remember to check-in on your people

Employees may already be feeling stressed, burnt-out, and over-worked. This is only likely to be further exacerbated dealing with the fallout from strikes. Not only is the impact on all of our working lives, but for many it will also be impacting their lives outside of work – causing mental, physical, or financial distress. Parents will be managing childcare arrangements or concerned about how the university strikes are affecting their children far from home; people may be worried about their loved ones’ health with paramedics, doctors, and nurses standing at the picket line; or people may have long anticipated and expensive holidays delayed or even cancelled by the striking border force.

In addition, teams may be under greater pressure if they are having to cover the work of others, whilst leaders will be trying to juggle resources, ensuring client/customers’ needs are being met, and that the business can continue to perform.

Businesses should:

Encourage line managers and colleagues to check-in on each other.

Be empathetic and listen.

Remind colleagues of the well-being support available to them e.g., Employee Assistance Programmes, well-being apps, mental health or financial support.

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By helping your employees’ overall wellbeing, you are in turn protecting, as much as possible, their productivity and commitment to the organisation.

The ongoing strikes have created a difficult economic and social environment for businesses to work in and people to live in. By working together, understanding each other’s needs, and providing an element of flexibility where possible, businesses and individuals can navigate the disruption with limited damage to morale, engagement, and performance.

By Arabella Kofi, Employee Communications & Engagement Executive

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Navigating Intergenerational Dynamics: A Conversation with Dr. Eliza Filby, Expert in Generational Intelligence

Dr Eliza Filby, is an academic, lecturer, renowned author, podcaster, and speaker who specialises in ‘generational intelligence’ helping companies, governments, and services understand generational shifts within politics, society, and the workplace. Eliza has spoken at the EU’s Human Rights Forum on Teenagers and Technology; the Financial Time CEO Forum on the Future of Work, and to the UK’s House of Lord’s Select Committee on Intergenerational Unfairness.

I had the great pleasure of spending some time with Eliza discussing the increasing gap between generations, the multi-generational workplace, and the practical things companies can do to support a multi-generational workforce. Here’s some of the highlights from our discussion.

You can read more about Eliza’s work and her insights at www.elizafilby.com

Q: Eliza, you describe yourself as someone who specialises in ‘generational intelligence’, can you tell us a bit more about what it is you do?

I study society through the prism of age and generations – from Baby Boomers to Generation Alpha – examining how the traditional lifecycle is being reordered and remade in the 21st Century. I think this itself is quite a restrictive analysis and way of viewing society, but it’s a starting point that I use to analyse the different ways in which society is changing in terms of its consumers, its citizens, and its workers.

I’m interested in looking at the way in which the different generations are evolving because we’re not static as human beings. So, what their narratives are, what events, trends, and values have shaped them, and then really how that’s playing out in the workplace, education, politics, the economy, and society as a whole.

Q: It feels like the division between generations has got greater in a way I haven’t felt before. Is this true? If it is, how we begin to the bridge that gap?

It certainly does feel like the gap between generations is greater than it’s ever been and at times that can feel very divisive. However, we are predisposed as human beings to be ageist and if you could create a thread throughout history, the one constant would be that the old have always criticised the young as being lazy, privileged, and entitled.

You bridge the gap by building understanding and empathy across the generations. One of the things that I spend a lot of my time doing is helping companies understand that we are all a product of our time. Different values, technologies, and experiences have really shaped generations and explain why they are the way they are, for example what it’s like for a Gen Z to have grown up with a smartphone in their pocket since they were 13, or for a Gen X woman to have entered the workplace as the only woman in the office, or what it’s like for a Millennial to be the first generation to go to university and then graduate extensive debt and a declining level of opportunity.

Being able to acknowledge that we are all a product of our time and understanding the impact of that is a great place to start.

Q: We are now in a world where we have four, and in some cases, five generations in the workplace, so how should companies be thinking about their workforce?

Research has found that within the workplace you are more likely to make friends with people of a different gender, sexuality, or race than you are of a different generation or age. This statistic is key to recognising not only the importance of age diversity within an organisation, but also the challenge it brings.

Ageism can be a really corrosive force, so it’s important to think about the practical things you can do to bring the generations together, particularly in a hybrid working environment where we are seeing less of each other. The absence of this can fuel greater levels of misunderstanding and prejudice because we’re just not colliding as much.

We really need to think about ways in which the different generations are heard in the workplace and by this, I mean all generations. I’m not a massive advocate for Gen Z boards because you’re giving a voice to yes, the generation that expects it the most, but you’re actually alienating others – particularly older workers who already feel a sense of dislocation and displacement.

You need to consider and encourage not just cross-generational dialogue, but dialogue that gives everyone a voice and enables everyone to listen including multi-generational boards, reverse mentoring, skills swaps, and effective communication.

Q. You mention that hybrid working means we are seeing each other less, what impact is that having on a multi-generational workforce?

One of the challenges with hybrid working is that all the learning through osmosis that used to happen naturally when people are in the same place is just not happening through Zoom/Teams calls anymore.

So much of the older generations’ experience is not being transported down the generations. Therefore, it’s really important not only for companies to bridge the generational gap, but also help up-skill the young by forcing different generations to be in the same room together, so that informal learning to take place.

Whether it’s talking to a client, dealing with a problem, or having an uncomfortable conversation – those things need to be observed if you’re young because that’s how you learn.

But equally, it’s really important that we recognise that you have a generation coming in who for the first time in history, have higher technological skills than the people that are managing them. That knowledge also needs to be passed upwards through the generational chain in the workplace.

So, companies need to be consider how they can develop an educational policy and culture that really encourages cross-generational learning.

Q: We are increasingly living and working longer. What role do organisations have to play in ageing societies?

One of the key areas that organisations need to focus is on how they care for their employees. I have a very holistic and open understanding of what I mean by care. A lot of companies have thought about care firstly in terms of parental leave, maternity leave, and helping parents, but actually if we’re talking about equipping and supporting our workers for the demands of the 21st century, our care responsibilities as individuals are changing. Women are having fewer babies, they are having them later, closer together, and fathers and grandparents are more involved than ever, so do company policies reflect this.

But then also a major responsibility for Gen X and very soon Millennials will be looking after their parents. Do companies have a policy that really is inclusive and helps people look after older people as much as young people and enable them to fulfil those duties? This is crucial, because elder care will be much longer and arguably more disruptive and intrusive to people’s work than looking after children.

Care also includes self-care, which covers everything from mental and physical to financial well-being. So, when companies are talking about care, they need to understand that they are talking about something that is multi-generational and much more expansive than just support for parents or mental health awareness days. This is what employers need to demonstrate.

Q: What causes the significant disparity between generations in the workplace, considering that family is highly valued outside of work? Why is it challenging to reconcile these differences within a professional setting compared to outside of it?

We know that the baby boomer generation are the exceptional generation. They accumulated an awful lot of wealth to the extent that one in five baby boomers in the UK is a millionaire – mostly on paper in property. They own 70% of the nation’s wealth and that money is already trickling down the generations. The bank of Mum and Dad is the sixth largest mortgage lender in the UK and that money is going to their millennial kid and grandparents are supporting their grandchildren. But also, there’s a sense that because we’re living longer, we’ve disrupted what expectations come with a certain age, particularly middle-age and old-age. We therefore feel more in touch with our children, and you’re seeing this with Gen X who are friends with their Gen Z children.

On the family side, the reasons are economic, whilst on the work side they are cultural. There’s a bigger generational gap because of technology, Gen Z are questioning the cultural corporate norms that have existed for Boomers and Gen X. Additionally, Gen Z are looking at Millennials going, you’ve worked really hard…but what have you got to show for it? They’re the generation that will not live by one salary alone and are aware that there are endless possibilities for multiple streams of revenue.

Q: What single piece of advice would you give to any company in how to navigate multi-generational workplaces?

The multi-generational workforce is not going anywhere – it’s the future. Companies need to recognise the new reality, which is we are working longer, we are disrupting the age and stage model of work where before long, if you haven’t already, you will have managers who are 25-years old, managing people over 55. You’ve got a hybrid working model which means generations are colliding less and probably misunderstanding each other more, and a working culture, which I think because of the pandemic, means there are now greater expectations on companies as to what they provide for their employees.

You have to recognise that what worked in the 20th century will not work in the 21st for two very simple reasons. Firstly, technology is changing rapidly and it is changing everything about our lives at an unprecedented pace. Secondly, our ageing society means that the life-cycle is changing and with this comes a whole range of differences, to the 20th century, including different educational needs, and care responsibilities.

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So, the 21st century life cycle really has to be at the forefront of your mind when creating policies for your employees. It’s not about how much can I offer that person or how much flexibility can I give them, but can I give them the support structure they need in order to produce the best work? Can I give them a reason to come into the office. Fundamentally, this means companies need to think about all the things we’ve discussed – understanding, empathy, effective communication, learning and education, and care.

Interviewed by Sarah-Jane Wakefield, Director and Head of Employee Communication and Engagement

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Supporting your people during a recession

As the Bank of England warns that we could be facing our longest recession since records began, with the economic downturn expected to extend well into 2024, many businesses are facing rising costs, shrinking profits, and tough decisions. Similarly, employees are worried about soaring prices, a string of redundancies they’ve seen at high-profile companies, and uncertainty over what comes next.

Leading executives across high-growth businesses are telling us how concerned their employees are about the cost of living. In a study conducted for Hawthorn earlier this year, they told us that employees were worrying about the recession, a lack of job security, risk of redundancy, recruitment freeze, lack of pay increase, and employee retention.

The companies that will best weather this storm and come out the other side in the strongest position, are those that protect their greatest asset: their people. But what can a company do to support their employees during a recession?

  1. Talk to your people

At a time like this, it is critical to communicate regularly, consistently, and transparently with your employees. Talking openly and honestly about the company’s current situation, performance, market conditions, and plans for the future, on a regular basis, will keep employees engaged and make sure they’re in the right headspace to weather the current storm.

  1. Listen to your people

At all times, particularly during times of uncertainty and stress, employees need to feel heard. Company forums can be used to capture employee sentiment and employees should be involved in the decision-making process and co-creating solutions to the company’s problems. This is a great way in which a business could find some of the most innovative responses to the problems they are facing. co-create the solutions with them. When people feel trusted and needed and an integral part of the team, they become more committed to the organisation and its success.

  1. Avoid redundancies where possible

Don’t panic and rush to make redundancies. Some will say they are inevitable, but sometimes they can be a false economy. A string of lay-offs can have a wide and lasting impact on an organisation – not just those who are laid off. If not managed carefully and thoughtfully, redundancies negatively affect employees who are left behind. There are alternative options to be considered before landing on redundancies. You can read more in our article Definitely not the separation we would have wanted.

  1. ‘Working harder, with less’ is not the answer

If a company does have to make redundancies, introduce hiring freezes, or slim down resources, it’s important to adjust an employee’s expectations. Companies will need to communicate what the organisation is doing to ensure everyone can still do their job, at the same time as trying to save money by streamlining processes, systems, and driving a bigger programme of efficiencies. People will need to understand what these changes mean for their workload, priorities and how the organisation is going to adjust; a company can’t expect employees to continue working as hard as before on fewer resources.

  1. “Working harder, for less” isn’t the answer either

During an economic downturn, companies will inevitably need to make savings somewhere, however the best companies will ensure that their people are adequately rewarded for their work. Companies should take time to review their employee value proposition to ensure the benefits of working for their organisation are relevant for employees and are in line with their needs during this time. Even though money is tight, and businesses may not be able to offer employees a pay rise, companies must explore other routes to show financial support – such as benefits. Doing so will go a long way in boosting team spirit and showing people they are appreciated.

  1. Upskill your employees

Upskilling and reskilling your people will not only help to fill any experience or skills gaps as a result of turnover, redundancies, or hiring freezes, but it will also help support employee engagement and retention. This is because the company is showing their employees that even though the economy may have stalled, their careers have not. Ensure your employees know what opportunities are available for them to take on new roles or leadership positions, step-up, take on stretch assignments, and receive/provide mentorship.

  1. Empathetic leadership

Leaders – at all levels – are one of any company’s greatest assets when it comes to shaping the culture people and the organisation need to thrive. It is essential they are equipped to support, lead by example, and effectively communicate. People will be looking to their leaders for support and reassurance. Thoughtful leadership during challenging times builds the kind of loyalty that retains employees.

  1. Wellbeing

Employees may already be feeling stressed, burnt-out, and over-worked. In fact, according to the World Health Organisation, in the first year of the pandemic the global prevalence of anxiety and depression increased by 25%. This is only likely to be further exacerbated by entering the longest recession since records began.

Companies need to ensure they are clear about what support is available for their employees, who they can speak to, and what wellbeing initiatives are available to them. There are also small things that can be done like ensuring people take their holiday and creating time to take a break and connect as a team.

It will be critical for companies to really focus down on these areas to retain a strong workplace culture and avoid low morale, poor engagement, and to retain their people. Employees need reassurance, a supportive environment, and to know that you are all in it together.

By Sarah-Jane Wakefield, Head of Employee Communication and Engagement, and Arabella Kofi, Employee Communication and Engagement Executive

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Definitely not the separation we would have wanted

Those were the words of Stripe’s CEO Patrick Collison as he announced a 14% reduction in the size of his team. Redundancies are becoming a daily feature in our news, particularly amongst the tech industry and fast-growth businesses. With the likes of Twitter, Meta, Lyft, Netflix, Microsoft, Tesla, Amazon, and Salesforce, (the list goes on…) all making a string of layoffs in the face of uncertain economic conditions, some will say that redundancies are inevitable, but are they wise?

It’s not uncommon for fast-growth businesses like these to fall into the trap of hiring too many people, too quickly in periods of boom only to find themselves overstaffed in periods of stagnation or decline. But with a looming recession all companies are going to need to make difficult decisions. According to new research from ACAS, one in five employers are considering making employee redundancies in the next year.

However, even though redundancies have always been a reality of the economy, the effects are far-reaching – so they should only be the last resort!

Are redundancies a false economy?

According to the CIPD and KPMG, making a person redundant costs on average £10,000 and for some businesses even more than that. It’s not a short-term cost saving.

More importantly though, when the economy rebounds, businesses find they have a huge problem: a reduced workforce lacks the manpower and skills to effectively take advantage of the improving economy and can hamper a business’s ability to recover. It’s also not uncommon for businesses to hire back many of the people they fired – Twitter found this out earlier than most – and it can be quite an expensive endeavour!

Furthermore, the UK’s current skills shortage means it’s taking longer to fill critical positions, and this will only be made more difficult by the damage a large redundancy exercise can have on a businesses’ reputation and employer brand. Current and future employees will be watching closely, and many will think twice before working for an organisation they perceive doesn’t seem to care about its people and will make sweeping layoffs at the first sign of trouble.

…and what about those left behind?

Whilst redundancies negatively impact those who have been laid off, if not managed carefully and thoughtfully they also affect employees who are left behind. This has the potential to damage their trust in the organisation, lead to low morale, poor employee wellbeing, and a lack of engagement.

If handled badly, a wave of redundancies can also result in a leadership vacuum, inappropriate behaviour, a lack of transparency or sense of empowerment and no clear purpose. After a while, this can create fertile ground for a toxic culture to develop, stunting creativity, collaboration, and connectedness. Altogether, this reduces productivity and profitability at the worst time for the company.

What are the alternatives to redundancies?

Where possible, companies should exhaust all alternative options before landing on redundancies. It’s important to safeguard practices to ensure minimal damage and disruption for employees and the business.

One of the more common alternatives is the introduction of a hiring freeze and in recent months we’ve seen companies including Apple and Google announcing hiring slowdowns or freezes and those in turbulent industries such as cryptocurrency drawing back after a collective hiring binge.

Other options include:

  • Looking early for efficiencies and evaluating core processes and roles needed.
  • Identifying activities that are less essential or can be done more efficiently and effectively another way.
  • Reallocating people to new roles or tasks.
  • Introducing budget constraints.
  • Reducing hours of overtime.
  • Asking colleagues to take unpaid leave – for some this would be a more welcome option than losing their jobs.
  • Flexible working requests – reduced hours / days worked
  • Voluntary career breaks
  • Early retirement
  • Communication is key!

Regardless of whether a company decides to pursue redundancies or alternative cost-saving measures, dynamic leadership and communicating effectively is always important, especially amid uncertainty over the future. Being transparent about the challenges the company is facing and how it intends to overcome them will ensure workers are in the right headspace to weather the storm.

Make time to engage with people, explain the context and the vision, allow them time to process what is happening, and ensure there are processes in place to safeguard the emotional wellbeing of employees.

While such conversations are never easy, offering transparency lets employees know where they stand and what they need to do to maintain their roles and help the company through this period. These are challenging times for employers and employees alike.

But remember the decisions a business makes now will be remembered when the good times return.

By Sarah-Jane Wakefield, Head of Employee Communication and Engagement, and Arabella Kofi, Employee Communication and Engagement Executive

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Future of leadership

By Sarah Sands, Partner

The Platinum Jubilee celebrations were about 70 years of history but they also turned into a discussion of the character of leadership. The Queen is an outstanding example of servant leadership. As Charles Moore wrote in the Daily Telegraph, the Queen’s role is that of sacrificial service. She does not seek power, her motivation is vocational.

Commentators have contrasted this selflessness with political leadership which is about grasping and retaining power. George Osborne is quoted as saying about the potential coup against the Prime Minister: “Power is not given, it is taken.”

With handy timing, Hawthorn Advisors and Spencer Stuart, both of whom work with corporate leaders and search for them (we’d prefer “find and advise them”) held a dinner on the theme of the future of leadership.

The premise of the discussion was that we are undergoing a generational change in expectations of leadership. Power cannot be assumed, it has to be earned and new qualities of collaboration and empathy are required.

We are witnessing a passing of conventional leaders and followers and in its place a new form of social contract. While we see old style authoritarian leadership across the globe – most tragically in Russia – it is on the wane in corporations. Prepare for challenge – if not quite as dramatically as seen at Westminster.

Hawthorn Advisors and Spencer Stuart assembled for their round table discussion leaders of the future and the present. There were two One Young World ambassadors, Zubair Junjunia and Dara Latinwo. Zubair is an educational activist who founded ZNotes an online learning platform which reaches 3.5 million global students. Dara creates digital disruption at Deloitte.

Also at the table, representing experience and optimism, was John Flint, the former group chief executive of HSBC and now the chief executive of the UK Infrastructure Bank. Next to him, was Freshta Karim, founder of the charity Charmaghz, which runs a mobile library in Afghanistan. Freshta represents the beacon of citizen leadership. When the Taliban outlawed girls’ education, Freshta devised a way of allowing them to read.

Dr Eliza Filby provided academic credentials for our theories, drawing on her work on Generational Intelligence, from baby boomers through to post 2010 generation alpha. Poppy Mills represents transformational change, as the director of Ubitricity, formerly working on Shell’s renewables business. Sasha Dabliz, head of marketing at Waverton Investment Management knows how to direct the flow of money responsibly and profitably.

Kristina Ribas, senior strategy manager at Shell, who began her career at Goldman Sachs, was also questioning of traditional routes and warned of the conflict of using past leadership models to predict the future. Stephanie Edwards, Head of Sectors Strategy at Cop26 was at the heart of transformation, while Charlotte Appleyard, Deputy Director of Development at the Royal Academy of Arts showed the pluck of a young woman leading distinguished elders down new paths. This, said Katy Jarratt, from Spencer Stuart, was the way of the future. Spencer Stuart are busy appointing under 35s to boards and watching the response of the 60 year olds who must answer to them. Generational Intelligence in action.

John Evans, CEO of Hawthorn Advisors, described the entrepreneurial opportunities and challenges of rapid growth with a diverse work force. Zubair began the discussion by talking of motivating volunteers; this requires passion, purpose and mission rather than didactic instruction. John Flint called this catalyst leadership. He also defined the boundaries of leadership; you can set a strategy but you cannot “ lead” on process, such as technology. You are leading people. He added, with the wryness of experience: “ You have to know yourself, and knowledge comes with scars.” You can avoid vulnerability by staying behind your desk but only by risking vulnerability can you achieve a modern kind of leadership. There are two ways of leading, by fear and money, or positively. Inspiration has the longest tail.

Eliza agreed that change has come.

“There has been 30 years of turning humans into robots and robots into humans.”

What does it mean to talk of human leadership? Sasha asked about the evolution of leadership. Are leaders born or made? Learning is now a more communal process and the new work force is drawn to the creative and the unconventional. John Evans called for the alchemy of new ideas combined with experience. Theories have to work in practice.

Dara pointed out that we look for omnipotent leaders in our entertainment, the Marvel superhero. How does that square with vulnerability? Dara posited that leadership needn’t be visible and voluble. It could be invisible and valuable. Mobile libraries in Afghanistan could be an example of leadership as doing good. If leadership becomes communal there are consequences to that. Katy asked which leaders are prepared to take on all the baggage of others. Narcissism is a familiar characteristic of leadership, even among the good leaders. The dangers of leadership were underlined by Eliza – it can’t just be about an ability to have followers. This allows for populists and maniacs.

Freshta talked of the hard choices affecting leadership, including engaging with the oppressor. She said that the leadership open to all of us, is to do what we can, and to encourage open debate even if means sacrificing popularity, or worse. Freshta’s aim is to work for a “ better truth,” through grass roots platforms. Leadership is a facilitation of this. Leadership also demands example.

Several round the table warned about corporate spin without substance. Beware those who got to the top merely by having the sharpest elbows and the determination to shape their own mythology. The different framing of leadership for women and for men was also raised. Eliza picked up that Poppy used the word “ accessible “ leadership rather than “vulnerable. ” Poppy agreed she chose the word carefully. Women are wary of being described as vulnerable.

Charlotte pointed out that leadership under scrutiny changes expectations. Decisions made in jobs in which the public have an awareness or a stake are much more glaring. Stephanie spoke up for the outliers, the radicals, for example on climate, who push the boundaries so that the middle ground shifts slightly for the realists and the pragmatists. She also laid down one essential for leadership, evidence that you care for those who work for you. James Nicoll at Spencer Stuart added the virtues of resilience and empathy.

Who got the table’s votes as role model leaders? John chose Alison Rose, Chief Executive of NatWest Group as an example of modern leadership, Eliza went for Margaret Thatcher as a leader who led rather than followed, Sasha chose Peter Harrison, CEO of Schroders, for his moral compass and for wearing leadership lightly. John Flint said those who speak truth to power and named Alexei Navalny and in happily different circumstances, his predecessor at HSBC Stuart Gulliver.

Freshta wanted a leader who could end wars, Stephanie called for Dame Barbara Woodward, UK ambassador to the UN, Charlotte for former US ambassador to the UK Matthew Barzun and for the artist Ai Weiwei, Dara for Sasha Romanovitch, former CEO of Grant Thornton, for sticking to principles, Katy for Bernard Looney, CEO of BP who leads with vulnerability and transparency. Turning to the world of sport, James Nicoll of Spencer Stuart suggested Toto Wolff, the CEO of the Mercedes-AMG F1 team, who leads through a management style of empathy and empowerment. Zubair thought for a bit, then came back with Muhammad Yanus, the Bangladeshi social entrepreneur who pioneered microcredit. All leaders who make a difference rather than serving time.

The collaborative nature of the evening was achieved partly by swerving political leadership. Hard power is not the same as soft power. Hawthorn Advisors and Spencer Stuart will continue discussions of the nature of leadership through different forums and events during the next years.

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Jess Phillips, Labour Party MP on support of alienated voters and the role all businesses can play in supporting their employees who may be suffering from domestic violence

Following the poor performance of the Labour Party’s recent election results and the subsequent botched reshuffle, the direction of the Party remains very uncertain. Jess Phillips, Labour Party MP and Shadow Minister for Domestic Violence and Safeguarding, spoke to Hawthorn’s Sarah Sands on Tuesday 18th May.

Author of three books, including the Sunday Times Bestseller, ‘Truth to Power’ and the forthcoming ‘Everything you need to know about being an MP’, Jess is known as being one of Westminster’s most outspoken MPs. She spoke about how the party can win back the support of alienated voters as well as discussing the role all businesses can play in protecting and supporting their employees who may be suffering from domestic violence.

Listen to the replay of Sarah Sands in conversation with Jess Phillips, MP.

Speakers
Jess Phillips is a Labour Party politician who became the MP for the constituency of Birmingham Yardley at the 2015 general election. Jess has committed her life to improving the lives of others, especially the most vulnerable. Before becoming an MP, Jess worked for Women’s Aid in the West Midlands developing services for victims of domestic abuse, sexual violence, human trafficking and exploitation. She became a councillor in 2012, in this role she worked tirelessly to support residents, with her work being recognised when she became Birmingham’s first ever Victims Champion. Since becoming an MP, Jess has continued her fight to support those who need it the most and has earned a reputation for plain speaking since being elected, unfazed by threats and calling out sexist attitudes as she promotes women’s rights. Jess has written two bestselling books ‘Everywoman: One Woman’s Truth About Speaking The Truth’ and ‘Truth to Power: 7 Ways to Call Time on BS’.

Sarah Sands, Board Director at Hawthorn. Sarah joined Hawthorn from the BBC, where she was editor of the Today programme, Radio 4’s flagship news and current affairs programme. She was previously editor of the London Evening Standard, the first woman to edit The Sunday Telegraph and deputy editor of The Daily Telegraph. Sarah is Chair of the Gender Equality Advisory Council for G7 for 2021 and of the political think tank Bright Blue. She is also a Board Member of London First and Index on Censorship and is a Patron of the National Citizen Service.

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Putting the green in German, the future of working from home and New York’s next star?

Policy preview: putting the green in German
“Germany is Europe’s heart.” Yanis Varoufakis, former Greek Finance Minister

German voters are set to go to the polls by 26 September, in elections that have garnered significant attraction because Chancellor Angela Merkel will not be the lead candidate of her Christian Democratic Union (CDU) for the first time since 2005. At the helm of various coalitions in that time with the centre-left Social Democrats (SPD) or the libertarian-leaning Free Democrats (FDP), Merkel’s coalition deal-making has been an underappreciated feature of her political nous. Her successor as party leader Armin Laschet also has shown the necessary coalition-building skill to be an effective premier, brining in the FDP to form a regional government in North Rhine-Westphalia following the state’s 2017 vote.

However, if polls are accurate, the September election will throw up new coalition possibilities heretofore unseen in German politics at the federal level. The reason for this is two-fold, first the rise of the Alternative for Germany (AfD) party, which all other parliamentary German parties have placed a ‘cordon sanitaire’ over that is unlikely to be lifted anytime soon. The second factor is the rise of the Green Party, which has sapped votes from both the CDU and the SPD. In many polls in now leads the latter and could well become the second-largest party in the Bundestag come October.

The Greens will have clear environmental demands. However, less attention has been paid to the fact that the Green Party is expressly in favour of the further mutualisation of European borrowing and has little regard for the ‘Black Zero’ policy of balanced budgets that held throughout so many Merkel governments until the COVID-19 crisis. In fact, the speed with which Germany has abandoned both this domestic borrowing policy and its reticence to mutualised European debt marks a profound paradigm shift not just in German politics, but for all of Europe.

Whether the Greens negotiate with the CDU and its more-conservative Bavarian sister party, the Christian Social Union (CSU), or with the SPD, as to forming a coalition, expect it to demand an explicit endorsement for further European financial federalisation, and for stimulus packages inspired by the recent Biden Administration package. The latter is a more natural coalition partner, though it would likely require the pair to at the least also bring in the FDP or the Left, more likely both, a daunting challenge. A Green-CDU coalition is therefore more likely, but for this to be successful it would have to cast off the remaining vestiges of Euro-trepidation that marked previous Merkel governments.

Dollars and sense: the future of working from home
“If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidise it.” US President Ronald Reagan.

For many readers in the UK, and much of the rest of the Western world, it has been over a year since daily attendance at the office place was expected. Some have enjoyed the comforts of home; others eagerly await escaping its confines. How and when to support, advocate, and demand a return to the office remains a politicised question, and one on which no consensus has yet emerged, even in the UK where half of all adults have now had at least one dose of the COVID-19 vaccine.

It is little surprise that there appears to be growing demand for guidance or an answer on what the future of work-from-home will look like. The scale and the extent to which last year’s normal becomes ‘the new normal’ will have major ramifications not just for individual employers, but for public transportation and its finances, for the values of commercial prime real estate, and even for graduates coming out of university, amongst many others.

There is, however, no one-size-fits-all answer for how to reincorporate office life into the work routine for those able to work-from-home. As it is judged safe to do so, individuals keen to return to the office will begin to do so – in some places, particularly the United States – this is already well underway. Others may well seek to retain their home offices a while yet, and some even seek to make them permanent. There had been a slow trend of increased work-from-home practices in recent years already, the pandemic simply gave it the mass testing needed for acceptance, rather than hesitancy to become the standard.

That is not to say that we are entering a work-from-wherever-one-likes world. Taxes so often based on residency and place of employment will complicate the dreams of many would-be digital nomads. In that same vein, expect governments to institute programmes aimed at maximising the benefits of the increased number of people seeking to work from home. These will very from country to country, but examples ae already appearing on the horizon. In Spain where rural depopulation has been a trend for decades, discussion is already underway on how to incentivise some employees to stay outside the cities. In the UK, government minds are aflutter with discussion over how to link the benefits of increased work-from-home with its ‘levelling up’ agenda.

One certainty is that work-from-home numbers will increase, even if the extent is unclear. But even small changes on the margins can reshape the economy.

London has a workforce of 5.2 million, whereas Birmingham, the UK’s second largest city, has just half-a-million. If just one in five working Londoners, spends one day a week working outside London, it will be the equivalent of distributing all of Birmingham’s work force across the country. Governments will be keen to ensure they can manage the distribution of that pie.

Power play: New York’s next star?
“I don’t care who does the electing as long as I get to do the nominating”. William ‘Boss’ Tweed, former head of New York’s ‘Tammany Hall’ political machine

The last year has proven to be one of extreme turbulence for New York Governor Andrew Cuomo. Initially hailed on the left side of the US political aisle, and even on occasion by Republicans for his stewardship of the COVID-19 pandemic in his state, now facing bipartisan calls for his resignation over sexual harassment allegations. His great rival, fellow Democrat Bill de Blasio, saw his presidential campaign flop even before the first primary – and he will be replaced in the November New York mayoral election. De Blasio is all-but-certain to carry one of the lowest-ever approval ratings for a New York mayor on his way out of office.

While Cuomo has vowed to fight on, and at the end of March brokered an agreement in the State Legislature to legalise cannabis – a move many have correctly identified as a ploy to make good on an often discarded campaign pledge to regain some popularity – he may well still be forced to give up plans to run for a fourth term as governor in 2022.

New York needs a new political star. It has a long tradition of creating such creatures, even before it served as a springboard for Donald Trump’s rise to celebrity and then politics. Trump’s departure from the city predated De Blasio and Cuomo but was solidified when he announced he would move to Florida after his presidency, with the threat of state criminal investigations and his family’s unpopularity amongst the city’s social elite key factors in pushing him out. The pull of New York City on the state means that anyone looking to find their way up in state politics is likely to have to come from the left of the aisle, as with Cuomo and De Blasio.

Alexandria Ocasio-Cortez goes some way to filling the gap, though her profile is more national than regional given she how she has used her seat in the House of Representatives to campaign for a left-leaning progressive agenda. The New York City mayoral election provides the most natural proving ground for any aspirant-star, and former presidential candidate Andrew Yang has eagerly seized the mantle. He holds a narrow, but steady, lead in the polls for the 21 June Democratic primary.

Yang may well prove to be the man of the hour. However, one of his closest competitors is Scott Stringer, currently New York’s Comptroller, known for his mastery of the Democratic Party machine. The primary vote will be the first to determine the winner through ranked-choice voting. With some 50% of voters still undecided according to the latest vote, and Stringer’s experience in local organising, he may well prove victorious. A weakened Cuomo would be little match for a victorious Stringer, whereas Yang has little experience with the local Democratic Party. New York may soon be Stringer’s oyster.

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The generational impact of the world’s largest social experiment with Dr Eliza Filby

Lorna Cobbett, Hawthorn’s Managing Director, spoke with Dr Eliza Filby, a writer, speaker and consultant who specialises in generational Intelligence.

The conversation with Dr Eliza explored how the global pandemic shaped a new generation; looking at the issues and challenges companies face in recruiting, managing and retaining a multi-generational workforce, the importance of human capital and the impact that generational differences can have on a company.

Listen to the replay of Lorna Cobbett in conversation with Dr Eliza Filby.

Speakers
Dr Eliza Filby, writer, speaker and consultant who specialises in generational intelligence.

Dr Eliza’s research incorporates everyone from Baby Boomers right through to Generation Alpha (those born after 2010) Eliza helps businesses – whether it is recruiting new talent or engaging with new clients – prepare for the future. Eliza has worked for a variety of organizations from VICE media to Warner Brothers Group, from the UK’s Ministry of Defence to the Royal Household, with BYMellon in Canada and Macquarie bank in Australia. She has spoken to banks interested in the imminent Great Wealth Transfer, advertising agencies seeking to appeal to ‘silver surfers’, health companies looking to engage with Millennial Insta-mums. She has spoken at the EU’s Human Rights Forum on teenagers and technology; the Financial Times CEO forum on the future of work and contributed evidence to the UK’s House of Lord’s Select Committee on intergenerational unfairness. She recently published a report in collaboration with the Women’s Network Forum entitled Fueling Gender Diversity: Unlocking the Next Generation Workplace.

Lorna Cobbett ,Managing Director, Hawthorn Advisors

Lorna became a strategic communications advisor after a career in investment banking at Citi, Goldman Sachs, and Deutsche Bank. Prior to Hawthorn, Lorna was a Partner at Bell Pottinger for over six years within their Financial & Corporate division. Lorna has over 15 years of extensive experience in providing corporate advice and working on transactions for public and private companies. She enjoys helping a company navigate the challenges of transformation and change, while uncovering the untold stories that will resonate with stakeholders. Lorna is actively involved in fundraising and raising awareness for Chestnut Tree House (a children’s hospice in West Sussex) and Together for Short Lives.

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