Workers whose behaviour persistently runs counter to their organisation’s values are often left unpunished or even rewarded or promoted, according to new research from the CIPD. This was the case reported by four in 10 respondents to the institute’s latest Employee Outlook survey.
With only one-third of those questioned indicating that individuals are reprimanded for consistent rule breaking, the CIPD warns that employers are not doing enough to uphold their business values.
Claire McCartney, adviser for resourcing and talent at the CIPD, believes there is currently a crisis of trust; everywhere from the BBC to financial institutions and others in between. So she is keen to emphasise the increasing importance that organisations should place on values.
She highlights: “This is especially important for recruiting new employees who want to work with companies that have strong values, such as good CSR policies.”
Attracting the right talent
The CIPD report states that 73% of individuals questioned want to work for an organisation with clear values, such as Alexander Smith, a construction advisory graduate. It was Drivers Jonas Deloitte’s primary values and their investment in its “greatest assets” – that is its employees – which attracted him to apply for a position with the organisation.
He says: “It is a counter-cyclical company, suggesting that job security is more assured, especially in this current economic climate. Deloitte’s reputation for investing in its people with structured training and rotation programmes would help to streamline my professional career development.”
He adds: “Deloitte is well documented for its recognition and encouragement of a diverse workforce which, combined with the fact that it is a multinational, multi-disciplinary organisation, ensures it exposes its employees to numerous challenging and career advancement opportunities.”
For McCartney, aligning the aims of the individual and those of organisation is crucial in creating a common aim. She stresses: “This has never been so important, despite the fact that we are all firefighting more and more. But values need to be strong to inform people how they work.”
Ethical working
When cost-cutting becomes a priority it is easy for principles to get pushed down the agenda. Bryan Laxton, chief executive at Cushman & Wakefield, agrees that we have to make balance judgements and live in reality, but adds: “Equally when you go home you want to be able to say that you’ve lived life by certain values. In the long run, that is more important than cost cutting.”
While the squeezing of margins and extra pressures to meet targets can cause people to act in unethical ways, there should be a limit to the amount of risk taking people should make, says McCartney.
Trust is key
McCartney is confident that most of us want to do a good job, so making everyone accountable is crucial so that trust remains between senior management and employees.
Trust is key to good business, and ensuring that values are upheld rather than simply paying lip service gives everyone confidence.
For C&W, trust is a number one priority – in fact it is top of the list on the 2013 business plan. Laxton says: “When we talk to clients to see how our people are working, even without us asking, our clients tell us they really trust us. Some go on to say they don’t trust our competition as much.”
Laxton says: “Building trust takes ages and losing it takes seconds.” He believes having a partnership culture makes a difference in maintaining this trust, as he advocates: “You have to trust partners more than in a big organisation.”
From the top
Just over half (52%) of the 2,000 employees canvassed in the CIPD’s report agreed that their organisation’s values positively influenced their behaviour at work. But of those who disagreed, one of the reasons was the belief that there was “one rule for senior managers and one rule for everyone else”.
So how does an organisation maintain trust throughout? “It’s self-perpetuating. If people see us setting an example when they join then it keeps going,” says Laxton. The basic principle is simple – show clients that you think of them more than yourself. However, he believes far too many intermediaries are more selfish than client-facing.
Employee involvement
Businesses need to create cultures that employees are part of and going against that culture is unacceptable, says McCartney. She admits that reinforcing values is a challenge, but suggests: “Involve employees in creating a sense of purpose, one that really makes sense to them.”
Purpose to one individual will manifest differently to another – McCartney gives the example of the Royal National Lifeboat Institution, where purpose is a strong motivator for those on the front line in lifeboats, whereas the teams on phones may need some assistance in understanding how their purpose supports the front line.
Performance reviews are a good starting point for communication concerning values in a formal environment and so too are more informal chats between line managers and teams.
Accountability
But are the consequences of employees failing to uphold a business’ values really so severe? In some cases, it can be the death knell.
With numerous casualties apparent in today’s world, such as financial institutions beset by rogue traders and the crisis facing the Beeb, McCartney warns that individuals must be held accountable for their actions.
If there is a breach of trust, what action is taken at C&W? Laxton tells us: “No matter how small, if a trust is questioned, someone senior not involved in the situation will make the client aware that the situation is being taken seriously.
“Clients appreciate this senior attention. You need to deal with it at a high level to redeem trust and to take the time to go and see a client rather than email them.”
In terms of disciplining employees he says: “It depends on the issue. If it is a question of ignorance, you need to explain to them that they need to be more careful, but if it was something malicious that broke our trust, we would part company.”
Laxton concedes that in these times of short-termism it is tempting to turn a blind eye to someone who is a big fee generator, but that turning a blind eye lowers the bar for behaviour, with dangerous knock-on effects.
The quest for employees that share C&W’s values starts with the interview recruitment process. Laxton says: “We simply don’t employ people who don’t sign up to these values.”
Ultimately, whether their values are aligned with C&W’s will show through behaviour. The business encourages good behaviour through prizes such as Red Letter Days for going above and beyond – awarded to anyone from a very junior level, upwards – by Laxton personally. And company values, including trust, appear on employees’ screensavers as a daily reminder.
Laxton agrees that at the end of a single day, profit may be more important than values. But at the end of the day – that is, the end of a career – he argues: “Values are more important in the long run and are fundamental to long-term survival.”
Peter Cheese, CIPD’s chief executive is equally severe about the results of ignoring your business values.
He says: “Unless business leaders and HR are prepared to take a stand and ensure that their organisational values are seen to make a difference and are worth more than a passing reference in the company report or on the intranet, then they will lose the trust and confidence of staff.”
