Boy, that's the last question that I'd want to hear anyone asking right now. In fact, I'd be surprised if there weren't some of you who've gotten ticked off just hearing it. After all, how many times can you pull the rabbit out of the hat? 2020 has just been too much.
71% of us in HR report that 2020 is the most stressful year of our career, so I know I'm asking a lot. But years like 2020 are also the ones that show how effective HR is at strategy. Years like this are also the best time to build deeper relations with management, who are also worried about employees at this time.
Here's the reason to ask this tough question and it's important. I can't tell you how many times I have been invited to work with a client who has a department or employee group who are just boiling with resentment. HR and management are beside themselves because the employees seem intractable in their anger and frustration. The attitudes impact both productivity and teamwork. And, in my experience, even with intervention, the bad feelings can go on for years.
Inevitably, the employees believe their (especially) hard work has been taken for granted -- not by their manager, but by management. And the scenario typically plays out in a context like 2020: Tough times, requests for everyone to pitch in, employees genuine in their sincerity to go the extra mile. And then . . . the recognition that employees genuinely depended on just doesn't show up. And usually the specific issue is merit increases and/or bonuses.
It's really hard to sort out who gets what, I know. But I have worked with a certain category of aftermath and it's not pretty. One of the definitions of resentment is, "Bitter indignation at having been treated unfairly." Another includes, "Persistent ill will." Imagine if you have a full department or function who feels this way. The repercussions will cascade out to all the other the people trying to work with them.
According to Willis Towers Watson, only 35% of those companies participating in a recent survey have had to trim their merit budget. Nonetheless, there's still not a lot of money to play with. So where do you start? Well, there's the, "Customer-facing is the only one who should get increases." It's a rare company where that's a fair statement. Or, "There just isn't enough for Admin and HR this year." Another shortsighted tactic. And recent years have spotlighted how misguided it is to overlook hourlies. As we say at Compensation Cafe, everything you do in compensation is communication. Check closely to confirm that your 2020/2021 actions are communicating the messages you've planned.
Yes, you may need to have some serious discussions with management, but don't confuse gravitas with bad feelings as you build compromises with your C-suite. Also, it may be a good time to do an organizational scan, as well as a demographic one, to check whether there is anyone who's been overlooked or impacted negatively. And be sure you've equipped managers to deal with the fatigue and emotions which will surface in employee meetings this year. They are tired, too, so give manager communications an extra effort. It will pay off.
Margaret O'Hanlon, CCP brings deep expertise to discussions on employee pay, performance management, career development and communications at the Café. Her firm, re:Think Consulting, provides market pay information and designs base salary structures, incentive plans, career paths and their implementation plans. Earlier, she was a Principal at Willis Towers Watson. A former Board member for the Bay Area Compensation Association (BACA), Margaret coauthored the popular eBook, Everything You Do (in Compensation) Is Communications, a toolkit that all practitioners can find at everythingiscommunication.com.
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