Corporate Empathy: Where It Went and Why It Matters
BY Emily McCrary-Ruiz-Esparza March 19, 2025It certainly seems like a bleak moment to be a worker in America. Scroll the news or social media and a picture forms of an uncaring, turbulent, and miserly workplace.Why is this so striking? Empathy, or the ability to understand and be sensitive to others’ feelings and experiences, became a fashionable trait in business just a few years ago. For a while, employers were getting really good at responding to the needs of the workforce. Some companies even traded on it. Empathy, as well as its more active cousin, compassion, took many forms. As more attention focused on how some demographic groups were often left on the sidelines, employers said OK, let’s find ways to level the playing field, and they set hiring goals and stood up mentorship programs. When Covid lockdown closed schools and day-care centers and quarantined babysitters, companies told workers to take care of their families and welcomed Zoom cameos from kids. When employees needed a reprieve from expensive cities and long commutes, companies converted to remote work and hybrid work. When burnout and loneliness pressed on our minds, employers started footing the bill for therapy.The year 2025 feels really different. Much of change in the weather has to do with what the Trump administration and Elon Musk’s Department of Government Efficiency are doing to the federal workforce, gutting it haphazardly and villainizing the civil service—and how companies in the private sector are playing follow-the-leader. Meta appeared to ingratiate itself to the incoming administration by axing its DEI programs. And when President Trump ended federal DEI programs, Google and Amazon ended some of theirs. When Elon Musk fired “low performers” from the federal government, so did Meta and Microsoft. Public sector followed private sector in ending remote and hybrid work. First Amazon, AT&T, and Boeing called workers back to the office in late 2024, and the president did the same on inauguration day. Underscoring the dramatic shift: All of this is happening as we arrive at the fifth anniversary of Covid lockdowns in the U.S. In some ways, all those revolutionary changes to the way we work seem to be dissolving. To be sure, many employers insist that employee well-being is still a priority, but surveys show that most workers aren’t feeling it. According to Gallup, the percentage of employees who believe their organization cares about their well-being plunged to 21% in early 2024. At its peak in May 2020, that figure was 49%.These stories and statistics certainly make it seem like employers are pulling the plug on empathy. But while the big tech and banking companies that have toughened up their workplace policies employ a lot of people, as does the federal government, they don’t employ everyone. Do these stories really reflect what it’s like to be a worker in 2025? Is corporate empathy dead? I started asking around.When the Reality Doesn't Match the MessageAs I was working on this story, Lauren Branston, CEO of the UK-based nonprofit Institute of Business Ethics, sent me an email. “I have been hearing people I trust saying they are seeing more and more ‘campaigns’ saying empathy is bad, etc. Which I find worrying,” she wrote. “People are campaigning against a core human value. We aren’t ready for this as an institution or in society because we have assumed these topics to be settled.”For decades, she later told me in an interview, people have operated with the belief that undergirds much of Western political democracy: that those with power can largely be trusted to use that power for good, and if they don’t use it for good, then accountability, in the form of ethics or regulations, will come for them. Now, it’s not clear whether either of those things is enough to stop the rolling tide.“It’s fundamentally challenging, she said. “It’s a moment where your values and beliefs are shaken, and it’s a moment where you have to sit and recalibrate what’s going on. What you see when people’s values are challenged is engagement and collaboration and connection. People organize and get organized. And I think that might happen.”As a reporter, I talk to senior HR leaders and executives every day, and some of them I know well. It’s clear to me that a lot of these people who work in HR are, as individuals, genuinely concerned about the well-being of their colleagues. And some are really pushing for change.In February, I moderated a From Day One panel of senior talent-acquisition leaders, and all of them were insistent on providing a good candidate experience even as they introduce AI into their hiring process and navigate an unwelcoming labor marketplace. In fact, they were most concerned with finding ways to provide feedback to individual applicants, even those who don’t get the job. Comcast, which might get a thousand applications for a given role, learned that what applicants want most is feedback, so its TA team is finding ways to provide that.But when what the company says is not what the company does, a lot of HR leaders are really troubled by this. Lori Osborne is one of them. She has spent her 20-year career in HR, mostly working for corporations and startups, plus a brief stint with a non-profit organization, before leaving in 2024 to be a fractional CHRO for startups. Hypocrisy is why she left corporate HR, after finding that values and behavior just didn’t add up. Publicly, leadership would say, “‘We want you to go on a run at lunch. We want you to go to your kids’ school play. We want you to do this thing that you have a personal passion for, even though it’s during work hours,’” Osborne told me. But behind closed doors, the same leaders debated whether to promote employees who went on lunchtime runs or left early to make the school play. Taking them at their word was a trap. But this didn’t happen in the new, colder environment, it happened years ago, when it was in vogue to be a support-everyone kind of company. Which tends to confirm the worker suspicion that many companies never believed in empathy at all.What It Feels Like When the Vibe ShiftsEven so, I found employees who wanted me to know that they don’t believe corporate empathy is dead. One of them works in product development at a large, U.S.-based tech company. He wanted me to use a pseudonym—we’ll call him Terry—so he could speak candidly.Terry likes his work, which he says is creative and challenging. He also likes that expectations are clear and good work is rewarded. There have been two rounds of layoffs and a reorganization since he arrived, but Terry believes the matters were handled as well as they could have been.Primarily, he told me, empathy is evident in the fact that executives are so accessible. For two years, and especially lately, employees have asked executives during town hall meetings whether they’ll stick with DEI. The answer has always been yes. They ask whether workers will be called back to the office. The answer is no, remote and hybrid work will stay in place. As far as ratcheting up productivity expectations, the company now attaches bonuses to performance, but Terry doesn’t believe that’s meant to hector workers. It’s just what happens when revenue flattens out.But something weird happened. Recently, Terry’s new boss told him to provide weekly status updates, a requirement that sounds suspiciously close to Elon Musk’s ominous email to federal employees, ordering them to list five accomplishments for the week. I asked Terry, does that give you pause? It does, so he’s going to ask his manager why. Is he not trusted? Many workers may be harboring the same concerns, but aren’t confident enough to speak up. “Senior leadership can’t make people ask questions,” Terry told me, “but they can create an atmosphere where you can ask questions in front of everyone, or silently Slack the leadership.” So that’s what he’s going to do.What Does Empathy Have to Do With Business?It may be worth asking ourselves where we expect empathy in the workplace to come from: the executives in the C-suite who represent the business, or the colleagues we interact with on a daily basis?One employee who was recently let go from the Department of Education wrote on LinkedIn about how her colleagues went out of their way to help when she was diagnosed with multiple sclerosis. One tech worker told me how much their manager was a mentor. Federal workers at the Federal Trade Commission and the Department of Commerce have told me how they’re banding together to share resources and support. Go looking for empathy, and you’ll find it.What some employees are getting from their employers cannot be dismissed: bullying and badgering, threats and ultimatums. Really big sticks and no carrots to speak of. People are really angry about layoffs. Most people would agree this is really bad humanity. Some would argue really bad business too.Business Insider’s Aki Ito reported on how Meta’s harsh performance reviews may backfire and damage productivity rather than improve performance. “CEOs may think they’re creating a meritocracy,” Ito writes. “but in reality they’re marching their companies straight into a trap of sunken morale, high turnover, depressed profits, and reduced innovation.”There’s evidence that corporate empathy really does affect dollars and cents. Among my favorite examples is a study by a group of researchers in Switzerland and the UK. They examined 510 CEO conference calls by 448 U.S.-based companies on the Russell 3000 stock index that took place in the earliest stages of the pandemic. They found that the more CEOs made statements, even vague ones, that signaled their human concern for employees, customers, or clients, the better those companies’ stock prices fared when overall share prices plunged in March 2020. The researchers call them “human care statements.”We’ve seen the opposite happen in 2025. Tesla’s stock price has been dropping precipitously, for nine straight weeks. Much of that may be politically inspired, but Musk’s gleeful lack of empathy for workers hit by DOGE cutbacks, with references to wood chippers and chain saws, gained viral infamy.The opposite kind of behavior appears to be demonstrably beneficial and stabilizing. “Follow-up explorations unveiled a negative association between CEO human care statements and stock volatility, meaning that market participants discounted these companies’ future earnings less,” the study reads. “Our explorations suggest that it pays off for CEOs to go beyond mere financial information and show some humanity.”Emily McCrary-Ruiz-Esparza is an independent journalist and From Day One contributing editor who writes about business and the world of work. Her work has appeared in the Economist, the BBC, The Washington Post, Inc., and Business Insider, among others. She is the recipient of a Virginia Press Association award for business and financial journalism.(Featured photo by Miniseries/iStock by Getty Images)
A New Use Case for AI: Succession Planning in an Era of ‘Squiggly Careers’
BY Emily McCrary-Ruiz-Esparza March 19, 2025Careers are more non-linear than they’ve ever been. This trend puts workers who can flex with the times, moving fluidly across roles and departments, in high demand. This is true not only among early-career workers finding their way, but at every level of the organization.At the top, companies are expanding the responsibilities of executives and adding new seats to the C-suite. Traditional paths to the top are being overwritten by “squiggly” careers. Take, for instance, the role of chief financial officer. Fewer CFOs are coming from purely finance backgrounds, with operational resumes becoming a popular pedigree. Some executives are pulling double duty. Salesforce appointed its first dual CFO-COO in 2025, as did PayPal and outdoor-apparel company Cotopaxi. Chief financial officer is now officially a route to the CEO’s job.As careers become more circuitous than straight, succession planning gets harder. Old paradigms are less relevant. It’s now the skills that matter—and the assessment of them.Workforce demographics further complicate succession planning. During the span of 2024-27, more than 11,200 Americans will turn 65 every day. Retiring Baby Boomers are vacating a record number of senior positions. Identifying and preparing the next generation of leaders is a key exercise for HR.Artificial intelligence may be the answer. Overloaded HR teams are already employing generative AI agents to write the first draft of job descriptions and benefits newsletters, but the tasks AI can complete for HR are getting increasingly complex, like identifying attrition risks. Why not succession planning?Succession Planning for a Skills-Based WorkforceArtificial intelligence is a promising solution because it helps identify employees who have the skills necessary for the role, not only the right career history. HR is already using artificial intelligence to identify skills within an organization, typically to match current employees to open roles or new projects, but “you could easily extend that to succession planning,” says Chris Pinc, the director of product management at consulting firm WTW.Firms like WTW and other industry experts are spinning up their own AI-backed agents. For instance, the Josh Bersin Company launched its new AI platform for HR, called Galileo, in 2024. It looks a lot like ChatGPT; users type a query into a search bar and the tool returns an answer. Galileo can suggest prompts or help you find specific content related to HR expertise.Chris Pinc, the director of product management at consulting firm WTW (company photo)WTW released its own AI assistant, Expert, last month, while HR tech firm Visier has Vee, an AI agent specifically for people analytics. Google is working on its own AI-powered instance for its HR team. Like Bersin’s Galileo, the interfaces of Expert and Vee will be familiar to anyone who has used a generative AI tool. Why use tools like Galileo or Expert instead of ChatGPT? First, these platforms are closed environments, which means that the information employers enter about their workforce stays only within their ecosystem; it doesn’t feed the larger corpus underlying the tool. And second, these platforms are trained on data, research, and thought leadership from respected HR firms. Galileo pulls from the Bersin company’s own collection plus others, like research from Heidrick & Struggles. WTW’s Expert is similarly constructed, with the entirety of the WTW library backing the tool. Users can load in their own proprietary resources, like survey results, skills assessments, projects, plans, frameworks, processes, and original research. Amy Farner, Bersin’s SVP of product and member experience, said, “We’re not letting it go out there and troll the web.” These companies tell the AI what content to trust.Where AI Can Supercharge Succession PlanningLet’s say it’s time to start looking for a successor to your chief marketing officer, who’s likely to retire in the next three years. Let’s use generative AI to find a good fit. You might ask your tool: I need to find employees who have taken on several major, client-facing projects in the last year. Ideally, with the marketing team. They need to score high on our leadership assessment for innovation and creativity. They also need eight to 10 years of people-management experience.The tool returns a list of leaders matching the criteria. You’re surprised to see Kelly Kapoor, a senior manager from business development, on the list. You learn that last year she worked on a successful product launch and still attends regular meetings with the tech and marketing teams. Not only that, Kelly’s name appears on several proposals for new product features and she has created detailed presentations on original competitive research. Plus, her performance reviews are excellent.Amy Farner, SVP of product and member experience for the Josh Bersin Company (Company photo)It looks like she might be a promising candidate, but under the company’s traditional framework, she never would have crossed your radar. So you load the CMO job description into the AI tool and tell it to map a three-year development plan to prep Kelly for the seat. You learn that she hasn’t yet completed a few key leadership-training courses, and she has very little experience working with creative teams. Plus, she’s had only two or three direct reports at a time. Looks like Kelly has a ways to go before she’s ready, but now you have a new candidate and a plan.What Other Talent Have We Been Overlooking?This is a fictional example, but there’s real-world precedent. Pinc has seen it happen. Recently, one of his colleagues in IT was promoted to a senior finance role. “She took on a special project to evaluate the cost-effectiveness of our overall software-development function,” he said. “She learned a lot about finance, then became a logical person to be the finance director for the IT function. She understood the finance work from that project and she understood the IT from her previous role.” Use AI to fill a role like this, and it can be scaled for an entire organization. The success of so many nonlinear careers raises the question: What other great talent have employers been overlooking?AI can lower the cost of succession planning too, said Pinc, who worked closely on the creation of Expert. Companies have long used leadership assessments for succession planning to find people who are capable of climbing the ladder, but it’s expensive to interpret the results, present them to leadership, then work with HR to write development plans. “That’s human time that I think will be able to be taken over by AI,” he said.AI is still relatively new to HR professionals. This is due, in part, to privacy concerns. Companies can’t just throw employee data into a gen-AI chatbot, even if it is a closed system. And HR is not historically a tech-forward department, but that’s changing. For now, HR is primarily using AI for time-saving, says Farner, but that will expand over time. Organizations are beginning to move past tapping AI as an assistant completing admin tasks to tapping AI as a consultant that operates like a colleague.Emily McCrary-Ruiz-Esparza is an independent journalist and From Day One contributing editor who writes about business and the world of work. Her work has appeared in the Economist, the BBC, The Washington Post, Inc., and Business Insider, among others. She is the recipient of a Virginia Press Association award for business and financial journalism.(Featured illustration by Photoman/iStock by Getty Images)
5 Priorities for 2025: How HR Leaders Plan to Meet a New Wave of Change
BY Emily McCrary-Ruiz-Esparza December 18, 2024In 2025, HR will be at yet another inflection point. With high levels of employee detachment, anxiety about the arrival of AI, and a huge demand for new skills, corporate CEOs are saying to their chief people officers (CPOs): We need you to fix these things. And by the way, restructure how your own HR operations run–and keep spirits high too!It’s a lot, but chief HR officers are gearing up for another wave of change, even after the incessant disruption in the five years since the pandemic arrived. The consulting firm Heidrick & Struggles interviewed 70 chief people officers around the world about what it takes to do the job. Jennifer Wilson, the co-head of the global HR-officers practice at the firm, wasn’t surprised by the substance of their findings—artificial intelligence, generational changes, and the need to adapt to a stream of curveballs are all priorities they expected to find. What surprised her is the urgency that CPOs expressed, and the evidence that CEOs are leaning so heavily on them for answers. CPOs are super-connectors, the report says, with demands on their attention coming from all sides. As a result, “progressive organizations are playing with their HR functional models,” Wilson said.From Day One spoke to HR leaders and the consultants who work with them about their plans for the new year. Among the myriad responsibilities on their plate, what will they focus on in 2025? This is what they told us they plan to do.Renew the Focus on Company CultureSpeculation about the future of work once conjured images of workers zipping around the office on hoverboards, said Dan Kaplan, senior partner at consulting firm Korn Ferry. Now, futurists train their focus on culture. “It should be the guiding light for companies,” he said, but “they’ve gotten away from that.”The percentage of U.S. workers who say they’re thriving in life has hit a record low: Just 50% of workers Gallup surveyed in 2024 are feeling good about their current life and future prospects, a figure that has declined in the past decade. Gallup also found that employees are detached from their jobs. The chief culprit: rapid organizational changes and the persistent uncertainty around flexible work schedules. If CPOs are still fighting with their CEOs and boards about workers returning to office in 2025, “then you’ve lost,” Kaplan said. The HR leaders who will win are those that can push executives closer to their employees, and inspire them to deliver.Elaine Becraft, the SVP of HR at global medical-tech company Siemens Healthineers, believes that company culture must connect workers to each other and to the mission of the business. Long gone are the days of clocking in and clocking out to collect a paycheck. In 2025, she’s going to focus on holistic employee care.Workers need a new relationship with their employers, and that responsibility has been handed to HR. “There is a recognition that the workforce overall is tired,” said Wilson at Heidrick & Struggles. “We’ve been through a lot over the last few years. The nature of work is changing. Mental health issues in the western world are more prominent than they’ve been in the past, and that’s really become a reality for chief people officers.”Get to the Next Steps on AIArtificial intelligence is unavoidable, but there’s a gap between expectations by CEOs and the actual embrace of AI by workers. “So far, employee adoption of AI in the workplace is lagging behind the hype,” Gallup reports. If your company isn’t an early adopter, it’s probably trying to catch up. Among the innovators is media agency VML, where the global head of organizational development, Loren Blandon, is prioritizing AI upskilling. “In our industry, it’s really critical that we position ourselves as a leader in integrative use, application, adoption, and innovation of AI. We need people fully embracing and using it,” she told From Day One.How do you get world-class creatives to adopt technology that poses an immediate threat to their jobs? “You have to show them that it’s going to amplify their work,” Blandon said. “Then you get them to understand that whether you accept this or not, it’s coming, and it’s in your best interest to start using it rather than fighting yourself into being obsolete.” She’s found that many who dig in their heels just haven’t experimented with AI yet. But when you invite them in and show them how to play, the wheels start turning, and suddenly it’s cool.Ninety-one percent of early-adopting firms report positive results with AI, including increased productivity and cost-savings, according to a report from the Institute for Corporate Productivity, or i4cp. And companies that operationalize AI will outpace their peers.Workforce concerns about AI will continue, with employees anxious about their being displaced or replaced. “That has landed in the CPO’s lap,” said Wilson. HR executives are responsible for equipping the workforce with AI skills, but with no precedents for use, it’s still not always clear when, where, how, or why they’re meant to apply those skills–at least not yet. Of course, HR has its own misgivings about AI encroaching on its territory, and CPOs will have to quell concerns from their own teams at the same time they upskill their colleagues.Invest in the Skills-Based WorkforceForget the traditional concept of a job. It’s a skills-based world now, with much more malleable definitions of roles and projects. And “until companies shift their cultures, efforts to scale skills-based marketplaces will stall,” i4cp’s report says.In a skills-based workforce, employees flow from one assignment to the next, pick up skills in fractional roles, dip into new teams with temporary projects, and volunteer their expertise in new departments. Ideally, all work is promotable and company tenure is no longer a deciding factor. There’s a large share of the workforce that may be attracted to the fluidity of skills-based work. Sixty-five percent of workers feel stuck in their current roles, according to a Glassdoor survey, a situation that can breed resentment. “It used to be that you stepped into a defined job with tasks, and that was your role all the time. Now it’s more project-based,” said VML’s Blandon. For one team you might be the brand leader, and for another you’re the project manager. “I think jobs need to be fundamentally redesigned to tap into people’s ‘gig desires.’ They want to bring more skill sets to the table. They want to explore more things, and I think we can be savvy in leveraging that.”Maintain a Commitment to DEI, But Change the LanguageDespite recent high-profile changes in diversity, equity, and inclusion (DEI) programs by the likes of Walmart and Ford in the face of anti-DEI activists, the overall corporate commitment to DEI’s principles isn’t dead. “Activists are overstating the surface-level changes many companies are making to get rid of the heat,” CNN reported this week based on a review of company policies. “Nearly all the largest companies in America still say they are committed to promoting DEI.”Companies are motivated to persist with the principles of DEI because, in an increasingly diverse population, it has been proven to be good for the bottom line, as well as employee retention and motivation. That said, companies still want to avoid the political flak, so they have shifted the emphasis of their language, focusing more on inclusion and belonging. The values have already been operationalized and, in some cases, leaders have asserted that they have not abandoned those values, but are waiting to see what the temperature will be under a second Trump Administration before speaking out more.How can HR make sure thier companies evolve their practices, and not just the labels? The NeuroLeadership Institute’s DEI Impact Case recommends three actions that organizations can take to maintain their investments in DEI, no matter what they’re calling it, as Fast Company reports: “prioritize diversity by aligning it with specific business goals, habituate inclusion through targeted learning and performance tools that integrate it into daily practices, and systemize equity by examining policies and procedures to embed and sustain fairness throughout.”Reshape Organizational StructuresThe new skills-based economy is shaking up corporate structures, and companies are “delayering” their organizations, removing expensive middle managers believed by some to stymie productivity, while companies are also trying to teach managers to be more effective. Blandon says we’re due. “When was the last time we truly thought about reframing that? Manager, subordinate. It hasn’t been really tweaked in a long time, and people are questioning it.”Some companies are delayering to usher in the next generation of executives. Baby Boomers in the C-suite are retiring, and “you’ve got to get that next layer ready,” Wilson said. As vacancies open en masse, “how do you make sure that you don’t have business disruption from that newness?”Kaplan hopes that a shallow hierarchy will shrink the distance between the CEO and the rank and file–and motivate the workforce. “The CEO should be the most inspiring leader in the company,” he said, and by bringing workers closer to their leader, they may feel more connected to the company.At many comppanies, the HR department is getting a reorganization of its own. The traditional “centers of excellence” model, in which HR segments specialize in narrow disciplines, is on its way out, and a cross-functional model, in which HR teams are multi-skilled and capable of working with all departments, is gaining popularity. People ops no longer waits for requests, but goes problem-solving on its own. “We’re seeing agile teams form and disband for specific organizational issues,” said Wilson.Experiments abound. Some companies have moved all administrative tasks to a general shared-services center, leaving HR to “focus entirely on talent, leadership, succession, bench strength, organizational design, and [organizational development].” And, according to Wilson, this could be “a smart way to get HR out of the administrative chains that it’s been under for so many years.”Maybe it’s time for HR and people operations to get a new name? “Talent operations,” Wilson suggested, but then paused. Even that suggests the team is doing more admin than it really does, and the discipline continues to grow. “Maybe talent advisors?” Whatever the name, she said, it should demonstrate that talent is at the center of its responsibilities.“We’re like the lookout on a boat,” Becraft said about her team at Siemens Healthineers. “We see issues, challenges, and opportunities coming toward the company, and it’s our responsibility to bring those to the right people and make sure they understand what’s going on out there.”Emily McCrary-Ruiz-Esparza is a freelance journalist and From Day One contributing editor who writes about work, the job market, and women’s experiences in the workplace. Her work has appeared in the Economist, the BBC, The Washington Post, Quartz, Business Insider, and Fast Company.(Featured image: Photo by Kobus Louw/iStock by Getty Images)
How Companies Can Lead in an ‘Age of Outrage’
BY Emily McCrary-Ruiz-Esparza November 04, 2024The nation is on edge. We’re anxious and angry, distracted at work, and eager to brawl out our differences in public. At the highest level, our presidential candidates have framed Tuesday’s election as “an existential battle for the nation’s character, its democracy and the safety of its residents.” Social media influencers on both sides of politics have turned pain and rage into a lucrative business model. More and more families are becoming estranged over disagreements great and small, while contempt and disrespect have become ingrained habits for many.The mood seems contagious, with “assuming the best in others” in rare supply. Boeing endured a costly, contentious strike by unionized machinists who demanded restoration of their pensions. In September, Fortune reported that employees at Amazon were “rage applying” for other jobs after their CEO ordered workers back to the office five days a week.Is this our new modern culture–or are there ways to reduce the rage? Karthik Ramanna, professor of business and public policy at the University of Oxford, describes the moment as an “age of outrage” in his new book, The Age of Outrage: How to Lead in a Polarized World, published last week by Harvard Business Review Press.As election season in the U.S. reaches its peak, rhetoric is sharpening (not to mention quite foul) and the public is feeling nervous and emotional. While tension and even anger over political, ideological, or values differences is nothing new, for the title of his new book, Ramanna chose the word outrage. There’s just something different about the current tenor of the moment: A hotter temperature and a higher pitch. For companies, dealing with this force is no longer a PR task, but a “critical capability,” he writes.Managing in the age of outrage is not the same as managing isolated incidents of disagreement, Ramanna told From Day One. It’s a mistake to treat corporate mishandling of these ongoing issues as mere PR problems or temporary. Those who do will find themselves playing defense day after day. “Tomorrow there’ll be a new issue, and the day after there’ll be a new issue. That approach isn’t going to work,” he said.The outrage Ramanna writes about is typically focused on leaders and institutions, and HR and business executives are preparing for stress and heightened emotions following the election season. Learning from embarrassing corporate gaffes, many firms have been increasingly proactive, institutionalizing their responses to angry employees and the public with social-issues working groups. These are cross-functional committees assembled to prepare for crises, both internal and external, and determine whether the company will respond–and, if so, how–when they arise.Ramanna warns employers against prioritizing processes over outcomes when preparing a response to outrage. Agree to rules of engagement, but “we don’t want to get too bogged down in that process. We want it to be more of an informal guidance to the way we operate. It’s more important that we actually trust each other than that we have written rules that say we trust each other.” The rules should be simple, he said, “things that people can recall in an instant. If people can’t recall what the rules of engagement are when they’re in the heat of the moment, then they’re not very useful.” For this reason, Ramanna is reluctant to overly formalize the process, “because that might actually kill what you’re trying to do.”As a leader, you should temper expectations. “No matter what you do,” he writes, “you can never fully address the demands made of you.” Remember also that “you will always be seen as part of the problem.” Instead of wrongly believing you have the power to solve all problems or quell all outrage, aim for “turning down the temperature.” In The Age of Outrage, Ramanna describes how.A Framework for Turning Down the TemperatureRamanna offers a four-part, cyclical framework for turning down the heat. First, identify the source of the outrage. That is, the deep-seated and underlying causes fueling the anger. Look beyond the inciting incident to the wound it has irritated, and manage your own preconceived notions of your antagonists and their motivations.Second, determine the extent to which the organization can effectively respond. What is within your responsibility to address, and what is within your capability to address? This is where your company’s values and mission can guide you. If you say you will protect reproductive rights, for example, then it’s imperative to step up when the issue arises in the public arena. In fact, moments of anger present an opportunity for clarifying an organization’s values, Ramanna writes.Third, take stock of the leader’s influence. Now that you’ve identified what is an attainable and appropriate response, how will the leader win the support of others in influential positions as well as the support of the workforce?And finally, build resilience. “A resilient organization (or system) is characterized by the delegation of authority,” Ramanna writes. “By situating decision-making close to ground realities, the organization both improves the informativeness of its decisions and diversifies its thinking and, as a consequence, can endure and even thrive amid negative shocks.”Are Corporate Values Outmoded?Values statements and public commitments to causes or communities may be useful guideposts for how to focus corporate response in the age of outrage, but they can also make it harder to deliver. Companies have caught themselves in dreadful thickets in the name of transparency and principles. When corporate behavior, or the behavior of business leaders, doesn’t reflect publicly stated values and beliefs, companies feel the pain. Ramanna cites Disney’s entanglement with Florida’s “Don’t Say Gay” bill in 2022. Despite being a public advocate for LGBTQ+ rights, the company did not publicly oppose the bill and was at the same time writing checks worth hundreds of thousands of dollars to politicians who sponsored it in the state senate. NPR reported that “Disney employees shared their outrage on social media when the company did not denounce the proposed legislation.” (In 2024, Disney resumed political donations to Republican candidates in Florida who voted in favor of the bill.)Being publicly “good” and values-forward can indeed make you a target, according to New York University professor Alison Taylor, who, in her book Higher Ground: How Business Can Do the Right Thing in a Turbulent World, points out that those seeking a target for their outrage will look for the companies and leaders most vocal about their principles.“Some companies can legitimately argue that these are not part of their value proposition. That’s not the case with Disney,” Ramanna said. “Part of why they got into the problem in the first place was when the ‘Don’t Say Gay’ bill was initially being proposed, they said, ‘Oh, we’re neutral in this.’ No, you’re not neutral. You’ve already established that you’re not neutral, and now it looks opportunistic to claim that you’re neutral.” Where the issues are directly related to the business or its stated values and identity, then you can’t step aside. You must proactively engage.Despite shifting political winds, “there is also little doubt that many institutions today have adopted a more progressive culture,” reported the New York Times this week. “They acknowledge bias and power imbalances between people of different genders and races. Despite efforts to roll back D.E.I. programs, few businesses or schools would doubt the importance of recruiting people from different backgrounds. A range of progressive causes—climate change reduction, workplace protections and higher taxes on the wealthiest Americans—remain popular.” Even so, in an age of outrage, corporate values aren’t as simple as they used to be. As belief systems diverge so severely, it can be tough to get people to agree, even in the workplace. Ramanna distinguishes between “opportunity values” and “outcome values.”While outcome values tend to divide, opportunity values can unify: Even if you can’t agree on the outcome, at least you can agree on the rules of engagement—how a group arrives at conclusions and makes decisions. “The commitment to the opportunity values is more meaningful than the commitment to outcome values, especially when you’re dealing with this outrage,” he said.Bracing for a Polarized Workplace Post-ElectionTo be clear, Ramanna isn’t interested in prescribing values or making ethics judgements, nor does he offer advice on business strategy. Companies have to do that on their own, he said. But when it comes to managing in an age of outrage, he does advocate a kind of corporate stoicism: Concern yourself only with what you can control.With the election and its aftermath upon us, Ramanna urges employers anxious about the workplace climate not to quit before they start, but make a plan to lead in an age of outrage. “Look, it’s never too late. On one hand, you might say, ‘Oh my God, I should have started this six months ago, five years ago,’ whatever it is. But on the other hand, if you don’t start it today, it’ll still be too late in six months.”Despite the outcome of the election, he said, leaders can count on two things. “No. 1, that we’re not going to have some magical healing on the day the elections are over or the results become clear. If anything, we’re going to be sharply divided. The second thing is, as a business, you have to figure out a way to work through that.”Emily McCrary-Ruiz-Esparza is a freelance journalist and From Day One contributing editor who writes about work, the job market, and women’s experiences in the workplace. Her work has appeared in the Economist, the BBC, The Washington Post, Quartz, Fast Company, and Digiday’s Worklife.(Featured photo by Solstock/iStock by Getty Images)
Who Are the Next CHROs? A High-Stakes Recruiting Task Gets Serious Attention
BY Emily McCrary-Ruiz-Esparza September 24, 2024Not long ago, if you’d asked someone what the most conservative part of an organization was, chances are the answer would be the HR department. Well, maybe tied with the general counsel’s office, but the image of the top HR officer as a high-ranking paper-pusher or disciplinarian carried on for decades.No longer. In the information age, when companies are increasingly investing in human capital over physical capital, the chief HR officer plays a pivotal role in a company’s fate. Today’s CHRO is a business leader, operating what Deloitte named “boundaryless HR,” in which “the traditional people discipline itself starts to merge with other related disciplines like decision science, behavioral economics, and academic disciplines such as psychology, sociology, and anthropology.”The question now becomes: Where can companies find a person like that for such a high-stakes role? Turns out, CEOs are far more proficient in CHRO selection today than they were a decade ago, says John Bremen, a managing director at consultancy WTW, where his job is to imagine the future of the C-suite. “People issues today are so much more pronounced and so much more prominent than previously.”From Day One spoke with CHROs in the Fortune 1000 and the consultants who recruit them to find out what it takes to be a CHRO at the world’s biggest companies. What do CEOs look for in an HR chief? And who’s next in line for the job? No one single formula emerges, but several key attributes emerge, including previous experience as a CHRO, demonstrated HR savvy plus a law degree, or a proven track record of adaptability across multiple industries.All Eyes on the CHROCHROs are experiencing unprecedented attention, thanks to their inestimable value confirmed by the pandemic, economic swings, social unrest, return to work, and now the global skills shortage. Dan Kaplan has spent 15 years recruiting CHROs at consulting firms like Heidrick & Struggles and Korn Ferry, where he’s currently a senior partner. He told From Day One that private-equity firms, in particular, have homed in on the position as they restructure companies, assessing not just CEOs and CFOs rigorously, but now the CHRO as well. Some PE firms replace the CHRO first, he said, “with a view that that person becomes the catalyst to assess and replace the rest of the leadership team.”Given the scope of the role, executives are appointing fewer first-timers than they have in the past, according to the CHRO Turnover Index by Russell Reynolds Associates. The number of rookie CHROs has been decreasing globally since mid 2022. Among S&P 500 firms, first-time appointments are down 19 percentage points since that year. This is even more true for FTSE 500 companies–the UK’s answer to the S&P 500–where for nearly a year in 2022-23) every incoming CHROs was a veteran of the role.Maral Kazanjian, the CHRO at the credit-rating agency Moody’s (company photo). Featured photo at top: Kate Gebo, CHRO of United Airlines, spoke at From Day One’s Chicago conference this springThere’s also an appetite for highly varied professional experience. The lion’s share of CHROs today are cross-industry hires. Analysts at Heidrick & Struggles examined the 2024 Fortune 1000 companies and found that more than 77% of external CHRO hires were from other industries. With a few exceptions, the CHRO is an “industry agnostic” role, said Kaplan, and HR chiefs tend to glide easily between industries. Among the most coveted qualities in a HR chief is agility, and cross-industry work naturally develops that skill. Now companies recruit CHROs with much of the same criteria they use when recruiting business leaders: experience with mergers and acquisitions and the grunt work of combining workforces, knowledge of a P&L, plus familiarity with thorny issues like labor-union negotiations. “At a company juncture—say, a new CEO comes in and they’re tasked with some turnaround—they often need a different type of CHRO for that phase of the company,” said Jennifer Wilson, co-head of the global HR officers practice at Heidrick & Struggles. “With the amount of M&A and cost-cutting, and then getting back to growth, they want to find somebody who’s been through that cycle.” Why Your Next CHRO May Also Be a JDIf you’re looking for a CHRO with cross-industry experience, plenty of exposure to the C-suite, plus experience with assembling multiple companies and quelling labor disputes, a labor-and-employment lawyer often satisfies the brief. With greater exposure to risk (as a sample: reputational, environmental, technological, privacy, and supply chain) it’s reassuring to know there’s an attorney occupying the seat. “There’s the employee-engagement lens, and there’s the productivity lens, there’s the regulatory lens, and there’s the profitability lens,” said WTW’s Bremen. HR is no longer a static department, now it has to make things happen.Law practice also develops the confrontational confidence CHROs need. “You need to have had the experience of walking into a senior leader’s office, closing the door, giving them feedback, and challenging them on an issue where you think there’s a pretty good chance of getting fired today,” Korn Ferry’s Kaplan said. At times, it’s as diplomatic as managing the CEO’s personality and presenting even the most uncharismatic leaders to the workforce as people who can be trusted, which sounds a lot like what might happen in a courtroom.Before Claudia Toussaint became the chief people officer at the global water-technology company Xylem, she was the company’s general counsel. CHROs can’t afford to be intimidated by hierarchy, she said. They have to be prepared to tell the CEO that they’re out of line, and why it matters. The professional training of an attorney comes in handy too. Lawyers gather evidence, make conclusions, and present a case. “That skillset, I think, is far more valuable today in the HR function than five years ago or ten years ago,” Toussaint said. “I think that’s why people are increasingly saying, ‘These people that have a law degree and have been trained to think systemically, to take data, analyze data, reach conclusions from it, and then drive impact from those conclusions—that’s actually not a bad background for leading HR function.’”HR and the general counsel’s office have a natural relationship. Maral Kazanjian, the CHRO at the credit-rating agency Moody’s, felt she was effectively moonlighting as an HR professional while working as the firm’s attorney, applying the law to all kinds of employment matters. “I was really lucky because Moody’s is a very successful company and also has a really fast-growing information-services business within the traditional ratings agency. Because they were growing so fast, a lot of employment issues arose,” she told From Day One. “We were in different jurisdictions. We had different questions we wanted to answer about ‘How do we do hiring right? How do we handle performance management? How do we maintain a focus on being inclusive? How do we do promotions right?’ There are legal questions, then there are operational and human capital questions.” Kazanjian’s first time leading the people function was at WeWork during the dog days of the pandemic. In February 2022, she returned to Moody’s, where she occupies the chief people officer job today.Jennifer Manchester, the CHRO at Fiserv, is a relatively new arrival to the C-suite, and like Kazanjian, has jumped industries. Manchester first crossed paths with HR at her former employer, the Dow Chemical Co., where she worked in the general counsel’s office on mergers, acquisitions, and other corporate transactions. “I always loved the employment piece and the people side of things the best. That’s where I figured it out: That was really ultimately what I wanted to do.”Manchester moved over to Fiserv in 2015, working closely with HR as a labor attorney, and ascended to the CHRO seat last spring, “I’ve always gravitated toward people issues, trying to solve problems. It’s such a dynamic role.” But about this she was clear: You can’t just pluck any attorney out of the legal department and promote them to the chief position. “You have to have some substantive core expertise in HR or employment. HR is a real science, and I don’t think anyone can just do it.”Deep, Successful Experience in HR Counts TooA background in HR is hardly irrelevant. Among the 10 highest-ranked companies on the Fortune 500, most of their CHROs have spent decades as HR practitioners. Melissa Hagerman, CHRO at insurance firm Genworth, came up through the HR department, and, like many of her peers in the Fortune 500, has worked across industries, including consumer and automotive retail and healthcare. She joined the HR field when it was still known as the personnel department. Being an effective CHRO takes compassion and diplomatic agility, she said. And it can’t be done without a natural curiosity for businesses. “As a CHRO, you have to really genuinely care about what the business is doing and where we’re heading, and you have to care about the people that are on the path to get us there. That is something that I really try to embrace and live by every day.”Hagerman is also a keen scout, continually monitoring what’s going on both inside and outside the organization, “understanding what’s happening politically and socially in the markets so that I can weigh in, whether that’s with our executive team or with our board of directors, or being able to think about how those may impact eventually our workforce.”HR has far more credibility and influence than in the past, Hagerman said, reflecting on her decades in the department. “The world now understands that people resources are really fundamental to the bottom line. Succession planning, development of associates—the focus on those things is far greater now than they ever were. Of course, cybersecurity, protection of data–all of those things–are more in the limelight now than ever.”Yet Your Next CHRO May Not Be Working In HR Right NowA career in HR can win you the seat at the top now, but that may not be true for the next generation of CHROs. Today, businesses seldom want an HR executive who has spent all their time in the department, said Wilson at Heidrick & Struggles. “In the companies we work with, it’s often said that if you can find somebody with a business background who’s either been in management consulting or held either a P&L role or a functional role outside of HR, that’s more interesting to us.”The next crisis is always around the corner, Korn Ferry’s Kaplan told From Day One, and HR has to be there to meet it. He rattled off a list of recent trials, from financial and economic wobbles, political unrest, racial injustice, reproductive rights, return to office, artificial intelligence, and gun crime. “If you are not prepared to put on your dance shoes and figure it out, you can’t do this job. More than academic credentials, intellect, or experience, you have to be able to tap dance.” As a result, people aren’t exactly grappling for the seat, he said. It’s a big job and it’s tough to recruit for. Some people get too close to the sun and opt out; others don’t realize what they’re signing up for before it’s too late.Everyone is looking for agility in the role. Bremen at WTW speculated that consumer-oriented industries–like retail, fast-moving consumer goods, cosmetics, or fashion–may be developing tomorrow’s most coveted CHROs. Tech firms develop great HR talent too because they have to marry operational complexity with consumer demands. Regardless of industry, he believes the most successful future CHROs are schooling themselves in the application of new technologies, particularly artificial intelligence, and have analytical capabilities far superior to their predecessors.In case you were thinking of plucking your next CHRO from the Wharton School, however, Kaplan cast doubt on the wisdom of choosing an MBA for the job simply because they’re a whiz at business. “If someone says to me, ‘I’m not an HR person, I’m a business person,’ that is a sign that I’m wasting time. I’ve never heard a CFO say, ‘I’m not a finance person, I’m a business person.’”Disciplines like finance can be taught in school, Kaplan argued, but HR is learned through apprenticeship. Management consultants who spoke to From Day One predicted that the future chiefs who are coming up through the HR department are leading complex functions at the moment, as heads of talent or directors of compensation and benefits.As today’s CHROs consider their potential successors, what are they looking for? At Moody’s, Kazanjian wants someone who is open-minded, bold, and analytical. She imagines that person might be in law, or they might be in management consulting. Toussaint wants someone who deeply understands the company culture at Xylem as well as how the business makes money, someone who’s good at data analysis, and someone who is a “truth teller,” uncowed by hierarchy. Manchester hopes her Fiserv successor has financial acumen and an always-learning attitude. At Genworth, Hagerman wants a values-driven, business-minded leader with deep knowledge of HR and a knack for diplomacy. Someone who is willing to uphold integrity, “above all else.”“Once upon a time, it was possible to be the most senior HR leader in a company and not have a grounding in the business fundamentals,” Bremen said. “That skillset is a necessary, but not sufficient, condition.” Yet business acumen alone isn’t enough without a deep understanding of the CHRO discipline, though he’s seen it happen. “They struggle. Just as you would struggle if you put someone in a chief marketing officer role who did not have a background in marketing. Sometimes leaders take those HR skills for granted.”Emily McCrary-Ruiz-Esparza is a freelance journalist and From Day One contributing editor who writes about work, the job market, and women’s experiences in the workplace. Her work has appeared in the Economist, the BBC, The Washington Post, Quartz, Business Insider, Fast Company, and Digiday’s Worklife.
Election Stress in the Workplace: How Leaders Can Respond Without Taking Sides
BY Jenny Sucov September 23, 2024Business leaders don’t need outside research to tell them that anxiety around the coming Presidential election is high–and that the stress can impact employee well-being and productivity, but here are some sobering stats:•73% of U.S. adults say they are anxious about the election, according to the results of the 2024 American Psychiatric Association’s annual mental health poll.•55% of Americans surveyed by Pew Research always or often feel angry about politics.•8 of 10 in the Pew survey used a negative word or phrase to describe how they feel about politics, with “divisive” being the most used.•Nearly two thirds of workers (65%) surveyed this summer by the Society of Human Resource Management (SHRM) said they have experienced or witnessed incivility in their workplace within the past month. And more than a third of workers (34%) said they believe the November election will trigger additional incivility in the workplace.In fact, psychologists and researchers are now studying a distinct form of anxiety called “political anxiety” and the unique way it harms both physical and mental health. The stress has been building since the 2016 election.The good news: executives, HR teams, and managers can—and should—prepare (now) for the November election. With just a few weeks until workers head to the polls, From Day One reached out to HR experts to learn about their strategies to diffuse stress and political polarization in the office, and, if necessary, address conflicts that may arise. Among the takeaways:Encourage Employees to VoteOne simple and non-controversial step companies can take is to promote voting. While there’s no federal mandate that employers give workers the day off to vote, some states do, and many companies provide flexibility on election day. Encouraging workers to vote is a good way to acknowledge what’s on their minds without taking a political position.If you’re curious about what other organizations are doing or need to back up a recommendation to leadership, check out Time to Vote, a non-partisan business group launched in 2018 that believes “workers shouldn’t have to choose between earning a paycheck and voting.” With more than 2,000 member companies including VISA, P&G, and Target, the organization is attempting to bridge the legislative gap and increase voter turnout. Patagonia, one of the companies that founded Time to Vote, has been giving its employees Election Day off since 2016. This year, the outdoor apparel company will close stores, offices, and warehouses on Oct. 29, national Vote Early Day, to allow workers to vote and volunteer in support of the election.Acknowledge Political Differences, But Don’t Take Sides“Some leaders want to take a stance, but I would caution them not to impose their political views. Your job is to stay neutral,” says Deb Josephs, an HR consultant and executive coach. You can take a stand, without taking a side, she adds, “as long as you support the individual as opposed to an issue.” When Roe v. Wade was overturned in 2022, for example, one of her HR colleagues said their company put out a statement to let employees know that they could come to HR if they needed support for reproductive health. Large employers like JPMorgan Chase and Meta and others announced they would cover travel costs for employees who are seeking legal abortions out of state. Keep the Focus on Empathy and Employee Support “Organizations need to say it’s a polarizing time, and that could be impacting how you show up at work,” offers Tracy Avin, Founder of TroopHR, a human resources peer group with more than 1,300 members and 15,000 LinkedIn followers. Avin says the topic of how to address the election has come up often in the TroopHR message boards, so much so that she decided to host a fireside chat called “Leading with Empathy in Polarizing Times” with an outside expert this September. One piece of advice from the virtual session: Develop an "Allyship Series" or similar educational program to foster understanding and empathy for different experiences and perspectives within your organization.She advises HR leaders to do what she does for her members: create a supportive environment where all viewpoints are welcome. “It’s an opportunity for managers to know how to respond. It’s not about opinions,” she said. “You can say something like, ‘It seems like you’ve been upset lately,’ so that person can express that they are stressed out. Then you can tell them to take a day off or provide mental health resources as needed.”Additional outlets for employees might include a moderated Slack channel or an employee resource group (ERG). “What’s most important is that employees know where they can go for support,” says Leonora Wiener, an executive leadership coach and former chief operating officer of Consumer Reports. Communicate Early and OftenAt Consumer Reports, Wiener helped lead teams through the 2016 and 2020 elections, the racial-justice reckoning after George Floyd’s murder, as well as the pandemic. She stresses the importance of listening to employee concerns and actually asking your staff what kind of support they are looking for. “Oftentimes organizations aren’t that good at finding out what their ‘internal customers’ need,” she said, adding to make sure any feedback groups are diverse and include representatives from all generations and backgrounds. In terms of communications, her philosophy is lather, rinse, repeat. “People need to hear the same message many times, and it needs to be said through different channels. Not everyone reads Slack or emails, and not every manager delivers the message in the same way.” Start that election communications drumbeat today, she says.Don’t Go It Alone Josephs echoes that sentiment, recalling how much “over communication” was required during the pandemic and other recent events. She also points out the added pressure and increased responsibility borne by HR and people leaders as social and political issues continue to divide the country and tensions spill over into the workplace. Her tips: find support, leverage your professional networks, and share information with your peers. They are likely also engaged in scenario planning and reviewing their employee handbooks to ensure current policies are being followed. Revisit and Reinforce Your Corporate Values Speaking of employee handbooks, now is the time—not the day before the election—to take a good look at your organization’s values and what employee behaviors are and are not tolerated. “You want to support employees,” said Wiener, “but you also need to be prepared for [how you will respond to] conflict.” Once you review your employee handbook, it’s important to figure out how the company will act if one of those values is violated. “Leadership needs to decide if they have zero tolerance or if they will put an employee on probation, and they need to be consistent.” Get Input From the Legal Department But Don’t OvercorrectShould you involve legal? Yes, says Wiener. “It’s important to be prepared and understand what you can and cannot do.” Scenario planning, she says, is critical. Ask yourself: How will either election outcome affect my products and services (supply chain, tariffs)? What are the risks and mitigants (for any immigrant workers)? How will employees be impacted (job productivity, mental health)? How might you handle immigration issues, or a harassment claim? But don’t go down a legal rabbit hole. Alison Taylor, a clinical professor at New York University’s Stern School of Business and author of Higher Ground: How Business Can Do the Right Thing in a Turbulent World, weighs in with a word of caution:“The main thing I’m seeing out there is that corporations are overreacting to advice from their legal teams, and dialing back on DEI and ESG because they fear legal retaliation under a Trump presidency,” said Taylor. “But they seem to have forgotten how angry the public and employees were over issues like climate change and racism under the last Trump presidency.” She continued: “A laser focus on legal risk is not a good idea. There needs to be broad scenario planning, certainly caution over sustainability commitments, but also care and restraint about overreacting to rhetoric from either side.”Jenny Sucov is a journalist and editor who focuses on health and well-being. She has worked for companies and publishers including Hinge Health, EverydayHealth.com, Canyon Ranch, Real Simple, and Prevention.(Feature photo by Adamkaz/iStock by Getty Images)
Is Talent Acquisition Equipped to Go Up Against the Global Labor Shortage?
BY Emily McCrary-Ruiz-Esparza August 19, 2024For all the concern about AI taking over jobs, an equally pressing question has arisen: Who’ll fill the jobs that still call for human workers? A growing, global talent shortage presents a major threat to businesses across all sectors, countries, and continents. Energy companies don’t have enough green-skilled workers, professional services firms can’t find accountants, and manufacturers are struggling to fill roles on the shop floor.Despite the desperate need for workers, talent acquisition teams report being asked to cut costs and do more with less. Human resources may have moved into the C-suite as a strategic contributor, but not everyone in the department has a seat at the decision-making table. According to new research from the Josh Bersin Co., just 32% of talent acquisition leads feel that they’re strategic contributors to the business. Corporate plans change too quickly, they say, if there is a plan at all, and executives treat workforce planning as an afterthought. Right now, Labor Department statistics show overall job growth slowing more than expected, but employers need to take a long-term view. The problem, HR analyst Josh Bersin told From Day One, is that “workforce planning isn’t a very strategic process. It’s a once-a-year budget exercise. And when there’s a bad quarter, the company looks at the workforce and says, ‘Freeze the headcount over here, freeze the headcount over there.’”For some business leaders, hiring and firing are reflexes, not strategies. The cycle is so predictable that a 2023 story in the Harvard Business Review advised employees to assess their job security by checking their company’s quarterly filings. A bad quarter foreshadows layoffs.Companies can no longer afford to run their recruitment departments like e-commerce warehouses, Bersin argues. And unless leaders start taking it seriously, businesses won’t be able to outrun the talent shortage.Updating Antiquated Talent Acquisition ModelsThere are two types of TA departments, said Bersin: Operational and strategic. The former works like a fulfillment center. A requisition is opened, recruiters source candidates, conduct interviews, present options to managers, and complete the hire. “They’re operationally measured and operationally configured. They look at cost-of-hire, they look at channels and sources, they outsource a lot of stuff, and they design around scale,” Bersin said. The strategic TA team works differently. When someone wants to open a req, they ask questions: Who do you want to hire? What skills should they have? How will they contribute to the business? Is there someone internal who can fill the role? Could the responsibilities of this role be automated?HR analyst Josh Bersin (Photo courtesy of Josh Bersin Co.)If a talent acquisition team isn’t strategic, it’s not necessarily their fault, according to Gina Larson, an HR consultant with more than a decade of experience in HR and talent development. “It’s the direction of the business, the remit that they’re given, and the control that they have” that determines how strategic they can be, she said. “Most companies aren’t set up to invest time and energy into developing more diverse and non-traditional hires that would bring the company into the future.”When Bersin’s company surveyed business leaders about their views of TA, 55% of the respondents said they see the function as an integral part of the organization, but it appears they haven’t learned to treat it that way, and they continue to set the wrong expectations. Old habits die hard, it seems.If executives think recruiters are order-takers, then that’s what they’ll be, Larson said. “We all report to someone. Short-term results typically get the rewards. If you’re struggling for a while and you say, ‘Just trust me, we have long-term results coming,’ it’s hard. Everyone has a stakeholder, and I think there is the pressure of short-term results.”Operational teams are a vestige of an outdated philosophy that equates headcount with revenue, one that prioritizes cost-to-hire and time-to-hire above all else, Bersin said. Companies that run operational TA teams are typically ones that put the business–and its workers–at the mercy of market swings. “The financial pressures on companies these days are so quarterly-based,” Bersin said. “I think CEOs and CFOs have to deal with this very short-term mentality in their investor base. A lot of companies over-hire and then lay people off, and then over-hire and lay people off. What I call ‘enduring companies’ don’t think that way. They ignore those signals and think about long-term, sustainable growth.” When Bersin’s company asked TA leaders to identify the biggest barriers to becoming a strategic business partner, 36% said that shifting business priorities is obstacle No. 1.Talent Acquisition and the Future of BusinessIt seems that no industry is safe from the skills shortage. In the energy sector, imperatives to develop next-generation technologies mean companies need workers with green-energy skills, but seven in every eight workers globally have no green skills to speak of, according to research from LinkedIn. In 2023 the World Economic Forum declared the talent shortage “the next energy crisis.”Companies ranging from auto parts retailers to biotech companies blame financial-reporting problems on the lack of accountants, a shortage so severe that industry-regulating bodies are considering cutting certification requirements for the role. Meanwhile, consulting firm Korn Ferry estimates that the media and telecoms industry is on track to “hit a wall” with a shortage of 4.3 million workers by 2030, and manufacturing is forecasted to have 2.1 million empty jobs by then.Korn Ferry projects that, globally, the shortage of skilled workers will result in more than 85 million empty jobs by the end of the decade. Fifty-seven percent of respondents to the Bersin Co. survey said that it’s the skills shortage that will present the biggest challenge to the TA field in the next 12 months. Some companies are thinking strategically, however. Talent intelligence, as it’s situated in HR, is an increasingly influential discipline, Bersin said. That’s typically led by a data-wielding analyst who advises HR on where to look for the best candidates, what cities they live in, and which schools they graduate from, even the companies they work for. Some companies, like Aon, have invested in apprenticeship programs that train unskilled workers into highly skilled ones. PwC is trying to influence college curriculums to create more accountants. Talent acquisition just can’t afford to work on the sidelines, said Kumud Sharma, chief people officer at financial advisory firm Betterment. Her recruiters work cross-functionally, getting to know all parts of the business. Otherwise, how will they show candidates what the company can offer them?Sharma remembers when talent acquisition was its own entity outside of HR–working like a restaurant window. A hiring manager filled out a form requesting one engineer, and recruiting served up one engineer. But that doesn’t work anymore–because we know better, she said. “We’re not thinking of people as widgets anymore. We’re not thinking of people as products. We’re thinking of people as people now.” It’s this change in thinking that has changed the HR profession altogether.“For 30 years or so, we have been saying that people are the assets of the organization. Who’s bringing those assets in? Those assets are coming through talent acquisition,” said Sharma. “How can that not be a strategic function?”Emily McCrary-Ruiz-Esparza is a freelance journalist and From Day One contributing editor who writes about work, the job market, and women’s experiences in the workplace. Her work has appeared in the Economist, the BBC, The Washington Post, Quartz, and Fast Company.(Featured photo by Izusek/iStock by Getty Images)
Supporting Community: How Companies Can Help Sustain ‘Third Places’
BY Erin Behrens August 13, 2024When you’re not at work or at home, where can you be found? For some, it might be a local coffee shop, while others might prefer a nearby library or a public park. Regardless of your answer, the place that you seek out for casual conversation or meaningful community connection is considered your “third place.”With remote and hybrid work structures persisting post-pandemic, and feelings of loneliness becoming increasingly prevalent, the value of community has never been greater. And yet, third places seem to be disappearing. “Despite the fact that most of the country lives near a bar, movie theater, restaurant, or park, the Survey Center on American Life found that 56% of Americans in 2021 said they had a third place they frequent, down from 67% in 2019,” reported Vox.What does this loss signify for individuals, and why is it occurring now, just as community-building is becoming a priority for many leaders and organizations? The challenges are clear, but so are the opportunities for solutions. Fortunately, companies can and do play a significant role in promoting third places.Defining Your Third PlaceThird places, defined by sociologist Ray Oldenburg in his book Celebrating The Third Place, are “public places on neutral ground where people can gather and interact.” In contrast to your home, which is your first place, and your work, which is your second place, third places are informal and accessible public spots to hangout and meet acquaintances, mull through some ideas, or catch up with friends.Kyte's book Finding Your Third Place was published in JuneIn times of loneliness, third places offer refuge and restoration. “People who have a regular third place greatly expand their circle of friends; they laugh more often; they are more engaged in their community; they are happier; they live longer,” according to Richard Kyte, a professor of leadership and ethics at Viterbo University in La Crosse, Wis. At a time when one in three Americans feels lonely every week, having a third place could significantly mitigate negative coping behaviors like distraction-seeking and abusing alcohol, while increasing overall well-being.In his book Finding Your Third Place: Building Happier Communities (and Making Great Friends Along the Way), Kyte expresses the impact of these locations for not only the individual, but also communities at large. “[They] serve as gateways so people new to the area can get to know their neighbors; they function as incubators for new ideas; they serve as safety nets for people in crisis; they build social trust; they decrease political polarization,” Kyte writes. So why are these beneficial spaces becoming harder to find?A Seemingly Sudden Disappearance of Third PlacesIn part, the loss of third places can be attributed to the social-distancing days of Covid and lasting changes to physical spaces. During the pandemic, our ability to be in third places was disrupted, and it hasn’t fully recovered. Businesses closed, neighborhoods changed, furniture was removed. But even before the pandemic, third places were already losing their significance in the face of trends like cocooning. People started to value individualized forms of leisure more, and ultimately became comfortable just staying at home in their free time. This wasn’t always the way.Starbucks’ founder and former CEO, Howard Schultz, built a brand that encouraged people to connect in their shops. At one point, it wasn’t uncommon to see people chatting over a cup of coffee or with their laptops propped to complete work.As the stores blanketed the U.S. and beyond, they became a third place to many. “But over the past decade, comfy chairs have largely disappeared, replaced by hard wooden ones, the better to push people back out to their homes and offices. The company has also turned finding electrical outlets to plug in computers or phones into somewhat of a treasure hunt,” reports the Harvard Business Review. To help restore the vibe that made it popular, the company named a new CEO this week, with founder Schultz declaring: “Senior leaders—including board members—need to spend more time with those who wear the green apron.”Another reason for the loss of third places is tied to the rise in internet use and increase in subcultures of people connecting virtually. “It’s a strange paradox, Gen-Z are hyperconnected in the virtual world but socially disconnected,” wrote Kian Bakhtiari in Forbes. Social media platforms like Instagram, X, and TikTok foster spaces for self-expression, connecting people with similar interests. These online communities, however, risk replacing the in-person gatherings and socializing that could be held in public spaces.“The internet, mobile phones and video games have opened a multiverse of new connections and opportunities. Yet digital interactions have failed to replace the need to connect on an emotional level in the physical world,” according to Bakhtiari. And for many, it’s nearly impossible to disconnect from these virtual spaces, given they facilitate effortless and potentially global connections.Technology, in a broader sense, has also impacted the way we engage in physical spaces. The nature of how we interact within these environments has evolved, and not necessarily for the better. “If you think about the way our physical spaces affect our relations to one another, you will begin to understand … why our leisure activities over the past century have changed from mostly active (playing games together) to mostly passive (being entertained),” writes Kyte. The rise of technology, such as screens and sound systems, has shifted spaces that once encouraged interaction into ones focused on transactions or devoid of engagement altogether.The Business Impact: Actions For LeadersWhile third places exist outside the workplace, how and where we work affects our access to and enjoyment of them. The loss of these spaces can lead to more stressed and isolated workers, and leaders know that a healthy worker is a productive one. But there are a variety of ways that business leaders can promote third places. Among them:Provide Customers With a Third PlaceSome businesses have the opportunity to provide their customers with a third place. Companies can reimagine (or, in Starbucks’ case, revert to past practices) and create these spaces as hubs for connection. Companies can enhance the sense of community in their stores and workplaces by creating experiences that foster meaningful interactions for those who seek them. “This means separating mobile and drive-through orders from the on-premise ones to minimize interactions between the different crowds. It also means reinvesting in comfort and amenities for people who want to hang around,” as reported in Harvard Business Review. What it really requires is thoughtful attention to the spaces where people connect, something that has been top of mind in the era of returning to the office.Similarly, entrepreneur Meng Liu, who sought community amid the hustle of city life, established Wowza Hangout, a social club designed to unite people through shared interests and activities. “A crucial component of these hangouts are their settings: board game cafés, bars, museums, parks. They’re venues that populate a vibrant city like New York, but where attendees might feel awkward approaching someone they don’t know,” Liu told Vox. Liu's club aims to break down some of the barriers of connection, making it easier for people to meet in familiar yet inviting environments.Harness CSR to Cultivate CommunityCompanies can also leverage their corporate social responsibility (CSR) initiatives to create or support spaces that foster connection. In San Francisco, Salesforce funds a public park with lush walking trails and lawns for sitting, an amphitheater, and even on-demand board games. While not every company can fund an entire park, they can promote volunteerism to support local parks and other existing third places. These CSR efforts benefit both the community and employees, boosting wellness and engagement.Encourage Flexible WorkFlexible work schedules can provide employees with the time they need to invest in their communities. Work-life balance isn’t a new concept, but with opportunities for hybrid work, employees can seek out these places even during business hours. JLL’s 2022 Workplace Preferences Barometer found that improved flexibility has increased not only the ability, but the desire to work in cafes, lounges, and co-working spaces.With some employees continuing to work fully remotely after the pandemic, the distinction between home and office has become blurred. Co-working spaces are designed for work but can also serve as a third place, allowing employees to connect and collaborate in a public setting that is both affordable and accessible.“Corporations and organizations, many with newly reduced real estate footprints of their own, are becoming the biggest third place consumers,” according to the co-working platform Liquid Space. “C-suite leaders are striving to use space more efficiently. Providing employees with access to high-quality, flexible third space co-working environments near their homes and their teammates is one way they’re doing it.” The use of co-working spaces not only encourages employees to collaborate, but also to venture out in their neighborhoods. Hybrid work isn’t just about working from the couch anymore. About 36% of employees work in third places at least once a week, an increase of 8% from the previous year, according to JLL’s report.Ultimately, third places offer a sense of fulfillment, so everyone should do their part to help preserve them. These special spaces are “where we turn together, cultivating friendships, broadening and deepening our own lives and the lives of those around us. It is in conversation that we find belonging,” writes Kyte. And in today’s world, belonging matters more than ever.Erin Behrens is an associate editor at From Day One.
Employers, You Need Your Gig Workers. Here's How to Treat Them Better
BY Emily McCrary-Ruiz-Esparza July 17, 2024Corporate America, the gig workers that keep your businesses operating have some feedback. As the popularity of independent work increases, so does business dependence on contractors, freelancers, and gig workers. In a McKinsey survey in 2022, 36% of employed respondents, equivalent to about 58 million workers, identified as independent workers, up from 27% just six years earlier. The recruiting platform MBO Partners estimates the number is closer to 45% as of last year. Independent workers are the people who deliver your lunch, drive you to the airport, build your houses, write your blog posts, design your websites, produce your podcasts, tutor your kids, and market your products to the public. Among the changes to our working lives brought about by the pandemic is the preference–and often the need–for non-standard work arrangements. In fields where employment is precarious, gig work can cover the gaps in a pinch or when the bottom falls out. The popularity of flexible, autonomous, asynchronous, and project-based work remains with us long after Covid has subsided.Many who work as contractors are attracted to the autonomy and flexibility this working style affords; and especially for family caretakers, who are disproportionately female, freelance and contract work allows them to earn an income while meeting caregiving obligations. Plenty are drawn to the work out of necessity, bringing in extra money to fill the gaps or to maintain an income when a full-time job can’t be found.Even so, gig work has been associated with higher rates of anxiety because of its unpredictability and instability, and because gig workers shoulder the burden of benefits typically provided by the employer, like health insurance and paid leave.C. Crockford is a Philadelphia-based freelance writer and editor who has experienced both the promise and peril of gig work over the last decade. When editorial work doesn’t cover expenses, he uses apps like Amazon Flex, TaskRabbit, and Fiverr to pick up moving gigs, cleaning gigs, the odd retail shift, and courier work. It pays quickly, and he can squeeze it into his schedule where it fits. “The upsides of that are it is easy to find work if you’re just hustling, but it does depend on who’s posting and what’s available,” he told From Day One.Another point of stress: Gig workers seldom get employee-benefits support from the apps they use unless they meet a specific number of hours, thresholds that Crockford feels are unrealistic. “They offer benefits, but only if you work a certain amount of hours a month, and they know that you’re not going to make those hours,” he said. The relationship between worker and platform is often mercenary and transactional.Freelancers, contractors, and gig workers are left vulnerable. Not only are they susceptible to the whims of the business cycle, they’re not undergirded by the same rights full-time permanent employees enjoy. Some are paid sub-minimum wages and treated like permanent employees without the requisite benefits and support, a practice known as misclassification. Crockford pointed out that the benefit of quick payment is sometimes undercut by how low the compensation can be. He’s gone out for some jobs that pay just above the local minimum wage.Misclassification is one of the most common abuses: expecting full-time commitment from contingent workers without providing the protections and benefits required by law for full-time employees. It’s estimated that between 10% and 30% of U.S. workers are misclassified as contractors. Misclassification isn’t just ethically dubious, it has legal implications as well, depriving workers of labor rights and fair wages, according to the Economic Policy Institute. Misclassification of employees has invoked a number of lawsuits in recent months. In January, the Department of Labor issued stricter guidance over how workers must be classified, which prompted lawsuits from employers that want more freedom to categorize workers as they choose. In June, 15,000 delivery drivers sued Amazon for misclassifying them as contractors rather than full-time employees. The platform pays workers for three-hour blocks of time, regardless of whether their deliveries take longer. As a result, the suit alleges unpaid wages and overtime. “Companies either willfully or knowingly misclassify their workers as independent contractors to avoid having to pay employee taxes and benefits that can be costly for a company in the long run,” said Rafael Espinal, executive director at the nonprofit advocacy group Freelancers Union. “Companies hire freelancers on a long-term basis and put the same requirements on that freelancer that they put on their traditional employee. When in reality, the relationship between the company and the freelancer should strictly be a business relationship where the freelancer has full control and autonomy of how they’re using their time and how they’re producing the work.”The Effects of Misclassifying Contact WorkersFreelancers, gig workers, and contractors have largely been excluded by the benefits blitz of the last few years. Not only do they not qualify for basics like health insurance, 401(k)s, and paid leave, they also don’t get smaller perks–like transportation subsidies or career development training–nor are they included in many of the changes brought about by employers prioritizing diversity, equity, inclusion, and belonging.Rachel Marcuse, chief operating officer and managing partner at DEI consulting firm ReadySet, believes that contractors and freelancers are the forgotten demographic. This set seldom has access to employee resource groups, learning and development opportunities, and company culture.“Not only are they left out of programming when it comes to DEIB work–being able to attend training and that sort of thing–but they’re also left out of having a voice around their experience,” she told From Day One.But, said Marcuse, the free agents working with your organization represent a wealth of knowledge about your company and how your employer value proposition compares to the competition. These workers are exposed to different workplaces, cultures, and organizational norms and policies. “Contractors are frequently left out of engagement surveys that organizations do on an annual basis, which I think is a really big miss, not only because we want to make sure that all members of the team, regardless of their employment status, are having a good experience, but also because often these workers have particularly unique perspectives given their vantage point,” she said.The experience of working as a freelancer can be completely different than that of a full-time employee at the same company simply because they’re not factored into the employee experience. In 2021, workforce consultancy Mercer argued that employers should start providing contractor benefits. “Gig workers are here to stay, it’s time to give them benefits,” reads one Mercer blog headline. Some organizations are trying to close the gap. Independent workers can buy health, disability, and life insurance plans through Freelancers Union, and Mercer has even developed a platform for non-full-time worker benefits, called Mercer Indigo.How to Be Better to Your Contractors and FreelancersContract workers and their advocates want two things: Respect for their boundaries and on-time payment. Leslie Lejano, a Los Angeles–based freelance PR and communications consultant, asserts that a good client is one that treats her as a collaborator, not an order-taker. “They’re hiring me because they trust me. They value my services. They understand the value that I provide,” she told From Day One. “It’s very much like a partnership. I really value a client that gives me enough to work with, but also trusts that I have a vision.”And be aware of “scope creep,” which is when a client demands tasks outside of the agreed-to scope of work, often incrementally. It’s a violation of the contract, and it’s a harbinger of a relationship with poor boundaries, contractors say. The most common problem that Freelancers Union hears from its members is late payment, or even non-payment. In fact, the union “polled freelancers and found that 76% every year go either unpaid or not paid on time by a client,” according to Espinal.There are bad actors who pay late or simply don’t pay, he said, but there are also well-meaning employers who don’t set themselves up to easily pay contract workers. Many HR payroll systems aren’t orchestrated to pay contractors, who aren’t integrated into full-time employee payroll systems. Therefore they aren’t paid at regular intervals, but in an ad hoc manner, often through a clunky system.What companies may not realize is that any given invoice can jeopardize a freelancer’s ability to pay their rent, eat dinner, or afford their basic living expenses. Though the arrangement with a contractor is typically a business-to-business relationship, “freelancers are not able to absorb tardy payments the way large companies are able to,” Espinal pointed out.Where companies that hire contractors on an ad-hoc basis often fail to pay out on time, Crockford has found that platforms designed specifically for gig work often succeed at super-fast payment. Some apps send fees within a few hours, and many are good at resolving payment hiccups quickly, he said.PR consultant Lejano wants employers to understand that her work, and the work of every other contractor, comprises much more than her clients ever see. “Freelancers juggle so many things beyond the actual work that they’re doing,” she said. “They’re also handling their accounting, their marketing, their client acquisition. There are all these other things that come with being self-employed.”Emily McCrary-Ruiz-Esparza is a freelance journalist and From Day One contributing editor who writes about work, the job market, and women’s experiences in the workplace. Her work has appeared in the Economist, the BBC, The Washington Post, Quartz, Fast Company, and Digiday’s Worklife.[Featured photo by South_agency/iStock by Getty Images)
Are You Asking Too Much of Your Job Candidates? How to Get ‘Test Projects’ Right
BY Emily McCrary-Ruiz-Esparza June 17, 2024Current dispatches from the job market describe an exhausting scene. On one side are overloaded recruiters, shuffling thousands of applications for a single role with limited resources and little time. On the other side are weary applicants feeling defeated and devalued by impersonal, drawn-out interview cycles and unresponsive employers.One particular point of tension is the candidate test project. To evaluate applicants’ skills and narrow the talent pool, employers are now frequently asking job candidates to complete test projects or evaluations in the form of strategy proposals, presentations, blog posts, research projects, and video-editing tests, to name a few. But job seekers are getting burned out, sinking hours into unpaid projects with seemingly little relevance to the role, only to be ignored or rejected by an automated email.It's rough out there, especially for well-paid office workers seeking a new job. “Welcome to the white-collar recession,” declared Business Insider. Reports Wall Street Journal columnist Callum Borchers: “I hear from a lot of white-collar workers on the job hunt who say it’s much harder to get hired than the unemployment numbers make it sound.” Said Bloomberg: “Take-home assignments during the interview process are on the rise, irking candidates.”While employers may have the advantage at the moment, they should avoid overplaying their hand, since their reputations are at stake. Job seekers who spoke to From Day One describe growing cynical and suspicious of companies that request burdensome projects, and especially of those that don’t compensate candidates for their time. Yet it may be the delivery and design of these projects, not their intention, that is souring relations between candidates and companies.How Test Projects Go WrongBeth Miller (not her real name)* has built a 20-year career as a writing instructor and communications practitioner in higher education and nonprofits, and for the last year, following a layoff, she has been on the job hunt.After submitting an application for a job in a university’s development office, Miller received an automated email inviting her to complete a performance task: an asynchronous video interview that was expected to take 30 minutes. Uncomfortable on camera yet eager to do it well, Miller sunk four hours into the project.A week later, at about 9 p.m. on the Thursday before Memorial Day weekend, Miller received an email with another request: a full grant proposal to be completed over the holiday, due Monday, she told From Day One. When Miller replied with questions, her emails quickly bounced back with out-of-office messages.“The most difficult thing is that the emails were not coming from a person,” she said. They were addressed to ‘dear applicant,’ and signed, ‘the hiring team,’” she said. Unable to get a new due date for the assignment, Miller gave up her weekend to the project.Miller’s story is like that of many job seekers right now. Unwieldy evaluations are popping up across industries and job types, and in a labor market where the competition is often among the applicants, rather than the employers, candidates are getting burnt out by the requests, sometimes completing several projects before they even speak to a recruiter.“These are, by no means, simple and easy,” said Liane Paonessa, who was applying for director-level roles in corporate PR earlier this year. “They’re complex, detailed, and basically provide the company with a free strategic plan and content from every candidate.”Further, they seem to be redundant. Some employers require a portfolio of prior work samples in addition to test projects. “In most cases, I [got] no feedback whatsoever on the projects, other than a ‘Thank you for your excellent work,’ before ghosting me and later sending me the standard form rejection email,” said Paonessa.Many job applicants who spoke to From Day One believe that employers use unpaid test projects to get free work from desperate applicants. Job seekers describe being asked to draft 12-month strategy plans, make hour-long presentations, pitch detailed article ideas, write website content, produce fresh code, and even provide names of other people who might be good additions to the company.As exhausted applicants churn through these often unacknowledged projects, it reinforces their cynical beliefs about employers’ attitudes towards job seekers. “It’s so dehumanizing to constantly be putting yourself at the feet of an organization and trying to tell them why you’re worth hiring,” Miller said.How Test Projects Go RightJob seekers don’t object to test projects in principle–workers know they have to demonstrate their skills to land a role, and many are glad to show off what they can do–but they do want a better experience: one with boundaries, respect, and communication.When recounting good experiences with test projects, job seekers describe assignments with clear, limited scopes that teach them something about the role responsibilities, an ability to get feedback on their work, and some kind of compensation.Last spring, Tori Zhou, a content-marketing professional in New York City, was in the running for a content-writing role at a tech company when she was asked to complete an assessment that changed the way she thinks of test projects. Not only were the instructions crystal-clear, the project came with a disclaimer, assuring applicants their work wouldn’t be used beyond the hiring process. “I thought it was so considerate that they said that,” Zhou explained. “I also believed it because of the structure of the test.”The assignment included copy-editing a few pieces of content and writing a new introductory paragraph for an existing blog post. But don’t worry, we’re not going to update it, the request read. And even though she didn’t get the job, the company offered constructive feedback on her work.“This is such a positive memory for me. I feel like it’s the best test I’ve ever done,” Zhou said. “I still look at their job careers page, even today, because I’m like, ‘Wow, that just left such a positive impression on me. I would just happily apply with them again.’”Candidates also want to learn something from the evaluation process. Olivia Ramirez, a job seeker who interviewed for a role at a financial services company, said test assignments have helped her decide whether she wants to pursue the role. When the hiring manager assigned a lengthy and technical writing project, “it definitely made me question whether I was the right fit for the company,” she said. “I wasn’t having the most enjoyable time writing about this topic. It’s a good way to understand what the actual day-to-day grittiness of the work is like.” And even though the assignment was a tough one, Ramirez said she liked having the chance to show the work she’s capable of doing.Zhou once completed a test project that was much more technical than she imagined the job to be. “That helped me think about, ‘OK, is this job really right for me?’” she said.How to Improve Interview Test ProjectsFrank Hauben is the global VP of product management at technical-interview platform CoderPad. He believes that sound candidate assessments have three characteristics.First, evaluations should be time-bound. “By time-bound, I don’t mean 40 hours,” he said. “On the order of 30 minutes to two hours is what we find to be a reasonable sweet spot.” Not only do boundaries limit the scope and complexity of the assignment, it helps make the interview process more equitable. As a parent of two young girls, Hauben said there’s no way he has 40 hours to spend on a project, and couldn’t compete with someone who does.Time boundaries are different from time estimates, and both matter. Employers should assume that applicants will exceed the time estimates attached to these assignments. When applicants need the job, they’ll sink their teeth in. One company told Tori Zhou not to spend more than two hours on the project. A self-described perfectionist, Zhou invested four, and estimates she has spent seven hours on another assessment. Ramirez describes spending upwards of 12 hours on a single take-home project.Next, instructions should be clear, said Hauben, and applicants should be given the opportunity to ask questions and receive responses about the evaluation.And finally, evaluations should give candidates the clearest possible picture of what the job is, said Hauben. But they don’t need to represent the entirety of the job. “What would you be walking somebody through on their first day or week? You want to give somebody something that is obviously realistic and relevant, not something out of a textbook or the most complex problem.”Consider, for example, asking candidates to come up with a solution to a problem you’ve already solved. “You know what the answer is, or what one answer could be,” Hauben said. And when you acknowledge that the problem has already been resolved, applicants don’t have to wonder if their work will be used after they’re ejected from the interview process.Compensating Applicants for Their TimeEvery job seeker who spoke to From Day One said that they want to be compensated for the time they spend on test projects. When they’re sinking multiple hours or days on an assignment, one that could ostensibly be exploited by the employer, they said, payment only feels fair. Many employers don't agree, which has created its own social-media debate. Applicants seldom have the luxury of turning down a test project when they really need the job, Miller said. “When you’re seeking employment, you’re really not at liberty to pass anything off. I know that companies take your work and use it. I know that they do that. To not be compensated for it is just validation that your concerns were right.”Miller, who’s still in the running for the job in college development, said that the hiring team asked about her experience with the test project, but as long as she’s a candidate, she feels that she can’t be completely candid.Ramirez, who was once compensated for a tough test assignment, said she thinks twice about companies that require unpaid test projects as part of the interview process because, ultimately, the candidate experience reflects the employee experience.“It would make me think about what their culture is like and what they’ve been implementing to be at the forefront of companies today, in terms of equity in the organization and advocating for their employees and potential employees,” she said. “If it’s paid, then I think that’s a great signal that the company is considering best practices and trying to stand up with the best of the best in the space.”Emily McCrary-Ruiz-Esparza is a freelance journalist and From Day One contributing editor who writes about work, the job market, and women’s experiences in the workplace. Her work has appeared in the Economist, the BBC, The Washington Post, Quartz, Fast Company, and Digiday’s Worklife.(Featured photo by Amenic181/iStock by Getty Images)*Editor’s note: Because she is still interviewing with the organization described here, Beth Miller asked that she not be identified by her real name.
ADHD in the Workplace: What You Should Know–and What Can Help
BY Lesley Alderman, LCSW May 15, 2024Pete came to our weekly psychotherapy session frustrated with work. He had just returned to his office, post pandemic, and found the new, open plan noisy and overwhelming. Pete, which is not his real name, has attention-deficit/hyperactivity disorder (ADHD) and is easily distractible and sensitive to noise. He had trouble concentrating, was irritated by the constant chatter of colleagues, and, as a result, was feeling less productive.“Could you talk to your manager about getting some accommodations?” I asked.“No way!” he said. “That would be a career killer.”Pete’s wariness is not uncommon. A few of my psychotherapy patients with ADHD have confided in their managers, but most feel it’s unwise to do so. They fear they will be stigmatized and sidelined.Edward Hallowell, M.D., agrees with their concern. The founder of the Hallowell ADHD Centers and one of the leading authorities on the disorder, explained to From Day One: “We’re not there yet. Most corporate professionals think of ADHD as some kind of mental illness.”Given that ADHD is not well-understood in the workplace, how can employees speak up about their needs in a way that feels safe? And how can managers and HR leaders better understand how to respond to those needs–whether employees want to name their ADHD, or not? A well-accommodated employee is, after all, a happier and more productive one. “It’s in everyone’s best interest to remove obstacles to someone’s performance,” said Hallowell. Here’s what experts recommend:Know What It IsADHD is a neuro-developmental disorder characterized by symptoms of restlessness, impulsivity and difficulty sustaining attention to boring tasks. It tends to run in families and is often inherited from a parent. There are three types: inattentive (dreamy and distractible), hyperactive-impulsive (restless and talkative), and a combination of the two. Most adults with ADHD have the inattentive type. Though it was long considered to be a childhood disorder affecting mostly boys, research has shown that it persists into adulthood—about 30% to 70% of children with ADHD continue to have symptoms later in life.Ned Hallowell, M.D., a pre-eminent expert on ADHD (Photo courtesy of the Hallowell ADHD Centers)An undiagnosed adult may think of themselves as spacey, messy, or undisciplined—and they often suffer from low self-esteem. A recent study found that only 10% to 25% of adults with ADHD receive an accurate diagnosis and adequate treatment. “They are often inaccurately diagnosed with anxiety or depression, which are really just the fallout of untreated ADHD,” said Ari Tuckman, a psychologist in West Chester, Penn., who specializes in the treatment of ADHD. As Hallowell puts it: “It’s like driving on square wheels.” In dealing with tasks, you will make progress, but it may take longer.And That the Diagnosis Is On the RiseWhile children are still the most likely group to be identified with the disorder, the number of adult diagnoses has been rising for decades. The pandemic accelerated the trend: the overall incidence in adults (30 to 49 years old) nearly doubled from 2020 to 2022, fueled mainly by an increase in diagnoses among women, according to Epic Research, a medical-record software company. While it’s not clear exactly why women are being diagnosed more often, experts theorize that it may be due to increasing smartphone and technology use, which can amplify distractibility and stress, as well as a greater awareness that ADHD can be also be a women’s issue. As more adults are diagnosed, they—like Pete—often face workplaces that are not ADHD-literate.How It Affects Work Performance–But Not Always in a Bad WayPeople with the disorder may have difficulty with organization, time management and procrastination—all of which can make it hard to meet deadlines and work within teams. They find tedious tasks, such as scheduling and filling out expense reports, unusually challenging and have a different sense of time than others. “People with ADHD have more difficulty seeing time and feeling the future,” notes Tuckman,More than half (56%) of adults with ADHD said they believe the disorder “strongly impacts their ability to succeed at work,” according to a 2008 survey by McNeil Pediatrics. A more recent survey by Akili, a therapeutic-technology company, interviewed 500 adults with ADHD and found that employees with ADHD felt the disorder had a negative impact on their career. And yet, people with ADHD often display qualities that work in their favor, notes Hallowell, who himself has ADHD. He sees the condition as a trait, not a disorder, that has positive benefits like creativity, humor, and spontaneity. “There’s more to it than most people realize,” he said. “ADHD is terrible term. We have an abundance of attention. Our challenge is where to put our focus.” People with ADHD can spend hours on topics that interest them and see details that others might miss, a trait sometimes called hyperfocus. Many successful people have talked openly about their ADHD, including Michael Phelps, Simone Biles, James Carville, astronaut Scott Kelly and JetBlue founder David Neeleman.How to Get DiagnosedIf you persistently miss deadlines, are chronically late, and feel like staying organized is a big effort, first ask a trusted friend or colleague if they find you more scattered than others. Then, make an appointment to see a psychologist or psychiatrist who specializes in treating the condition. There is no one standardized test—instead a professional will take a thorough history and may ask family members and friends to complete questionnaires about your behavior. You may be asked questions like, How often do you misplace items, feel bored and restless, or lose track of what needs to be done? If you meet the criteria, your doctor may talk to you about medication, therapy or coaching and, if needed, provide a diagnosis so you can receive accommodations at school or at work.Understand What HelpsMost people diagnosed with ADHD rely on medication to control their symptoms. Typical medications include stimulants such as Ritalin and Adderall, which increase the levels of the neurotransmitters dopamine and norepinephrine in the brain. There are also non-stimulant drugs such as Strattera. Stimulant medications that treat ADHD are the “most effective of medications in psychiatry,” said Tuckman, and help tame distractibility and impulsivity. About two thirds of people with ADHD diagnoses are prescribed stimulant medications, and that percentage has remained fairly consistent since 2013, according to Epic Research. Some people can help manage their symptoms by exercising regularly, getting proper sleep, and implementing strict organization and reminder systems. Or they hire very competent assistants.Once you are diagnosed and have figured out the best treatment, it’s like “getting fitted for the right eyeglasses,” said Dr. Hallowell. “Things come into sharper focus.”How to Make the Workplace More ADHD-FriendlySmall modifications can go a long way to helping people with ADHD perform better on the job. Tuckman suggests considering adjustments in the three domains described below. As an employee, you can make tweaks on your own or ask your manager for help. As for managers, if you have a worker who is struggling with organization and meeting deadlines, you could take the lead at putting these practices into place.Make distractions softer. Quiet spaces, headphones, and working on off-hours (say, early or late), can help mitigate the clatter of a bustling office. Often working from home is a good solution.Make important information stand out from the chatter. Putting assignments in writing, recording meetings, and highlighting deadlines can help workers whose focus is not great to stay on task.Bring the future closer to the present. Those who struggle with adhering to deadlines will benefit when big projects are broken into smaller chunks, and check-ins are on the calendar with frequent reminders of when tasks are due.So, Should You Tell Your Boss?If you have ADHD, you may be covered under the Americans with Disability Act (ADA). However, you might not want to play that card unless you absolutely must, says Belynda Gauthier, a retired HR director and past president of Children and Adults with ADHD (CHADD). “The first time I did a presentation on ADHD in the workplace, I launched into detail about how the employee should approach his supervisor or manager and suggested that he might want to go directly to HR first. An audience participant interrupted to tell me that her HR office actually is the problem for her. Oops! I took this to heart, did some serious thinking, and revamped my presentation. I no longer recommend revealing one’s diagnosis until and unless it’s necessary.” Indeed, 92% of surveyed adults with ADHD believe that their colleagues hold misconceptions, the most common of which is “people with ADHD just need to try harder.” A better strategy might be to simply approach your manager with a positive attitude and a few solutions. “Be sure to tell them what you are good at,” advised Hallowell.Gauthier suggests something like: “I am really enjoying processing these widgets, and I think I’m doing a good job. I believe I could do an even better job if I could move to that cubicle that’s farther from the copy machine. So many co-workers use it all day and everyone stops to say hello.” Avoid the use of the word “but” to qualify your suggestions and don’t be whiney, she says. Accommodations can help, but sometimes the best solution is finding the right job in the right environment with the right supports. “When I finally figured out I had it, it was a relief,” David Neeleman said in a recent interview with Forbes. “I was just really careful to surround myself with people that could complement my ADHD. I have people around me that help implement a lot of the ideas I have.” When you can turn your intense focus on something that truly fascinates you, ADHD can be a bonus rather a deficit.Lesley Alderman, LCSW, is a psychotherapist and journalist based in Brooklyn, NY. In her therapy practice, she works with individuals and couples. She writes about mental health topics for the Washington Post and has been an editor at Money and Real Simple magazines and a health columnist for the New York Times.(Featured photo by Valentin Russanov/iStock by Getty Images)
Workers Want Weight-Loss Drugs, But How Can Employers Pay the Bills?
BY Abigail Abrams April 15, 2024When consumers see splashy TV commercials for weight-loss drugs, they often find the the pitch irresistible. But for HR and benefits executives, they may trigger an uneasy feeling. That's because the revolutionary weight-loss drugs like Wegovy bring with them both magic and mystery–the magic is how well they can work; the mystery is how to pay for them.GLP-1, or glucagon-like peptide-1, drugs have historically been used to treat diabetes. But the development of stronger drugs like Novo Nordisk’s Ozempic in recent years, and now the approval of Wegovy and Eli Lilly’s Zepbound specifically for weight management, has led to a sharp increase in demand. That’s particularly true as more research emerges showing the drugs may also reduce the risk of cardiovascular disease, stroke, and potentially bring other long-term health benefits. Yet the medications can cost as much as $1,000 to $1,500 per month–a price that few Americans can afford unless they have generous health-insurance coverage.And unlike expensive drugs for rare conditions, the potential number of patients for GLP-1s is vast. More than 40% of Americans have obesity, according to the Centers for Disease Control and Prevention, and that is expected to reach 50% by 2030.Many doctors are thrilled about the potential for GLP-1s to change how obesity is treated, but that puts employers–where nearly half of Americans get their health insurance–in a tricky position. Here’s what employers need to know as they consider coverage for these drugs in the quickly changing landscape:High Costs, Low CoverageWhile employer health plans widely cover GLP-1s for the purpose of treating diabetes, coverage for weight-loss purposes is much more spotty right now. A survey last fall by the International Foundation of Employee Benefit Plans found that 27% of 205 employers covered GLP-1s for weight loss and another 13% did not yet cover them but were considering adding coverage. Meanwhile, Willis Towers Watson (WTW), a global insurance benefits-consulting company that serves many large employers, found about 38% of employers it surveyed cover the weight-loss drugs. Those that do cover them are seeing significant cost increases. The retail price for Wegovy comes out to $15,000 to $16,000 per year, and after rebates and discounts from manufacturers, health plans still pay about $9,000 per year, says Cody Midlam, a director at WTW’s pharmacy practice. The cost per member per month for GLP-1s has doubled each of the last three years, according to WTW’s analysis, amounting to an extra $11 per member per month last year, or about 9% of all pharmacy costs.Companies are aware of the research showing the drugs’ effectiveness at tackling obesity. Yet while doctors say that helping people lose weight could lead to less cardiovascular disease, fewer mental health issues, and savings from avoiding knee replacements or other surgeries related to obesity, long-term data on clinical outcomes remains limited. With high employee turnover in many industries, it’s tough for these employers to factor in potential future savings in healthcare costs over the life of the employee.“Those outcomes take a very long time to manifest,” says Midlam. “It’s not something that’s easily measurable on a short timescale when plan decisions are being made.” Andrew Witty, CEO of UnitedHealth Group, the largest U.S. insurer, said his corporate clients see the benefits, but first have to deal with the short-term costs. “We’re very positive about the potential for another tool in the toolbox to help folks manage their weight. We recognize that has potential benefits,” Witty said in the third-quarter earnings call last year. “But we’re struggling.”Employers Meet the DemandDespite the high costs and headlines about some insurance plans scrapping GLP-1 coverage, plenty of employers see the upside to covering the new obesity medications. Ninety-nine percent of companies already covering GLP-1s said they planned to continue doing so next year, according to a fall survey from Accolade, a healthcare navigation and advocacy company. Employers reported that after they added GLP-1 coverage, they saw higher employee satisfaction, increased engagement in other well-being programs, and improvements in other or comorbid health conditions. Midlam of WTW says his firm’s corporate clients want to “avoid member disruption” wherever possible.Doctors agree that should be a priority. Dan Azagury, M.D., medical director for the Stanford Lifestyle and Weight Management Center, says GLP-1s have been a “game changer” for many of his patients. “If you stop it overnight, whether it’s insurance, or financial, or shortages, the rebound is ferocious,” he said. “So it’s really very frustrating that they encounter that situation.” Some companies have expressed concerns about the idea of paying for a drug that employees essentially have to take forever to maintain its benefits. But while side effects, including vomiting and gastrointestinal issues, can be unpleasant for some people, doctors like Azagury say they know how to help patients manage them, and that they are seeing more patients have a positive response to GLP-1s than to previous generations of weight loss medications. Holistic Care, Not Just PrescriptionsEven when employers decide they want to help their employees lose weight, there are still lots of details to consider. As companies approach designing their insurance plans for 2025 and beyond, they are trying to figure out how many employees are likely to use GLP-1 drugs if coverage is offered, whether there should be limits on who can get the drugs, and what kind of requirements they should use to prove the drugs are medically necessary. Most companies that cover GLP-1s use some cost-control strategies, according to the International Foundation of Employee Benefit Plans survey. Many use prior authorization, step therapy during which patients must try lower-cost drugs first, or specific eligibility requirements.Typically, eligibility requirements have been tied to the standards on the FDA labels for these medications. But some employers are considering restrictions such as only covering the drugs for people with obesity but not those who are overweight, says Tracy Spencer, a pharmacy practice leader for benefits consultant Aon. If they add those limits, she warns that employers should be aware that could change or jeopardize the rebates they get from the drug manufacturers, so they need to predict whether the savings they get from limiting the drugs’ use will offset the loss of the rebates.Benefits consultants like Aon and WTW are also seeing employers shift the way they look at GLP-1 drugs to view them as one piece in a broader strategy to address cardio-metabolic issues.That might mean employers choose to cover the drugs for targeted indications, such as covering Wegovy not for weight loss on its own, but for people with increased risk of cardiovascular disease, which Medicare recently announced it would do. It can also mean pairing GLP-1 coverage with required lifestyle modifications or participation in a virtual weight-loss or coaching program. Employers often have access to virtual health programs through their pharmacy benefit managers, and many have tried these to target diabetes in recent years. The biopharmaceutical company Moderna, which offers coverage of GLP-1s for diabetes and weight management, is one company that has tried this strategy. “In 2023 we saw a spike related to weight-loss management: We looked at claims data, and after mental health, obesity and weight management were the second drivers,” Jeffrey Stohlberg, Moderna’s director of corporate benefits, said at a From Day One conference earlier this year. So the company started using the virtual weight-loss management program Wondr Health, where an employee can work with a physician specializing in weight loss. “It’s not a path to GLP-1s, but [the physicians] can provide medication for that person,” Stohlberg said. Labcorp also announced in February that it would provide U.S. employees on GLP-1s with virtual care and medication management through WeightWatchers for Business. Other companies such as Omada Health and telehealth providers like Teladoc and Ro have launched similar offerings over the last year. Medical providers agree that a holistic approach is needed, but Angela Fitch, M.D., president of the Obesity Medicine Association and co-founder and chief medical officer of the obesity-focused primary care startup knownwell, worries that requiring a standard weight-management program for every person is another barrier and potentially a waste of money if the program doesn’t have solid evidence behind it.“You can offer lifestyle [strategies] in addition to medication,” she said, “but it should be driven by that shared decision making discussion with the clinician.” If insurers want to make sure patients are getting holistic care, she would rather have them require patients to get their prescriptions from a qualified physician who does a true evaluation so that solutions can be personalized. In her role with the Obesity Medicine Association, Fitch often advises employers on their health plan designs, so she understands that costs are a major concern for companies. But in her primary-care practice and others like it, she says her staff are “burning out” as they spend hours each day trying to navigate all the new and often strict and confusing insurance requirements for these medications. “We have got to deal with costs,” Fitch said. “But it should be transparent and flexible.” She worries that overly rigid restrictions are “adding to the bias and stigma of obesity” by signaling to patients that their weight is their responsibility to treat on their own. Her major advice is to view obesity with the nuance that people view other chronic conditions. “You do not need a GLP-1 management solution. You need a comprehensive obesity-care solution.”Abigail Abrams is a health writer and editor. Currently she is the senior manager of content operations for Atria. Previously, she was a staff writer on health and politics for TIME magazine. Her freelance work has appeared in the Washington Post, the Guardian, and other publications.
What Transparency Can Expose: an Obvious Need for Organizational Change
BY Emily McCrary-Ruiz-Esparza March 24, 2024In the realm of corporate values, few terms have been more universally embraced in recent years than the notion of transparency. Among its many applications, organizations have deployed it to contend with sticky social matters and public scrutiny of corporate ethics. At the World Economic Forum’s annual conference in Davos this year, speakers repeated the term like a mantra, reflecting a movement that has been building for a while. Fast Company reported that at the summit in 2021, more than 60 businesses announced a “commitment to transparency” about their effects on society and the environment. In response to pressure from stakeholders on all sides, executives from TikTok, Glassdoor, Google, YouTube, Zoom, Boeing, Twitter, and the White House have all made public commitments to transparency in recent years.Yet lately it has been dawning on leaders that this magic, window-cleaning solution can make things worse, especially if what has been exposed seems to be hypocritical, poorly thought-out, or further obfuscation rather than moral clarity. The most notorious recent example came last December, when the presidents of Harvard, MIT, and the University of Pennsylvania gave hedged, lawyerly responses when asked in a congressional hearing whether calls for the genocide of Jewish people would violate their school’s conduct rules. Their answers frustrated stakeholders on many sides of the issue.Seeing the havoc that failed transparency can wreak, Harvard is second-guessing the value of transparency, and is considering keeping mum on divisive matters altogether. The Harvard Crimson reported in February that the school’s interim president is expected to announce that the school is considering a policy of “institutional neutrality,” in which it will make no statements on politicized matters. Leaders at other universities are in favor, it appears. During a recent panel discussion on the matter, Yale Law School professor Robert C. Post remarked that “when we speak outside of our lane, we invite reprisals, we invite regulations, which we cannot defend in terms of our mission,” he said. “There may be reasons to do it. But they have to be pretty good reasons because we’re vulnerable, we're especially vulnerable right now.” The public is not ready to retire the notion of transparency, however, so organizations need to take a more considered approach to it and the policies that it exposes. “Corporate values aren’t optional, and they’re more controversial and contested than ever,” writes Alison Taylor in her new book Higher Ground: How Business Can Do the Right Thing in a Turbulent World. “[Yet] aiming to base your values on commitments on the full range of stakeholder pressures and demands is a recipe for incoherence and fragmentation.”This has become the principal dilemma for leaders who want to run an ethical business, argues Taylor, a clinical associate professor at the NYU Stern School of Business. “It shows up in HR teams doing employee engagement surveys and trying to make themselves look good. It shows up in these glossy sustainability reports about all the wonderful things [the company] is doing,” Taylor told From Day One. “The thing that has changed is that those defenses don’t work anymore.”The Age of Clarity and CandorThe theory is that if you bare it all, the company will be rewarded for its candor. “If a single concept drives today’s businesses, regulators, journalists, and NGO activists, it’s that transparency is the route to accountability,” Taylor writes in her book. Yet all this new data-dumping, press-releasing, and report-publishing hasn’t necessarily reconciled what companies say vs. what they do, though trust in business has generally grown over the years, especially when compared with trust in government. Yet company after company, ranging from Boeing to Wells Fargo, have taken a shellacking for saying that they’ve fixed problems when they haven’t actually changed the culture or system that caused harm in the first place.In fact, disclosure is easily weaponized, Taylor argues. The companies that release details of their ethical transgressions or corporate misconduct can put the target on their own backs. In her book, Taylor tells of the story of a clothing company, operating in an industry known for its negative environmental effects and human-rights violations, that published a list of its suppliers in the spirit of transparency. They were among the first picked off as the target of a class-action lawsuit alleging forced labor. “The retailer making a good faith effort to be responsible and accountable was first in line for denunciation and punishment,” Taylor writes.Contending with a Public Wary of Good IntentionsAs companies see that their attempt at transparency can get them in trouble, many flatten their reporting into glossy packets and palatable stories. Some disclosures are required by law, yet by and large, these reports are voluntary. To steel themselves against criticism, especially involved tricky issues, many organizations appoint leaders charged with improving company culture and creating a more equitable workplace: chief culture officers, heads of compliance and integrity, and leaders of diversity, equity, and inclusion (DEI). To be sure, many who sit in these offices are formidable forces. Figures like Yelp’s chief diversity officer, Miriam Warren, and Bumble’s founder Whitney Wolfe Herd set high bars for the influence executives can have on equity and integrity inside and outside an organization.But some of the leaders installed in these roles are faced with the uncomfortable truth that their position is corporate PR. Taylor sees this often: People take jobs and think of themselves as organizational change agents, only to find that senior leaders think of them as defense mechanisms to protect corporate reputation and, in the case of compliance teams, to deflect regulators.For instance, the chief diversity officer is typically charged with making the business more demographically diverse and equitable for people across every department at every level of the business, yet many of them work with very limited resources. It's no wonder that turnover for the job is high.From Token Hire to Meaningful InfluenceOnce a company decides that it won’t favor transparency more than change, good things start to happen. This is when those leaders originally appointed as tokens can use their positions. If Taylor were to find herself in a role and learn that her presence was manipulative PR, she said, “I would make an argument about transparency needing to adapt the organization to a new generation. You can’t control the narrative, so hiring a load of people to do window dressing has become a waste of money. We can’t rely on confidentiality agreements, and we can’t rely on telling a good story.”Companies have to assume that young workers in particular are ready to undercut nice, neat stories and pounce on corporate misdirection, she says. Where a glossy report no longer suffices, those once-impotent appointees can play a valuable role, holding the company accountable from the inside before an angry public holds them accountable in the open air.Now that the public is suspicious of public declarations of corporate goodness, “no one believes it. There’s a total ‘gotcha’ mindset. Everyone rolls their eyes, and now there’s all this greenwashing and woke-washing litigation,” Taylor said. “It’s a pointless investment. You need to stop treating these as messaging challenges and treat them as organizational strategy challenges.”‘A Less Varnished Assessment of Activities’Taylor’s Higher Ground is loaded with case studies, action outlines, and advice. Not only for avoiding corporate blunders, but also correcting the bad habits and outright crookedness that cause them. Be a “first mover,” setting the example for peers, she writes. Companies often wait until a public scandal to start talking, but this tends to create chaos. She cites the example of Google releasing its transparency report on how it works with law enforcement in 2010. “This was not the result of a specific scandal but an effort to correct widespread misunderstanding.” Its success was due in part to the company being clear about what it can and cannot influence.Sure, there will be companies that invite scrutiny with their reporting, but that’s why Taylor warns against bending too deeply to public opinion and impatience that lures firms into dangerous waters. Don’t succumb to the pressures of social media, which turn companies into reaction engines, she advises. Wait long enough, and sensationalized social-media storms pass. Similarly, transparency often generates “impatient calls for an issue to be addressed instantly,” when real change takes time.Finally, forget about having 100% control over the stories told about your company and control over the behavior of your employees, which some companies increasingly see as liabilities, as evidenced by the new popularity of surveillance tools.Taylor believes that many corporate leaders sincerely want to avoid superficial reporting and put-on commitments to transparency. In five years of speaking to investors about sustainability reports, Taylor writes, “they told me again and again how much they–and their companies–would benefit from a less-varnished assessment of activities.”Emily McCrary-Ruiz-Esparza is a freelance journalist and From Day One contributing editor who writes about work, the job market, and women’s experiences in the workplace. Her work has appeared in the BBC, the Washington Post, Quartz, and Fast Company.(Featured illustration by Fermate/iStock by Getty Images)
Apprenticeships: a Classic Solution to the Modern Problem of Worker Shortages
BY Emily McCrary-Ruiz-Esparza February 14, 2024The U.S. labor market has become like a crazy quilt: mass layoffs in certain industries, along with dire shortages of workers in businesses ranging from accounting to trucking. To close the critical gaps, industries are turning to modern versions of an age-old institution: the apprenticeship. “Apprenticeships are the most promising solution to addressing the current labor shortage. Why? Because apprenticeships are jobs first and foremost–jobs that pay a living wage–not just training programs,” Ryan Craig, author of Apprentice Nation: How the Earn and Learn Alternative to Higher Education Will Create a Stronger and Fairer America, told From Day One. “They’re accessible to anyone with the potential and willingness to work hard–and much more accessible than tuition-based, debt-based college, or other training programs.”Causes of the labor shortage are many: A workforce quickly aging into retirement, the slowing of population growth, the burdensome cost of post-secondary education, lack of access to affordable childcare, and an increase in entrepreneurship. All of these have contributed to a shrinking workforce. As of January, the U.S. labor force participation rate is 62.5%. A couple decades ago, at the beginning of 2001, it was 67.2%.Employers are attacking the problem on many fronts. Some are pulling out the stops to retain older workers who might otherwise retire, and some are coaxing the semi-retired back to the office with flexible new arrangements. Others are dropping four-year degree requirements to broaden their talent pools, or bulking up benefits packages to include childcare, paid leave, and fertility benefits to attract and retain workers. Apprenticeships have joined that medley of solutions, with employers, advocacy organizations, and policymakers exploring and investing in the “earn-and-learn” model to fill talent pipelines from hospitality to healthcare to finance. Apprenticeships Beyond Blue CollarsApprenticeships represent a mutually beneficial way of hiring and training workers. Apprentices get on-the-job training, related instruction (often in a classroom or virtual classroom), and a paycheck all at the same time. Employers get the workers they need, trained to their specifications. In the U.S., apprenticeships are most often associated with skilled trades–it’s normal for plumbers, electricians, construction workers to complete apprenticeships–yet white-collar professions are only beginning to forge a connection with earn-and-learn programs. In 2020, professional services firm Aon announced that it would invest $30 million in its apprenticeship program over the next five years, with a goal of creating 10,000 apprenticeships in the U.S. within Aon and its partner organizations by 2030. In 2022, IBM committed to putting $250 million toward apprenticeships and other “new collar” programs by 2025.Aon’s program includes three tracks: insurance, HR, and IT. Apprentices take courses in insurance and business administration at partner colleges. Francheska Feliciano, the director of Aon’s apprenticeship program, told From Day One that career changers have found a home there. “We have found that those that thrive in our program tend to be career changers, but our program has a wide range of candidates with varied backgrounds, customer service, hospitality, or other service type roles.”Last year, the Biden Administration announced that it will invest $330 million to expand federally registered apprenticeships programs. In July, the Department of Labor awarded $17 million to expand existing apprenticeships and promote the model in new industries. In November, Maryland Governor Wes Moore committed $3 million to developing apprenticeships for public-sector jobs and $1.6 million toward the development of hospitality industry apprenticeships. “Maryland has set ambitious goals for expanding apprenticeship and we mean to meet them,” said Portia Wu, Maryland's Department of Labor secretary, in a press release. “Registered apprenticeship is key to our state’s economic success. We’ve already hit historic highs in apprenticeship adoption and today’s investments will accelerate our progress.”Alleviating the Local Labor ShortageApprenticeships could help solve local labor shortages for companies whose workers must be on-site–crucial for skilled trades like manufacturing or nursing–which are experiencing a pipeline problem of their own. Rather than recruiting the skilled talent from elsewhere, employers can use apprenticeships to develop the talent in their community. As housing inventory trails demand, employers who can tap their local talent markets will have the advantage, said Renee Haltom, the VP of research communications at the Federal Reserve Bank of Richmond, during a panel discussion last month at the Richmond Economic Forecast “The regions that figure out housing are going to be ahead of the curve in terms of dealing with the coming demographic shifts,” Haltom said, referring to the aging U.S. workforce. Annelies Goger, who studies how to scale earn-and-learn models at the Brookings Institution, sees the advantages for local employers. Apprenticeships are a way to draw on local talent, and employers are more likely to retain locals than workers who have relocated, she told From Day One. “Rising rents have made it hard for employers to find and retain people only with the normal ways they’ve recruited people, so they’re looking into a lot of other ways and channels for finding talent,” Goger said. Apprentices Enter Finance and AccountingIn accounting and finance, more workers are retiring than are entering the field. According to a 2024 analysis by the U.S. Chamber of Commerce, “even if every unemployed person with experience in the financial activities or professional and business service sectors were employed,” the report reads, “only 42% and 44% of the existing job vacancies in these industries would be filled, respectively.”In 2022, the Association of International Certified Professional Accountants (AICPA) and Chartered Institute of Management Accountants (CIMA) launched the first federally registered apprenticeship for finance and accounting professionals, and in its first year signed up 17 employers from 15 industries, including healthcare, industrial gas, banking, and manufacturing. One hundred apprentices have registered with the program in its first year.When AICPA and CIMA set out to create apprenticeships, the aim was to address the worker shortage in the accounting and finance field with early career talent. “When we started talking to employers who would want to hire people from these programs, we found that they were more interested in reskilling workers,” said Joanne Fiore, AICPA’s VP of pipeline and apprenticeships. Rather than recruit new talent, employers wanted to use apprenticeships to retain their current workforce and train them as strategically minded contributors. The purpose of the Registered Apprenticeship for Finance Business Partners is to develop management accountants for the finance function of the future–not just number-crunchers, but “key players in strategic decision-making and broader business transformation,” said Fiore.Even if this program is able to shrink the skills gap, the labor shortage is likely to persist. There just aren’t enough young people entering the field to balance out their retiring elders. One problem: the profession has a reputation for being, well, dull.To fill the talent pipeline, and help rebrand the profession, AICPA and CIMA have piloted a youth apprenticeship program in Maryland high schools, aiming to drum up excitement and interest in the field among young people.Customizing the Programs Organizations, employers, and educators have found ways to tailor apprenticeship programs to their needs. They’re not just for recruiting, they can be deployed for talent development as well. “With the digital transformation of our economy, tens of millions of jobs now require workers to use tools to build things–only the tools are digital and workers no longer need to wear hardhats,” said Craig, author of Apprentice Nation.Often, those skills are software related. Where hospitals and healthcare providers use Epic, marketers use HubSpot, and HR uses Workday. “Companies are increasingly demanding that applicants for these jobs already have these platform skills–skills which are much harder to learn in a classroom than on-the-job via an apprenticeship,” Craig said.“Apprenticeship brings an organic culture of learning into any workplace and helps business perform better,” writes Jean Eddy in Crisis-Proofing Today’s Learners: Reimagining Career Education to Prepare Kids for Tomorrow’s World. “An apprenticeship program breathes new life into workplaces and lets employers quickly tap into a culture of learning that so many now are desperate to build.”Scaling Earn-and-Learn to Quell the Labor ShortageApprenticeships are difficult to start, and they’re difficult to scale. Few employers have the infrastructure to both employ and train unskilled workers at the same time, and most require the help of intermediaries like the AICPA and CIMA, which provide the instruction and the infrastructure.While it may be a while before apprenticeships alone make a dent in the labor shortage, analysis of the success of existing programs is promising. Not only are retention rates high–Aon, for instance, retains 80% of its apprentices–the Department of Labor estimates that employers get a 44.3% return on investment for apprenticeship programs.“While traditional apprenticeships emphasized hands-on skill acquisition under a mentor, modern apprenticeships often integrate technology-based learning, including virtual simulations and online coursework, to complement on-site training,” said Katie Breault, SVP of growth and impact at YUPRO Placement, a recruiting firm focused on skills-based hiring. Finance and tech roles are particularly suited to apprenticeships, she told From Day One. “Industries undergoing digital transformation, for example, greatly benefit from such programs. They offer real-time learning opportunities, crucial for staying relevant in dynamic fields.”The problem with apprenticeships as a solution to the labor shortage is that we just don’t have enough of them yet, said Craig. Plus, in his estimation, they’re under-funded and under-marketed on both the demand and supply side. “Many young people and their parents think of apprenticeships as a ‘second tier’ option–if they think of them at all,” he laments in Apprentice Nation. White collar employers may be thinking much the same. Yet as investment continues and apprentices pop up in surprising places, like the finance department, enthusiasm may spread. “It certainly fits the accounting profession,” Fiore said. “And if it fits the accounting profession, my sense is that it will fit many professions.”Emily McCrary-Ruiz-Esparza is a freelance journalist and From Day One contributing editor who writes about work, the job market, and women’s experiences in the workplace. Her work has appeared in the BBC, The Washington Post, Quartz, Fast Company, and Digiday’s Worklife.(Featured photo by Amorn Suriyan/iStock by Getty Images)
DEI Starts Over: How It Needs to Adapt to Survive the Battles of 2024
BY Andrea Sachs January 17, 2024When Elon Musk and other headstrong billionaires start using you as a punching bag, it might be a smart time to duck. In his latest tirade against diversity, equity, and inclusion (DEI), Musk attributed the door plug blowing off a Boeing 737 Max 9 jet earlier this month to the aviation industry’s efforts to diversify their workforces. “Do you want to fly in an airplane where they prioritized DEI hiring over your safety?,” he wrote on X, formerly Twitter. Citing no evidence, Musk’s claim echoed the conspiracy theory asserting that DEI led to last year’s collapse of Silicon Valley Bank, which proved to have no basis in fact. While corporate America proudly carried the banner of DEI in recent years, 2024 is shaping up as the year in which many companies will be lowering the profile of their efforts and changing the approach of their programs. Recognizing that the term DEI has become another cudgel in the culture wars, joining “wokeness” and ESG, corporate leaders are responding to a wave of legal and political challenges. Among them: The Supreme Court is considering a case that could inspire a raft of regulatory complaints against DEI programs, charging them with reverse discrimination; conservative billionaires are funding a wave of lawsuits against such programs; and red-state politicians are threatening to follow the example of Florida and Texas by passing new laws threatening to limit the scope of DEI. “They’re starting with letters, but I don’t think that they’re bluffs,” said Zamir Ben-Dan, a Temple University assistant professor of law. “It’s going to be a problem,” he told the AP. “It’s going to lead to a decline in racial diversity in the workforces.”Corporate America doesn’t want that to happen. In a survey late last year by the Conference Board, none of the 194 chief HR officers said they plan to scale back DEI initiatives, programs, and policies; 63% said they plan to attract a more diverse workforce. Employers say that an embrace of diversity and inclusion has become an important corporate value when it comes to recruiting the workers they need, especially younger ones who tend to favor diversity. As Fortune put it, “DEI Is Dead. Long Live DEI.” Yet companies are looking for ways to step away from the term “DEI” as well as aspects of programs that could make them legally vulnerable. “Companies are really starting to look at other ways to do the work without saying that they’re doing the work,” Cinnamon Clark, cofounder of Goodwork Sustainability, a DEI consulting firm, told Axios. Among the pressures and the responses that will characterize the evolution of DEI this year:The Supreme Court’s Other Shoe to DropOnly a day after releasing its historic decision last year to outlaw affirmative action in higher education, the U.S. Supreme Court agreed to hear a case that could have a parallel impact on DEI programs among corporate and government employers. In Muldrow v. City of St. Louis, a police sergeant alleges that she was transferred out of her prestigious job because of her gender, thus violating Title VII of the Civil Rights Act, which forbids discrimination according to race, gender, and other protected characteristics. Lower courts have upheld the city’s argument that Muldrow failed to demonstrate that the transfer amounted to an “adverse employment action” that caused material harm.The Biden Administration has supported Muldrow’s case because it could enable more people to file discrimination cases with the Equal Employment Opportunity Commission [EEOC], yet a broad interpretation of Title VII by the Supreme Court, relaxing the need to prove harm, could also “open the door to a flood of reverse discrimination claims against certain workplace diversity, equity and inclusion programs–such as mentoring and training programs for underrepresented groups–that ordinarily would not survive in court,” the Washington Post reported. “Such complaints have become more common since the Supreme Court overturned race-conscious college admissions in June.”Well-Funded Legal ChallengesEdward Blum (pronounced “bloom”), a white, 73-year-old former stockbroker, has made it his life’s work for more than three decades to stamp out affirmative action. He does not have a law degree, but he spends his day planning lawsuits to challenge affirmative action in the Supreme Court, helping to persuade the court to hear eight cases. Most recently, in June, he was in large part responsible for bringing the case that led to the court’s decision to outlaw affirmative action in higher education (Students for Fair Admissions v. Harvard College).Since then, he has been suing elite law firms over their DEI language. Many firms have yielded and made changes to avoid litigation. While Blum told Bloomberg Law that he’s done suing law firms–“There’s nothing left for us to do in that space,” he said–legal experts are watching where he’ll turn next. “Well, I think employment is one area that I think will garner greater attention, not just from me, but from other organizations, other legal policy foundations,” he told the New York Times. “I also think that some of the things that we associate with higher education–internships, scholarships, certain research grants–those need to be revisited if they have been race-exclusive.” One group that Blum founded, the American Alliance for Equal Rights (AAER), filed a lawsuit last August against Fearless Fund, “an Atlanta-based venture capital firm run by two Black women, alleging that the fund is engaging in racial discrimination by running a grant program exclusively for early-stage companies owned by Black women,” the Washington Post reported.While Blum has often been portrayed as a one-man-band, challenging major institutions on his own, a study by the Democratic Policy & Communications Committee, produced by seven prominent Democratic senators, called Blum’s various organizations “fronts for corporate mega-donors seeking to change the law through the courts.” In particular, the report cited Students for Fair Admissions as “funded primarily through the Koch [Brothers] operation’s shadowy dark-money operation DonorsTrust, known as the ‘dark-money ATM of the conservative movement.’” Blum has a fellow traveler in Stephen Miller, the arch-conservative former Trump Administration advisor best known for his hard line on immigration issues. Miller has been zealously targeting corporate DEI programs through his well-funded group America First Legal. Since 2022, his group has filed 25 complaints against companies with the EEOC. Miller’s organization has notched few legal victories, but that may not be the point. More than 85% of the AFL’s budget went to advertising, while only 4% was spent on legal services, the Daily Beast reported. Even so, “at least six major U.S. companies including JPMorgan Chase have modified policies meant to boost racial and ethnic representation that conservative groups threatened to sue over,” a Reuters review of corporate statements found.How Corporate Employers Can RespondWhile corporate leaders in the Conference Board survey said they don’t intend to pull back on DEI, the combination of corporate austerity and high-profile backlash is surely depleting the resources available to DEI. In a report last October, Forrester, a research and advisory company, found “the percentage of companies that funded a DEI function with an endorsed strategy and personnel dropped from 33% in 2022 to 27% in 2023; we predict that this number will fall to 20% by the end of 2024 in the wake of cuts that disproportionately affect DEI teams. As a result, too many companies will default to ‘check the box’ efforts such as heritage days, leading to performative–rather than substantive–DEI programs.”Organizations that are still motivated to maintain their commitment the principles of DEI will need to adapt their approach. “As the law inevitably evolves in a more conservative direction, the new legal standards will be absorbed into the field of DEI, transforming it as an enterprise. While this shift will occur organically, smart organizations can avoid a lot of pain and expense by thinking about how to adapt in a more intentional way,” reports Harvard Business Review. In their HBR story, Kenji Yoshino and David Glasgow, lawyers at New York University and authors of Say the Right Thing: How to Talk About Identity, Diversity, and Justice, identify three aspects that can make a DEI program legally risky: it confers a preference for some individuals over others, the preference is given to member of a legally protected group under Title VII, and the preference relates to a palpable benefit, like a job, promotion, or L&D opportunities.Given those criteria, write Yoshino and Glasgow, the specifically risky programs include hiring quotas, tiebreaker decision-making for hiring and promotions based on identity; group-specific internships and fellowships; and tying manager compensation to diversity goals. While all of those measures may be designed to compensate for systemic biases, “it is clear that the conservative supermajority of the Supreme Court does not agree with such a worldview.”Reshaping Programs as Well as the LanguageTo avoid charges of reverse discrimination, employers can make several changes to existing plans. Among other things, they can make DEI initiative more identity-neutral yet still designed to remove bias, like making employee-resource groups and other affinity groups open to all, rather than restricted based on identity. “These approaches do not ‘lift’ certain groups above others, but ‘level’ the playing field for everybody,” write Yoshino and Glasgow.The language, too, is shifting, with more focus on the “inclusion” aspect of DEI, as well as “belonging” and “well-being.” Reported the Post, “While some demographic-specific efforts will probably remain, overall, corporate DEI is likely to shift and focus more on ‘universal’ efforts to make recruiting, hiring and retention more successful for everyone.” Even as they adjust to the risk of being sued for reverse discrimination, employers have to make sure they don’t over-correct in the opposite direction. “Getting sued for a regular discrimination claim from someone who belongs to an underrepresented identity in the workplace is still more common than a reverse discrimination claim from a white person,” reports Thomson Reuters. Companies shouldn’t abandon DEI initiatives that help to make those from underrepresented backgrounds feel more welcome or offer more opportunities to succeed, NYU’s Glasgow told Reuters, “because doing so could create an environment that is more hostile and unwelcoming to people who belong to these marginalized groups.” For example, he said, eliminating mentorship or sponsorship opportunities that were helping more women advance through an organization might lead to a more one-dimensional leadership team–a prospective setback to decades of progress.Andrea Sachs, a graduate of the University of Michigan Law School, began her career as a lawyer in Washington, D.C., at the National Labor Relations Board, then spent nearly 30 years in New York City as a reporter at Time magazine. (Featured photo by Violeta Stoimenova/iStock by Getty Images)
Could Older Workers Be the Solution to the Labor Shortage?
BY Emily McCrary-Ruiz-Esparza December 13, 2023Where are the workers? The list of occupations suffering critical shortages in the U.S. keeps getting longer: teachers, nurses, bus drivers, social workers, accountants, air-traffic controllers. While the problem is relatively new, it’s becoming a long-term one. “The number of humans available to work is starting to go down,” said HR consultant Josh Bersin in a recent From Day One webinar. “Over the last four years or so, from the pandemic on, we talked to so many companies and heard the same thing over and over again: We don’t have enough people, we don’t have enough skills. We don’t know where to source them.”A major cause of the problem is demographic: the Baby Boom generation is retiring, a trend that sped up during the pandemic, and fertility rates are declining all across the developed world. In 2024, for the first time, Generation Z will represent a larger portion of the workforce than the Baby Boomers.Yet therein lies one of the solutions: persuading older workers to stay in the labor force longer, as well as creating opportunities for younger generations to have longer careers. In February, the Wall Street Journal ran the headline, “Here Comes the 60-Year Career.” The story profiled Millennials setting themselves up for six decades of work comprising multiple career switches, returns to school, detours, and sabbaticals. Millennials and younger generations have no choice but to think differently about their careers, the reporter Carol Hymowitz wrote. “Because they are likely to live healthily into their 90s or longer, they must learn to navigate 60-year careers instead of the traditional 40-year span.”But longer careers punctuated by breaks and reinventions are not just the Millennials’ doing. The Boomers are already experimenting. In 2022, the job website Indeed noted an increase in the number of people “unretiring.” Short of savings or restless in retirement, older workers are increasingly stepping back into jobs they left a few years ago, this time looking for flexible hours, part-time consulting jobs, or even gig work. “We’ve had this model of working from the moment you graduate college or high school until you’re 65,” Sania Khan, chief economist at the talent intelligence platform Eightfold, told From Day One. “Employers are realizing that this is an outdated model.”Though a growing part of the population, older workers have represented a shrinking portion of the workforce, especially during the pandemic. While labor-force participation among Americans aged 15–54 has recovered to pre-pandemic levels, it has not bounced back among those aged 55 and older, much of this due to excess retirements of Baby Boomers.At the same time, the national unemployment rate has been below 4.5% for two years, and employers are struggling to find the workers they need with the skills they need.This leaves employers wondering: how can we encourage workers to stay on the job?In a Tight Labor Market, There Is No Room for Ageism “Necessity is kicking ageism to the curb, pushing businesses to reevaluate hiring strategies and perceptions when it comes to this essential part of any workforce,” reads an Eightfold report. “In a strange twist, the looming labor shortage may be the kick that’s needed to shift the narrative on age and employment. As the supply of workers tightens, organizations are finding themselves in a bind, and they must take a closer look at experienced workers, those with a lifetime of skills and wisdom to offer.”There are 9.5 million open jobs in the U.S., but only 6.5 million unemployed workers, a labor shortage that affects almost every industry in almost every state, according to the U.S. Chamber of Commerce. Companies can’t afford to discriminate, and often-marginalized groups are reaping the benefits.Data: Glassdoor analysis of Census Bureau data. Chart: From Day One adaptation of graphics by Axios and Glassdoor To recruit and retain older members of the workforce, employers are embracing age-inclusion. PNC and Bristol Myers Squibb have added benefits like workplace menopause support and healthcare to match. Fannie Mae and Booking.com now offer grandparent leave so workers can take time away from work to care for new grandchildren. Recruiters are scrubbing age-biased language from their job descriptions. Financial counseling services that include retirement planning are a popular new addition to total rewards. Some employers are offering “flextirement” arrangements that allow retirees to come back part-time or temporarily.Some organizations are actively hiring from older demographics. Especially when the customer base is seniors, it makes sense that the company is staffing seniors as well. One of them is Naborforce, a gig-work platform where seniors can request help from “nabors” for tasks like setting up a computer, getting to the grocery store, or doing the laundry. The average Naborforce client is 83 years old. Almost three-quarters of nabors–the gig workers who power the platform–are 50 or older.“There is a big group of untapped resources–empty nesters and retirees who are not looking for a job, but love the flexibility. They are craving purpose, they want to feel needed, and they’re craving connection,” founder Paige Wilson told From Day One.Not only is the company’s gig workforce predominantly seniors, Wilson is actively recruiting older workers to her staff. In November, Naborforce piloted its first “golden internship” program. Paid interns come into the office 10–12 hours per week to advise on user experience, marketing, messaging, and business operations. The first intern, a former nabor and retired business owner, is in his 70s. “Our target market on all sides of our business are seniors or close to it,” said Wilson. “We are not discarding older people. We are hiring them like crazy,” Wilson said.As Workers Retire, the Skills Gap GrowsAmong companies whose workers skew older, workforce planning is getting tougher. In certain industries and roles, older workers are retiring, but no replacements are on their way.For global logistics company Pitney Bowes, finding young workers with the right skills is getting harder. “Electromechanical [engineering] is a skill set that our service force is very much in need of,” said Andy Gold, the company’s chief HR officer. There are fewer qualified candidates coming out of schools and training programs than there used to be. Younger professionals seem to be more interested in programming the machines than building them, he said.For now, the company is trying to recruit from within, finding workers who are willing to learn the new skills. They’re also talking to older workers about their retirement goals so they can train younger ones before clocking out for good. Gold isn’t the only one wondering where the talent went. In other industries whose workers are long-tenured and have decades of experience, the talent pool is drying up. “For some of the professional service jobs, for example, the qualifications needed are time-intensive,” said Jen Schramm, senior policy advisor at AARP. “[Companies] can look ahead in their workforce planning and see on the horizon that they will have a shortage. In the long-term, they will have to increase the labor pool of people that have the correct certifications or qualifications or licensing. But in the near term, they don’t have time to wait.”Early this year, the Greater Richmond Transit Company, or GRTC, which operates mass transit services in Richmond, Va., experienced a bus-operator shortage (due in part to retirements) so severe that it interrupted normal service and blocked planned expansion projects. According to the Bureau of Labor Statistics, the bus service and urban transit sector has the oldest median worker age–52.4 years–among all industries in the U.S.As of January 2023, the GRTC employed about 230 bus operators; it needed 50 to return to pre-pandemic service and an additional 20 more to expand. The company couldn’t find the talent it needed, so GRTC created its own pool by covering the cost of commercial drivers-license training for new hires.By November, that gap had been closed, with more than 300 full-time operators hired, 27 working on a part-time basis, and 35 more in training. GRTC also sweetened the deal for new hires, who got a signing bonus, and for all operators, who got a 43% pay raise.The Value of Long-Term Knowledge and LoyaltySome employers may not need to cultivate their own talent pools to fill immediate openings. Older workers are a solution to both the skills gap and the labor shortage, said Eightfold’s Khan. “Employers see that they have a skills gap. They know that they have to switch over to a skills-based workforce planning solution in the near future,” she told From Day One. “I think they haven’t started to see older workers as a resource quite yet.”The world is spoiled with a wealth of knowledge represented by an aging workforce. According to the 2020 U.S. Census, the number of people aged 65 and older grew five times faster than the whole U.S. population did in 100 years. In 1920 fewer than one in 20 Americans were 65 or older; as of 2020, it’s one in six. “We should give them a choice,” Khan said. “Those who want to continue working and feel that they’re capable should be able to, and they should be valued as a resource.”Employers opting to fill vacant spots with younger, “cheaper” workers are losing institutional knowledge and wisdom built on decades of experience. Plus, older workers tend to be more loyal to their employers. “We’re going to see a very stark labor supply and demand imbalance very soon as these workers age out of the workforce and retire,” Khan said.The Legacy Stage of One’s CareerIf careers are getting longer and changing shape, with employees embracing career lattices instead of career ladders–could there be new stages too? Andrés Tapia, global strategist for diversity, equity, and inclusion at consultancy Korn Ferry, favors a new segment to working life, a denouement between career and retirement known as the “legacy stage.”In the legacy stage, older professionals on their way to retirement rework their professional contributions with schedules, benefits, and compensation to match. “It will be about mentorship and wisdom,” Tapia said. In exchange for fewer hours, very flexible schedules, and sabbaticals, legacy workers may get lower pay and less decision-making power. “A lot of Boomers feel vigorous and in charge, they want to keep ‘riding the train,’” but some roles do need to be vacated so younger workers can move in and get the experience. “It’s about reciprocal adaptation between generations,” Tapia told From Day One. “Older workers have to stop diminishing the contributions of young workers and younger generations have to be inclusive of older ones.”As workers age, they enjoy passing on their knowledge, said Schramm at AARP. “Companies that are savvy about having a multigenerational workforce, that’s something they leverage, but they do it from both sides”–giving younger workers the opportunity to pass their knowledge to older generations too.“Many people are not ready to retire at age 65, but age discrimination really starts at age 55,” Tapia said. “That’s when people start feeling devalued.” But if we create a legacy phase where decades of knowledge is elevated to its own category, he argues, “rather than coasting by default, you coast by design.”Emily McCrary-Ruiz-Esparza is a freelance journalist and From Day One contributing editor who writes about work, the job market, and women’s experiences in the workplace. Her work has appeared in the BBC, The Washington Post, Quartz at Work, Fast Company, and Digiday’s Worklife.
What Business Leaders Can Do to Improve DEI Efforts in the Face of Backlash
BY Michael Stahl November 30, 2023Can corporate America restore its momentum on diversity, equity, and inclusion? DEI initiatives became a must-have for business organizations in 2020, after the killing of George Floyd in May of that year sparked a new wave of civil-rights protest and discourse. That cultural conversation focused partly on workplace discrimination against Blacks and other marginalized people, and it led to countless leaders—some from the biggest groups in corporate America—stepping up with DEI plans to help close disparities in opportunities. For a time, it seemed like those executives were delivering. According to Glassdoor data, DEI job openings grew 55% within a few weeks after the Floyd tragedy. Spending in the category surged, too. A November 2021 report from a top market research company said DEI funding was projected to reach $15.4 billion, more than double the amount it was in May 2020, by the year 2026.While many leaders maintained the DEI programs they enacted within the past few years, a backlash against DEI quickly arrived. A survey of more than 800 HR professionals in various industries, conducted around six months after George Floyd’s death, found that about 80% of companies are “going through the motions” with DEI programming and not holding themselves accountable. Glassdoor research later revealed DEI programming growth stalled in 2022, and CNBC reported last January that, to some in underserved groups, many efforts geared toward tangible change have felt inauthentic. One source for the piece said the DEI programs they’ve interacted with feel more like “branding strategies.” The turning tide against DEI picked up speed in June when the Supreme Court struck down affirmative action in higher education, a decision that many speculate will have an adverse effect on DEI efforts across industry. The New York Times reported that experts believe “the ruling will discourage corporations from putting in place ambitious diversity policies in hiring and promotion—or prompt them to rein in existing policies—by encouraging lawsuits under the existing legal standard.”The same issues in place before 2020 persist for Black workers at the office. Gallup polling indicates that employees of color still report discrimination—and those who do also have a burnout rate that’s twice as high as workers who are not discriminated against. DEI strategist Amri B. Johnson (author photo)However, the high court decision and the failings of some organizations does not have to inspire total pessimism for those who are committed to furthering DEI’s progress. DEI strategist Amri B. Johnson, author of Reconstructing Inclusion: Making DEI Accessible, Actionable, and Sustainable, says this is an opportunity for the true advocates in the space to stand up. “We focus a lot on symptoms and we don’t focus enough on systems,” Johnson told From Day One. “Now we need to start building the systems” that will lead to improved, tangible DEI outcomes. He adds that the Supreme Court decision and the pressures that it may put on companies to forego DEI investments could very well be used as an “excuse” to do just that. Eventually, though, “if a company uses that as an excuse not to be mindful, to cast [their] net wide and find people from different backgrounds to bring that insight, and create attention to [their] organization because people see things differently [due to] their embodied experiences, then they should stop” their DEI programs. “If they want to miss out on talent, let them do it,” he says. For those truly well-intentioned corporate leaders and people managers who want to carry on their DEI initiatives—not only because it’s the right thing to do, but also because it gives their businesses a well-chronicled leg up on the competition—here are some tips on how to ensure such programming can thrive, even in the face of DEI fatigue, and not come off like PR campaigns.Add a “B” to “DEI,” for “Belonging”Throwing money at the situation and writing declarative press releases is not going to solve problems like the ones that DEI programs are designed to address. Real people are affected by the culture that historically exclusionary business institutions have wrought, so it’s going to take person-to-person care and attention to disrupt the presence of outdated workplace management approaches.Johnson says leaders must do “the little things” around the office—real or virtual—to ensure that workers feel a sense of belonging. “Thoughtful gestures can show someone that they are seen and welcomed in the group,” says Johnson. “Instead of sharing a funny story with just your closest coworker, invite the person within earshot into the conversation. When religious or cultural holidays roll around, don’t hesitate to say, ‘Ramadan Mubarak,’ ‘Happy Easter’ or ‘Happy Hanukkah’ to those who observe. The only kind of inclusion system that truly perpetuates belonging is one that centers on humanity, creating conditions for all people to thrive across their differences and similarities.”Creating such a culture where behaviors like that are the norm may take a change in approach and mindset on the part of the leaders tasked with cultivating one. Julie Fink, VP of HR at the University of Phoenix, suggests that organizations think of “DEI” as “DEIB,” where the “B” represents “Belonging.”“Belonging is how employees feel about their company, their boss, their leadership, their peers, whether their organization cares for them as individuals,” says Fink. “If employees feel they belong, they feel safe and more connected to the work and the organization.”To help inspire this sense of security and connection, Fink says leaders should talk and listen to employees with a focus on “not only what they say, but what they don’t say in this area.” Ask: “Do they feel comfortable and safe to speak up in areas that can be improved, or bring forth suggestions or recommendations?”When employees feel a sense of belonging at a job, as Harvard Business Review reported in 2019, they perform better, at a rate of 56%. They also take 75% fewer sick days and are 50% more likely to stay at their job, research showed.Take a Skills-Based Approach to HiringLimiting recruitment hunts to individuals with gobs of experience and college degrees from top-level colleges is exactly how companies have stayed in a rut in which the same types of people are granted opportunities to achieve and advance. But considering skills required for a given position and just the general type of person who might be a great fit for your organization will render such histories of privilege irrelevant.Amanda Hahn, chief marketing officer at HireVue, a talent recruitment and hiring platform, says a growing number of employers are “exploring alternatives to their traditional hiring habits,” with a mind toward better DEI outcomes. HireVue recently published a report covering global trends in hiring, which included surveys of more than 4,000 talent leaders and found that nearly half (48%) are adopting a skills-first approach to talent acquisition, “forgoing educational and past work experience unless they’re actually relevant to the job at hand,” Hahn said. “In doing so, they’re widening their overall talent pool, increasing the number of qualified candidates they attract and charting advancement paths for employees based on less-biased or fairer, objective data.”And once interviews start—or maybe even earlier than that—prioritize the character of the candidates. Hiring teams should think about the culture of their organization and what kind of personality traits they’d like to find in the people they bring on board.“When you hire someone, you hire the entire person, not just their output,” said Fink. “You cannot think that a person is just an employee, and worse yet, a commodity producing widgets. Every person is an individual and made up of a variety of elements and you need to ensure your policies, and more importantly your actual practices, speak to this.”Amanda Hahn, chief marketing officer at HireVue Advises Johnson, the author and DEI strategist: “Make sure you have designed your talent attraction and candidate experience to attract talent from and across a broad spectrum of identities and lived experiences. And, don’t stop there. Once you attract a diverse group of committed people, create paths for growth, development, and thriving to keep them. If you are unsure of how to do so, ask them.”Hahn notes that greater integrations of technology can also help organizations expand the candidate pools each of them are accessing, while also providing hiring teams with greater insights into the types of individuals they might soon hire.“There’s a misconception that technology is replacing human roles. Instead, it’s fulfilling mindless work, boosting employee productivity and allowing talent teams to focus on the most impactful parts of their job,” says Hahn. “Our report found that in the past year alone, two in three talent teams have implemented video or virtual interviews to boost hiring productivity. When asked what benefits talent teams saw from these changes in interviewing, respondents reported time savings, greater flexibility and a bigger pool of diverse talent.”Don’t Base DEI Success Strictly on NumbersThe true impact of DEI can’t ever be completely quantified on a spreadsheet or in a PowerPoint. Sure, there’s the aforementioned impact a greater sense of belonging can have on the bottom line and other data on DEI return on investment, but measuring a culture—an atmosphere about the workplace—and levels of individual contentment is impossible. DEI should ultimately be done because it’s good for people and their copmanies. “There are several areas where employers can make mistakes when beefing up their DEI programming,” says Fink. “The first is to think that DEI is just about the numbers and the typical race/ethnicity categories. Second is to tie bonuses or incentives to DEI metrics. This can drive compliance rather than commitment and possibly not the best decision for the business. We need to make the expected behavior clear, then reward or showcase that behavior. Set the example and shout it from the rooftops.”Johnson says that limiting DEI focus to “single identities” is actually counterproductive to its mission. “Yes, it is very important to make the workplace welcoming for groups that historically have been pushed to the fringes—people of color, LGBTQIA+, the disabled, older employees, women,” said Johnson. “But true inclusion includes everyone, even those with longstanding power and privilege.”Which is why people leaders should…Avoid Playing the Blame GameWhile changes to workplace culture and people management to enhance DEI of underserved people are needed, don’s create new discrimination in the process. Furthermore, excluding members of an employee base that may have benefitted from now-outdated systems does not align with the values associated with DEI initiatives in the first place.“Be sure you are not making your DEI efforts feel divisive or punitive,” said Johnson. “Everyone in the organization needs to feel welcome to join in the discussion, but no one should feel singled out. Pointing fingers only perpetuates division. We need collective accountability without attempts to determine who is right.”Accept Realities and Normalize Social TensionsPracticing mindfulness and acknowledging grounded truths about the state of things might be the most crucial step of all if people leaders want their DEI programs to achieve desired outcomes while fostering a real sense of belonging for all members of an employee base. Thinking any initiative will be rolled out perfectly and solve all a company’s ills is a sure route to failure, DEI experts assert.Johnson says DEI work will not remove social tensions—nor should it. Conversations that are open and honest will need to continue, and if they do, people will be bound to disagree or not reside on the same page with their colleagues. He adds that “tension is necessary” and not a bad thing in and of itself. “The danger comes when you don’t know how to navigate the tensions and complexities that come from those differences,” he said. One way organizations can ameliorate tension around the subject of DEI is to actually calm expectations around the adoption of what Johnson calls “complicated jargon” that is inaccessible for many. Terms like “heteronormative,” “transphobia,” “BIPOC” and “unearned privilege” can be difficult for workers to understand and “may even raise employees’ defenses,” Johnson said.“If you are speaking about DEI-related concepts and a term is introduced, explain the term, and make sense of it with the person or people you are engaged with,” he advised. “If you read a word that you are unfamiliar with, look it up, ask someone more familiar, and learn to explain it in a manner that is clear for you.”Allowing people to be themselves, which includes displays of not only their strengths but also their blind spots, is the ultimate goal of DEI. Accept where voids in understanding lie, fill them up and move on—one step closer to greater harmony.Michael Stahl is a New York City-based freelance journalist, writer, and editor. You can read more of his work at MichaelStahlWrites.com, follow him on Twitter @MichaelRStahl, and order his first book, the autobiography of Major League Baseball pitcher Bartolo Colón, at Abrams Books.(Feature photo-illustration by Vadym Pastukh/iStock by Getty Images)
Fire in the Belly: How to Find Hidden Potential in the Workforce
BY Emily McCrary-Ruiz-Esparza November 15, 2023“Our systems for judging qualifications are flawed,” organizational psychologist Adam Grant declares in his new book, Hidden Potential: The Science of Achieving Greater Things. “In schools and workplaces, selection systems are usually designed to detect excellence. That means people who are on their way to excellence rarely make the cut.”The good news: This is changing, and shifts in the way companies recruit and hire indicate corporate America is starting to look for people who are excellence-bound, rather than already credentialed. Until recently, insistence that candidates have a four-year degree has confined the way we think about what people are capable of. But out of necessity in a tight labor market, companies ranging from IBM to Google have reconsidered or dropped that basic requirement. As Grant puts it: “You can’t tell where people will land from where they begin. With the right opportunity and motivation to learn, anyone can build the skills to achieve greater things,” he asserts, citing research on the relationship between initial aptitude and later outcomes.“We’re seeing a lot of employers moving more and more into the skills-based movement, thinking about developing talent with a set of skills that have indications they can be successful on the job,” said Elyse Rosenblum, the managing director and founder of Grads of Life, an organization that works with employers to promote skills-based hiring.Elyse Rosenblum, the founder of Grads of Life, which works with employers to promote skills-based hiring. (Courtesy photo)Skills-based hiring, the practice of prioritizing skills and capabilities over educational background and jobs held, represents a new enthusiasm for worker potential. In that spirit, companies are making new investments in workforce development. “This is a really exciting trend that we’re seeing,” Rosenblum told From Day One, citing the kind of investments made by Delta Air Lines, which launched its apprentice program in 2022, and JPMorgan Chase, which announced this week it will commit $3.5 million to apprenticeship programs in the financial and tech sectors. Apprenticeships are often considered more risky for employers because they don’t guarantee returns right away but are long-term investments in capable professionals. “They’re looking for people with potential,” Rosenblum said.Seeking a New Set of StandardsA growing number of companies have removed degree requirements for many jobs, but as I’ve reported, many employers still haven’t entirely worked out how to recruit without one. Some continue to favor applicants (and employees) who have degrees over those who don’t; some remove the degree requirement but replace it with arbitrary proxies; others limit the upward mobility (and therefore pay) of people without a bachelor’s by relegating them entry-level roles and internships because they assume these workers lack potential.“It’s a mistake to judge people solely by the heights they’ve reached,” Grant writes. “By favoring applicants who have already excelled, selection systems underestimate and overlook candidates who are capable of greater things. When we confuse past performance with future potential, we miss out on people whose achievements have involved overcoming major obstacles.”Predicting potential by past achievements is a terrible mistake, Grant argues. “In a meta-analysis of 44 studies with over 11,000 people across a wide range of jobs, prior work experience had virtually no bearing on performance,” he writes. “Even if a candidate’s past performance is relevant to the current role, this metric is designed to detect polished diamonds, not uncut gems.”Early reports on skills-based hiring policies are promising. According to a report by workforce development organization OneTen, 77% of hiring managers who apply a skills-first approach find it twice as easy to identify qualified candidates as managers who don’t. Hiring managers also reported that skills-first made it easier to grow their talent pools with qualified and motivated talent.How Better to Predict Success?So, how can employers identify those uncut gems–the workers whose potential is greater than their present achievements?Track trajectories, says Grant. The change in performance over time is more indicative of capabilities than is recent or average performance. Rather than evaluating a student’s overall grade-point average, for example, consider their performance for the duration of their schooling. Low grades across the board in freshman year can weigh down a GPA, but when that same student logs all As by graduation, that indicates promise.Similarly, reward workers’ performance over time rather than investing only in those who ace their first performance reviews. As Grant writes, “the most meaningful form of performance is progress.”In an organization of tens of thousands, tracking the trajectories of individual employees is now made possible by HR tech tools that monitor employee progress, skills developed over time, and even match capabilities with jobs.Give people the opportunity to put their skills in context, says Grant, who cites the example of astronaut José Hernandez. He applied to NASA 12 times before he was accepted. At the time, NASA’s selection process was not designed to find potential, it was designed to award achievement. There was no system to learn that Hernandez grew up in a family of migrant workers and would miss months of school as his family traveled, or that Hernadez was not fluent in English until he was 12.Instead, the application asked for education, work experience, special skills, and awards. “The form did not ask for unconventional skills like picking grapes,” Grant writes. “It didn’t signal that a command for the English language would qualify as an honor. The awards section wasn’t a place to mention passing physics while working in the fields. The system wasn’t designed to identify and weigh adversity candidates had overcome.”See How Far They've ComeInstead of achievements, Grant argues that distance traveled is a better measure of potential. There exists a unique brand of motivation and grit required to travel as far as Hernandez did. Mona Mourshed, the founding CEO at nonprofit advocacy group Generation, calls this intrinsics. “As an employer, you’re asking, Does this person have the intrinsics to grow quickly in my company?”What you’re getting at, Mourshed told From Day One, is the energy of that candidate, their hunger to learn, their willingness to take what you give them and run with it. “They’re looking for the fire in the belly of this person,” she said.That fire in the belly is what Mourshed wants to see–or rather, feel–from a candidate. The humorist David Sedaris has noted the same about aspiring writers: “You meet people like that, and it’s like opening the door of an oven.”Looking for Fire in the BellyMourshed’s organization has an exercise designed to look for potential in candidates for its workforce-training programs. When a learner identifies the role they want to aim for, Generation tells them to go find three people who have that job and find out what’s great about it, and what’s not so great, then report back.Learners get a week to do this. In addition to pressing them to learn more about their potential career, “you’re also testing their ability to plan and to check their progress against that plan, in addition to the depth of the questions that they have and the quality of what they write.”How do you read a resume for that potential? “You don’t,” says Mourshed. You have to meet that person. “The only way you know is that when you are engaging in a conversation, it’s really clear when someone’s got that spark. They are asking questions as much as they are answering questions. They are bringing an energy to the conversation about what they want to do and what they want to learn if they’re given this opportunity.”In many cases, those people with fire in their belly won’t have any work experience or education in the career they’re aiming for. But they will have the drive to get there and the character to persevere.“In a world obsessed with innate talent, we assume that people with the most promise are the ones that stand out right away,” Grant writes. “But high achievers vary dramatically in their initial aptitudes. If we judge people only by what they can do on day one, their potential remains hidden.”Emily McCrary-Ruiz-Esparza is a freelance journalist and From Day One contributing editor who writes about work, the job market, and women’s experiences in the workplace. Her work has appeared in the BBC, The Washington Post, Quartz at Work, Fast Company, and Digiday’s Worklife.
How to Lead With Positive Thinking, Even in Times Like These
BY Michael Stahl October 19, 2023At a time when it can seem like everything’s going wrong at once in the world, it can be challenging or even dysfunctional to search for reasons to be cheerful. Pressuring yourself and others to remain upbeat in the face of what would reasonably upset anyone has even earned its own buzzword: toxic positivity. During the pandemic, studies, articles and books emerged denigrating it. Indeed, suppressing unpleasant feelings of sadness, anger or fear with a cloak of conjured-up happy thoughts can only make things worse.On the other hand, negativity can be exhausting. In the workplace, the show must go on despite disruptions in the business and the world. This is when people leaders need to tap their EQ. Reframing a daunting situation in an authentic, mindful way will not only improve a leader’s personal state of being, it will also help them improve well-being and productivity in the people they manage. How to do it? Turns out there’s abundant science for that. Michael E. Frisina, Ph.D., founder and CEO of the Frisina Group, a coaching consortium specializing in performance enhancement as well as organizational development, asserts that a state of healthy positivity can be achieved by thinking with our “upper brain,” or the prefrontal cortex, which sits behind the forehead. “This is where your innovation is, this is where stress management is,” said Frisina, who co-authored Leading With Your Upper Brain: How to Create the Behaviors That Unlock Performance Excellence.A 2021 study published by the National Library of Medicine, inspired by the impact the pandemic was having on global enterprise, found that positive leadership promotes employee engagement. “The more difficult the situation is, the more leaders need to demonstrate positivity,” the study’s authors wrote. They suggested managers be trained in positive leadership approaches, which “can provide additional return on investment by improving employees’ positive emotional experience.” These training programs, the authors wrote, should guide managers in implementing positive leadership, including “such aspects as creating a positive-emotion-oriented team atmosphere, promoting positive relationships among employees, [and] developing positive communication among employees.”Upstairs, Downstairs in Your Brain In everyone’s brain, said Frisina in an interview with From Day One, “resides the capacity to choose one direction over the other.” Upper-brain thinking is characterized by planning, expression, and moderating social behavior. Lower-brain thinking, characterized by fear, loss and doubt, is experienced in the brain’s limbic system, residing beyond the prefrontal cortex.“This part of the brain–the lower brain–is built for survival,” Frisina writes in his book, which he co-authored with his brother Robert. The lower brain helps human beings manage fear in response to external threats, producing reactions of various kinds, including mental (e.g., confusion), emotional (anger) and physical (fight, flight or freeze). “When your team members spend their productive efforts surviving at work rather than thriving at work, performance suffers.” While lower brain thinking serves a function that is useful in particular times and places, Frisina says actively engaging in upper-brain thinking on a longer-term basis is better for mental and emotional fitness, which will in turn improve performance. Leaders can do this and set a good example for workers, but they can also intentionally train their employees in upper-brain thinking as well, making it “contagious,” as an article in Harvard Business Review suggested last year.How Managers Can Inspire Productive Thinking on a TeamTo retain upper-brain thinking while acting as a manager, Frisina suggests that leaders start and end every meeting with what’s going well, set clear expectations and reasonable deadlines, and communicate priorities. They can also “reframe a stressful project” by asking workers to identify the pain points. Once that has been established, the leaders should ask: “Is what you are thinking about in your control or out of your control?” The effect of the follow-up question is a shift away from “skeptical, confusing, fear-provoking ‘what if’ thinking,” Frisina said, and into “productive, energized thinking.” Instead of focusing on “the negative outcome they want to avoid,” team members can focus on the “positive outcome they will create.”Frisina also suggests that, when employees ask questions, leaders should lead them to answers by describing the desired outcome and asking questions of their own that facilitate discovery. When people are successful, that needs to be celebrated, too, he says. “Get into a flow of recognizing wins and success stories, in conversations, at every meeting, as a part of every process improvement initiative,” said Frisina. “The more we emphasize what’s going well, the more likely people are to stay in their upper brain–and the more likely success is to be repeated.”A Case Study of Positivity in PracticeAndrew Wade, CEO of OrthoSC, an orthopedic clinic with six locations in South Carolina, says he became a devotee to Frisina’s approach after hiring him as a coach in 2020. “Upper-brain thinking” has spurred transformative change in his organization, he told From Day One.“The environment that we create really does have a physical, a very real physiological effect on people,” Wade said, referring to leaders in general. In a negative environment, “people will literally have higher blood pressure, they will experience more stress-related illness, [and they will have] a harder time in their marriage and their parenting relationships [and] in their community.”Andrew Wade, CEO of an orthopedic clinic with six locations in South CarolinaDuring the first few months of the pandemic, an unprecedentedly stressful time for healthcare workers, Wade began to prioritize positive thinking and bring it to the workplace. He recognized that, in his organization, leadership requires what he calls an “influential, relationship-driven” approach. If he was going to expect good customer service out of his employees, which requires that they be consistently pleasant, he had to set an example.“I do not have the authoritative leadership, if you will, to just be that CEO who issues a memo from on high and expects everything to just happen the way I set it,” said Wade. “Sometimes that lends itself to it being harder to get things done because you’re building consensus [and] you’re motivating [employees] to move–you’re not kicking them or shoving them forward.”Reshaping the company culture into one with more positivity had to begin with his own outlook and disposition. “If something sucks, it starts with the mirror,” he said. “If I’m not showing up at my best, then I’m not going to be able to help my team show up at their best and we’re not going to be able to collectively function in unison to deliver our best for the people who are entrusting their care to us.”The Role of Empathy and ListeningIf leaders can stay in upper-brain mode, which Frisina further describes as “a state of positivity, openness, engagement and creativity,” he said, they’re less likely to frighten, stress out or even shut down employees. Whether you’re a worker or a manager, you might feel yourself dipping into lower-brain thinking, but there are ways to pull yourself out of it. When engaging with a coworker or client and things just aren’t clicking, Frisina suggests taking a walk in the other person’s shoes. Think: What is driving their behavior? What pressures do they face? What do they need to get from this partnership? How might they be perceiving you? It’s often OK to verbalize those types of questions.“Being inquisitive is powerful,” said Frisina. “Too often we go into situations thinking we already know the answer. But this kind of self-righteousness makes us rigid, which sets us up for conflict and failure. We should really approach conversations with a what-can-I-learn-from-you attitude. But also, asking questions opens minds, hearts, and doors. It shows people you care about them. They are far more likely to settle down, open up, and be more willing to cooperate and collaborate.”All of this starts with mindfulness, which Frisina writes in his book helps a person “regulate your own thoughts, function as the guardian of your team’s collective thinking, and increase your leadership effectiveness.” Foundationally, mindfulness is a strict focus on the present moment, or in the case of work, what you are thinking right now. “It is a technique of calming your mind, reducing stress, increasing focus, reducing distraction, avoiding multitasking, eliminating disruptive behaviors, and being mentally and physically present with people,” Frisina writes. Bringing oneself into a state of mindfulness can be accomplished by periodically taking brief pauses throughout the day “to slow your thinking,” Frisina suggests in his book. Mindful breathing exercises can help too. All of this, he writes, “will bring your thoughts under your direct and conscious control.”Making People Feel ValuedMindfulness, in fact, is what powers the positive-thinking approaches to people management that leadership coach April Sabral teaches in her book The Positive Effect: A Retail Leader’s Guide to Changing the World. “You have to become very self-aware as a leader,” said Sabral, who has worked for such brands as Starbucks, Apple, and the Gap. “You have the lever to ignite those positive emotions in people.”Sabral says a key to being positive with people is through the radical acceptance of who they are, which helps bring a better understanding of how to manage them and insight into the entire kaleidoscope of their capabilities. “People will work with you, but they won’t work for you,” she said. “When I managed people, those who felt supported did the best job, they got the best results. It’s really about how you make people feel valued.”Achieving radical acceptance of others requires more listening than talking, which could be out of a manager’s comfort zone. “It sounds really basic, but do you know how many people don’t know how to listen?” Sabral said. “A top skill that leaders need to learn is how to ask questions.”These skills will be valuable when a leader or a worker enters into what Sabral calls “a negative spiral” of thinking, which will affect everyone around them. But there are ways out of it. She observes that it’s not possible to “stay positive, you have to be positive.” So one way to climb back into a positive state is to have a list of things that make you feel good, Sabral suggests. “It could be anything, something big or small. It could be walking around the block or listening to your favorite song,” Sabral said. “When you’re in a negative spiral and you’re recognizing that, do something that makes you feel good so you can get back to neutral and then recognize your negative thinking and start working on it.”Sabral has trained leaders in positive thinking at L’Oréal, Victoria’s Secret, Jimmy Choo, and other companies. Those she has coached have reported back to her saying their personal adoption of positive thinking has had a lasting impact, she said.“The No. 1 thing that happens to all those team leaders is they recognize that they take ownership of igniting positive emotions in their team,” Sabral said. “They’ve become way more aware of walking into situations with that assumption that people aren’t always going to be honest with them, so their job is to remove the friction, remove the title, and start to build that positive relationship with their team.”The Benefits for WorkersSouth Carolina entrepreneur Wade says Michael Frisina’s counseling of upper-brain thinking and the power of positivity has helped him get his workers–and himself–to perform like they’re “in their prime.” They’re in a better place mentally and emotionally, he says, which precisely aligns with the business’s mission of providing health care.“If we’re going be an organization that takes care of people, that means not just the customer, but the people who are working here in the organization that are just as important,” he said. “If I’m constantly sucking the life out of people by creating an environment that’s harsh and nasty and unkind, and people are constantly worried and scared and afraid to pick their heads up, they’re not going to be able to do their best work.”There’s nothing toxic about that, and after learning about positive thinking and seeing its benefits play out across the six locations of his company, Wade adds, reflectively: “It’s just one of those foundational things that seems like it should be so obvious, but it’s not.”Michael Stahl is a New York City-based freelance journalist, writer, and editor. You can read more of his work at MichaelStahlWrites.com, follow him on Twitter @MichaelRStahl, and order his first book, the autobiography of Major League Baseball pitcher Bartolo Colón, at Abrams Books.
There’s a New Benefit in Town: Psychedelic Therapy. Are Companies Ready to Embrace It?
BY Lesley Alderman, LCSW October 16, 2023Especially since the pandemic, companies have been trying to increase access to quality mental health care for their distressed employees. For good reason: Nearly one in five Americans are currently being treated for depression and three out of four workers report feeling burned out, according to Gallup. At the same time, there’s been rising interest in an unconventional approach to treat mental maladies: psychedelic therapy. Many researchers believe that psychedelics, paired with psychotherapy, have the potential to transform health care.The prospect that psychedelics could become mainstream has inspired entrepreneurial interest. One company, Enthea, has become the first to offer psychedelic-assisted therapy (PAT) as an employee benefit for U.S. companies. Launched last year with $3.3 million in seed money, led by Tabula Rasa Ventures, Enthea now has seven customers signed on—including Dr. Bronner’s, Launchbox, and Black Swan Yoga—and 50 more in the pipeline, according to Sherry Rais, Enthea’s co-founder and CEO. To be sure, advocates of PAT will face a complicated road ahead, since psychedelics vary widely in their properties and are covered by a crazy quilt of state and federal regulation, but assertions of PAT’s beneficial effects are being supported by a growing field of scientific research.How Psychedelics Can Help It takes time for our brains to change longstanding patterns. Psychedelics, including ketamine, psylocibin (a/k/a magic mushrooms), and MDMA (a/k/a ecstasy) can speed up the process and create profound changes in perspective. How? Taking psychedelics has the potential to change one’s brain for the better. They silent repetitive ruminations, promote neuroplasticity, and can surface new emotions and memories.When used under the guidance of trained clinicians, research has found that psychedelics may help “patients to achieve meaningful improvements in function, symptomatology, and overall outlook in a relatively short amount of time,” according to a review published in 2022. Here’s how PAT works: the patient takes a measured dose of a psychedelic substance under the supervision of a clinician. A trained therapist prepares the patient for the experience, which can last one to several hours, and helps them make sense of what comes up during and after, a process called integration. “It’s not just as simple as taking a capsule and hoping for the best,” said Paul Hutson, director of the Transdisciplinary Center for Research in Psychoactive Substances at the University of Wisconsin-Madison, in a December 2022 presentation.By quieting the hum of worries and concerns that plague one’s brain, anxieties may soften. New cell growth and connections help make some of these changes more permanent. Meanwhile, new emotions can be processed and new insights into the past or patterns of behavior can be explored. These developments can lead to feelings of relief and often long-term change.“I felt like I let go of a lot of anger and resentment towards my parents,” a cancer patient in a psylocibin trial at New York University explained in a paper published in 2017. “I mean, I thought I had already done that, but I really hadn’t, and I kind of saw them more as, like, these flawed human beings who did the best they could,” the patient said.“Psychedelics are mind manifesters,” Alex Belser, a psychedelic researcher and psychologist at Yale University, told From Day One. “Some aspect of the mind is being manifested that had not been present before. The challenge is to transform altered states into altered traits.”A Healthcare Entrepreneur’s JourneyFor nearly a decade, Enthea co-founder Sherry Rais traveled the globe working on poverty-reduction programs in the developing world. One of her conclusions: You can’t solve poverty without also addressing mental health. And to address mental health, you need effective, low-cost, and accessible treatments. She started to look for novel solutions and was “blown away,” she said by the research on psychedelic medicines. But she realized that implementing these treatments in the developing world would be premature, she told From Day One.Sherry Rais, Enthea’s co-founder and CEO (Company photo)Instead, she and her partners founded Enthea as a public benefit corporation, deriving its name from the term entheogen, which describes substances that can produce changes in consciousness, perception, and mood. Besides offering PAT as a benefit for employers, the company plans to initiate programs for underserved communities, such as formerly incarcerated individuals. Said Rais: “Access and health equity are extremely important to Enthea’s mission.”Over the next few years, Rais hopes to be working with hundreds of employers, millions of employees and to have increased awareness about and acceptance of psychedelic therapies, which at the moment is rarely covered by insurers.What’s In It for EmployersWorkers are struggling, and they expect their companies to help. A recent workplace wellness study by the Employee Benefit Research Institute (EBRI) found that 79% of employees agree with the statement, “Your employer has a responsibility to make sure employees are mentally healthy and emotionally well.”According to an EBRI survey, about 61% of employers offer mental health benefits and despite the uncertain economic environment, they are not likely to cut back in benefits of this kind. A healthier workforce, after all, is a more productive workforce—and a less expensive one. Workers who rate their mental health as fair or poor report four times more absences than their colleagues with good or excellent mental well-being, according to a Gallup survey.Will employers embrace PAT as a new offering? Paul Fronstin, PhD, director of health-benefits research at EBRI, is circumspect: “Most employers don’t want to be first,” he told From Day One. “They will wait on the sidelines to see what others are doing and how it’s working out.” And he added that ultimately, companies want benefits that help their bottom line. If PAT prevents workers from requiring expensive in-patient hospital stays, it could be a win-win for employees and employers. Psychedelic Properties ExplainedThere’s a lot of hype around psychedelics and a lot of time and money being poured into investigating them. These mind-bending drugs, which include ketamine, MDMA (methylenedioxymethamphetamine), psylocibin, and LSD, can help soothe suffering in people with terminal illnesses, veterans struggling with PTSD, individuals with treatment-resistant depression and even those grappling with persistent addiction. However, most are not legal or FDA approved.Ketamine, an anesthetic that can also alleviate depression, has a leg up on the others: it’s legal and has been used safely in surgical settings for more than 50 years. In 2019, the Food and Drug Administration (FDA) approved a version of ketamine, Spravato (esketamine), for treatment-resistant depression. Many clinics use ketamine off-label to treat a range of a ailments (beyond the approved use of treatment-resistant depression) from mild depression to anxiety. Some companies sell ketamine lozenges via email and then monitor patients via telemedicine. The FDA recently issued an alert about the dangers of treating psychiatric disorders with compounded versions of ketamine. MDMA, which was developed in 1912 to control bleeding and became celebrated in the 1980s as a “club drug,” may be effective at treating a range of mental health issues, and is gradually gaining traction for therapeutic use. In 2017 the FDA granted Breakthrough Therapy status for MDMA as a potential treatment for PTSD; this status allows clinical trials to be conducted to test MDMA’s safety and efficacy. The following year, the FDA granted the same status to psyilocibin. An important study published last month showed that MDMA-assisted therapy was effective at reducing symptoms of PTSD. The drug is on track to be an FDA-approved drug in 2024. If approved, “MDMA-assisted therapy would be the first novel treatment for PTSD in over two decades,” Berra Yazar-Klosinski, the senior author of the study, told the New York Times. “PTSD patients can feel some hope.”Psychedelics, except ketamine, are illegal on the federal level for recreational use, but states and cities are making their own laws, the pattern followed with the decriminalization of cannabis. In 2020, Oregon approved decriminalizing small amounts of psychedelics and the supervised use of psilocybin in a therapeutic setting. Colorado passed a ballot measure to decriminalize psychedelic mushrooms and to create state-regulated centers where participants can experience the drug under supervision. Several cities in California–Oakland, San Francisco, Santa Cruz, and Berkeley–have decriminalized psylocibin.Enthea, as this time, offers only ketamine-assisted therapy to its customers. The company has a credentialing process to ensure that the clinics providing the therapy meet high standards of care, Rais said. According to Enthea’s website, a typical ketamine session is one to two hours in length and patients will experience “a sense of detachment from normal reality and self. This may foster increased creativity, purpose, and perspective. It can also enhance feelings of tranquility, insight, inspiration, and gratitude.”Once MDMA receives regulatory approval for therapeutic use, Enthea will offer that therapy as well. Said Rais: “I really believe people need access to these medicines.” Lesley Alderman is a psychotherapist and journalist based in Brooklyn, NY. In her therapy practice, she works with individuals and couples. She writes about mental health topics for the Washington Post and has been an editor at Money and Real Simple magazines and a health columnist for the New York Times.(Featured photo by Mathia Alvez/iStock by Getty Images)