Technology Can Reverse the Pecking Order

It’s funny how a small change in technology can disrupt hierarchy.  As new technologies collect better information about employees, it puts management under increased scrutiny.  In my last post I summarized Josh Bersin’s 2018 forecast of disruptive technologies in HR.  While it is interesting to see that there are tools available that allow us to be more effective, there are dramatic implications to the way we work.

After much delay, it appears that the long-awaited labour shortage has finally arrived.  Bersin notes that this will make an appearance as a “war for talent” with recruiting becoming more competitive.  Chatbots are automating parts of the recruitment process, applicant-tracking systems are making things simpler, there is a wider range of tools for assessing candidates, and I would note that it’s possible to use technology to reduce bias (assuming the AI has been taught to not pass forward pre-existing bias).  Many of these technologies have been pioneered already, which means 2018 will be a year of diffusion.

I think there is a social element of this war for talent that warrants more discussion.  That is, when good employees are being fought over they are more likely to ask for pay increases, apply for promotions, and leave their current workplace for something better.  But it can get even more dramatic when employees are bold enough to sign union cards, tell-off their harasser, and speak openly about how to improve management.  These shifts oblige managers to change.  We can’t pretend that everything is normal.  Hiring managers must start treating employees like they are valued, respected, and deserving of growth.  That’s what it looks like amongst managers who are keeping pace.  By contrast, it may suddenly look odd that there are managers who lack this collaborative orientation.

In the discussion of continuous performance management, Bersin references goal-setting and coaching.  We can’t really slip these items into a discussion of performance management without acknowledging that ground-up performance conversations are not yet fully established.  If emerging research recommends that good managers take a coaching approach, what are the implications for managers using a prescriptive approach running off a forced-distribution scorecard?  Simply put, command-and-control managers need to change their style.

For decades, the research has been bubbling just beneath the surface.  The reality is that for employees, true motivation comes from within, and their ability to align personal motivations to their employer’s strategic environment is key.  Engaged employees achieve two-times or three-times the productivity of other employees, and leadership style is a major factor in achieving high engagement.  The new technology is designed to help managers with that leadership style, but there aren’t a lot of apps that will help advance an archaic style.

On the wellbeing side, there is a variety of new tools to monitor cognitive overload and nudge people to exercise, sleep better, and eat better.  We have so overburdened people with meaningless and counter-productive work obligations that we have to reduce workload to improve productivity.  Deloitte has a good model that describes how engagement, productivity, and wellbeing are integrated into a unified concept.  Wellbeing is not really about fruits-and-veggies advocacy any more; it is integrated into peoples’ ability to focus on their best work.

I’m fascinated by the way this trend up-ends the hierarchy.  As a result of the wellbeing imperative, the people who need to “work harder” are management and leadership who are obliged to clarify goals, cultivate a positive work culture, and encourage employees to seek growth opportunities.  Looking back, it seems like a manager-driven culture which obliges employees to follow orders and be happy with their lot in life is hopelessly archaic.

Thankfully, we don’t need to debate the best leadership style because transformational leadership simply out-performs the alternative.  Just wait a few years and the only teams left standing will be the ones that have stayed at the forward edge.  Lucky for us, this collaborative style makes work more fun.

In my next post we will explore how subjective and qualitative information are making technology and analytics whole.