In March 2015 we received the bombshell from our U.S executives that our office in Oxford was to close as part of a long-term global consolidation of sites with some staff being offered relocation and the others made redundant. The products needed to continue, but how could we avoid the remaining time just being miserable?
Staff were asked to complete their current work and assist with knowledge transfer to the remaining development offices in the USA and India. The previous few years had seen good progress with agile and lean software development, customer satisfaction had steadily risen and staff turnover had been extremely low. So the closure announcement was a body blow. The chance of the announcement being taken badly was all too real with the risk of the situation disintegrating into a depressing mess.
The Oxford management team had the difficult task of trying to make the best of the situation and get the best outcomes for both staff and the company. One year on, the results so far have been remarkably positive. We can therefore make some recommendations for anyone else in this situation, some of which are also worth considering for companies during normal operations.
Actions taken
- Long notice period – We managed to agree 18 months’ notice of the final closure. This was necessary to complete current work and have an effective handover so that the complex medical imaging software products could continue. However, it was a very long time to hope that people would stay so other measures were needed.
- Generous redundancy packages. These were agreed at a level which impressed staff. With their tax-free nature, this gave people confidence that even if they didn’t find another job immediately, they would not have any financial worries for a few months.
- Relocation support – Real commitment was shown to staff to find them other places within Siemens. This included generous relocation packages, funded exploratory visits for staff and families, advice from locals and flexible move dates. This was not cheap, but the cost was much less than hiring and training somebody new.
- Voluntary end dates – Rather than imposing end dates, staff were asked to openly express whether they wanted to stay 6, 12 or 18 months. It’s very hard to predict how people will react so it was better to try to align individual’s needs with business needs. Almost 100% of people got they end date they wanted, most opted for the longer duration and the company had adequate cover.
- Keeping a training budget – Staff were given encouragement to still do training and qualifications. The company would still get some benefit from the training in the short-term, it would help staff with finding a new position, but mostly it helped reassure staff that they could stay and still develop themselves.
- A larger entertainment budget – It was important for people to socialise and support each other so there was an increase in company-funded drinks, lunches and a bigger-than- normal Christmas party.
- Help with job-hunting – Staff were allowed to take some time for interviews and encouraged to have an open discussion on opportunities with support given to try to accommodate people’s wishes where possible. External consultants were available to advise on interview techniques, CV-writing and job hunting.
- Effective use of employee representatives – Rather than just fulfilling a legal requirement, a real effort was made to engage with the elected employee representatives, create a detailed FAQ for staff and share all information on the intranet.
- Continued staff recognition. The office was required to operate properly for an extended period so it was only fair that staff should be treated normally and retain the opportunity to still achieve an above-target bonus and the opportunity for promotion.
- Management care – The managers have been very open, honest and helpful to the staff and shown genuine care and empathy for people and their circumstances. This probably made the biggest difference and enabled so many of the positive results. A site closure can be viewed by staff as a big breach of trust, so asking staff to believe promises about arrangements during the remaining period is a challenge and requires lots of reinforcement, consistency and ensuring that was is said is done.
Results
- Staff morale – This went through the inevitable rollercoaster of shock, anger, worry then acceptance. People were annoyed or upset at the decision, but overall viewed the offers as fair and professional. Staff who had been through a redundancy before thought that the way this was handled was much better. Although losing colleagues is unavoidably sad, people have been positive about making the best of the situation.
- Staff stayed until their agreed date – The long notice period and generous packages meant that most people were fairly relaxed about finding a new position and happy to leave serious job hunting until a few months before their agreed end date. Whilst, it’s an imposed change for everyone, in some cases, staff have appreciated having the “luxury” of having an extended period with a financial cushion during which to calmly think about what alternative job they would really like to do in future. Staff have been open about their hunting and have discussed mutually agreeable end-dates before accepting offers.
- Results still achieved. Work on products continued at a good level. Inevitably people weren’t going the extra mile in quite the same way as they used to but were professional and productive. Staff have been helpful in ramping up new recruits in India and continue to take pride in their products. There have been no surprise, early, resignations or disciplinary issues.
- A surprising number relocated. 25% of people relocated to the USA which was a lot higher than anyone originally expected since people liked being in Oxford.
- Additional social events – The activity in the office “community” if anything picked up since the news with whisky tasting, a pool tournament, team nights out, a group cycle ride around town etc.
- Peer-to- peer training – Staff have shown a great desire to support each other and proactively run open seminars for others in the office to share their knowledge with others (e.g. Sharepoint, Data Science, Android Programming, Arduino programming, Linux etc)
- More cakes – We’ve always provided cakes on a Friday but the number of spontaneous cakes being brought into the office on other days has gone up.
Overall it has been a much more positive experience it could have been. The office morale is still good and the staff have received outstanding praise for their continued professionalism and dedication.
The results has been good for the company as there is a smooth handover taking place while ensuring that people are taken care of. The actions above have not been cheap for the company in the short-term, but are ultimately delivering better long-term value than the alternative of instant site closure followed by disorder and a long period of rebuilding a new team from scratch.
Suggestions relevant for companies not closing
Whilst some of the topics are only relevant to a site closure, some things could be beneficial anytime.
- Management openness is always a good thing. It’s easy to forget the importance of explaining plans and listening to feedback. Make sure there’s time for group meetings, 1 to 1 sessions and occasional surveys.
- Peer-to- peer training is always very cost-effective so time and support should be given for this. Staff have a lot of varied knowledge and it’s motivating for both the trainer and attendees.
- Creative entertainment. It can be an easy area to cut, but pays back a lot. If people have a good social relationship with colleagues, they are much more committed to them and hence also the company. The entertainment does not necessarily have to be lavish e.g. a pool table and tournament, an indoor mini-golf area made out of office accessories and text books, a pancake- tossing event on Shrove Tuesday etc. Something a bit different every few months keeps things fresh. Cakes, are always good.
- Look for the best outcome for both staff and the company given the circumstances. Arrangements with staff have to be fair to get the best results in the long-term.
By: Stephen Wells, Siemens Molecular Imaging, Oxford
How the Future of Tech Impacts Work Habits
During the DevExperience conference on the 25th of March, we sat down with one of the key speakers, Lisette Sutherland, to discuss the ways in which technology advancements, and VR in particular, will impact people’s lives and working habits.
Beaglecat: Could you please tell us something about yourself and the company you run?
Lisette Sutherland: I am the director of my own company, Collaboration Superpowers. Myself and other licensed Facilitators give online and in-person workshops to help companies work better together remotely. I am also the remote team manager at a company called Happy Melly – a global network of businesses that are focused on making people happier at work (included are Management 3.0, my company, LeanChange.org, Improv Agility, and others).
BC: Do you think in 5-10 years we will have offices like we have today or do you think everyone will work remotely?
L.S.: Technology is making the traditional ”9 to 5” schedule unnecessary and less attractive for more and more people, especially the younger generation. The most important thing is working from where you are the most productive. Some people work better on the road, some at the beach, some from the office, some from the comfort of their own home – everyone should choose what works best for them.
BC: Do you think that we will be able to work using Virtual Reality in the near future?
L.S.: They’re already doing it. Virtual worlds have existed for more than 20 years now. People are going to school and earning degrees in VR. People are going to conferences in VR. The military uses VR for simulations.
The only issue is that navigating in VR is very difficult, it’s like learning to play the piano. That’s why it’s not so popular. It’s worth trying it out to see what it’s like to be in a virtual world. For example, you can create an account in SecondLife. When you log in, you are placed on a “newbie beach”, literally a beach for new people. Then you have to learn how to move your character and interact with the world and find your way to the place you want to go (like a conference).
BC: I am guessing that 10 years from now this is going to grow. How do you think this is going to impact us?
L.S.: One thing to be careful of is getting enough real life social activity. Technology has an addictive, unhealthy side to it. Each person needs to create healthy boundaries for themselves. The exciting thing is that with technology people can get together from anywhere in the world and solve interesting and challenging problems. I used to work for a company that was developing an online project management tool. The CEO was building it because he wanted to solve the problem of aging. He was frustrated that longevity scientists all over the world couldn’t properly collaborate together and easily share data. So he set out to build a tool they could use to collaborate at a distance. For me it was an ‘aha’ moment. I realized that if we could get the right people together, we could do great things like curing cancer or stopping global warming, or aging.
BC: What do you think the world will look like in 20 years?
L.S.: It is hard to say because if you asked someone 20 years ago what the future would look like today, they would have probably envisioned it completely different.
I recently held a workshop in Lebanon from the Netherlands using a robot – so I beamed into Lebanon, talked to the people as if I were there in the room. Drivable robots are also available now. For example, my friend from Canada beamed into one of these robots in Las Vegas, I beamed into another one from the Netherlands, and we both attended a conference as if we were in Las Vegas together. We visited booths, saw a presentation, had tea together, all from the comfort of our own living rooms. If you had told me I’d be doing that 20 years ago, I wouldn’t have believed you.
When borders dissolve, the possibilities really start to open up. For example, someone in Romania can work with a team in San Francisco, or a team in Vietnam. Sometimes you need that one guy or girl with that unique skill that nobody has – and what if that girl is not from the city you are working in?
There are also many people in the past that have been limited by location. For example, military spouses, disabled people or retired people. Military spouses have a hard time finding stable work because they are constantly moving. And there are many people who have retired, but still want to practice their craft or continue working somewhere. Because of remote technologies, there’s a whole new pool of people to choose from for the work that needs to get done.
BC: So do you think that in the future robots will do everything?
L.S.: I think robots should do the boring work and humans should do the interesting work. And maybe in the future not everybody will have to work full time, and maybe that’s ok. Do we have to work 40 hours a week? Why? That was a random number set by Henry Ford. Maybe we could work 20 hours a week and the rest of the time we could travel, or work on our hobbies, or spend time with our family, or just do whatever we want.
BC: What do you think is the influence of technology on productivity?
L.S.: Recently, I see a lot of companies struggling to go from being time-oriented to results-oriented. When we can work from anywhere, the focus is more on what you get done, not how long it takes you to do it. Spending the whole day at the office only means that you spent the whole day in the office, not that you were productive.
Summing up, the good thing about technology is that it dissolves borders but it requires a new way of working. What it means to be “present” at work is changing, and it’s opening a lot of new opportunities. A lot has happened in the last five years. I encourage people to explore some of the new tools and think about how they can use it in their own lives. My Work Together Anywhere Workshop is a great place to start.
Lisette Sutherland is Director atCollaborationSuperpowers.com, a company that helps teams work together from anywhere. She is also the remote team manager for the all-remote freelance team at Happy Melly.
Gig Economy
You could drive yourself steadily insane compiling a list of all the trends that were supposed to fundamentally reshape business. Once upon a time we were all “flexi” workers, then “mobile learners”. Both terms seem antiquated now, the corporate equivalent of a Segway – perfectly sensible in principle but somehow faintly ridiculous in reality.
What makes the “gig economy” – the legion of individuals taking on piecemeal work, enabled by online talent platforms – feel different is that it’s being driven not by hip early adopters in co-working spaces (though there are plenty of them involved too) but by genuine need, both in the “real” economy and, crucially, in boardrooms.
If you were staffing a major new project from scratch today, it would seem an act of faint lunacy to bring in a raft of full-time employees with cumbersome overheads (and personal taxes) when you could go online and find experienced, verifiable individuals you could pay by the hour and dispose of when required. Similarly, if you were a coder, IT contractor or other technical specialist, why would you harness yourself to one organisation when you could enjoy both variety and a more lucrative income hopping from gig to gig (along with the attendant tax advantages of being self-employed)?
So many businesses are waking up to this recalibration that 450,000 people with full-time jobs now have second jobs, many of them via TaskRabbit, Elance or their multitude of competitors. PwC has tried to cut out the middleman by setting up its own talent “market” of registered suppliers its offices can bid on. There are individuals in greater London making a handsome living assembling flat pack furniture on a piecemeal basis for an hourly rate – an occupation that would have been almost logistically impossible just a couple of years ago.
You can understand the appeal of living by the gig, beyond the financial benefits. The conventional career has been an awkward fit for many people over the years, and few jobs are capable of maximising all our skills and intelligences. Besides, most work is boring, which is why those lucky enough ever to have had a job for life employed the conversational repertoire of the prison system (“putting in hard graft”, “serving your time”) to describe it.
Gigs, by contrast, are exciting and ever-changing, even though they ask some deep questions of the psychological contract (why would I exercise discretionary effort for a business that only employs me for a matter of days? Can I trust someone who could work for my biggest rival tomorrow?). But they aren’t an untrammelled good, either. For every actuarial scientist earning a small fortune for a short-term job, there’s a hotel chambermaid who is now being paid by the room rather than the day. The huge rise in self-employment in the UK has as much to do with businesses shifting such workers – we should include the small army of couriers and delivery drivers in this calculation – off their books as it does people discovering new freedoms. Palpably, none of them are enjoying the benefits of the gig economy, not least because they cannot practically control where and how they work. They are left, instead, to feed on scraps.
Uber, the erroneously attributed poster child of the gig economy, faces a legal challenge over whether its drivers are technically employees. It maintains they are self-employed. This is a vital point for the courts to consider – cycle couriers and plumbers are engaged in similar cases – but in Uber’s case we should also note that it controls the supply of drivers into the market, and their pricing. This is assuredly not the “freedom” gig economy enthusiasts speak of.
Governments will have to decide the legal and ethical boundaries of such behaviours, not least because if gigs take off, their tax revenues will rapidly vanish. Already, there is serious talk of the need for a third kind of classification, between “employee” and “self-employed” which recognises the shared responsibilities (both financial and relating to holidays, sick pay and other benefits) between giggers and those they work for.
Pioneers like Wingham Rowan, who runs the Beyond Jobs consultancy, are trying to imagine a market that will ensure the gig economy brings mutual benefits and conveniences without being open to abuse. Businesses who want to enjoy the flexibility such arrangements provide should not absent themselves from such discussions – but neither should they fear this will turn out to be just another fad.
By: Robert Jeffery, Editor of People Management magazine
Save the date
Get ready to Spark, we’re happy to announce Spark the Change 2018 will be happening next June in Paris. We will announce speakers soon. We can’t wait to see you there!