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Sustaining trust and an inclusive organizational environment amidst
uncertainty
Olga Epitropaki, PhD Professor, The “Stavros Costopoulos” Chair in Human Resource
Management & Development,
ALBA Graduate Business School, Greece
& Senior Lecturer, Aston University, UK.
An uncertain environment…
Like a skyfall…
O. Epitropaki, 11 March 2015
Like in every Greek tragedy…
Hubris Catharsis NEEDS
O. Epitropaki, 11 March 2015
The thorny issues…
• Huge accumulated debt
• Significant public sector inefficiencies…
O. Epitropaki, 11 March 2015
The thorny issues… • Leadership deficit!
• Systemic Corruption!
• Tax evasion
• Lack of competitiveness
– Rigid legal framework
– Union power
– “Closed” sectors
– Limited support to private initiatives => “public is good” vs. “private is bad” type of mentality
O. Epitropaki, 11 March 2015
The gloomy reality…
O. Epitropaki, 11 March 2015
The gloomy reality…
O. Epitropaki, 11 March 2015
The impact on companies…
RCI, ALBA Graduate Business School, 2013
Not at all A little Average A lot Dramatically
The impact on companies…
RCI, ALBA Graduate Business School, 2013
Not at all A little Average A lot Dramatically
Budget reduction for training
Budget reduction for training of managers
Bonus cuts Salary cuts Lay offs
Company relocation to another country
Yes No Did not answer
RCI, ALBA Graduate Business School, 2013
The impact on companies…
45
55
Salary cuts
Yes No
Impact on companies
Range: 6-40% Average: 17%
ICAP, CEO Study, 2013
Salary cuts
25
44
31
0
5
10
15
20
25
30
35
40
45
50
>20% 10-20% <10%
RCI, ALBA Graduate Business School, 2012
Salary cuts
65
31
Horizontal
Tied to performance
RCI, ALBA Graduate Business School, 2012
42
58
Layoffs
Yes No
Impact on companies
Range : 5-60% Average: 21%
ICAP, CEO Study, 2013
What about diversity & inclusion?
- Which has been the dominant approach before the crisis?
- Current reality?
O. Epitropaki, 11 March 2015
Diversity management in context
• The starting point for diversity management in Greece lies in
the discussion of equal opportunities for women and men =>
gender equality and gender mainstreaming rhetoric.
• There has been growing sensitivity for other dimension of
diversity in the workplace such as age and ethnicity but has
not yet led to legal guidelines.
• EU directives regarding discrimination against specific
employee groups (EU, 2000).
• Limited diffusion of diversity practices in Greek companies
with higher levels of adoption in MNCs and in companies
strategically oriented to innovation (Epitropaki, 2007).
O. Epitropaki, 11 March 2015
The crisis amplified existing inequalities
O. Epitropaki, 11 March 2015
The crisis amplified existing inequalities
O. Epitropaki, 11 March 2015
Eurostat (2010): Database – information on employment (LSF based), Gender pay gap
Job-market: Women work more often in part time
& less frequently than men – at a lower hourly-wage
O. Epitropaki, 11 March 2015
Industry: women are scarce in management positions, especially in large corporations
O. Epitropaki, 11 March 2015
How can companies sustain trust and an inclusive environment in such
conditions?
- Key lessons and best practices
O. Epitropaki, 11 March 2015
1. Cut cost but don’t destroy capability
O. Epitropaki, 11 March 2015
Will implement in the next 6 months Have already been implemented
New communication tools (blogs, social media, etc.)
Internal promotions
New ways of recognition of high performers
Videoconferences rather than actual trips
Idea boxes and suggestion schemes
Positive work climate via events and celebrations (e.g. athletic teams)
Lay-offs tied to past performance
Cost-cutting with no negative consequences on morale
ALBA, RCI, 2012
Outsourcing of key processes (such as payroll)
E-learning training programs
Hiring talent from the competition
Tax-free benefits inclusion (e-ticket)
Cost reduction and efficiency improvement via wider IT training
Flexible ways of working
Eco-friendly driving lessons for sales staff
Have already been implemented
Will implement in the next 6 months
Cost-cutting with no negative consequences on morale
ALBA, RCI, 2012
1
12
5
4
3
13
34
0 10 20 30 40 50 60
Career break
Tele-work
Job sharing
Early Fridays
Compressed week
Flexi-work
Part-time
Flexible work forms
ALBA, RCI, 2012
O. Epitropaki, 11 March 2015
48
37
47
55
65
37
0 10 20 30 40 50 60 70
Employee resistance
Bad publicity
Lack of incentives for implementation
Internal communication problems
Problems related to customer service
Marginalisation of employees who usethem
Why limited adoption?
ALBA, RCI, 2012
O. Epitropaki, 11 March 2015
2. Build Positive Psychological Capital
O. Epitropaki, 11 March 2015
Positive Psychological Capital
Luthans (2002)
An individual’s positive psychological state of development characterized by:
•Optimism
•Resilience
•Hope
•Efficacy 3 3.2 3.4 3.6 3.8
Efficacy
Hope
Resilience
Optimism
Tsichla & Epitropaki, 2011
O. Epitropaki, 11 March 2015
Unemployed vs. employed
0 2 4 6
Depression
Stress
Hope
Resilience
Optimism
Self-esteem
Proactive Personality
Learning Agility
Unemployed
Employed
ALBA-Citi Youth Employability Study, 2013
Best Practices
• Fun at work initiatives (EFG-Eurobank, Montelez) • Positive Energy week (Costa Navarino) • Wellness and stress relief programs (Novartis,
Papastratos, Pepsico) • Sports teams (Lamda Helix, Club Hotel Loutraki,
JTI, Phramaten) • Theatre teams and standup comedy (Club Hotel
Loutraki, Roche) • Music bands (Pharmaten Rock band) • Cooking competitions (GE, Roche)
O. Epitropaki, 11 March 2015
3. Regain trust
O. Epitropaki, 11 March 2015
Trust-breaking leader behaviors
Epitropaki, Thomas & Martin (2010)
• Performance and competence issues
• Moral and ethical violations
• Allocation of tangible resources
• Allocation of intangible resources
• Lack of socio-emotional support
• Incivility and social undermining
O. Epitropaki, 11 March 2015
Can leaders regain trust?
In the aftermath of a “betrayal” leaders can use:
• Relationship-oriented strategies: Amends, apology, confession, explanation, penance => higher chances for trust repair
• Self-oriented strategies:
Denial, reticence, deception => short-term,
“saving face” focus
Epitropaki, Thomas & Martin, EURAM, 2013
O. Epitropaki, 11 March 2015
Open communication
• “Breakfast with the CEO” (e.g., Kleeman)
• VOE Ambassadors (Citi Hellas)
• Wow Experience (Sprint)
O. Epitropaki, 11 March 2015
4. Focus on total rewards
O. Epitropaki, 11 March 2015
TRANSACTIONAL (TANGIBLE)
RELATIONAL (INTANGIBLE)
PAY/REWARD
• base pay
• contribution pay
• shares/profit sharing
• recognition
BENEFITS
• pensions
• health care
• perks
• flexible benefits
LEARNING AND DEVELOPMENT
• workplace learning
• training
• performance management
• career development
WORK ENVIRONMENT
• core values
• leadership
• employee voice
• job/work design
Best Practices
• “Star” Awards and “Eagle” awards (1Source Aero Services).
• “Great Team Heroes” – poster of the winners in the company (Mars).
• The “president’s award” (Papastratos).
• Co-workers’ awards (Costa Navarino).
• Internships to employees’ children after finishing university (Melissa)
O. Epitropaki, 11 March 2015
• Athenian Brewery: 180 employee volunteers • Distributing food to homeless and families in need (British
American Tobacco). • Organizing workshops for the unemployed (AB Vasilopoulos) • Theatre teams that donate all revenues to families in need
(LeasePlan Hellas) • Painting of buildings (e.g., of schools, children charities) – British
American Tobacco, Mars, Novartis Hellas. • Reforestation programs (Athenian Brewery, Diageo, Genesis
Pharma, Kleeman, Mars, etc.) • Cleaning beaches (General Mills, Wind)
Employee volunteering
O. Epitropaki, 11 March 2015
5. Redeploy effectively
O. Epitropaki, 11 March 2015
Focus on employability
• We experience a paradigm shift in our thinking about employment in Greece:
– From lifetime employment to flexible forms and mobility.
– From passive forms of employability to active forms.
– From a need for knowledge and technical capability to a need for soft skills.
– From a national focus to a global focus.
O. Epitropaki, 11 March 2015
Youth employability?
0 50 100
I am not inclined to accept a job offer on asubject different from my studies
It is important to find a job that fits with mystudies
I have a good business idea but it is difficult tofund it
I am seriously thinking to start my ownbusiness
My skills could be utilized in many differentpositions and by many different organizations
It will be easy to find the right job
I am prepared to leave Greece for a new job
10
82
35
30
63
11
60
11
62
41
33
74
7
55
>29
≤29
ALBA-Citi Youth Employability Study, 2013
O. Epitropaki, 11 March 2015
Differences of HR and youth perceptions
-50 -40 -30 -20 -10 0 10 20 30
Good academic qualifications
Technical expertise
Leadership skills
Creativity and innovation
Change management
Extra effort
Professionalism
Goal-setting
Global mindset
Adaptability
ALBA-Citi Youth Employability Study, 2013 O. Epitropaki, 11 March 2015
-50 -40 -30 -20 -10 0 10 20 30 40
Teamwork
Emotional Intelligence
Influence and Sales skills
Communication
Learning orientation
Knowledge breadth
Self-awareness
Initiative
Intrinsic motivation
Ethics/Integrity
Differences of HR and youth perceptions
ALBA-Citi Youth Employability Study, 2013 O. Epitropaki, 11 March 2015
6. Equal opportunities still matter!
http://gender-competence.eu/en/
O. Epitropaki, 11 March 2015
O. Epitropaki, 11 March 2015
7. Strategic HR makes a huge difference!
O. Epitropaki, 11 March 2015