Managing People

• Reduced Healthcare Costs: Aetna's Integrated Benefits Institute reports that workplace wellness programs can generate a return on investment (ROI) of up to 6:1 by reducing healthcare costs associated with stress-related illnesses.
• Enhanced Employee Retention: A 2017 study by Towers Watson found a strong correlation between employee wellbeing and reduced turnover. Investing in employee wellbeing demonstrates a commitment to their well-being, fostering loyalty and reducing costly recruitment efforts.
• Improved Employer Brand: Organizations with strong wellbeing programs attract and retain top talent. A 2018 Randstad Employer Brand Research** report highlights that a focus on employee wellbeing is a key factor for talent seeking a positive work environment.
• Enhanced Innovation and Creativity: Research by Fredrickson (2009)** suggests that positive emotions broaden and build thinking styles. Happy and healthy employees are more likely to be creative and come up with innovative solutions.

Conclusion: Investing in employee wellbeing programs is not just the right thing to do, it's a smart business decision. The benefits for both employees and organizations are clear, leading to a more productive, engaged, and successful workforce.

High Road vs. Low Road Approaches to Performance Management

High Road:

• Focus on development: Coaching, mentorship, and training opportunities to help employees improve performance.
• Employee engagement: Open communication, two-way feedback, and collaboration to achieve goals.
• Supportive work environment: Flexible work arrangements, work-life balance initiatives, and recognition programs.

Low Road:

• Focus on punishment: Disciplinary actions, threats, and micromanagement to control performance.
• Fear-based motivation: Emphasis on potential consequences of failure, leading to stress and anxiety.
• Limited employee involvement: Top-down directives with little employee input.

Merits of Each Approach:

• High Road: Leads to higher employee motivation, engagement, and loyalty. Results in a more positive work environment and improved performance.
• Low Road: Can be effective in the short term for simple tasks with clear directives. However, it can lead to decreased morale, high turnover, and resentment.

Are High Road Approaches Always Preferable?

While high road approaches are generally preferable, there might be situations where a low road approach is necessary:

• Serious misconduct: Immediate disciplinary action might be necessary in cases of theft or safety violations.
• Poor performers who refuse to improve: After offering support and development opportunities, low road strategies might be used as a last resort.

The key is to use a balanced approach. Start with high road strategies and progress to low road options only when necessary and after proper documentation.

Examples:

• Southwest Airlines: Their high road approach, focused on employee well-being and empowerment, has resulted in exceptional customer service** and a loyal workforce.
• Manufacturing plants with strict safety protocols: Here, a low road approach with clear consequences for safety violations may be necessary to prevent accidents.

Employment Relations in the UK:

Opportunities for Effective HR:

• Proactive Communication: Regular communication with employees and unions can build trust and address concerns before disputes arise.
• Conflict Resolution Skills: HR professionals trained in conflict resolution can mediate disputes and find solutions acceptable to both parties.
• Focus on Fairness and Transparency: Ensuring fair treatment and transparent decision-making fosters a more positive work environment.

Barriers to Effective HR:

• Management Resistance: Management may be resistant to change or unwilling to address employee concerns.
• Union Power Dynamics: Navigating complex union dynamics can be challenging for HR.
• Lack of Resources: HR departments may lack the resources or training to handle complex disputes effectively.

Evaluating the Impact of People Practices:

Methods of Evaluation:

• Employee Surveys: Measure employee satisfaction, engagement, and perception of HR practices.
• Performance Metrics: Analyze data on absenteeism, turnover, productivity, and accidents to assess the impact of HR initiatives.
• Cost-Benefit Analysis: Calculate the cost of HR programs and compare it to the benefits achieved, such as reduced recruitment costs or increased productivity.