Koen Dewettinck

Finding the Right Balance

Finding the balance

The way we manage people is becoming both ‘harder’ and ‘softer’.  It is becoming harder in the sense that companies are operating in an increasingly competitive environment. Companies are realising that their people make the difference and hence there is pressure to continuously improve performance. Employees are confronted by increasingly stringent targets and performance metrics.The way we handle people is also becoming softer, however, in the sense that companies are investing more in their organisational culture and the development of their people. Companies recognise that they need to create a great place to work if they wish to attract and retain the talent they need.

The challenge is to find a balance these two somewhat contradictory policy directions. For example, one can set tough performance targets but at the same time create an environment where people feel empowered and supported in their careers. This is why education and training is so important. You have to provide the necessary support otherwise people will feel overwhelmed.

Lifelong learning

Due to demographic factors—the ageing population—there is increasing pressure on people to work longer.  In light of this, we should question our assumptions about what a typical career is. At present we have a very linear perspective on our careers: you study until you’re 25, then you have your career, and then you retire.  If we are going to work longer, then we should allow for more flexibility in that trajectory. For one, we need to think more in terms of lifelong learning. The world is changing so rapidly, hence it is essential that we keep on learning and updating our skills. But people also need to be able to take a break in their career, to study or simply to reassess their priorities, and possibly change tack.  

The boundary between education and training is blurring. Learning increasingly is something you do on the job too; not just at school. Via project work and coaching models people are given more perspective in their careers, more opportunity to learn new skills and pursue different career directions. This is also where e-learning comes into the picture, to help make continuous learning possible.  E-learning programmes are very flexible—they’re independent of time and place—and can be tailored more easily to the needs of individuals. At this point, however, e-learning has not taken off quite as expected.  Hybrid forms that combine classroom learning, e-learning and coaching are more popular. Nevertheless, it is an unstoppable trend. The Vlerick Management School is actively investing in e-learning. We have developed an e-learning platform which is currently being tested.   Obviously we do not see it as replacement of our existing programmes; we regard it as a complementary channel.  

This multi-pronged approach is important.  Coaching too is a powerful component to education. Companies increasingly rely on coaching as a way to strengthen the learning process. A specific group may undergo classroom training but this is then followed up with coaching on the job to ensure that this knowledge is actually applied, that it translates into behaviour and action.  E-learning will inevitably gain traction but it is clear that companies still value face-to-face contact. At the Vlerick School we operate in an internationalised context. We have two campuses in Flanders, one in St-Petersburg and a joint venture in China. Our current full time programme has over 40 nationalities represented in class. That is incredibly enriching. Bringing people together physically remains a powerful component of our value proposition.

Learning is also becoming more social. We are now seeing training programmes being split up over a year and involving more interactive components such as a blog or forum to share lessons learned and to provide ongoing feedback. This allows people to reflect more on the knowledge they are gaining and how this knowledge is applied in their careers.

The changing role of HRM

The role of HR Management is clearly evolving. On the one hand it is becoming more rigorous and ‘hard’, in the sense that HRM is under pressure to prove its value and its business impact.  HRM is learning the language of business. If it wants to be taken seriously at board level, then it needs to evolve in that direction. On the other hand companies increasingly recognise the value of their organisational culture. But this is so much more difficult to grasp, to measure. You can’t create an organisational culture where people are motivated and engaged with their work, simply by applying technical HRM skills. This is more a function of the leadership and management skills across the entire organisation.   HRM can play a strategic role in this regard, by supporting the development of those skills, but it is ultimately the business lines that carry the organisation’s values and culture.

We see HRM evolving into three reasonably distinct activities. Increasingly, companies are relying on a shared services model for the transactional aspects of HRM. These are activities that can be outsourced. The second component is business process design, for which dedicated expertise centres are set up.  And thirdly, HRM serves as a business partner, supporting the business on the ground with people-related issues.

Loyalty

Some trends contradict each other which again highlight the balancing exercise that HRM faces. Take loyalty for example.  On the one hand the traditional idea of lifelong employment and mutual loyalty (company to employee and employee to company) does not hold anymore. Most companies cannot make such promises anymore. And employees’ expectations have changed too. The way most companies reacted to the current recession has simply accentuated that evolution. Hence there is a lot more career mobility and job-hopping.  But on the other hand, the high-performing companies are those that still do offer long-term career perspectives to their people. Top performing companies typically are widely recognised for their strong employment brand and hence their ability to attract and retain the best talent in the market.  

Four conclusions

In context of all these trends, I could summarise my advice to companies in four points. Firstly, make the right decisions about who you place in management positions.  Do they have the right capabilities and motivation? Secondly, do not be satisfied with the status quo.  You should strive for continuous improvement and change. Often this will elicit resistance, but it is necessary to create drive and energy in the organisation. Thirdly, find the right balance between challenging people and offering sufficient support. It is essential that you challenge your people because that way they feel that they’re developing and growing, but take care not to overwhelm them. Finally, take a good look at your knowledge management strategy. In light of the ageing population, but also the increasing career mobility, it is important that you have the systems in place, and the values, that stimulate knowledge sharing.