Category: Beyond Leadership

Beyond Leadership is Horizon Point’s line of resources for managers of people. Managing ourselves is a distinct set of behaviors from managers the work of others, and we are here to help. Read stories in this category if you are ready to take the next step into people leadership (or if you’re looking for articles to send someone else…).

  • Unlimited Paid Time Off- The What, How, and Most Importantly, the Why

    Unlimited Paid Time Off- The What, How, and Most Importantly, the Why

     

    If you believe employees need strict rules and enforcement to be productive, hiring and retaining high-performance people will be a challenge for you. You hired these people for their tenacity and talents. Get out of the way and let them be great. Deal with any people who choose not to meet expectations on a case-by-case basis.” 

    Sue Bingham, HBR article

     

    My husband came home one day and told me about a conversation he had with a friend about her company’s recent switch to unlimited paid time off (PTO).

    “Is that really a thing?” he asked me.

    “Yep,” I said. “That’s what we do.” 

    “Your team has unlimited PTO?” he inquired.

    “Yep. It works well,” I said. 

    “Well, she was saying that she feels like she’s less likely to take time off now that it’s ‘unlimited’ than when there was a clear-cut policy on how much she had and if she didn’t use it, she would lose it,” he said.

    “Interesting,” I said.  Culture, I thought, with a little bit of personality probably mixed in as well. 

    Unlimited PTO is, in fact, a growing trend. Whereas only about 2% of companies offer it and 9% of workers have it, the growth of unlimited PTO is a real imperative in recruiting and retaining talent given that the number one priority of job seekers is work-life balance, as cited in a recent study by LinkedIn. 

     

    What is it? 

    In most cases, it is exactly what you think it is.  It is that time off, whether for vacation, illness, or any other reason, that is paid and unlimited.  People aren’t assigned a set number of days off they can take and time off isn’t earned and accrued. 

    This means some good things for organizations:

    • If done right, it should build a culture of trust and productivity between employees and leadership, leading to more positive outcomes- ie- what most organizations claim to be doing it for- improving recruiting and retaining the best talent.
    • You don’t have the administrative burden of keeping up with and regulating it.
    • You don’t have the administrative burden of answering questions about how much people have or don’t have.
    • You don’t have to (if this has been your normal policy) pay it out when people leave.

    This means some good things for employees:

    • They can take off when they need it for whatever reason and don’t have to justify, lie, or explain why they are taking it.
    • They don’t have to track it and keep up with it either.
    • If done right, it should build a culture of trust and productivity between employees and leadership leading to employee engagement and satisfaction.

     

    How you do it

    In order for unlimited PTO to be successful, there are some keys for organizations and employees. 

    For organizations: 

    • Like almost everything, you train leaders of people how to handle it, with the focus on managing and developing performance, not managing time, and instead focusing on trust and autonomy as key drivers of productivity and positive outcomes.  You ensure leaders are ensuring rewards and motivation are based on results, not time. Train leaders to help them understand how to handle underperformance related or unrelated to the unlimited PTO policy on a case-by-case basis. 
    • If you are changing to it, communicate clearly what it means and how it will be implemented and what it will change for people.  Make sure you handle how any accrued time under an old policy will be handled.
    • You ensure your leaders model it by taking time off when they need it; people believe demonstrated behaviors more than they believe policy.

    For employees: 

    • Take time off when you need it.
    • If you perform well, everything will take care of itself.

     

    Why to do it

    Unlimited PTO, like any other policy or lack thereof, should be linked back to your organizational values and should be lived in the day-to-day behaviors of all people that are a part of the organization.  

    Yes, you do it to enhance business outcomes, but that is not the end or why.  This is the outcome of the right why. 

    I don’t know why my husband’s friend felt she would take less time off with an unlimited PTO plan. I don’t know if that feeling was more about the intent of her employer for shifting to one, linking back to their culture and values. Much has been written about this as it relates to the perceived malicious intent of employers switching to it.  It may have simply said more about her personality and her view of work. 

    But what I do know is that it works for our team.  And I trust that it will continue to even as we hopefully grow our business and team. And I hope and pray that is because it says something about our culture and its link to our value of People First. 

    How do you feel about unlimited PTO? 

     

    To read more and to see references to statistics cited in this post, check out these articles: 

    Forbes

    Fortune

    TandemHR

    SHRM

    Why Unlimited PTO is Becoming and Industry Standard

    The Stats Behind Unlimited PTO

    Unlimited PTO is a Deceptive Ploy

     

  • Benefits Benchmarks: North Central Alabama

    Benefits Benchmarks: North Central Alabama

    A few weeks ago, I asked the question “Are Employees Utilizing Those New Perks?” and highlighted benchmarking as a critical activity for evaluating workplace benefits. Now, we have the published results from the 2022 North Central Alabama Wage & Benefit Survey!

    First up, Average Benefit-Cost Per Employee (Annual) increased 25% over 2021. Employers reported an average of $16,608 spent annually per employee in benefits, compared to $12,459 one year ago. Some hot categories for increased benefits spending are Child Care Support, Adoption Support, Pet Insurance, and Elder Care Support. These types of benefits are increasingly attractive, and the Huntsville/Madison County Chamber Foundation is now providing the Best Place for Working Parents® program in recognition of companies that are focusing on family care.  

    Next up, 72% of companies are now offering a PTO (Paid Time Off) structure in place of set hours/days for Sick Leave, Vacation, etc. Last year, only 58% were using a PTO structure. This shift aligns with increases in Flex Time and Remote/Telework benefits as options to give some autonomy back to employees. If you’re thinking about shifting your Leave and/or PTO policies, look for a blog post coming soon from Mary Ila Ward on Flexibility and Unlimited PTO. 

    Paid Family/Parental Leave is more available, with a 17% increase in the number of employers offering any amount of leave designated specifically for family/parental leave. The median leave times in weeks jumped from 2 weeks to 4 weeks.  

    If you are in the North Central Alabama Region, how do your benefit offerings stack up against these benchmarks? 

    If you are outside of this region, where can you find local data? Check with your local Economic Development Agency and/or Chamber of Commerce to find out if local data is available. 

    Benchmark, benchmark, benchmark! 

    This wage survey covers Cullman, Lawrence, Limestone, Madison, and Morgan Counties in Alabama and represents 132 company respondents in 2022. Learn more here

     

  • 3 Leadership Lessons from Garth Brooks

    3 Leadership Lessons from Garth Brooks

    We call them strong
    Those who can face this world alone
    Who seem to get by on their own
    Those who will never take the fall
    We call them weak
    Who are unable to resist
    The slightest chance love might exist
    And for that forsake it all
    They’re so hell-bent on giving, walking a wire
    Convinced it’s not living if you stand outside the fire
    Standing outside the fire
    Standing outside the fire
    Life is not tried it is merely survived
    If you’re standing outside the fire

    Garth Brooks- Standing Outside the Fire

     

    My husband and I attended a Garth Brooks concert this past weekend with some friends. It was so good to spend time with friends we grew up with and enjoy live music again!  All of us grew up on Garth Brooks music, and like other artists of our time and age, a lot of his music has shaped the memories we have of our childhood and teenage years. 

    I was struck not only by the music and the crowd of the concert but also by the leadership lessons Garth exhibited while performing:

    1. Surround yourself with a diverse group of people.  You’ll all perform better. Those that performed with Garth were a diverse group- spanning age, race, gender, and talents. It was obvious that they took cues from one another and truly enjoyed performing together. The whole was greater than just the sum of the parts, in part, because of the diversity present. 
    2. Give away the credit. You’ll find joy through others’ gifts. Throughout the concert, Garth recognized everyone on stage by name and highlighted their talents and the value they brought to the group. He also recognized those that had contributed to his success off the stage. His wife, Trisha Yearwood, was brought on stage to sing with him and also showcase her talents by singing two of her own hits. He glowed watching her perform and it was inspiring to see. 
    3. Bow together.  The crowd loves you all.  Garth was obviously the star, the person people came to see.  It would have been entirely appropriate and expected at the end of the concert for him to bow by himself. As they made their way around the four corners of the stage facing different segments of the crowd, Garth never once bowed alone. He bowed together, with his team—all of them. 

    It’s easy to get caught up in the hype of celebrities, of the leaders, of the ones out front on center stage. But the ones who have the longevity of a career are usually the ones that build up the team around them.  Many of the people Garth recognized performing with him have been with him since the early 1990s.  He believes in them, and they believe in him. And with that, they all put on one hell of a show. 

    What leadership lessons have you learned from those with celebrity status? 

     

  • Repost! Career Development as Performance Management

    Repost! Career Development as Performance Management

    Career Development is becoming even more relevant in the workforce arena these days. Career Development as Performance Management is a great tool to attract and retain employees. 

    Revisit this blog post from 2021 for ideas on how to use Career Development as a Performance Management (& retention!) tool.

     

    I will be presenting at BSHRM on May 11 on this topic. We would love to see you there!

    Check out where else we will be in the coming weeks here.

  • 3 Steps to Actually DO Succession Planning

    3 Steps to Actually DO Succession Planning

    With the great resignation still continuing and baby boomers, who many feel delayed retiring, now retired or retiring in large numbers due to the pandemic, succession planning has never been more important. 

    But as we’ve seen through many of our clients (and ourselves!), the need to get something done and getting it done are two different things.  When it comes to succession planning, I think the key challenge is not knowing where to start and the steps to take once started.  Overall, you need to:

    1. Know your current talent state.  This involves several sub-steps of determining: 

    a. What’s your talent funnel? This means mapping how people progress through the organizational hierarchy, determining the number of people needed at each level of hierarchy, realizing how turnover affects each level, and getting a good picture of the number of people needed to fill key vacancies. 

    b. What are your performance standards? This should be mapped out through your mission, vision, and values as an organization and connected to the KSAOS of each position. 

    c. And how do you measure them? A performance evaluation tool should be used, and in the case of succession planning especially, a way to measure performance potential should be deployed. 

    d. How is each person performing towards your company’s performance standards? Your measurement tools give you the way to determine how people are performing towards standards.  In this step, it’s critical that leaders deploying the tools should be trained on how to use them effectively and given the bandwidth to execute this process effectively. 

    e. And what do they want out of your career? Understanding what individuals want and expect out of their career progression is imperative to this process.  If you don’t know what people want, you may plan for progression that ends up being sabotaged because it doesn’t meet people’s needs or expectations.  For more on this, read about our Leaders as Career Agents Process (Taylor is also speaking about this at the Birmingham SHRM meeting in May if you want to learn more!)

    2. Know what you need to fill talent gaps both in terms of the number of people as well as the knowledge, skills, abilities, and other characteristics (KSAOS) needed for each position vacancy.  This should consider not only what is needed to fill key vacancies in the current state, but also what will be needed to facilitate organizational growth.  It also includes an accounting of what training and development are needed to equip people to fill the gaps.  

    3. Execute a talent management and development system and plan to meet the needs found in your gaps.  Again, to execute effectively it is essential that leaders deploying the process are 1) trained to deploy it and 2) are given the bandwidth and support to deploy it well.  In addition, it is critical that there be a calibration process done through collaboration to work across department lines to facilitate effective succession planning. 

    Want to learn more about this process through a real-life case study?  Mary Ila is speaking at ALSHRM 2022 today (May 3, 2022) about this, but you can also catch her at Florida SHRM speaking on the topic in August 2022. 

    How do you successfully execute succession planning for your organization?