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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.

oepitrop@alba.edu.gr

O.Epitropaki@aston.ac.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

oepitrop@alba.edu.gr

O.Epitropaki@aston.ac.uk