2.

The Puzzle of Motivation

A n R S G W h i t e pa p e r • www . rsg - p l c . c o m
02

About RSG
Built on over 35 years of trading history, RSG has grown
organically, and through the acquisition of specialist
services, into an established selection, assessment and
solutions driven resource provider.

RSG’s focus is on strong partnerships; we have

developed solid relationships with our candidates and
clients since our inception in 1975 and this is reflected
in the repeat business and referrals that our specialist
companies receive.

Our family of companies, including Sanderson and

Resource Management, gives us an understanding
across a variety of market sectors including: permanent
and contract recruitment through to executive search,
bespoke recruitment campaigns, advertising campaigns
and total recruitment outsourcing. This knowledge
empowers us to provide our clients with an independent,
innovative and proven response, every time.

Acknowledgements
RSG would like to thank all Debate participants for their
valuable time and contributions. In particular, we would
like to thank Andrea Cartwright, Group HR Director
of SuperGroup Plc, for leading the Debate and Lynn
Hanford-Day, Independent HR Consultant, for reviewing
this white paper.
 03

CONTENTS
02 About RSG
02 Acknowledgements
03 Contents

04 Foreword - Andrea Cartwright, Group HR Director, SuperGroup Plc

07 Models of Motivation - Moving Motivation Strategies into the 21st Century
11 Case Study - The Candle Problem
12 Investing in Employee Engagement
14 Start Big Conversations
15 Appreciate the Little Things
16 Allow Greater Flexibility
17 Create a Greater Purpose
19 Case Study - RSG Million Makers
21 The Importance of Strong Leadership
25 Simplifying the Performance Management Process
26 Conclusion - Mike Beesley, CEO, RSG

28 Guest Profiles
30 Contact RSG

Resource Solutions Group (RSG), has

secured a prestigious place on the
Sunday Times Grant Thornton Top
Track 250, listing the UK’s top mid-
market private companies as published
by Sunday Times Business Section.
 04

Foreword
From Andrea Cartwright
Group HR Director, SuperGroup Plc

In every HR role I’ve held over the past 20 years,

I’ve rallied the organisation behind implementing
performance management practices, often alongside
introducing variable pay. Looking back I question,
was it worth it? Has all that time and effort really
delivered the outcomes we were seeking? Has it
made the change in performance that we hoped
it would? Have we really delivered a return on
investment?

Performance management processes tie up huge

amounts of our managers’ time, yet they continue to
lack the skills and confidence they need in order to
motivate employees to be at their best. Furthermore,
employees themselves often dread the whole
process. Where differentiation of pay is concerned,
I’ve found that you often gain a few happy people,
but the vast majority, despite receiving what would
traditionally be considered a good bonus outcome,
are unhappy because others receive more than them
and they question why.

Performance management processes During my first year at Nationwide, I focused my

tie up huge amounts of our managers’ time on implementing performance management

time, yet they continue to lack the and performance related pay structures. For the
majority of employees we removed the ‘profit share’

skills and confidence they need in type bonus that was linked to Group performance

order to motivate employees to be at

results. In its place we implemented individually
differentiated bonus payments based on the principle

their best. of a standard distribution of performance ratings. For

sales consultants their reward was based around
driving sales – all within the boundaries of treating

customers fairly – whilst meeting their financial needs,
of course. For this department in particular, it had a very
beneficial effect.
I have since met with Tony Prestedge, COO of Nationwide,
and we debated whether we did the right thing. We both
agreed that we were no longer convinced that the age
old theory ‘better pay drives better performance’ is the
way forward in every case. We referred to the catalyst of
this debate, Dan Pink’s book entitled ‘Drive’. Pink sets
out the scientific evidence that performance related pay
and ‘carrot and stick’ reward schemes, the sort many
organisations use to drive performance, actually inhibit
rather than enhance performance. He cites a software
business which, having read the book, removed
commission bonuses from their sales team, added the
difference to their base pay and were astounded when
sales performance increased.
Upon arrival at my current employer, SuperGroup, I was
presented with a completely blank sheet of paper as
Group HR Director. What I walked in to - virtually no HR
practices and processes to unpick and replace – was
a once in a lifetime opportunity to take the very best
of what I had learnt over the past 25 years and use
it to create something amazing that could truly propel
SuperGroup to the next level of success. The culture
is quite different to previous organisations I have been
involved with; hugely entrepreneurial, very creative
and more emotionally - less rationally - driven. We
do need some process in order to be able to operate
effectively, but I’ve found that there is a fine balance
between freedom to act and leveraging an element of
governance and efficiency. It has left me thinking deeply
about whether it is time to step off the traditional path
05
that we often tread as HR practitioners and to try
something different. I don’t have all the answers, I’m
not sure any of us do, but I do now strongly believe
that traditional performance management is the wrong
answer.
Instinctively I think we can all relate to Dan Pink’s
philosophy that purpose, autonomy and mastery are
key drivers of the engagement utopia that has become
a big focus of HR in the last 5 years. David McLeod in
his “Engaging for Success” work identified very similar
drivers – shared purpose, engaging leaders, employee
voice/involvement and aligned values and behaviours. I
analysed the data that came as a result of an Employee
Motivation survey at Nationwide and found that the
key drivers of motivation were very much the same as
those suggested by Pink and McLeod. It was also found
that ‘big conversations’ with employees also play a
significant part in understanding our people better and,
consequently, what really drives them.
So, how do we make these things happen in the
corporate world? The concepts are easy to grasp, but
aren’t they much harder to deliver in the real world? To
discuss these questions, I was invited by Mike Beesley,
CEO at RSG, to lead the Debate event at Bentley’s
Oyster Bar & Grill in Mayfair, London. The evening
presented a rare opportunity to meet with some of the
UK’s leading HR professionals who represent a variety
of industries from Financial Services and Retailing, to
Construction and multi-national FMCG brands. This
white paper comprises the insights and ideas that
were provided throughout the Debate as well as some
additional research into the secret behind employee
motivation in the 21st century.
06

For straightforward tasks that involve only mechanical skill, monetary

incentives work as you would expect – the better the reward, the
better the performance. However, for tasks involving even rudimentary
cognitive skill, a larger reward actually leads to poorer performance.

Models of motivation
Moving Motivation Strategies into the 21st Century
For most businesses a strong employee motivation
strategy is at the top of their objectives. The reasons
for this are clear: a successful employee motivation
programme increases employee engagement, improves
overall work performance, reduces staff turnover and
leads to a strong and loyal workforce. In addition to
supporting and enhancing overall company objectives,
a successful programme of motivation works as an
attraction tool in itself – dedicated and fulfilled employees
will inadvertently advertise a company as an employer
of choice. However, despite there being such significant
advantages to play for, many businesses are putting
too little focus on employee motivation, or are seeing
minimal results from their efforts.
So why is this? When we ask ourselves how we can
motivate our employees, the time-honoured answer
is simple – we incentivise them. The problem is that
incentives come in many different guises and all too
often businesses focus on money in order to drive their
staff. This concept may seem entirely logical; the more
you pay someone for completing a task well, the better
they will perform - great! Except that in many cases,
monetary incentives alone don’t work.
For evidence of this we can refer to a TED Talk entitled
“The Puzzle of Motivation” led by Dan Pink , a bestselling
1
author committed to revolutionising how companies
1. TEDGlobal, 2009
2. TEDGlobal, ibid
07
view the modern workplace. Looking at various scientific
studies into how well people perform when offered
different incentives, Pink found that for straightforward
tasks that involved only mechanical skill, monetary
incentives worked as you would expect – the better
the reward, the better the performance. However, for
tasks involving even rudimentary cognitive skill, a larger
reward actually led to poorer performance. Furthermore,
the London School of Economics studied 51 different
pay-for-performance plans. Their conclusion: “We find
that financial incentives can result in a negative impact
on overall performance”2.
These findings suggest that for occupations which require
even a fraction of creativity, bonuses, commissions
and monetary incentives yield no positive influence on
performance. On the contrary, they have been found to
hinder employees’ creativity and pigeonhole their ability
to achieve their full potential. With this in mind, why
do employers continually insist on taking a carrot and
stick approach to employee motivation when science
has proved it to be an outdated and often ineffective
method of reward? What other models have been tried?
Did they achieve greater success?
We must bear in mind that incentives and their
effectiveness will vary from department to department,
role to role and person to person, but as a general
08

Modern models of motivation commonly allow the employee to gain a

sense of autonomy, mastery and purpose; qualities that the traditional
carrot and stick method is devoid of.

rule we can follow the suggestion that employees who
deploy innovation to complete tasks are more likely
to be motivated by using innovative techniques.
Many large corporations have employed forward-
thinking motivational techniques in order to increase
performance. Google’s renowned 80/20 model allows
employees to spend 20% of their work time developing
any project they like as long as it’s not related to their
main work. The result has been that some of Google’s
most successful developments have been invented
during the 20% free time including Gmail, Google News
and AdSense. Similarly, in his talk on motivation, Dan
Pink made a reference to Australian software company
Atlassian. Throughout the year employees are allowed
to spend 24 hours working on projects completely
unrelated to their primary work. The result? Similar to the
results found at Google, some of the company’s most
successful software fixes have been produced in those
24 hours. Not only have those developments improved
both companies’ bottom line, they’ve kept employees
engaged, challenged and motivated.
Such models don’t necessarily determine that monetary
incentives cannot work altogether. Other companies
have found success manipulating the monetary reward
system; John Lewis’ employee-owned partnership
scheme sees company profits divided amongst their
employees rather than their shareholders; therefore,
it is in the employees’ own interest to perform better
at work. Furthermore, all staff are members of a Staff
09
Council that allows them to suggest new ideas or ways
of tackling problems, no matter what their level is within
the company.
Concepts for motivation strategies don’t have to stop
there. More radical suggestions have seen companies
employ a ROWE (Results Only Work Environment)
system. In a ROWE company, employees don’t have
schedules. They can work wherever and however they
want as long as they deliver results on time. As Pink
summarised, the results in these situations were almost
entirely unanimous across the board; productivity goes
up, worker engagement goes up, worker satisfaction
goes up and staff turnover goes down.
So what do these modern models of motivation have
in common? They each allow the employee to gain a
sense of autonomy, mastery and purpose; qualities
that the traditional carrot and stick method is devoid
of. They allow a person to take control of their own
work, direct themselves, get better at something and
participate in something that is greater than themselves.
This encourages them to genuinely enjoy and engage
with what they do; as a result they produce greater
work and ideas. Reward and punishment methods have
been shown to work in only a very narrow number of
circumstances. On the other hand, it’s been proven time
and time again that pushing our motivation strategies
into the 21st century increases employee engagement,
which will drive businesses forward as a whole.
In most cases, monetary
incentives don’t work.
10

Against all predictions, Glucksberg found that those who were

incentivised in the experiment, on average, took three and a half times
longer to solve the problem.
 11

Case Study: The Candle Problem

Created in 1945 by Gestalt psychologist, Karl Duncker3, the candle problem aimed to measure
the influence of functional fixedness on an individual’s problem solving abilities. Participants were
presented with a box of pin tacks, a box of matches and a candle. Their challenge was to fix the
candle to the wall in such a way that, when lit, the candle wax would not drip onto the floor below.

The solution is to tip the matches out of the match box, pin the box to the wall and use it to hold the
candle. The hypothesis proposed by Duncker was that participants who were presented with the
matches in the match box would not see that the box itself could be used to hold the candle; they
would only see a match box. This inability to see how an object can be used for anything other than
its primary function is known as functional fixedness.

In 1962, psychologist Sam Glucksberg4 decided to use the candle problem to assess how incentives
affect the speed at which participants arrive at the solution. He told one group of participants that he
was assessing them to establish the average time it takes a person to solve the candle problem. To
another group, he offered a monetary incentive whereby the highest award went to those who solved
the problem quickest.

The Result?
Against all predictions, Glucksberg found that those who were incentivised in the experiment, on
average, took three and a half times longer to solve the problem. He later adapted the experiment
further by presenting all participants with the matches out of the box, but incentivised just one group.
This time around, the incentivised group performed best.

Why? The candle problem is much easier to solve when the matches are out of the box. Therefore, if
there is a simple set of rules and a clear set of instructions, ‘if-then’ rewards will work. However, for
any task that requires a participant, literally in this instance, to think outside of the box, their creativity
and overall performance will be hindered.

3. TEDGlobal, 2009
4. TEDGlobal, ibid
 12
Investing in employee engagement
Employee engagement is an important term for anyone
involved in the development and implementation of
motivation programmes. An engaged workforce is a
real asset for any organisation and should be the main
objective for any business leader. This section of the
white paper looks at employee engagement, how it
could be successfully incorporated into motivation
programmes and its role in the overall performance
management process.
There is some confusion about the difference between
engagement and motivation. Despite some overlap, they
don’t mean the same thing. For an explanation of this we
can refer to Kees Scheffel, Motivation Incentives Expert5,
who states that engagement comes from ‘within’. It is
about having belief in the ‘cause’. Engaged people do
what they do because they believe it is the right thing to
do and not necessarily because there is a reward waiting
at the end. A prime example of engagement is volunteer
work. There is no payment involved, it takes up a lot
of time and it is very often ungrateful work. Yet most
volunteers do it with passion and perseverance. Why?
Because they believe in what they do. Engagement has
everything to do with commitment.
So what is motivation? Here is where the confusion
starts. According to Scheffel, when we talk about
motivation, we distinguish two different kinds: intrinsic
and extrinsic motivation. Intrinsic motivation is in fact
exactly the same as engagement. It comes from ‘within’
and it has to do with the joy or fulfilment a certain job
5. Engagement versus Motivation, EzineArticles.com, April 2012
6. Aberdeen Group, 2013, “The Age of Employee Engagement”
or task gives the person, rather than the reward it will
bring.
Extrinsic motivation is triggered by external factors. As
soon as those factors don’t exist anymore, the motivation
will be gone as well. This is where the conversation about
incentives and various reward programmes starts.
RSG Debate participants emphasised the critical role of
employee engagement in the performance management
process. They expressed concern that an increasing
number of companies witness a large proportion of
their talent being disengaged and demotivated with
management. Furthermore, many companies have
found that their staff view performance management as
a negative experience.
So why is this? One reason is that businesses
develop a robust employee engagement strategy
without adequately investing in training their staff and
management. Additionally, organisational employee
engagement strategies are often too formulaic and not
personal enough. A successful employee engagement
strategy must be based on truly understanding your
employees and, consequently, should be highly
personalised.
Aberdeen Group’s survey entitled “The Age of Employee
Engagement”6, which aimed to explore how leading
organisations are designing and implementing their
employee engagement strategies, found that achieving
 13

employee engagement is one of the greatest challenges

facing organisations today.

This is largely due to the fact that few organisations

understand what employee engagement really
means and how it can drive broader corporate goals.
Consequently, engagement levels are dangerously low
for many organisations, which has a negative effect on
organisational productivity and retention. While nearly
70% of organisations surveyed indicated that they were
satisfied with their engagement efforts in 2012, only
55% felt the same way in 2013.

As a consequence, the report found that an increasing

number of leading organisations are investing more
heavily in the way they engage with top talent. Nearly half
of the organisations who revealed they have a budget
for increasing employee engagement also predicted
that budget to increase in the immediate future.

The RSG Debate participants felt that if organisations

don’t quickly re-evaluate their engagement strategy
and discover effective ways of motivating and engaging

If organisations don’t quickly

talent, they are in danger of losing it altogether. Angela
Baron, CIPD Adviser, comments: “If you manage people

re-evaluate their engagement

well, they are more engaged, they are more motivated to
exhibit discretionary behaviours – which is the difference
between good performance and excellent performance
– and that feeds through into financial performance.”7
strategy and discover effective
Clearly, engagement programmes should be tailored to
ways of motivating and
fit the needs of each individual organisation, however,
RSG Debate participants suggested that businesses
engaging talent, they are in
should focus on the four key elements in order to
achieve successful employee engagement, as detailed
danger of losing it altogether.
in the following pages.

7. Chartered Institute of Personnel & Development (CIPD) Performance Management - podcast episode 25, 27th October 2008
 14
1. Start ‘Big’ Conversations
Consistent two-way communication between managers
and their staff is key to successful employee engagement.
A large part of this communication, deemed as ‘big
conversations’, should involve making employees feel
comfortable enough to provide honest feedback about
the workplace and making them aware of the role they
play in helping the company to achieve overall business
goals. This suggestion was also supported by the findings
of the Aberdeen Group’s survey , which highlighted 8
that the distinguishing factor between ‘Best-in-Class’
businesses and ‘Industry Average’ businesses is their
ability to communicate engagement efforts across the
entire organisation. Furthermore, the report states that
organisations must support managers in having better
conversations with their employees with ‘Best-in-Class’
companies rating it as the most important priority in
delivering organisational performance.
8. Aberdeen Group, June 2013, “Employees Performance Management. Creating a High Performance Culture”
9. Accenture, 2011, “Transforming Workforce Performance in New Reality. Accenture Point of View on Performance Management”
Similarly, Accenture’s recent report9 indicates that the
key to effective performance management is frequent,
honest and constructive conversations that empower
employees to take accountability for results and to play
to their strengths.
A number of organisations involved in the RSG Debate
revealed that they conduct regular staff engagement
surveys as part of their employee engagement efforts
to find out why people come to work, what they need
in order to do their job better, what their goals and
aspirations are and how they want to be rewarded. One
of the most prevalent survey findings was a correlation
between manager’s behaviour and the level of staff
engagement.

2. Appreciate the little things
It was stated during the RSG Debate that employee
recognition drives engagement and encourages
positive behaviours. This in turn makes employees feel
valued and motivated. According to Aberdeen Group’s
survey , over 30% of ‘Best-in-Class’ organisations have
10
a standard rewards and recognition programme in place
compared to only 18% of others (‘Industry Average’ and
‘Laggard’ organisations). Organisations that employ
such programmes are proven to have better retention
rates and revenue per employee. The key point to note
here is that recognition is not about rewarding an employee’s
greatest achievements.
10. Aberdeen Group, 2013, “The Age of Employee Engagement”
15
On the contrary, it is about noticing and encouraging
day-to-day behaviours and showing thought for your
employees. As RSG Debate participants commented,
small and subtle gestures such as ordering dinner or
booking taxis for late workers can be very effective
in making employees feel valued. The challenge is
to identify the right form of recognition which works
for a particular organisation and to differentiate it by
individuals (managers need to know what motivates
each person in their team); the ‘big conversations’
mentioned previously will go a long way in achieving
this.
Employee recognition drives
engagement and encourages
positive behaviours, this in
turn makes employees feel
valued and motivated.
 16
3. Allow Greater Flexibility
RSG Debate participants agreed that
employees to take a more flexible approach to their
work is often more effective in motivating and engaging
them than financial remuneration. Employers should
evaluate whether their employees’ work structure is
vital. For example, does an employee need to work from
the office every day? Do they have to work 9-5, or could
they start earlier/later and finish work accordingly?
It wouldn’t be appropriate to suggest that every business
11. Aberdeen Group, 2013, ibid
allowing should follow a Results Only Work Environment, where
all structures are abandoned and employees can work
however they wish as long as the desired results are
achieved on time. However, allowing your employees
to have some control over how they work not only
encourages better performance but also helps your
company to stand out as an employer of choice.
According to Aberdeen Group11 30% of ‘Best-in-Class’
organisations include the work-life balance as a key
component of their engagement strategies.
Allowing your employees
to have some control
over how they work not
only encourages better
performance but also helps
your company to stand out as
an employer of choice.
 17

4. Create a Greater Purpose

The RSG Debate participants emphasised
importance of strengthening the sense of belonging and
team spirit amongst employees. Effective engagement
comes from an environment where personal and
organisational aspirations are aligned. People enjoy
making a difference and successful organisations will
engage their employees in a variety of worthwhile CSR
initiatives where staff across the organisation work
to common goals. This creates high levels of shared
the purpose and develops a sense of organisational loyalty
and pride, while simultaneously developing the business
skills of the employees involved.
According to the Chartered Institute of Personnel and
Development12 (CIPD), building a shared sense of
purpose within organisations is the ‘golden thread’ to
which strategy needs to be aligned. Organisations with
a sense of shared purpose outperform those without it.

Effective engagement comes

from an environment where
personal and organisational
aspirations are aligned.

12. CIPD, December 2010, Press Release

18

Taking part in events such as the Prince’s Trust Million Makers

Project is a simple, yet effective way to get your employees actively
enthused and engaged with your business without resorting to
monetary incentives.

CASE study:
RSG Million Makers
Khalid Razouki, Recruitment Consultant, RSG
Member of the RSG Million Makers Team
When the opportunity arose at RSG to take part in
the Million Makers Project (a national competition,
challenging teams of employees to come together and
raise £1 million for The Prince’s Trust and make a real
difference to the lives of disadvantaged young people
across the UK), I knew instantly that I wanted to get
involved. Firstly, I am passionate about the Prince’s Trust
and the work that they do for young people. Secondly,
I wanted to take on a challenge that was outside of my
day-to-day working life to see what I could achieve. As
a team, our focus was on raising as much money as
possible for the charity, so I think we were all surprised
when we realised what we had personally gained from the
experience. Patience, compassion and understanding
19
of others were just a few of the ways in which I felt I’d
grown as an employee, but I also gained more tangible
skills such as strong project management, which I could
utilise back in the work environment.
One of the most enjoyable aspects of the project was
that it brought together employees from all departments
within RSG, which enabled us to interact with colleagues
who we don’t ordinarily work closely with. In addition, it
also gave us a platform to exhibit various qualities and
capabilities outside of our job roles. As a result, when
considering the progression of internal staff, senior
management are now aware of the abilities and potential
of those employees who they may not directly manage
on a day-to-day basis.
If a company were to consider getting involved with an
initiative like the Prince’s Trust Million Makers Project,
I would highly recommend that they do it. Having
stepped outside of the comfort zone of my day job, I
feel like I have played a bigger part in the company as a
whole, and feel like a better employee for it. Taking part
in such events is a simple, yet effective way to get your
employees actively enthused and engaged with your
business without resorting to monetary incentives.
20

The quality of leadership can make or break an organisation. It also

demonstrates that organisations with the highest-quality leaders are
much more likely to outperform their competitors.

The Importance of Strong Leadership
The RSG Debate participants spent considerable time
discussing the importance of leadership capability within
organisations. It was stressed that strong, inspirational
leadership is a key driver of employee engagement.
According to Jim Collins (Business Consultant, who
created the concept of Level 5 Leadership - the highest
level in a hierarchy of executive capabilities)13, leadership
is not merely about possessing certain competencies
and skills; it is also about having the ability to create
relationships and good working environments. Collins
argues that the key factor that allows a company to
become great is by having a ‘Level 5 leader’, which
he defines as an executive in whom genuine personal
humility blends with intense professional will. Collins’
research included 1,435 companies, amongst which he
identified just 11 truly great ones that were all headed
by ‘Level 5 Leaders’.
According to Collins, these Level 5 Leaders have humility
and they don’t seek success for their own glory. On the
contrary, success is necessary so that the team and the
organisation can thrive. They share credit for success
and they are the first to accept blame for mistakes. They
are often shy, but fearless when it comes to making
decisions, especially ones that most people consider
risky.
13. Harvard Business Review, 2005, ‘Level 5 Leadership’
14. CIPD Research Report, 2012, “Perspectives on Leadership in 2012. Implications for HR.”
15. Talent Management Consultancy DDI and CIPD, 2011, “UK Highlights: Global Leadership Forecast 2011”
16. DDI and CIPD, ibid
21
The UK Commission for Employment and Skills
has produced a range of research14 showing that
effective leadership and people management are core
components of high-performance working. According
to a CIPD and DDI survey15, the quality of leadership
can make or break the success and sustainability of any
organisation. It also demonstrates that organisations
with the highest-quality leaders are much more likely to
outperform their competitors in financial performance,
quality of products and services, employee engagement
and customer satisfaction.
However, the same survey states that today’s leaders
are not equipped to handle the challenges organisations
are currently facing. As such, just 36% of UK leaders
and 18% of UK HR professionals rated the quality of
leadership as high16. This finding was also confirmed by
the RSG Debate participants.
It is clear that people’s leadership capabilities vary
greatly; some people are ‘born’ leaders, others need to
develop their leadership qualities, while some, arguably,
simply do not carry the qualities necessary for successful
leadership. As stated by the RSG Debate participants,
despite a clear business need for line managers to be
leaders, many organisations base their decisions to
22

Organisations are starting to demand more sophisticated,

inspirational leaders who hold a higher skill set, so that they can
lead by example.

employ leaders on an individual’s technical skills or
their length of service. As a result, they don’t take
into account the essential skills and qualities that are
necessary for successful leadership as all too often
they are deemed as ‘softer’, less vital skills. Technical
competencies are, however, often less critical than
‘people skills’ and promoting someone into a leadership
role simply because they are good at what they do in
their current role is invariably the wrong way to go about
it. Instead, organisations should be asking whether the
person has the ability to inspire staff, foster teamwork
and lead by example.
Ben Willmott, Head of Public Policy at the CIPD,
comments17: “Leadership and management capability
continues to be an Achilles heel for UK Plc, despite
mounting evidence that these are ‘skills for growth’
essentials. Our research shows almost three in ten
people (28%) – equating to about eight million people
across the UK workforce – have direct management
responsibility for one or more people in the workplace,
and yet only just over half of employees are satisfied
with their manager. A small increase in capability across
this huge population of people managers would have
significant impact on people’s engagement, wellbeing
and productivity. However, too many employees are
promoted into people management roles because they
have good technical skills, then receive inadequate
training and have little idea of how their behaviour
impacts on others.”
Clearly leadership styles can vary significantly from
organisation to organisation and are determined, not
only by the personality of the leader, but also by the
nature and the needs of a particular organisation.
However, it was noted during the RSG Debate that
17. “New research finds ‘reality gap’ in the capability of the UK’s 8 million managers, undermining attempts to boost economic growth”, CIPD Press Release, 3rd May 2012
18. Accenture, 2011, “Transforming Workforce Performance in the New Realty. Accenture Point of View on Performance Management”
23
there are still too many leaders who expect their staff
to perform certain tasks without explaining the reasons
behind them. Such leaders primarily focus on the short-
term financial goals and fail to see the bigger picture.
This in turn leads to low staff morale and high staff
turnover. On the contrary, people-oriented, inspirational
leaders motivate their employees and are often the
reason that people remain loyal to an organisation.
It is evident that organisations are starting to demand
more sophisticated, inspirational leaders who hold
a higher skill set, so that they can lead by example.
Furthermore, they will have the skills to hold ‘big
conversations’ with employees, be able to assess an
individual’s potential and the best ways to engage
and motivate staff. It was also emphasised during the
Debate that there is a pressing need for leadership
development and training that will equip managers with
the skills they need to lead the employee performance
management process; HR professionals should play a
key role in driving this forward. Accenture’s report on
performance management18 confirmed that leaders
need to show sustained commitment to performance
management and should act as role models by placing
it clearly on the business agenda.
There are still too many leaders
who expect their staff to perform
certain tasks without explaining
the reasons behind them.
24

If organisations improve their leadership capability, performance

management will become less process-orientated, less regulated and
more about relationships.
 25

Simplifying the
Performance Management Process
Having discussed a variety of performance management
practices and solutions in their organisations, the RSG
Debate participants agreed that there is a need for less
formality as often formal structures and procedures
overcomplicate things and restrict creativity. It was
also pointed out during the Debate that there is a risk
of alienating or demotivating staff by focusing on hard,
measurable outputs and ignoring the softer behaviours,
which should be encouraged. The criteria for
performance cannot always be measured quantitatively.
According to Accenture’s research19, formal 360 degree
feedback can be complicated and time consuming, so it
is often better for the manager and an employee to seek
less formality and more frequency.

The overarching feeling from RSG Debate participants

was that if organisations improve their leadership
capability, performance management will become
less process-orientated, less regulated and more
about relationships, having ‘Big Conversations’ and
replicating good leadership behaviour. It is a real
leadership challenge to achieve a healthy balance
There is a need for less
between measuring output effectively and accurately,
whilst preserving trust and a feeling of empowerment
formality as often formal
amongst employees.
structures and procedures
overcomplicate things and
restrict creativity.

19. Accenture, ibid

 26
Conclusion
By mike Beesley, CEO, RSG
In his TED Talk “The Puzzle of Motivation” Dan Pink20
suggests that there is a mismatch between what
science knows and what business does. His study
into what really motivates people concluded three key
things regarding traditional carrot and stick motivation
strategies, which I think business leaders should focus
on:
1. They only work in a surprisingly small number of
circumstances
2. They restrict creativity more than they inspire it
3. They are completely unrelated to the reality of what
motivates people - a desire to do things for their own
sake, because we enjoy them, or because they really
matter
When deciding on how we can modernise our
performance strategies, we must remember that the
very nature of a performance management strategy
depends on the organisational context, which will
inevitably vary from organisation to organisation. A one-
size-fits all approach is not viable for most modern day
companies; some more ‘creative’ departments may
require totally different dynamics and flexibility than
other departments in order to perform and engage
to the highest standards. Furthermore, performance
management strategies could and should be tailored so
that they take into consideration cultural and individual
differences.
20. TEDGlobal, ibid
21. Accenture, ibid
According to Accenture research21, while a ‘one-size-
fits-all’ approach to performance management can
be simpler to manage and administer, it is not always
the best approach. It feels to me that all too often
companies take this approach because they already
know how it’s done; a new approach requires new
thinking and time that companies seem reluctant to
spend. However, organisations should ask themselves
whether they want to continue to follow lazy methods
that yield minimal results, or whether they want to adapt
their performance management strategies and, as a
consequence, revolutionise their business.
Lynn Hanford-Day, one of the RSG Debate participants,
commented after the event: “What surprised me during
the dinner debate was the shared view of those present
that traditional performance management doesn’t
work, both as a process and as a tool for motivation
and engagement – I thought it was just me! A week
later I attended another HR networking dinner where
the same views emerged. Indeed, a combination of
the annual appraisal and the link to pay is perceived to
alienate and disengage about 80% of the population!
If this is the case, then what on earth are we doing by
persisting with it?”
On reflection, the insights provided by the participants at
the RSG Debate portrayed that even those companies
which have taken small steps to change their
 27

performance management strategy are noticing I would like to thank you for taking the time to read this
greater results in terms of both employee engagement white paper. We would like to hear your thoughts and
and performance. Ironically, the strong leaders that experiences on the issues discussed, so please join in
are required in order to push these strategies must the debate:
themselves be motivated to drive past the carrot and
stick methodology. Therefore, it is clear that an effective - Tweet your thoughts using the hashtag #RSGdebate
performance management strategy can only be - Comment on the RSG blog by heading to
implemented by inspired, well trained managers who are www.ceonews.co.uk
prepared to invest time into genuinely getting to know
their staff. As Pink states, if we can get past this lazy If you would like to find out more about the services RSG
ideology, not only can we strengthen our businesses, and its associated companies provide, please contact
but maybe we can change the world. Mike Beesley, CEO, RSG at mike.beesley@rsg-plc.com
If you are interested in taking part in future RSG round
table debates, either as a lead speaker or a participant,
please email caroline.beer@rsg-plc.com

The nature of a performance management strategy will inevitably vary

from organisation to organisation. A ‘one-size-fits-all’ approach is not
viable for most modern day companies.
£
£ £
 28
Guest Profiles
Andrea Cartwright, Group HR Director, SuperGroup Plc
Andrea has gained a wealth of experience as an HR professional
having worked for renowned companies including Tesco, AXA,
Barclays and Nationwide. Andrea is a recognised leader in the
field of Employee Engagement and was a keynote speaker on Next
Generation HR at the 2009 CIPD annual conference. Most recently
appointed as SuperGroup’s first ever HR Director, Andrea is dedicated
to creating a first class HR team for the company.
Andy Hanscomb, Interim HR Director
Andy has gained extensive experience of delivering global HR
solutions at board level in the security and outsourcing sectors. He
is an experienced and proven leader, with a strong track record of
significantly improving profit & loss accounts across international
businesses and cultures. Since 2011, Andy has been focussed on
two internet start-up businesses as well as undertaking a number of
challenging interim assignments. Prior to this, Andy held the positions
of Director of HR and Resourcing at G4S Plc.
David Morgan, Global HR Director, CSC
As an experienced International HR Director, David has worked at
a number of large international companies in both operational and
strategic roles across a wide range of Service and Consumer Global
businesses. Earlier roles have included HR Director level positions for
AXA, Allied Domecq, Compass and Butterfield.
Nick Budd, Director, NB:HR
As an experienced International HR Director, David has worked at
a number of large international companies in both operational and
strategic roles across a wide range of Service and Consumer Global
businesses. Earlier roles have included HR Director level positions for
AXA, Allied Domecq, Compass and Butterfield.
Jyoti Parmar, Interim HR Director
Jyoti is a senior HR and Business Change professional with considerable
organisational, process and cultural change management expertise
resulting in a history of successful performance at both strategic and
operational levels. Jyoti’s particular focus has been on defining and
establishing new business functions; managing business integration
and implementing large-scale change within complex corporate
environments. Jyoti has held senior HR roles at Lastminute.com,
Airwave, BAA - Heathrow Express, Halcrow Group Ltd and Kellogg
Company Europe.
Charlotte Sword, Partner, Global Head of HR,
Foster + Partners
As a commercial HR Director, Charlotte has extensive cross-sector
experience in areas such as Telecoms, Professional Services and
Financial Services. Over the past 20 years, she has achieved a
demonstrable record in building and leading commercially focused
HR teams and now specialises in Talent Management and Change
Programmes. Previous to working at Foster + Partners, Charlotte held
the position of Group Head of HR at Royal London and has also held
HR Management roles at Wates, Rothschild and Caminus.
Amanda Menahem, HR Director, Hastings Direct
Amanda Menahem joined Hastings Direct as HR Director in March
2009. With a background in psychology, Amanda has always had a
keen interest in people. After starting her career in Retail Management
she moved into a Training Management role, eventually specialising in
Leadership Development. Amanda then moved into general HR and
has worked in a variety of Senior HR Management roles, most recently
as a head of HR in the Pharmaceutical Industry.

Gillian Fox, Global Director of Talent and OE,
Reckitt Benckiser
Gillian works as a trusted advisor to senior leaders and their teams
and is known as a real deliverer with good instinct and intuition. As
a highly commercial HR Director, Gillian holds 18 years experience
of working in varying types and sizes of organisations, and across
sectors, including small niche organisations through to multinationals.
She has personally worked with client groups ranging in size from
1,000-20,000 staff. HR M&A, strategic organisation design and
change management are counted amongst Gillian’s specialities.
Mark Boorman, Interim Head of HR, Wates Group Ltd
Mark is a senior HR professional with extensive experience gained
from working with leading organisations across the financial sector,
media/publishing, and HR outsourcing. In his career to date, Mark
has demonstrated his ability to perform as a permanent member of
commercial leadership teams, and as a senior interim professional
with clear strengths in leadership, establishing start-up HR teams and
change management (organisational, cultural and behavioural). He
has a passion for the diagnosis, design, and implementation of the
best, value-add HR solutions and has a broad toolkit.
29
Ceri Jones, HR Business Partner, UNUM
Ceri has gained significant HR experience working within the
demanding Banking, Insurance, Retail and Utilities sectors. She has a
Bachelor of Education and is a GCIPD. Her experience has focussed
on Strategic HR Business Partnering, leading business teams and
organisations through business, structural and culture change,
working for companies such as HSBC, Allianz, Thames Water and
House of Fraser. Ceri joined Unum in January 2013 as a strategic
HR Business Partner, and plays a key role in implementing the HR
Strategy and aligning it to the evolving business needs.
Lynn Hanford-Day, Independent Consultant,
Sophrentos Ltd
Previously Lynn held the role of People & OD Director at Sovereign
Housing Association Ltd where she focused on implementing a
People strategy which aimed to maximise employee engagement via
optimised organisational capability, leadership, talent management,
performance management and change management. Now an
independent consultant, Lynn works as an interim executive coach
and thinking partner, facilitator and OD strategist and practitioner
with particular interest in strengths, appreciative inquiry and the art of
conversation as a means to involvement, engagement and effective
change leadership.
 30

CONTACT RSG
E info@rsg-plc.com
W www.rsg-plc.com

London Bristol
T 0207 469 0970 T 0117 907 7571
37 Lombard Street Clifton Down House
Plough Court 54a Whiteladies Road
London Clifton, Bristol
EC3V 9BQ BS8 2NH

Edinburgh Manchester
T 0131 301 5350 T 0161 618 1030
93-95 Hanover Street Pall Mall Court
Edinburgh 61-67 King Street
EH2 1DJ Manchester
M2 4PD

Cardiff
T 02920 329152
15th Floor
Brunel House
2 Fitzalan Road
Cardiff
CF24 0EB
LONDON • B R I S TOL • EDINBU R G H • M A NCHE S TE R • Car d i ff

www . rsg - p l c . c o m