In our outcomes-based society, and largely thanks to an over-reliance on, or perhaps a misunderstanding of cost benefits analysis resulting from utilitarian ethics, we are sometimes too quick to reject anything that doesn’t produce immediate results.
I am a fan of cost-benefit-analysis, and we should apply it to almost all decisions, so I am not suggesting it should be ignored. BUT I am suggesting that we often take too simplistic a view of the outcome, focusing too much on the short term or immediate result and not measuring the added value of a decision. Sometimes it is hard to acknowledge when production capabilities have been created.
Let’s take an overly simplistic WHS example. We could cut corners on a workplace task, not taking the necessary safety measures. If an injury occurs as a result of our negligence, costs can outweigh the savings from cutting corners. The time and money spent on safety measures are production capabilities that may not have been obvious to everyone at the time.
Similarly, if we seek the maximum work output for man hours in each instance, the outcome could be less than optimum performance or product outcome. Staff burnout, poor workplace culture, and indeed other outcomes that could also result in financial loss.
We have spent the past couple of years in crisis mode, which has required some cutting of corners, going the extra mile, and a few other cliches that may be warranted for a time. As we emerge from these ‘crisis years’ into what is hoped to be a more stable environment, it is time to rebuild our resources in a sustainable way.
The data and analysis of the workforce in Australia (which is also evident around the world) is showing us that employment post pandemic is inevitably going to be different to what we have known. The Hays Salary Guide FY23/24 refers to this as ‘The Workforce Revolution’.
While there are a few concerns going forward, two areas of note in particular are:
· A decrease in staff engagement
· A skills shortage.
Post pandemic we heard concerns of the great resignation. This didn’t quite occur in Australia but there have been numerous articles written on quiet quitting. Improving employee satisfaction beyond basic hygiene factors and Increased training opportunities have become urgent. Both require investment and investment by its very nature can affect immediate outcomes.
Exploration / Exploitation tradeoff
During a crisis it is necessary to adopt an exploitation posture, as it is necessary to use all our resources (including people) to survive, but for any entity to thrive, there has to be a good balance of exploration, an investment into the future.
After the exploitation stage we all needed to survive, it is critical that we all turn to the explorative stage. This is always a challenge and is further complicated as we enter into a high inflation period, BUT we need to rebuild our resources and reinvest in people. This will need a new level of creativity as we seek new ways to incentivize employees on a reduced budget.
This may mean making a few mistakes along the way, which may affect productivity. But to use another favourite cliché of mine, “If you’re not making mistakes, you are not trying hard enough”[i]
It will definitely mean providing a safe learning environment and increased training opportunities.
In some instances, it may feel like we are only preparing material for the cutting room floor, but taking the time for some deep dives, to think outside of the box is the only way we can creatively come up with that new idea.
Although it may feel like everything is back to normal, past events have accelerated the future. We are in a new frontier and therefore need to try new ways.
Be prepared to make some material for the cutting room floor, and allowing your staff to create material for the cutting room floor. The thinking time alone could turn out to be more valuable than you realized, and hopefully in the midst, we will see something precious emerge.
[i] A necessary proviso here – there should always be a risk assessment commensurate to the cost /outcome, ensuring the cost (specifically on people) is not too high.
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