When cultural traditions and interpersonal relationships coincide, businesses start acting in irrational ways. The world knows that Samsung, LG, and Hyundai are based in South Korea. Relatively few outside Korea, though, grasp how massive they actually are – did you know, for example, that Samsung encompasses more than 70 “affiliated companies” involved in everything from fashion to healthcare? These three firms are among Korea’s biggest chaebol – family-owned conglomerates whose internal diversity and mass of incestuous affiliations have no precise analogue in the business culture of any other nation. The chaebol were largely responsible for pulling Korea out of poverty in the latter half of the 20th century, and they continue to exert a titanic influence over the country. This raises an interesting question: How far does the “Korean-ness” of the chaebol extend? Since we know that each one is ruled pretty much unilaterally by its founding family, how relevant are Confucian ideas about family life to understanding how chaebol behave in the business environment? Quite relevant, as we found when doing research for a paper recently published in Academy of Management Journal (JungYun Han of National Taiwan University and Andrew Shipilov, INSEAD Associate Professor of Strategy, and I wrote the paper). Applied beyond the Korean context, our findings suggest that the line separating business strategy from cultural and interpersonal influences is largely illusory. Chaebol Family Values Confucian values place men in a privileged position within families. Upon marriage, a woman separates from her own family, surrendering her inheritance along with the responsibility to care for her parents as they age. By accepting her as a bride, the husband’s family is thought to have done a “favour” for the wife’s family, which they are obligated somehow to repay. This places the wife’s family in a submissive position as the wife establishes a place for herself in the new household. Korea has arguably veered away from undiluted Confucian culture in recent years, but the conglomerate owner-families have been classed among the country’s conservative holdouts. Add to the above, the fact that chaebol owner-families often intermarry – just as business families the world over have always done, with full awareness of how such ties can boost cooperation and information exchange between companies. We wanted to determine whether marriage ties between chaebol introduced a Confucian-style dynamic whereby the “husband’s chaebol” (meaning the conglomerate owned by the husband’s family, in which the husband himself is generally a junior member) lorded it over the “wife’s chaebol”. Market Entry And Exit The mind-boggling diversity of the chaebol entails a fair amount of market-hopping. To examine how inter-chaebol marriage ties affected market entry and exit, we traced the composition of the owner-families behind Korea’s 60 biggest chaebol over the period 1987-2011, juxtaposing it with data on the chaebol’s presence in various industry markets during the same years, as reported by a leading credit agency. We also interviewed Korean executives and journalists to verify our theories. The lopsided picture that emerged would make no sense to those unfamiliar with the Confucian dynamic. We saw that the husbands’ chaebol were, after marriage, more likely to enter markets where the wives’ chaebols were already present. Far from trying to repel the invasion, the wives’ chaebols seemed to step aside and make room, despite the business threat posed by the husbands’ entrance. In addition, wives appeared to help their husbands exit markets with resources intact, whether by buying up their assets (factories, distribution networks, etc.) at non-competitive prices or by not teaming up with other firms to take advantage of the fragile state of retreating husbands’ firms. Nothing here would be particularly out of the ordinary, if there were reciprocity in these relationships. But this was emphatically not the case: The wives’ chaebol seemed timidly to refrain from entering markets where their husbands had established a foothold. In markets where both spouses were present, the wives stayed close to their husbands, letting them be the ones to exit if they chose. Our interviewees confirmed the observed gender dynamic was rooted in Confucian values. “If in-law families have some conflicts, the odds are always against the wife because she becomes a part of the husband’s family,” one said. “That’s why even when a wife’s chaebol sees some potential economic benefits from marriage [i.e. through the opportunity to enter new markets], they hesitate to exploit it.” Interpersonal 'Trojan Horses' The behaviour of the chaebol has implications for all organisations. The business world is thick with cross-organisational ties mixing the professional and the personal, as when ex-schoolmates broker a collaborative relationship between their respective firms. While such ties are unquestionably valuable, they can also be “Trojan horses” through which status hierarchies – which often have a cultural dimension – can sneak into business behaviour. For example, strategic alliances built around board interlocks can be unbalanced by a high-status board member throwing his weight around and eliciting deference from other directors. As the chaebol prove, interpersonal ties can even influence interactions between firms that directly compete with one another. Therefore, it’s always naïve to talk about business competition as something removed from its social and cultural context. About the Authors - Henrich R. Greve is a Professor of Entrepreneurship at INSEAD and the John H. Loudon Chaired Professor of International Management. He is also co-author of Network Advantage: How to Unlock Value from Your Alliances and Partnerships. This article can be read on the INSEAD website here and has been reproduced with their permission.

As family businesses passes from one generation to the next, there is the inevitability that the number of shareholders will increase. Such an issue can create a challenge for the family and the family business, not least because of the need for communication but also due to the need to manage the individual relationships within the family and with the business itself, with some family shareholders working within the business and some not. As Howard Hackney, one of the leading family business consultants in the UK explains, “there is a big difference between the creation of a business by an entrepreneur who starts out on a journey with nobody to report to and a third or fourth generation business. Put simply, the founder normally owns all the shares but after a few generations there are likely to be more shareholders and they will all have different needs and aspirations too.” Take, for example, a business that was set up by a founder that grew into a successful operation and was passed to the second generation equally prior to his death. The two brothers continued to develop the business, and were joint shareholders (50% each). Everything was fine and the brothers worked well together. In their personal lives, the brothers began families with the first having three boys and the second having one daughter. This example is actually quite common and moving on a number of years the business had continued to grow. The cousins got on well and were all brought up knowing about the family business, the opportunities it provided them as families and the benefits in terms of their lifestyles too. It was as the transition to the third generation that there were challenges and issues that had hitherto never been considered. As Howard continues, “most families face the challenge of doing the right thing by their children and want to make sure that they are fair to them all. In this example, the brothers were originally going to follow the lead from their father and provide for the passing of their shares to the next generation equally. That would have effectively resulted in the daughter owning 50% of the business and her cousins owning 16.67% of the business each. When you consider that the eldest son was working in the business as the Managing Director and the daughter was not working in the business, there were questions that arose.” This scenario is one that is obviously exacerbated as the business gets older and emotionally be difficult for families to address. There is a clear need to consider the role of the shareholder differently to that of an employee/director and there is a need for all owners to take on their role responsibly. Whilst easy to say, there are complications for the family firm when roles are so closely entwined and some family members are actively involved in the day-to-day operations as well as owning shares, whilst other family members are only shareholders. In the example above, the family met to discuss the situation and a solution was determined whereby the shares were put into trusts with each branch of the family having their shares put into a trust for them, thereby ensuring that each family branch had equal voting power. Mechanisms were also put in place to create an internal market for shares so that anyone wising to ‘cash-in’ their shares could do so according to the agreed protocols. The issue of who could on shares was also discussed and it was agreed that they could only be owned by the direct bloodline descendants of the founders, thereby protecting the family business from any issues in the future arising from divorce, civil partnerships etc. As Howard continues, “each family is different and there needs to be recognition of the family needs and wants in determining an approach for the future. Share ownership in the family firm can be a very emotive matter and by going through a process to determine the roles and responsibilities of the shareholders, and determining the role and the involvement of the family is an important process for any family in business to go through. There is no formulaic solution either, as it needs to reflect the drivers and goals of each family. What is right for one family will not work for another.” Clearly, the challenge of shareholder succession is one that needs to be addressed. Sadly, in many instances, the issue is not addressed prior to a significant event occurring, be it a serious health issue or a death in the family, a time when emotions are raw and time needs to be dedicated to dealing with the family crisis, rather than potentially fighting over who owns what and who can do what in terms of the shares in the family business. By drafting appropriate policies and communicating these to the next generation, there are ways to mitigate the risk of conflict and also preventing the family and the family business from suffering due to perceptions of unfairness due to individual shareholdings.

One of the things that can never be underestimated is how much good parenting affects the future of a family business. Roberta Fenech explains more. One of the things that can never be underestimated is how much good parenting affects the future of a family business. Leadership development starts much earlier than in other businesses as a result of the overlap between the business and the family system. The nature-nurture debate also embraces this subject with a school of researchers attributing variation in leadership style to genetic factors, whilst others to environmental influences such as the individual’s exposure to different role models and early opportunities for leadership development. A combination of the two approaches is many a time sustained. Attachment theorists attribute individual differences in leadership to the early close emotional bond between parents (or the primary caregivers) and children arguing that next generation leaders will in the future apply previously learnt patterns of interaction within the family to leadership. Consistent parent responsiveness in childhood is associated with secure adults who have relatively high self-esteem and who approach their leadership role positively and express certainty of their ability to perform well. On the other hand inconsistent parent responsiveness in childhood is associated with the anxious-ambivalent adults who are preoccupied with attachment and have a low self-esteem. They may express reservations about their abilities to perform well in leadership roles. Consistent parent unavailability and non-responsiveness in childhood is associated with the avoidant adult who harbours negative expectations about their ability to perform well in the leadership role. Attachment styles may be transmitted across multiple generations within families. Parenting effects the future of family businesses as it teaches the capacity to communicate, to think outside one’s own interest, to make decisions, to seek consensus and to want fairness and justice for others. Family business is the ultimate leadership challenge because whilst the current leaders build or run the business, they also bring up their children, who are in turn, intimately involved in the future success of the business. A fundamental recommendation for current leaders in family businesses is not to neglect parenting. One may get caught up in working very hard to fulfil their own and their parents’ expectations as well as build a legacy for their children, compromising time at home and time as parents. Work habits, attitudes towards the business, values and relationships all take root in the childhood of the next generation. Parents convey values and attitudes particularly by example. Healthy attitudes towards the business spring from the enthusiasm and joy parents display in accomplishment, hard work, responsibility and sacrifice. Talking about the business and exposing young children to the business does not mean imposing the business onto the next generation, even if the children will never work in the business they will still become owners. What current leaders want is that their children become proud and interested owners who understand the value of their heritage. Exposing young children to the business will give them the real freedom to choose by making sure they have enough information on the business to make an informed decision whether to embrace it or pursue a different goal. A source of competitive advantage and a factor for success in efficiency, innovation and quality is the tacit or implicit knowledge that is transferred across generations from an early age such as are traditions, values and social networks. As the members of the next generation are introduced to the business from an early age, even if only volunteering in the summer holidays, they learn in practice what the business is about, as well as the context within which it operates. During the period when the next generation is formally part of the family business tacit knowledge of a holistic nature like strategy is learned. Tacit knowledge is also about managerial skills, social skills and negotiation skills.The expected commitment, values and perceptions of the current generation are to be shared with the next generation which should be given challenging, real life problems to solve. Risks to the transfer of knowledge across generations are related to dynamics in family relationships, a lack of valuation of each other’s opinions and also competence. Emotional factors also come into play. The difficulty to relate with the next generation as adults and no longer as children jeopardises the whole process. Family meetings give family members a reason to be together, to support one another and to share common interests. Apart from being very valuable in enhancing family relationships and communication, they are an excellent opportunity to articulate the meaning and mission of the family, to educate younger members and to plan for the future. The role of family members who do not work in the family business, such as in-laws, in shaping next generation leaders cannot be underrated. Family meetings focus on the interests of the family. Such meetings should encompass as many family members as possible including in-laws and the younger generation. Roberta Fenech is a freelance Occupational Psychologist currently reading for a PhD at the University of London

There are many factors to consider when it comes to staff turnover – but while some may be inevitable, such as retirement, a change in career, or even moving away, others can be controlled. Employee wellbeing experts Loopin have highlighted six of the major factors in the workplace that could lead to a high staff turnover, from lack of opportunities to overworked staff. Little opportunity for growth By not providing any opportunities for employees to progress, it can cause them to feel stuck in their role and feel as though their hard work and commitment isn’t recognised. A different company that can offer a role of higher authority will eventually become more appealing after plenty of time in the same role – not only for income, but to further demonstrate their skills. Offering promotions for existing employees rather than hiring externally is one way to provide opportunities for growth. Communication is key in this instance to ensure that staff have clarity on how they need to perform in order for this to be possible, for example a checklist of targets over a realistic time frame – this way, both you and the employees can assess how close they are to the next step. Alternatively, providing relevant training courses for staff allows them to educate themselves and stay up to date with the sector, thus being an excellent opportunity for growth. Lack of feedback Offering feedback to employees is a small implementation that can go far – not only does it show recognition, but it also is a huge factor that can help them succeed. Feedback allows your employee to see areas that need more work, thus allowing their performance to improve. Regular 1-1s are a great opportunity to provide feedback, as it provides staff with the chance to address any areas, they are particularly struggling in. As an employer, you can ask questions to discover more about their goals, such as the direction they wish to head in their career. From this, the appropriate measures can be taken, whether that be shadowing another employee or offering training. Micromanagement While micromanagement may work in some instances, such as closely tracking new employees to nip any small mistakes in the bud, it has its disadvantages that can drive employees away. Not only does it limit creativity, but it also implies that you don’t trust the staff to make the right decisions on their own. Lack of innovation can lead to burnout, which not only damages the process within the company, but it’s likely that the staff will find a role with more freedom. You can avoid micromanagement by choosing the right person for the job based on their strengths and goals. Delegating will not only make you feel more confident in leaving them to complete tasks without your overseeing eye, but it will be easier to draw away from telling them how to do the job correctly. Managing expectations instead of tasks is essential to zone out of the micromanagement phase and gives your staff more freedom. Lack of flexible working From working remotely to having alternative start and finish times to the normal hours, flexible working offers a practical solution for employers. It can help those using public transport, staff who are faced with lots of traffic on their commute, and employees who need to take their children to school, to name a few. Having flexible working in place makes employees lives easier and offers a better work-life balance; without it, employees may turn to a different company that does provide this benefit. To incorporate flexible working into the organisation, you can start by selecting the core working hours in which every employee must be present – but outside of this, staff can decide when they start and finish. On top of this, switching to a hybrid workplace where employees split their time between the workplace and working remotely can increase productivity and allows them to use their time more efficiently – not to mention, it’s an attractive factor to job-seekers. Overworking employees Sometimes, it can be a necessity for employees to take on more responsibilities, for example when someone leaves the company and their role has not yet been taken over. With that being said, it’s vital that managers monitor the workload of all employees to ensure that it can be managed without affecting their stress levels, productivity, and personal life. Without doing so, staff may search for another role that will be better suited for a work-life balance and won’t contribute to stress or burnout. This is another area where a 1-1 is particularly useful, as you can use the time to ask questions to your employer about how they are finding the workload and alter it based on their answers. Additionally, an employee wellbeing strategy is an implementation that can transform your workplace to be a healthy and happy environment by providing support to employees who are feeling stressed, perhaps due to the workload, and helping them to thrive. Hiring the wrong candidate Hiring the wrong person for the job will not only affect the company, but it can also impact the employee too – so it’s important to choose a candidate who is a great fit for the role, not just to fill the position quickly. The perfect candidate may not be able to start immediately, you need to be patient instead of hiring a candidate who may not have as many of the desired qualities but can start straight away. You may soon find that the latter’s inability to meet all the needs impacts how happy they are in the position. In turn, unhappy employees will look elsewhere for a job or company that they feel is a better fit – as a result, the hiring process will start all over again. To prevent hiring the wrong person, it’s crucial to not rush into any decisions. Choosing the first qualified candidate in order to fill the role could prevent you from finding someone who is much better suited, so it can help your organisation to interview every candidate and assess their strengths after. As well as this, the job description itself should be very clear, including the responsibilities, the team’s needs, and even the desired soft skills. Without clarity, you face the risk of underqualified job-seekers applying for the role and not finding someone who meets the requirements. A spokesperson from Loopin commented: “It’s incredibly vital that employers consider the causes of a high staff turnover that can potentially be prevented with the appropriate implementations. Something as simple as a 1-1 every two weeks can improve the wellbeing, success, and overall enjoyment in the role for an employee, and it can reduce the speed at which the organisation’s turnover is increasing. High staff turnover not only affects the efficiency of the business, but it also impacts the remaining employees with added workload, and it can damage the reputation of the organisation for future employees. Thinking of the future helps both the business and the staff, so it’s essential to analyse the reasons why past employees have left to prepare for the foreseeable and act accordingly.” This information was provided by Loopin who provide tools for organisations to promote positive wellbeing, open communication, progressive culture, and authentic leadership to create a healthy and happy environment in the workplace.

Across the world, the fallout from two years of restricted movement, the rapid pace of technological change and a growing global sense of purpose is currently forcing a monumental reconsideration of how, when, where and why we work. For businesses wanting to achieve global growth, that can create opportunity as well as challenge. Employees everywhere have more choice and more freedom than ever. Many are opting to work for themselves, taking sabbaticals, early retirement or leaving the workforce to focus on their caring responsibilities. But plenty more are seeking out better pay, better benefits and a better working environment elsewhere. As employers welcome their people back to the office, many employees are seeking more agile working styles elsewhere if their expectations are not being met. Employers must step up and realise that their teams want more than just flexibility and can quickly see through wellbeing washing. Rather, it is authentic organisations focused on environmental, social and governance (ESG) issues that will be the winners in the tussle for talent and those that genuinely engage with their people with trust, empathy and compassion. No longer is a commitment to ESG simply about prioritising the environment; employees are demanding stronger commitments and greater transparency around corporate social responsibility, putting the spotlight on the S of ESG. We are witnessing an exciting wave of employer innovation unlike anything that has gone before, as businesses explore four-day working weeks, universal days off, unlimited paid leave and cross-border remote working models. Many of these themes are global, with ‘work from anywhere’ programmes gaining traction. As remote working frees up professionals to seek employment with companies far away from their home location, businesses can now benefit from a much wider talent pool but must compete in a far more sophisticated hiring landscape. Engaging workers in today’s global market requires creativity and flex, as benefits and culture become the key battlegrounds. The solution is different for every organisation and must be tailored to every employee. Incentive packages need to be personalised to meet the demands of individuals, whether they are looking for childcare funding, wellness packages, mental health services, free time for a side hustle or more weeks off to travel. Only by thinking laterally and being willing to embrace a new era of change can employers truly reap the rewards of the exciting upheaval taking place in the world of work. The latest report by ZEDRA, a global provider of Corporate and Global Expansion, Active Wealth and Fund services as well as Pension and Incentive solutions, which examines the rapidly changing employment landscape, as employees become more demanding and businesses with global growth goals navigate unchartered waters. The report covers a lot of ground, including the following key themes: The Great Resignation – A search to find a trusting, flexible and compassionate employer The importance of personal values – A majority of jobseekers are now looking for an occupation that sits better with their values ESG requirement – No longer is a commitment to ESG simply about prioritising the environment; employees are demanding stronger commitments and greater transparency around corporate social responsibility, putting the spotlight on the S of ESG. In the office vs working from home vs the four-day-week club, the never-ending debate Shift in the recruitment landscape – Working from home means greater competition and opportunities, for both employees and employers Legal and tax risks for businesses allowing cross-border remote working How to attract the best and brightest talent Take a look at the full report below:

Many directors recognise that diversity on boards is no longer a nice to have in today’s world. It is a vital element that ensures the board has access to a broad range of perspectives, which in turn enables better decision making and results. Having a diverse representation on boards is more important than ever due to the current challenges and volatility facing organisations, largely exacerbated by the war in Ukraine. Unfortunately, those boards that are taking diversity seriously are usually looking at it solely through the lens of demographics – such as gender splits and minority representation. While demographic diversity is important there are other vital areas where they need to have diversity to be effective. The Five Drivers Of Diversity™ When it comes to diversity every board should look at their directors through the prism of the five drivers of diversity™- demographics, skills, experience, thinking styles and circles of influence – and consider how well their existing line up matches up. They must understand that true board diversity is broader than any one of the five drivers™ and delivers wider perspectives, improved decision making and outcomes. With diversity of thinking styles it’s cognitive diversity – ‘neurodiversity’ – that should be increasingly recognised as an important asset, because those who are neurodiverse can help generate new and different perspectives that add value. What Is Neurodiversity? People who are neurodiverse have a range of differences in brain function and behavioural traits, regarded as part of normal variation in the population. The term is used mainly in the context of autistic spectrum disorders, including dyslexia and ADHD. Because of their ability to think differently, the value to boards of having directors who are neurodiverse is enormous. They can offer attention to detail, visual thinking, visual memory, pattern recognition and creative thinking that can help illuminate ideas or new opportunities that others might otherwise have missed. Additionally, many have thought processes that can highlight areas of risk that might not have been considered, and that enable them to constructively challenge executive members. Due to their ability to provide a creative contribution to the board, those who are neurodiverse can make excellent non-executive directors. Many Successful Entrepreneurs Are Neurodiverse There is an overrepresentation amongst entrepreneurs of those who are dyslexic, autistic and have ADHD, for example. This is possibly due to their frequent capacity for innovative, visionary thinking and taking risks. Many well-known entrepreneurs like Richard Branson, Steve Jobs, and more recently Elon Musk, have changed the discussion around neurodiversity by talking proudly of how being neurodiverse has given them a distinct advantage and helped to drive their success. The problem is when it comes to recruitment to the board the standard recruitment processes are tailored to neurotypical brains. Therefore, neurodiversity is often overlooked when it comes to board appointments, meaning the board is missing out on talent that can play a vital role in improving decision making and future growth. This makes it vital that boards look at, and where appropriate, change their recruitment processes to make sure they are not losing out on those who are neurodiverse and can help take their organisation forward. How To Deliver Cognitive Diversity On Boards For boards to gain an understanding of a director’s thought process a measurement tool such as Kolbe works well. It measures the instinctive way people do things, with the result called your ‘method of operation’. It is the only validated assessment that measures a person’s innate strengths. Then, once their strengths are understood, it’s possible to see how they can add value and how to maximise their potential. Kolbe is a tool which is particularly important to use as part of the appointment process to help ensure the board has cognitive diversity. Having cognitive diversity on boards is the way forward in an age of volatility, uncertainty and ambiguity, when being creative in spotting opportunities for businesses to evolve and grow is more important than ever. Those boards that exclude candidates who have a neurodiverse thought process, and generally don’t take diversity beyond demographics seriously, will miss out on valuable talent, which could hamper board effectiveness and future long-term business success. About the Author - John Harte is the Managing Partner at Integrity Governance and leads a global team that is focused on making boards more effective. A boardroom expert working with multinationals and SME’s, he provides practical, impartial advice to directors, business owners and CEO’s to help improve performance. He is a regular speaker and thought leader on board effectiveness, practical governance and business disruption. John grew up in a family business and his extended family run fifth generation businesses and he has also served as a board member, chairman and adviser to many family firms. He also worked within Mars, a globally recognised family business for the best part of a decade.

With the landscape of an unprecedented labour shortage, a new nationwide poll has revealed that businesses that don’t publish salaries when advertising jobs lose out on millions of applicants, as 20 percent of those polled said they would not bother to apply for a role if there was no salary mentioned. And a further 57 percent of workers said they would be much less likely to apply for a job if the salary range wasn’t stated upfront. In fact, the study of 2000 British office workers, by insights agency Perspectus Global , found that a staggering 90 percent of those polled believe that salaries should ALWAYS be included in job advertisements. Of those, half (50 percent) said it was a waste of time applying for a job if you don’t know what the pay will be, and 44 percent believe that publishing salaries makes companies more transparent. The same number (44 percent) said it’s the most important element of a job so it needs to be displayed, and a quarter (25 percent) claim that publishing salaries in job adverts helps battle the gender pay gap. Said Jon Horsley of Perspectus Global: “With several states in the US having made it a legal requirement for employers to publish salaries on job ads, a backlash against the vague phrase ‘competitive salary’ is gaining momentum in the UK. The writing seems to be on the wall – if your salary is so competitive, why don’t you publish it? It’s likely that companies that don’t take heed will face a bigger recruitment challenge than those that do.” The report also revealed other reasons why Brits won’t apply or accept new jobs and found that, while their application is being processed, 60 percent of respondents said that they had been made to jump through too many hoops interview stages of a job, such as having to do ‘work for free’ or numerous rounds of interviews. Shockingly, HALF of all respondents say that they have said no to a job they were offered solely because of how this stage of recruitment was handled. Said psychologist and employee experience consultant Debbie Martin “I’ve heard horror stories about people having to do eight interviews before getting jobs. I actually think it’s not the number of interviews that is the problem, it’s the fact that people aren’t clear about that at the start. If you know there’s going to be 4 interviews then you can prepare yourself for it but if they keep adding on stages, that’s a lot of extra aggravation.” “If employers keep adding on tasks or interview stages, this brings up a level of distrust, and you start to think ‘do they really want me?’ or ‘am I being set up to fail?’ It tends to be larger corporations with more bureaucracy, whereas start ups and more nimble organisations are much quicker to make offers – and I think this does mean that the more bureaucratic organisations are losing out on a lot of talent.” The study also explored how people look for new jobs, and found that the initial search mainly takes place online with over 90 percent of people saying their first stop is a web search, LinkedIn, social media or recruitment sites. A third of the youngest cohort of 18 to 29 year olds turn to social media to look for a job – nearly three times more than the over 45s. This suggests that recruiters in the future must have a well maintained social media presence. Also, the youngest group were more than twice as likely to turn to Linkedin (35 percent) than the over 45s (17 percent). Check out the full report below:

Small businesses set to be swamped with almost £23 billion in recruitment costs alongside cost of living crisis according to latest research from Westfield Health. Key Findings: SMEs will be hit by surprise recruitment costs, with £22.5 billion needed to replace the 7.5 million small business workers looking to move roles Replacing staff will cost UK businesses a total of £41.9 billion as well as battling soaring energy and running costs While job satisfaction is high among UK workers, nearly half (46%) are still considering changing jobs The latest research conducted by Westfield Health reveals that 46% of workers across the UK are considering moving jobs, resulting in a potential £41.9 billion cost to businesses. Small businesses will be overwhelmed by the cost of talent, with recruitment costs hitting £22.5 billion. Despite this, more than three-quarters of workers (76%) said they were either satisfied or very satisfied with their job. These findings demonstrate that businesses unaware of the exodus coming their way may struggle to retain talent, even when improving their employees’ job satisfaction. This is going to hit SMEs particularly hard who will be faced with mammoth unplanned recruitment bills alongside fighting soaring running costs. Commenting on these results, Dave Capper, CEO at Westfield Health, said: “Even though our research reveals the good news that many employees are happy at their current job, a worrying amount of people are still considering leaving.” “The average cost of hiring someone new is around £3,000. Coupled with the cost-of-living crisis, struggling with retention of workers could have a big impact on businesses, especially if the UK heads into a recession. SME leaders are facing huge financial challenges as it is, pair this with further unexpected recruitment bills and there’s a real cause for concern.” The research also shows that whilst around half of workers don’t have a preference (53%), more than a third (34%) say they’d prefer to work for an SME with fewer than 250 employees. Smaller businesses are seen to lead the way when it comes to particular perks, with over a half stating working at an SME gives them better contact with senior leaders (60%), maintains a good workplace culture (48%) and allows them to have a better work-life balance (35%). On the other hand, larger businesses with more than 250 employees ticked the more traditional benefits. In general, employees stated that working at a larger business offers better salaries (40%), career progression (44%) and physical health support (51%). However, working at a bigger organisation may come at a cost, with those working at larger businesses taking, on average, more sick days off per year compared to those working at an SME. Dave expands: “Those working for bigger organisations tend to note salary and career progression as key benefits – both of which help toward talent retention. They’re also more likely to have wellbeing benefits, however a key part of keeping employees happy is looking at the overall context these perks are provided in — the culture of an organisation. “Our research shows that those working at SMEs enjoy the fact that their company has a better workplace culture and a more tight-knit community within the business, something which is much harder for large companies to change and get right.” “There’s a David and Goliath battle for talent on the horizon where smaller businesses have a real opportunity to play to their strengths and use these qualities to attract and retain talent.” “For SMEs looking to attract top talent away from large businesses, prioritising company culture and bridging the benefits gap with small investments in key areas, like mental health support, could be the key to recovering and thriving in the post-Covid economy,” said Dave. Prioritising People And Perks Due to limited resources, SMEs need to be smart when considering investments in their company – especially during financially testing times. When looking to bridge the gap between the perks of working for a larger organisation and an SME, businesses will need to invest strategically in benefits that meet employee expectations, deliver ROI and play to their strengths. Dave adds: “We already know that wellbeing is strongly linked to workplace culture. Our previous research showed that 85% of people say there’s a link between wellbeing and workplace culture, meaning investing in your people’s wellbeing has a strong, positive impact on your business.” Capitalising on culture could be the strategic move businesses need to retain top talent and avoid heavy recruitment costs: more than half (64%) of employees say they would leave their job if the workplace culture did not fit.” “Knowing that people are satisfied at work but are still willing to leave is troubling for employers – especially SMEs that are already fighting against inflation and increasing costs.” “To avoid the potential exodus of workers and soaring hidden recruitment costs, businesses will need to prioritise the benefits that matter most to employees, such as creating a great culture through wellbeing support. Not only will it help with employee retention, but it will also make a lasting impact on employee health and performance, delivering tangible business benefits,” concludes Dave.

New research explores the top practical approaches for HR to boost employee engagement in 2023. Key Findings: 72% of UK staff believe their workplace wellbeing would improve if they were simply thanked for their hard work Over 4 in 5 UK employees say workplace burnout has an impact on their overall mental health and wellbeing 24% of UK employees say that they are no longer going ‘above and beyond’ at work The new research report commissioned by global HR technology and employee engagement company Reward Gateway calls for HR managers to include practical, human-centred solutions in their core strategy for 2023 to boost engagement. The past few years of prolonged uncertainty and disruption has had a significant impact on employees and HR leaders today. The report findings reflect this change and reveal a significant disconnect between employers and employees when it comes to engagement. A minority of employees rate the physical (32%), mental (39%) and financial (28%) wellbeing support from their employers as ‘good’ or ‘excellent’. However, the majority of employers believe they are excelling in this area. With over 2 in 5 employees frequently experiencing burnout, the report highlights science-based, practical strategies to boost overall wellbeing and increase employee engagement, in turn mitigating employee burnout. The research findings of 1,015 employees and 250 HR managers in the UK show that wellbeing benefits are imperative to re-engage staff today, given that 24% of UK employees state they are no longer going above and beyond at work. Moreover, 72% of employees say that their workplace wellbeing would improve if they were simply thanked and recognised more frequently for their hard work, as a lack of recognition can trigger a sense of pointlessness at work. Almost half of UK employees say that they frequently experience feelings of overwhelm, driven by the current ‘war for talent,’ constant adjustments to life post-pandemic, and ever-increasing inflationary pressures. With 72% of employees stating that they have felt a lasting negative effect from the last few years of constant upheaval and uncertainty, there is a clear gap in expectations for improvement when it comes to wellbeing support. Reward Gateway’s report brings to light specific, practical ways HR managers and senior executives can re-engage their workforce in 2023, citing the four R’s: Revive, Remind, Recharge and Recognise. This framework encourages employees to think about why they decided to accept their job in the first place, and to remind them of all the benefits and support available to them beyond the paycheque. Rob Boland, COO at Reward Gateway, says: “The findings from the report confirm that a subtle societal evolution has taken place where physical, mental and financial wellbeing in the workplace is now expected at the core of every company’s HR strategy. Our new research further suggests that employers and employees need to be connected on all fronts now more than ever, with 93% of UK employees saying that feeling heard is an important contributor to their wellbeing at work." "Clearly defining the support available to all employees and ensuring that employees feel recognised and valued in the workplace is key for both financial and career wellbeing.” This research was commissioned by Reward Gateway, whose platform enables organisations to improve employee engagement to build better, stronger and more resilient organisations. Download and read the full report here:

When employers are looking to build up a team for an innovative project, they can often fall into the trap of looking for someone new rather than realising the potential of their current workforce. It is often the case that the person who shouts the loudest is assumed to have the most creative ideas. But what if you’ve got some hidden gems amongst your workforce that are going unnoticed? According to Greg Satell, and international keynote speaker and author of Mapping Innovation , to build a successful, innovative team, “you need to start by empowering the people already in your organisation. But to do that, you need to take responsibility for creating an environment in which your people can thrive.” Empowerment and engagement are the fundamentals of successful team development. So, let’s find out how you can help your team to feel inspired and get creative. Communication is key In order to come up with some exciting ideas, your employees need to feel confident and comfortable in expressing their thoughts. Regular communication will keep employees in the loop and encourage them to speak up, knowing that their voices will be heard. Who knows, you might already have dozens of creative and innovative ideas bubbling in the minds of your employees. Without establishing clear and regular communication, however, these ideas could be lost. Value individual skill sets Any well-oiled creative team will be made up of people with a variety of skillsets. How will your team grow if everyone thinks in the same way, after all? In successful innovative companies, differences make a team stronger. What’s more, people are normally far more creative and engaged when they’re working on something that they’re interested in. As a leader, it’s important to listen to your employees, find out more about their skillsets, hobbies, and passions. This way, you’ll be able to match your employees to the projects that they’re most interested in, and their performance is sure to impress you! Establish a creative environment While some people may seem creative at face-value, others might need a little encouragement. Often, how creative and innovative you feel can come down to your environment. Of course, if your company is currently operating remotely, this is easier said than done! Send around some pointers to your team to help them keep creative in their own home. One idea is allowing some flexibility in your work schedule. This way, your team members can get out on walks or take breaks if they’re feeling particularly stagnant. Taking a step away from the laptop and enjoying a breath of fresh air is a great way to help you feel more creative. If you’re working from the office, there are plenty of ways in which you can construct a more creative atmosphere. Simple things like decorating your office with creative colours, having some uplifting music on in the background, and getting the lighting just right can all contribute to creating a comfortable work environment. This is essential for successful innovative projects. Try some team-building There’s nothing like a spot of team-building to bring your workforce closer together and help empower them. Often, the office can become uninspiring, no matter how much of a creative space it is. Employees can feel stuck in a rut of nine-to-five days and need something fun to break up the monotony and hit the refresh button. Off-site meetings and activities are a great solution for this. They will help your team to see things in a different light and perhaps look at a project from a new perspective. If your workforce is currently remote, this may seem more difficult. However, online team-building activities such as quizzes or a games night are still great for lightening the mood and reducing stress amongst your workforce. Set goals and show appreciation To establish an innovative team, it is essential that your workforce feels motivated and appreciated. Setting goals and holding regular reviews and meetings are both key parts in this. Through goal-setting, your employees will feel appreciated on an individual level. They will also always have something inspiring to work towards. What’s more, members of your team may have some great ideas about how to improve the business, but they might not think to voice them unless you go to them. A regular catch-up with your team members allows for productive one-to-one discussions. For some people, this might spark creativity more effectively than a group meeting. Innovation can come from the most unexpected places – it just sometimes needs a bit of friendly encouragement! Try out some of these tips and watch the creativity in your team flourish.

Giving your workforce access to a wider range of flexible working arrangements can be a powerful tool for family run businesses to attract new recruits and improve retention. Beefing Up The Statutory Regime The right to request flexible working arrangements has been part of our employment framework for many years. With the growth in hybrid working during the pandemic, it has grown in prominence. The Government is now using that momentum to help it fulfill its 2019 manifesto commitment to make flexible working “the default.” Last month the Employment Relations (Flexible Working) Act 2023 was added to the statute book and is likely to come into force about this time next year. This will enhance the statutory regime by reducing the required response time from three to two months and allow up to two requests to be made a year. It will also introduce an important new requirement to consult with the employee before turning down a request. Even more importantly, the Government has promised to pass the necessary regulations to remove the 26 week qualifying period so that the right to request becomes a “day one right” - something that couldn’t be included in the new Act for technical legal reasons. Going The Extra Mile Removing the qualifying period will be a big change, since it will in effect require employers to consider flexible working at the appointment stage. But it will still sit within a statutory regime which gives employees a right to request, not a “right to have.” That is why part of the Government’s strategy is to encourage employers to go further than the statutory regime – whether by being more open to agreeing requests than the law strictly requires, or adopting a more flexible approach to agreeing changes. With this in mind the Government has launched a call to evidence which runs until November. We can expect some new examples of best practice to emerge as a result of this process. Creating A Customised Flexibility Framework Family run businesses are often in a better position to implement an innovative flexible working regime than organisations with a more diffuse management structure. Engaging with employees about the working arrangements that suit them best, while ensuring business objectives are met, is a proven way to improve staff engagement levels. Enhancements to the statutory scheme to consider include: Allowing ad-hoc arrangements to be agreed on a temporary or trial basis (the statutory regime works by creating a permanent change to the underlying contract of employment) Anticipating the removal of the qualifying period by entertaining applications from all employees now, rather than waiting for the law to change Providing a right of appeal where requests are turned down (this is not mandatory under the statutory regime). Developing Best Practice Getting the right scheme in place is an essential starting point, but employers need to make sure it is properly administered. ACAS is currently consulting on a revised code of practice to support the new statutory regime. As explained in the forward to the consultation: “The updated Code seeks to encourage a more positive approach to flexible working, through a new Foreword to the Code and an emphasis on fostering an environment in which requests are not rejected by default without open-minded consideration and meaningful dialogue.” This new code (available in draft here ) would be a good place to start for employers wishing to modernise their procedures. The Code places particular emphasis on consulting with the employee in person and exploring alternatives before reaching a decision. Conclusion Improved flexibility is not a panacea, since recruitment and retention are driven by a number of factors, not least the total remuneration package. However, it can be an important differentiator which family businesses can deploy to stand out from other organisations that may have greater financial resources. About the Author - Charles Pigott is a Professional Support Lawyer for Mills & Reeve LLP. Find out more and get in touch for more information via their website here

Family-run businesses have long been the backbone of economies worldwide, contributing to employment, innovation, and economic growth. However, these businesses often face unique challenges when attracting and retaining top talent. The interplay between family dynamics, legacy, and the need for professional management can create a complex landscape for talent acquisition. In this article, we will explore the distinctive challenges faced by family-run businesses in the war for talent and provide actionable strategies to overcome these hurdles. Challenges of Family-Run Businesses in Talent Acquisition 1. Family Dynamics and Nepotism One of the defining features of family-run businesses is the presence of family members in key leadership positions. While this can foster a sense of unity and shared values, it may also lead to perceptions of nepotism and hinder the recruitment of external talent. According to the PwC "Global Family Business Survey 2018" 44% of family business leaders believe their successors should come from within the family. Striking a balance between family involvement and merit-based hiring is crucial. 2. Lack of Professionalization Many family-run businesses need help transitioning from an informal, entrepreneurial structure to a professionally managed one. This can create organisational structure, career growth opportunities, and performance evaluation challenges. The Harvard Business Review article " Keeping It Professional When You Work in a Family Business " suggests that professionalisation involves "implementing systems and processes based on professional management practices rather than family preferences." 3. Succession Planning and Uncertainty Succession planning is a critical issue for family-run businesses. Identifying and grooming the next generation of leaders requires careful consideration. The Family Business Institute states that only about 30% of family businesses survive into the second generation, and even fewer make it to the third generation. Uncertainty about future leadership can make it challenging to attract and retain top talent who seek stability and clear career paths. Strategies to Win at Talent Acquisition 1. Balancing Tradition with Innovation To successfully navigate the complexities of family dynamics, family-run businesses should embrace a culture that respects tradition while fostering innovation. This means valuing the experience and insights of family members while also recognising the importance of fresh perspectives from external talent. The Forbes article " Family Businesses Investing In Employees And The Community " recommends that family businesses "create a space where new ideas can flourish while still respecting the legacy of the business." 2. Professionalizing Management Introducing professional management practices can enhance transparency, accountability, and growth within family-run businesses. This includes implementing clear job descriptions, performance evaluations, and opportunities for skill development. The EY Global Family Business Center of Excellence emphasises that "hiring top-tier executives from outside the family can bring expertise that may not otherwise exist within the business." 3. Structured Succession Planning Developing a well-defined and transparent succession plan is crucial to attracting and retaining top talent. Family businesses should invest in identifying potential leaders, offering mentorship and training programs, and communicating the path to leadership roles. This structured approach can alleviate concerns about uncertainty and encourage high-potential employees to commit to the business's long-term success. 4. Embracing Diversity and Inclusion Family-run businesses can benefit from embracing diversity and inclusion initiatives. These initiatives broaden the talent pool and bring fresh perspectives to the organisation. Research from McKinsey's " Delivering through Diversity " shows that diverse companies are likelier to outperform their less diverse counterparts. By creating an inclusive environment, family businesses can attract talent from a broader range of backgrounds and experiences. The war for talent in family-run businesses requires a delicate balance between honouring tradition and embracing innovation. By acknowledging and addressing the unique challenges posed by family dynamics, lack of professionalisation, and succession planning uncertainties, these businesses can create strategies to attract and retain top talent. Through structured succession plans, professional management practices, and a commitment to diversity and inclusion, family-run businesses can secure a competitive advantage in the talent landscape. In the words of Anita Roddick, founder of The Body Shop, "To succeed, you have to believe in something with such a passion that it becomes a reality." For family-run businesses, that passion can extend beyond the family name to encompass a thriving, dynamic, and professional environment that retains the best talent and propels the business toward lasting success. About the Author - Kim Adele-Randall is a Business Growth Consultant helping to unlock growth, drive transformation and empower businesses to scale and succeed. Find out more here