Archives 2024

Last year, a new concept emerged in the corporate sector: the flattening. This term describes the current trend where technology companies, which rapidly expanded their middle management layers during the pandemic boom, are now eliminating these positions through extensive layoffs.

Recent research by Mustafa Dogan, Alexandre Jacquillat, and Wharton’s Pinar Yildirim, published in the Journal of Economics & Management Strategy, delves into this phenomenon. Through theoretical modelling, the study investigates how automation influences organizational decision-making structures, focusing on balancing centralization and decentralization. The study challenges the common belief that technology will decentralize authority by democratizing organizations and empowering lower-level managers.

The study finds that automation significantly alters decision-making processes within companies. Centralized organizations, characterized by hierarchical decision-making, are more inclined to automate tasks within divisions that encounter uncertainty, such as those involved in developing new products. By doing this, they reduce the dependency of top managers on the expertise of mid-level managers in uncertain situations, streamline processes, and enhance control at the executive level. Yildirim explains, “Automating divisions that involve uncertainty can lessen the need for managers’ localized expertise, allowing executives to become less reliant on them.”

On the other hand, decentralized organizations tend to deploy automation in more stable, routine tasks where decision-making is more spread across different managerial levels. These companies prefer to utilize automation to support steady, ongoing operations in existing product divisions, thereby insulating them from the negative impacts of biased decision-making by mid-managers in uncertain areas. This approach helps to improve the overall financial performance of the company.

Furthermore, as companies allocate more resources to automation, they tend to move towards a more centralized decision-making model over time. Automation reduces variability in operations, meaning lower-level managers are required to make fewer decisions. This shift concentrates more authority in the hands of top executives, moving the company’s structure towards centralization, regardless of its initial setup. Yildirim points out, “This reduces the strategic role of mid-level managers, pushing them towards more operational tasks as lower-level ones are automated.”

“For decentralized firms, automating routine tasks in stable divisions enables managers to concentrate on adapting to changes and innovating, enhancing the firm’s agility and responsiveness,” adds Yildirim.

Impact on Innovation

A further finding from the paper suggests that as automation resources become more accessible, the gap between the innovation capabilities of centralized and decentralized firms could widen. Centralized firms might become more resistant to change, while decentralized firms could become more flexible and better equipped to adapt to new market conditions. “For decentralized firms, automating routine tasks in stable divisions allows managers to focus on adapting to changes and innovating, enhancing the firm’s agility and responsiveness,” Yildirim emphasizes. This divergence could have significant effects on competitive dynamics across various industries.

Additionally, as automation redefines the roles of mid-managers, it will also affect communication and the extent of disagreements within firms. As more tasks are automated in uncertain divisions, the quality of communication between executives and managers may decline, leading to a less informed decision-making process. Ironically, this could undermine the efficiency gains that automation is supposed to bring. Yildirim notes, “Automation makes communication from managers to top executives less informative, which can complicate management when technology is used strategically.”

Maintaining Alignment

The study’s final insight is that strategic automation can also replace traditional financial contracts used to manage conflicts within organizations. As automation reduces the need for managerial input, companies might find it less necessary to align managers’ incentives with those of the organization through financial means. Instead, automation can standardize processes and minimize opportunities for bias or misalignment. “It’s a cost-effective way to maintain alignment and reduce internal conflicts,” Yildirim explains.

The study’s implications are profound. The authors suggest that as companies increasingly access automation resources, they should anticipate changes in their managerial hierarchy: top-down decision-making will become more prominent. This shift could diminish the role of mid-level managers, confining them to more operational tasks and reducing their strategic influence within the organization. Essentially, the authors argue that automation is not just a tool for efficiency but a strategic asset that can reshape the power dynamics within an organization.

The days when a computer science degree alone could land you a job in the tech industry are long gone. As of 2024, according to data from layoffs.FYI, more than 130,000 tech workers have been laid off from industry giants like Cisco and Intel, following a staggering 263,000 job cuts in 2023.

In this challenging environment, job hunting has become fiercely competitive, with hiring processes growing increasingly complex and drawn-out. Companies now rely heavily on AI to sift through resumes and use technical interviews to assess candidates’ problem-solving abilities and coding skills, making the employment search even more daunting.

Even though the reduction in job openings at large companies might make it easier to find high-skilled workers, many job seekers still have their sights set on landing roles at big tech firms. The efforts they put into securing these positions are substantial, a fact that recruitment agencies know all too well.

Resume Optimization

Kevin Wu, the co-founder of Pathrise, explains that their business model is centred on guiding job seekers through the application process by leveraging social networking, resume optimization, and interview preparation. Clients do not pay upfront; instead, they pay 7% to 14% of their first-year salary once they land a job. Entry-level salaries typically average $80,000, while senior positions can reach nearly $200,000.

Wu notes that Pathrise signed $30 million of contracts last year and is assisting about 1,000 clients. Although this revenue is contingent on clients successfully finding jobs, Wu emphasizes that Pathrise is very selective, focusing on candidates with the highest potential for securing a position. While he did not provide specific figures, Wu mentioned that most of their clientele consists of recently laid-off individuals.

Mock Interviews

Another strategy to improve job search success is to invest in mock interviews. Evan King, co-founder of Hello Interview, mentions that many laid-off job seekers turn to them for support. The company, which launched just a year ago, offers mock interviews priced between $160 and $350 per session, depending on the coach’s expertise. King has observed that many long-term unemployed individuals, frustrated and exhausted by the gruelling job search process, are open to trying new approaches.

Similar services are available through platforms like Interviewing.io, where prices start at $225. Aline Lerner, the founder, says that around 8,000 people sign up for their services each month, and they have served 300,000 clients over the past nine years. According to Lerner, about one-third of engineers in the Bay Area have used their resources. She adds that the top 5% of performers in their mock interviews are often connected with major tech companies for real interviews.

Casting a Wide Net

ApplyPass offers a different approach by helping job seekers cast a wide net. David Hopper, co-founder of ApplyPass, explains that their service uses AI to send out 100 job applications per week on behalf of clients, with pricing starting at $99 per month.

Although some large companies use their automated systems to filter applications, Hopper says his team is working to help their AI overcome these barriers. For many job seekers, this is their first experience facing an economic downturn, which can be quite daunting. Interviewing.io’s Lerner remarks, “There used to be a dozen recruiters on LinkedIn every day begging to talk to you—now you have to work hard to get into companies. It’s not the mindset they’re used to.” Fortunately, these job seekers aren’t alone; they’re finding new ways to navigate the job market.

In this era of tech layoffs, innovative strategies like these are helping workers adapt and find new opportunities, even in a fiercely competitive job market.

For the past few years, Canadian job seekers have enjoyed a strong labour market as employers raced to fill positions amid post-pandemic recovery. Many companies hesitated to enforce office returns, fearing employee departures, and those who left their jobs often found new opportunities quickly, often with better pay.

However, the Canadian labour market is now showing signs of slowing down, making it tougher for job seekers to find and secure employment.

In June, Canada’s unemployment rate increased to 5.4%, the highest in over a year, with more than 1 million Canadians unemployed. This marks a notable rise from the 5.2% unemployment rate reported earlier in the year.

This uptick in unemployment, largely due to more people entering the workforce, signals that competition is intensifying for job hunters. The shift suggests a changing landscape in the labour market.

Wage Growth Slows Down
Economists have been closely monitoring job mobility as an indicator of market confidence. The quit rate has levelled off, reflecting a reduction in job switching, which had surged during the pandemic. Typically, job switchers in Canada would benefit from significant pay increases, but recent data suggests these raises are becoming less substantial.

Recent analyses indicate that pay hikes for those changing jobs have softened, a shift from the high rises seen during the “Great Resignation” period. This trend suggests that the balance of power may be tilting back toward employers, who are less inclined to offer substantial raises to attract new talent.

Longer Unemployment Durations
With hiring slowing down, unemployed Canadians are finding it harder to re-enter the workforce. The median duration of unemployment in Canada has increased, reflecting a broader trend of prolonged job searches.

Recent data from the Employment Insurance (EI) program shows a rise in continuing claims, indicating that more Canadians are staying unemployed for longer periods. This aligns with a broader trend of increased jobless claims, which have reached their highest levels since the pandemic recovery began.

Certain Sectors Cutting More Jobs Than They’re Adding
While overall employment in Canada grew modestly last month, not all sectors saw gains. Industries such as retail and manufacturing experienced job losses, with declines also seen in professional services.

The temporary help sector, often viewed as a bellwether for the broader economy, saw a significant reduction in jobs. This decline in temporary employment could signal future challenges for the Canadian labour market, as companies typically cut temporary roles first when facing economic uncertainty.

As the Canadian job market cools, job seekers may need to adjust their expectations and strategies to navigate this increasingly competitive landscape.

Once the excitement of graduation fades, the season of new beginnings can become a challenging period for many fresh graduates. While some head off to new jobs or further education, others face uncertainty about their next steps. Should you stay in your college town, move back home, or venture to a city with better job prospects? How should you fill your days now that classes are over? And how do you explain your activities to potential employers?

Even though the class of 2024 avoided the recession some feared, they still face a job market that prioritizes skills over degrees and part-time roles over full-time positions. If you’re among the new graduates still seeking a job, here are five key tips from career experts to help you navigate this transition.

1. Recognize Your Value Before the COVID-19 pandemic, the unemployment rate for recent graduates was lower than that for the general population. Since 2021, however, new graduates have faced higher unemployment rates.

“I don’t want [the state of the economy] to discourage grads,” said Cindy McGovern, author of Sell Yourself: How to Create, Live, and Sell a Powerful Personal Brand and CEO of Orange Leaf Consulting. McGovern emphasized that not having a job lined up is neither normal nor abnormal. “It’s just where we are, looking at the greater scheme of the market,” she added.

In other words, the demand for labor is constantly fluctuating and varies between sectors. When the economy is in a lull, the job search can feel discouraging, but ultimately, such factors are out of your control. To stay motivated, it’s helpful to acknowledge this and regularly remind yourself that it’s not a reflection of your individual value or abilities.

Pro tip: If you lack long-term work experience, don’t let it get you down. Everyone starts somewhere, and often, being a “newbie” can have advantages. “I would rather hire somebody young and hungry and full of fire in their belly, than somebody that has 15 years of experience, who’s going to rinse and repeat,” McGovern said. “But sell me on the fact that you’ve got the fire in the belly.” She explained that you can teach someone skills, but you can’t teach them motivation.

2. Clarify Your Goals Entering the workforce might tempt you to rush into the first job offer you receive or follow friends to major cities where opportunities seem plentiful. While securing a strong role is important, taking the time to reflect on your desires and strengths can be more beneficial, according to Liz Sastre, a professional coach with RKE Partners.

Your first job out of school likely won’t make or break your career, but it can still be a step in the right direction. On average, it takes three to six months to find a job — plenty of time to pause and reflect on what you might want. Try writing down your greatest skills and strengths — as well as how you’d like those to manifest in this role. Think about the type of projects you enjoy most, the tasks that come naturally to you, and any results you’ve generated using those skills (whether that be in class, internships, or past work). This information can give your search a little more direction: What kind of roles and responsibilities best align with what you’ve written down?

In addition, Sastre suggested being “realistic” (financially and otherwise) when considering where and when to move for work. This could mean living at home and saving until you land a stable position, or being open to relocating somewhere unexpected when you find work that feels exciting or meaningful.

Pro tip: As you reflect on your strengths and the quantifiable outcomes they’ve generated, be sure to include those numbers on your résumé (for example: “My actions led to a 25% increase in profit”). If that data isn’t available to you, share examples of your accomplishments and the positive feedback you received from past managers or professors.

3. Keep Building Your Network For the class of 2024, who started their college experience virtually, the career-building relationships that often naturally form between peers and professors were delayed, Sastre said. That’s why fresh graduates need to make a real effort to grow them.

“You can know 15,000 people on LinkedIn, but how many of them are engaging with you, supporting you, and advocating for you?” McGovern added.

A great way to get started is by contacting employees at companies you’re interested in working for, or who work in industries you’re exploring, and asking for informational interviews. When you reach out, let them know how you found them, who you are (for example, a recent graduate), and why you want to chat. An example of what you can say is:

Hello, my name is [Name] and [Name] referred me to you. I recently graduated from [school] where I studied [major]. While in school, I interned with [former employer/internship] where I [duties and responsibilities]. I’m looking to broaden my expertise and build a career in the field of [industry].

Would you be available for a 30-minute Zoom chat to share your knowledge and experience in your field? [Name] says you are the go-to person to speak with. Please let me know, and thanks so much for your time!

Don’t use these conversations to ask for a job. Rather, think of them as learning opportunities. Sastre recommended conducting these conversations before applying for jobs. That way, if during your job search, an opportunity opens at a company where one of these connections works, you already have a relationship to tap into.

Pro tip: Today, when everyone can create a clean and thorough résumé using AI, your network is how you can stand out. “Applying randomly is kind of like throwing your résumé outside and hoping that someone gets hit by it and knocks on your door,” Sastre said. “Intentionality is so important.”

4. Embrace Resume Gaps When you have a gap between your education and employment due to an unlucky job hunt, common interview questions may include “What did you do in the last year to improve your knowledge?” and “From your résumé, it seems you took a gap year. Would you like to tell us why that was?” Answering them can be intimidating.

The good news is, these gaps are not as uncommon or stigmatized as they used to be. It’s important to frame them as purposeful — whether it be for family, for the sake of self-growth, or for the sake of finding an opportunity that truly fits your skills — and share what you learned during that time. “The key is to show that this was not a gap in the progression of your personal development, but rather, a pause on the professional track,” McGovern said.

Pro tip: Use the time to gain new skills, volunteer, or take on freelance projects. These activities can fill the gap on your résumé and demonstrate your initiative and commitment to continuous learning.

5. Leverage Online Learning The digital age has made it easier than ever to acquire new skills and knowledge from the comfort of your home. Platforms like Coursera, edX, and LinkedIn Learning offer courses across a wide range of subjects, often taught by industry experts from leading universities and companies. By taking these courses, you can enhance your qualifications, stay current with industry trends, and make your résumé more appealing to potential employers.

Pro tip: Choose courses that align with your career goals and add the certifications to your LinkedIn profile and résumé. This not only shows that you are proactive about your professional development but also helps you stand out in a competitive job market.

Tennis legend Serena Williams recently revealed her new venture, Wyn Beauty, after stepping away from the sport. Williams’ decision to retire from tennis to prioritize her family extends to her focus on beauty, which is also a family-driven choice. As Williams expressed, “Motherhood has given me a new perspective on beauty through my daughter, Olympia’s eyes. We love experimenting with makeup together, and I think about how these moments will shape both of our beauty journeys… I hope my daughters see my varied passions — from tennis to beauty — and learn they can pursue dynamic careers and diverse interests.”

Williams’ daughter, Olympia, has been a source of motivation for her mother since before her birth. Williams was two months pregnant when she won the Australian Open. In a public letter to her newborn daughter, Williams highlighted how much she anticipated her daughter watching her from the stands, saying that “you gave me the strength I didn’t know I had.”

In the same year Serena found strength from her daughter on the tennis courts, we published our study on family motivation, examining how family inspires individuals to excel at work. In a very different setting — the arid desert of northern Mexico near the U.S. border — we observed 97 employees working in a low-cost factory processing coupons. Through conversations with these workers and systematic surveys, an interesting trend emerged: those who excelled did so not for personal gain, but for their family’s benefit.

Family is a cornerstone in most people’s lives, transcending cultures and geographies. However, the notion that family can motivate work performance has been largely ignored. Historically, family has been viewed as competing with work for an individual’s limited resources, such as time and energy. A significant body of research on work-family conflict has supported this notion, illustrating how work and family demands can clash and interfere with each other.

Our research, and the experiences of the workers in Mexico we studied, suggest otherwise. Contrary to the belief that family primarily drains energy from work, we discovered that family can energize one’s work. These findings prompt a reevaluation of family as a crucial source of motivation in the workplace.

Since our initial publication in 2017, subsequent studies have supported and extended our findings. We now understand how family influences work motivation and how managers can implement these insights within their organizations.

Family as a Work Motivator Research on motivation has shown that people work harder if their job provides financial rewards and status (extrinsic motivation), joy and fulfillment (intrinsic motivation), and a sense of contributing to others (prosocial motivation). However, one often overlooked reason for working is family. Many individuals are driven to work each day out of a desire to support their family and because their family benefits from their employment. This family motivation can enhance work performance, inspiring individuals to put forth their best effort.

The low-wage employees we studied spend their workdays scanning discount coupons sent to Mexico from U.S. retailers. This tedious, manual task involves removing each coupon from its container, scanning the barcode, and ensuring the system processes it correctly. We found that those motivated by their family had more energy for their work. This increased energy, in turn, helped them achieve their daily work targets. Further studies among both low-income and high-income employees in China also found that family motivation boosted work effort, leading to higher productivity.

Family motivates work effort for various reasons. The most straightforward is the desire to ensure financial stability for the family. However, family motivation extends beyond finances. Parents often strive to excel in their jobs to serve as role models, demonstrating a strong work ethic and teaching their children positive career strategies — much like Serena Williams’ wish to show her daughters the value of pursuing multiple interests. These dynamics were evident in qualitative interviews conducted in South Asia. One employee stated, “My kids mean everything to me. I want to give them the best and be a role model. I want to teach them to honor their responsibilities and earn a respectable living.”

Work can also be a source of pride, as employees share their achievements to make their family proud. As another South Asian employee noted, “My family takes pride in my work, my earning capabilities, and my career growth. Their encouragement and support motivate me to grow.” Just as Serena Williams cherished the thought of her daughter watching her work, these employees found joy in seeing their family’s pride in their accomplishments.

Family can also provide a broader perspective that helps employees navigate work challenges. Mark Buckingham, a physiotherapist who worked with athletes who became new parents, observed: “Babies put a bad day or poor training session into perspective. They make athletes better at time management. People don’t overtrain as much because they lack the time. Athletes often improve after having babies because they gain a better sense of balance.”

These focus and time management skills also translate to the workplace. Ironically, mothers are often advised not to mention their children during job interviews to avoid being perceived as less committed to their careers. Yet this traditional thinking contradicts research findings: family can enhance work focus and absorption. Employees with family responsibilities anticipate after-work duties that will consume their time, leading to greater focus and commitment during work hours. Far from being a distraction, research shows that employees with family obligations report higher work absorption compared to single, childless employees.

A fulfilling family life can enhance work performance in various ways. For instance, family motivation boosts employees’ self-efficacy, or belief in their ability to accomplish tasks at work. Positive family events also strengthen a leader’s prosocial motivation, promoting effective leadership behaviors such as approachability and inspiration.

How Employers Can Leverage Family Motivation Given that family motivates work, organizations can benefit from integrating family into the workplace. This could involve allowing children into the office through events like “Take Our Daughters and Sons to Work Day,” which provides children with career insights and fosters pride in their parents’ work, or offering on-site childcare. Employees can also personalize their workspaces with family-related items like photos, children’s drawings, or letters. Having family memorabilia at work can also reduce unethical behavior, such as inflating expense reports.

Mitigating the Risks of Family Motivation While family motivation can drive work performance, it can also lead to potential challenges. For instance, employees may stay in unfulfilling jobs to avoid disrupting their family’s stability, which can hinder personal and professional growth. Additionally, employees with high family motivation may experience increased stress and burnout. Our study in the Mexican factory found that employees with higher family motivation reported higher stress levels at work. Similarly, a study on Chinese employees noted that family motivation led to increased work pressure and reduced creativity.

Organizations must be cautious not to exploit family motivation, as it can lead to employees enduring poor working conditions or overworking. Employers have a responsibility to support employees with caregiving duties by offering stable pay, predictable schedules, and resources for mental health and well-being. Policies such as parental leave, flexible work arrangements, and designated “family and loved ones days off” can signal an employer’s support for employees’ personal relationships, leading to increased motivation and gratitude.

Employers should ensure family-motivated employees feel secure and supported. Offering benefits like savings programs, mortgage assistance, and student loan payments can alleviate financial pressures. Creating a psychologically safe environment where employees feel comfortable taking risks without fearing job loss can also encourage innovation and engagement.

In conclusion, family can be a powerful motivator for work, driving individuals to excel for the benefit of their loved ones. By recognizing and supporting this motivation, employers can foster a more engaged, productive, and satisfied workforce.

Since the 1950s, advertising agencies have recognized the value of marketing to minority groups, particularly Black consumers, who were a significant demographic at the time. Over the years, marketing strategies and the focus on diversity, equity, and inclusion (DEI) have evolved considerably. This evolution has led to a wider range of advertisements featuring minority actors, models, and celebrities aimed at appealing to minority audiences. But does this representation truly matter in marketing?

Research indicates that it does — significantly. A study examining television commercials for mortgage refinancing found that as minority representation in ads increased from 15% to 25%, advertising effectiveness, measured by advertising elasticity, rose by 14%. Advertising elasticity measures a campaign’s success in driving new sales.

Interestingly, the study found that ads featuring diverse casts didn’t just boost sales among minority borrowers but also positively affected white borrowers.

This research sends a powerful message to marketers: genuine efforts to attract minority customers can yield unexpected benefits.

“When considering DEI in marketing, we often think we are sacrificing something to feature more diversity. We see it as a trade-off,” the study noted. “But in reality, it’s quite the opposite. It’s a positive message that companies can achieve both higher sales and the societal goal of increased inclusion and representation.”

Representation and the Racial Wealth Gap in Marketing

Focusing on consumer finance, the study examined mortgage refinancing ads due to the racial wealth gap in the U.S. With home equity being the largest contributor to household wealth, refinancing can be a crucial tool for Black and Hispanic homeowners — two groups historically underserved by lenders.

“Mortgages are the most significant financial decision consumers can make. If they don’t refinance when interest rates are lower, it can be very costly,” the research highlighted. “The long-standing racial disparity in consumer finance makes this issue even more critical.”

The researchers collected loan origination data from 2018 to 2021, including information on borrowers’ race and political affiliation at the census tract level. This data was merged with TV mortgage advertising data from the same period, which included ad spending and video files. A double machine learning model was used to control for various factors, including image and text embeddings, lender, location, and the time of year the ads were aired.

To further test their theory, an experiment was conducted where participants were randomly shown commercials featuring either minority or white families. Those who saw ads with minority families reported being more likely to apply for refinancing from that lender.

“The long-standing disparity in consumer finance makes this issue even more critical,” the study emphasized.

Three Reasons Why Minority Representation Matters in Marketing

The study suggests three main reasons why minority representation is so effective in marketing. First, minority consumers feel connected when they see themselves represented in commercials, though racial homophily doesn’t explain the increase among white consumers. Second, the portrayal of minorities reflects the brand’s inclusive values, which might explain why the increase among white consumers was highest among those with liberal-leaning beliefs. Third, ads featuring diversity may stand out to viewers simply because they are less common.

“While definitive proof is lacking, these three factors likely work together to create an overall effect,” the research indicated.

The study demonstrates that companies don’t need to completely overhaul their marketing campaigns or spend significantly more money to see benefits. Choosing minority actors instead of white actors costs similarly. Producing different versions of the same ad can also be cost-effective.

“Maintaining the same ad spending while increasing minority representation results in a more effective ad,” the study concluded. “From a practical marketing standpoint, this is a lever that companies can use to enhance minority representation in ads.”

Additional Insights

Research from McKinsey highlights that companies with diverse boards are 27% more likely to have superior financial performance. Similarly, another study found that inclusive ads affect consumer behavior positively, with 69% of Black consumers more likely to purchase from brands that reflect their race/ethnicity in advertising​ (McKinsey & Company)​​ (Think with Google)​.

For further reading on this topic, you can explore detailed studies and reports on the impact of diversity in marketing from McKinsey and Think with Google.

As a leadership and team coach, I frequently encounter situations where managers feel unprepared to provide their team members with critical performance feedback. These discussions can be particularly challenging because the stakes are high for both parties. Negative performance reviews and ratings can significantly impact an employee’s compensation and career trajectory. Additionally, if the negative feedback comes as a surprise, it might prompt the employee to consider seeking employment elsewhere.

However, these challenging moments also present opportunities to strengthen the manager-employee relationship. Here’s how to approach difficult performance conversations not as fault-finding missions but as chances to work together towards shared goals of growth and development.

Foster a Collaborative Atmosphere

When there’s a gap between your expectations and an employee’s performance, begin by clearly defining what success looks like and who will be involved in improving their performance. This goal must be mutual for the employee to feel valued and supported. You can initiate this by saying, “We need to have an honest and open dialogue. My aim is to provide you with clear feedback and ensure we are jointly working towards your development.”

Reflect on the Past

During the conversation, take a moment to review and understand the situation. Start by inviting the employee to self-reflect and evaluate their own performance. For example:

“Let’s take a moment to understand how we arrived here and what factors influenced our path. I’d like to invite you to self-reflect and assess your own performance. Did you accomplish all your goals and meet the expectations set? Can you share your perspective on what’s working well and what isn’t? Looking back, if you had the opportunity to change or improve anything, what would you do differently and why?”

Understand Their Values

Research has shown a strong connection between employee engagement and performance improvement. Employees often prioritize purpose, impact, and meaningful work, which influences their sense of engagement and commitment to the organization. Before initiating a conversation about performance improvement, take the time to understand the employee’s values. This helps ground the conversation in personal and professional growth, aligning organizational goals with their individual aspirations.

During the feedback process, also discuss how their current actions and performance connect to their long-term career aspirations. Consider these prompts:

“When you think about your long-term goals, how does your current role contribute to your professional growth? Which aspects of your work do you feel align most with your career aspirations, and how can we build on those strengths? Could you talk about any experiences or skills you’re hoping to gain soon to support your career path?”

Provide Constructive Feedback

Deliver feedback with clarity and specificity. Provide clear examples to ensure the employee understands exactly how their work isn’t aligning with what’s expected of them. Avoid ambiguity.

Solicit insights from various stakeholders and cross-functional team members to provide the employee with a comprehensive understanding of the situation. Doing so not only gives the employee a broader spectrum of viewpoints to consider but also demonstrates your commitment to fairness and inclusivity, fostering an environment of openness and transparency.

Moreover, when feedback comes from multiple sources, it becomes harder for the employee to blame you solely. Instead, it emphasizes that the feedback reflects broader observations and perspectives within the team. The focus shifts from assigning blame to collaborative problem-solving and growth, as everyone involved is invested in helping them improve. This stakeholder-centered approach empowers the employee to recognize the need for change, take accountability, and assume ownership of their performance improvement.

It’s also crucial to leave judgment aside and approach the discussion as an inquiry, acknowledging the emotional aspect of the conversation. For example:

“You’re meeting your project deliverables, which is fantastic! However, this success appears to come at the expense of your cross-functional relationships. Several team members have expressed concerns about your ability to perform your project management responsibilities. They have had to step in and cover for your missed deadlines by accelerating their work to meet the project delivery. In addition, I’ve noticed that you seem distracted and aren’t engaging as much as you could in virtual meetings. This behavior comes across as disinterested and disrespectful to the rest of the team, and the 360 feedback you’ve received reflects this perception.”

Create the space for a vulnerable conversation, keeping in mind that non-work-related issues might be driving your employee’s lackluster performance. It’s essential to display empathy and openness. You can do that by sharing a relevant personal experience. For example:

“I don’t know if you realize I’m an introvert. Large meetings are very draining for me, especially when poorly organized. To self-manage, I architect a well-structured meeting. I prepare a clear agenda and assign sections of it to specific team members. Giving everyone a role in how the meeting runs makes everyone feel involved, sets the expectation that everyone is accountable for coming prepared, and ensures no one dominates the conversation. It also allows me to lead by example: The team sees what a well-run meeting looks like and how they can adapt the structure for their own meetings.”

Ask your employee to share their honest opinion about what is leading to this feedback, then sit in silence and give them space to share their thoughts. More often than not, they will take some accountability for their results. If they don’t, they may not be coachable.

Offer Positive Reinforcement

After reviewing and assessing the situation, refocus on the present. Set the tone by acknowledging the employee’s strengths and desire to do well. Emphasizing empathy and understanding will show them that the discussion is about growth and development rather than criticism. You want to communicate that you believe improvement is possible and that you and the team are here to support them through their self-improvement journey. As Charles Schwab said, “The way to develop the best that is in a person is by appreciation and encouragement.”

Provide an Actionable Path Forward

Consider providing feedback that focuses on the future and allows you as the manager to ask the employee to imagine “what if.” For example, “How would you handle a situation if…?” This forward-looking reframing of feedback helps remove the stigma of criticism and puts your direct report in a state of mind where they’re able to accomplish a different result; after all, we can’t change the past.

Reset Expectations

Clearly communicate your expectations moving forward. Ensure the employee understands the standards and aligns with the organization’s goals. As an author, sales expert, and motivational speaker Zig Ziglar said, “A goal properly set is halfway reached.”

To encourage dialogue, consider asking questions like:

“What specific actions or behaviors do you think are needed to align your performance with the organization’s goals and expectations? How can we collaborate to ensure a clear understanding of performance standards going forward? How can I support you, and what resources do you require from the organization (such as training, continuous feedback, check-ins, etc.)?”

Approaching a conversation about improving an employee’s performance requires preparation, empathy, and a focus on collaboration. Creating the space for self-reflection and understanding that change is possible can help the employee move from feeling victimized to feeling empowered. Even though hearing the truth about their current performance will be tough and potentially hurtful, it’s a teaching moment managers must embrace to help them become more resilient and adept at problem-solving and developing professional relationships.

If you’ve ever led or been part of a team, you’re familiar with the inevitable and often disruptive presence of internal conflicts. Many leaders tend to avoid intervening in these disputes, hoping that rational team members will resolve issues on their own. However, studies indicate that leaders often devote about 20% of their time to managing such disputes.

Take the example of Barbara, a senior executive, who after a tough day of setbacks, called for a team meeting to strategize a comeback. Instead, the meeting quickly devolved into a blame game, forcing Barbara to rethink her approach to avoid further chaos.

Over the last 30 years, we’ve analyzed a myriad of team disputes across various settings—from executive teams in global corporations to production lines in China, and business students at leading universities. Our goal has been to characterize these conflicts, understand their progression, and develop strategies to enhance team performance.

Despite cultural and contextual differences, we’ve identified four primary types of team conflicts. Our findings suggest that proactive conflict resolution by managers, which considers the interests of the entire team, can foster trust, lead to better decisions, and enhance implementation. Below are the identified conflict patterns and management strategies.

Isolated Dissenter: Occasionally, conflict centers around a single team member who may be viewed as difficult or uncooperative, or who challenges the status quo. Such conflicts are seen in about 20-25% of cases.

If a team faces this type of conflict, it’s crucial not to alienate the individual. Using them as a scapegoat or suppressing their views with a majority vote can obscure underlying issues, such as personal difficulties or an unclear role. Instead, adopting a perspective-taking approach, where sincere questions are posed to understand their viewpoint, can alleviate tension and enhance team insights. This exposure to different perspectives can lead to broader, more innovative thinking.

Avoid general team-building activities aimed at addressing issues caused by a single disruptive member. Instead, targeted one-on-one interventions can be more effective in fostering understanding and cooperation.

Dyadic Disagreement: The most frequent conflict, occurring in about 35% of cases, involves disagreements between two team members. This situation often does not escalate to involve others, as team members typically refrain from taking sides.

If the conflict is personal, private mediation might help the individuals express and reconcile their viewpoints. If it’s task-related, however, such disagreements can actually benefit team performance, as they encourage the refinement of ideas. Facilitating these discussions in smaller, informal settings can be particularly productive.

Subgroup Rivalries: When two subgroups within a team clash over goals or decisions, a conflict involving 20-25% of teams arises. This division can create a polarized environment where compromise seems unreachable.

Introducing new ideas or alternatives can help break the deadlock by aligning subgroup interests and encouraging compromises. This approach can lead to a more comprehensive and mutually acceptable solution.

Collective Discontent: Though less common, occurring in less than 15% of cases, conflicts may involve the entire team. These often arise from poor performance and the subsequent blame-shifting.

In such situations, it’s essential to focus on collective goals and identity rather than individual faults. Team discussions should concentrate on future improvements rather than past failures.

In advising Barbara, who was dealing with a full-team conflict, we recommended shifting the focus from blame to collaboration, which changed the meeting’s tone to a more constructive and solution-oriented discussion.

Customized Conflict Management Understanding the specific pattern of team conflict helps in effectively addressing it. It’s important to tackle conflicts at their source and ensure that solutions are tailored to the involved parties. Avoid generic solutions like team-building retreats unless the issue involves the entire team. When dealing with evenly split factions, introduce creative alternatives to foster the integration of viewpoints.

By addressing conflicts close to their origin and tailoring interventions accordingly, leaders can mitigate long-term negative impacts and enhance team dynamics.

Amazon’s remarkable expansion has served as a prime case study in business scaling, evolving from a small startup in Jeff Bezos’ garage to a global powerhouse with over 1.5 million employees. Recently, Amazon announced plans to recruit 250,000 employees for the upcoming holiday season, marking a significant increase from the previous year’s 150,000 new hires. This decision reflects a strong U.S. economy as we approach the festive period, according to Gad Allon, a professor at Wharton specializing in operations, information, and decisions.

During a Wharton Business Daily interview on SiriusXM, Allon emphasized the importance of seizing the moment, especially when economic conditions are favorable and unemployment rates are low. Missing out on adequate staffing could mean missing out on critical business opportunities.

In his executive education course at Wharton, “Scaling Business for Profitable Growth,” Allon uses Amazon as a prime example to dissect the complex layers of strategy, marketing, finance, and leadership required to scale a business successfully. Despite Amazon’s consistent growth in net sales revenue, which might make scaling appear straightforward, Allon highlights the intricate and challenging nature of scaling for any business.

Understanding market trends and consumer behaviors is crucial, as demonstrated by the COVID-19 pandemic. Companies had to quickly adapt to sudden changes; some succeeded, while others struggled. Allon pointed to the fintech company Stripe, which had to lay off 14% of its workforce after a pandemic-driven hiring spree proved unsustainable.

Allon also discussed the challenges and inefficiencies that accompany rapid expansion. Although Amazon began as a centralized operation, it had to decentralize to offer faster delivery options, like same-day and next-day services. This required a substantial increase in the number of employees and warehouse facilities. Now, in 90 U.S. metropolitan areas, an order can be processed for shipping within just 11 minutes—a feat that involves significant human labor despite advances in automation.

He noted that rising shipping costs are a key metric of inefficiency that Amazon is looking to address. Moreover, even with sophisticated robotics like Amazon’s Sparrow, which can handle 65% of product SKUs, there remain significant challenges in streamlining the picking and packing process.

Looking ahead, Allon believes that technological advancements, particularly in generative AI and machine learning, could play a pivotal role in enhancing operational efficiency. Yet, until these technologies become more affordable and integrate smoothly, hiring more human workers remains a more viable option.

Retailers recognize that the holiday season is critical for sales, and being well-prepared with sufficient stock and staffing is essential. According to Allon, this period leaves little room for error, as consumers are quick to switch to competitors if their needs are not met promptly.

There exists a peculiar phenomenon where audiences find themselves drawn to what might be considered by many as substandard or downright terrible content. This curiosity spans various media, from the absurdity of movies like “Sharknado,” to the groan-worthy humor found in dad jokes, all the way to the infectious dance beats of songs such as “Macarena.” Despite their questionable quality, these examples have garnered significant attention and affection from the public.

Intrigued by this paradoxical trend, a marketing professor from a prestigious business school embarked on a research journey to decipher why and when consumers might intentionally opt for what could be seen as inferior entertainment choices. The research, co-authored with colleagues now serving as professors at other notable business schools, delves deep into the consumer psyche through a series of experiments.

The findings suggest that people often gravitate towards these low-quality choices not in spite of their badness, but because of it. In a world cluttered with options where the pursuit of quality is often paramount, there seems to be a niche carved out for content that is so bad, that it becomes good in its own right. This phenomenon creates a unique cultural and social currency, where being ‘in’ on the joke or part of the viral conversation provides its form of satisfaction.

One key aspect identified in the study is the low stakes involved in consuming such content. The choices made in this regard are often seen as benign, lacking in any significant cost, be it financial, emotional, or time-related. This enables consumers to engage with the content in a light-hearted manner, free from the burdens of expectation and the demands of high quality.

The implications of these findings are broad, touching on aspects of consumer behavior, social dynamics, and even the nature of entertainment itself. It underscores a communal desire for shared experiences and the joy found in the collective reveling in content that, by traditional standards, might not measure up. So, whether it’s through the laughter elicited by a corny joke or the communal groans at a B-movie’s implausible plot, there’s a unifying thread in the human experience that finds pleasure in the imperfect, the flawed, and the downright bad.

For those intrigued by the underlying mechanics of this phenomenon and the detailed insights garnered from the study, further exploration into the academic research on consumer behavior might provide a deeper understanding of this curious aspect of human nature.