CEOs beware: the danger of corporate memos

I hear a lot about senior managers’ resistance to internal corporate change and diversity initiatives — but it’s often anecdotal.

Now the UK’s Chartered Management Institute has come out with findings that show the scale of the backlash. After interviewing more than 1,100 managers, the CMI found a third of male managers felt “too much effort” was focused on ensuring gender balance in the workplace. Just 13 per cent of the women felt that way. The CMI also reported “active pushback” from men.

Countless consultants, conferences and books are devoted to gender and race equity at work. What is the key to making progress, especially in the face of internal hostility? There’s a lot of generic advice out there (have honest talks, make everyone feel they belong at work, and so on) but if you are a leader in search of diversity, equity and inclusion solutions that go beyond the obvious, the best experts I’ve come across — with original takes and realistic advice — are Pamela Newkirk and Robert Livingston. The latter was shortlisted for the 2021 FT-McKinsey Business Book of the Year for The Conversation.

Do tell me which experts you rate — we will share your recommendations.

Read on for Sophia Smith’s story on why the CEO memo is such a tricky thing to get right, and advice from the Working It podcast for managers facing a rush of staff asking for raises as the cost of living rockets.

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Why corporate memos backfire

The tone-deaf CEO memo has a long and non-distinguished history. The latest example came from PlayStation chief executive Jim Ryan.

According to Bloomberg, Ryan sent off an internal email last week which was, ostensibly, about abortion rights, but segued abruptly into five paragraphs about his cats.

Ryan did not take a personal stance on abortion rights, and simply asked that staff “respect difference of opinion” before he launched into what he hoped would be ​​ “something light-hearted to help inspire everyone to be mindful of having balance that can help ease the stress of uncertain world events”. 

Bloomberg reviewed internal discussions from PlayStation in which female staff said they felt “disrespected” or “trivialised” by Ryan’s bizarre juxtaposition. One employee commented that they had “never been so mad about a cat birthday before.”

A number of factors have increased pressure on leaders to speak up on social issues. The pandemic has blurred the boundaries between our personal and work lives. Debates over controversial political issues are constantly on display in the court of public opinion. And the increasingly popular “bring your whole self to work” philosophy highlights how beneficial authenticity and vulnerability can be for our mental health and work relationships.

And while company-wide memos might seem like a natural way for leaders to weigh in, “memos are dangerous because they’re permanent and portable,” says Jeffrey Severts, author of Deadly Memos and the co-founder of the Radical Innovation for Social Change lab at the University of Chicago. To avoid a bad memo debacle, Jeffrey advises to simply avoid writing them. “Your employees don’t care about your innermost deep thoughts as much as you think they do,” he says.

If you do feel that it’s necessary to make an internal statement (preferably via a town hall or other live venue rather than a written memo), it’s key to deliver it spontaneously. You should think it through ahead of time, but “if it feels prepared, that’s a problem,” says Jeffrey. Importantly, only share personal anecdotes if they are “intensely relevant to the discussion.” So, stories about your cat’s birthday party? Probably best to keep those to yourself. (Sophia Smith)

Listen in: How to manage pay demands — or get a raise yourself

This week on the Working It podcast we are talking pay rises: how to get one, and what to do if you don’t succeed.

Plus we have advice for managers — with the cost of living soaring, many leaders will have queues of staff who want a raise. What happens if you don’t have the budget to help them? I’m joined by FT expert Claer Barrett, host of the Money Clinic podcast, and “Max,” a former guest on Claer’s podcast, who secured himself a 36 per cent pay rise.

Claer makes the point that many of us would need a 10 per cent pay uplift in 2022 just to stay still financially. Some firms are doing exactly this. Just after we recorded the podcast, I heard about a British executive search firm, Forsyth Barnes, which gave 10 per cent raises to its 50 staff in the UK and US to help minimise the impact of rising daily costs. One staff member posted on LinkedIn about how “proud and happy” she is to work there.

Next week we are taking a trip to the Metaverse (sort of) to find out what impact it’s likely to have on our future work lives. It’s going to be huge, and soon we will all be Princess Leia-style holograms. Possibly. (Isabel Berwick)

Elsewhere in the world of work:

1. Spreadsheets on TikTok: Social media influencers are showing millions of TikTok users how to improve their Excel skills. TikTok, with its serendipitous discovery and easily digestible videos, has helped facilitate this growing trend of “micro learning”.

2. Tips to increase retention: In a market where it’s increasingly difficult to hold on to staff, make sure you’re offering more flexibility, paying sincere attention to mental health and giving proper recognition of jobs well done.

3. Business book recommendations: From addressing social class at work to navigating politics in order to work more effectively, FT editors read and review the best new business books for you each month. Read on for May’s line-up.

4. How to lead through chaos: The ongoing war in Ukraine has called the strategic direction of many companies into question. When a company takes a blow to the head, is it better to stick to the strategic path, or change course?

5. Meet Rutherford Hall, critical comms professional: The FT’s new satirical column follows the career ups and downs of communication consultant Rutherford Hall as he advises a variety of tricky clients (this week: oligarchs) and navigates office politics.

Bonuses can be counterproductive, writes columnist Pilita Clark. The idea of being rewarded for performance at work is deeply ingrained. But what if that concept is flawed? Knowledge work is deeply complex and collaborative, which makes it all the more difficult to match additional pay to individual performance. The question of whether bonuses are bogus or motivating sparked quite a debate amongst FT readers this week.

Reader Antonio Benrhama finds employee equity to be a better incentive than monetary bonuses:

Giving employees equity in an organisation is a lot more powerful than bonuses. It encourages teamwork, a feeling of winning together and enables focus on the long term. Those who need individual bonus incentives to perform are less well suited to team environments and will show little loyalty.

Reader Gamma God shares a personal anecdote about how employee expectations play a crucial role in how bonuses are received:

In the 80s, I was in the unhappiest job of my life, working for a chap whom I held in very low esteem professionally and whom I disliked personally. I’ve little doubt that the feelings were mutual.

One memorable moment in my dealings with him was an annual bonus meeting. He gave me what he clearly felt would come across as an insultingly small bonus. However, since I was expecting to get nothing at all, the smile which lit up my face freaked him out.

His shocked reaction to my evident pleasure is a memory I continue to treasure.

And reader radioman points out the strategic reasons why companies might opt for bonuses rather than salary increases:

Employers realise that if compensation is paid 100% in salary they are fully committed to pay this as an ongoing liability rather than bonuses which can be adjusted to corporate profits. Unfortunately in some companies executives see bonuses as part of “salary rights” and have too much influence over their pay awards.

And let us know . . . 

Apple made headlines yesterday for delaying its planned return to office, citing surging Covid cases. How’s your return to the office going? Have you had any Covid outbreaks? Staff rebellions? Are certain workers or more senior staff getting special treatment or different policies? Please drop me a note at [email protected] or tweet us at @FTWorkCareers and we’ll feature the best responses in a future edition.