Lesley Riddoch: Real economies invest in people

Never mind what Jeremy “foot in the mouth” Clarkson thinks about sparrows, cars or striking workers. Last week’s industrial action has prompted a genuine debate about affordability and fairness. It hasn’t prompted debate about plummeting levels of workers morale. It should.

“Plan A” risks choking off demand and delaying recovery, so too the “levelling down” of conditions in the workplace. Austerity-hit workers will soon believe that employment means nothing more than membership of a demotivated, drone-like, unproductive herd. Despite big words about investing in human capital, Britain is heading fast in the opposite direction – breaking faith on public sector pension agreements is just one sign.

Clearly it’s unfashionable to suggest that a deal struck should be a deal honoured. Bargain-keeping with workers doubtless prompts the loudest guffaws from the Clarksons of this world – and hollow laughter from those in the private sector whose terms and conditions have been chucked overboard or the self-employed whose pension has become the over-mortgaged house.

The sight of public sector workers sticking up for themselves has brought out the green-eyed monster in everyone else. We’ve come to believe that in matters of the workplace the only way is down – levelling down. And that’s neither fair, nor likely to jump-start change or renew our economy.

Even before the recession started to bite, the Alan Sugar-style of person management was gaining ground. The best apprentices understand they are eminently disposable. Winners are willing to commodify themselves by swallowing pride, postponing real life, standing on rivals and cultivating more easily led “colleagues” – all behaviour is justified in the relentless drive to the top. It’s compulsive viewing, so I’m told. And there is no getting away from The Apprentice – rip-off formats in kitchens and dancefloors convey a powerful, subliminal underlying message – we are in a dog-eat-dog world where competition and theatrical “elimination” are part of the “game”.

Those who talk about process, conditions, workers rights, basic standards and health and safety are losers, whingers and probably shop stewards. And to avoid generating any Clarkson-like confusion here, that last point WAS ironic. There is, however, an alternative school of thought. Take care of your staff and business takes care of itself. Or indeed, forget consumer’s rights – happy, empowered workers produce happy consumers.

I had time to ponder this during 90 minutes in a shop queue last week. Bear with me. Small size and busy location meant the mobile phone shop had only two computer terminals. One was hogged for an hour by the salesman who was patiently and dextrously working around company procedures to deliver my phone upgrade. Was that barcode a problem – again? Was the database refusing to recognise the product – again? After half an hour eliminating the usual problems, Jim concluded wearily that my account was faulty and he’d have to contact IT.

Using his own employee “shortcut”, Jim – also store manager – joined an internal phone queue for 25 minutes during which time he remained at the terminal, phone tucked into a strained neck, pleasantly assuring the four waiting customers that he could resolve their problems once he had dealt with mine. When Jim got through he evidently hit the same “no-can-do”, “not-my-department” “start-again” help I assumed to be a customer-only experience. He argued. He cajoled. He pleaded. Finally he won. A manual transaction “lash-up” was devised between the two men over the phone to bypass the company’s unfit for purpose computer system.

The long stand and anxious wait was over for me. For him, within seconds, the stress began all over again. What of it? If pay is linked to “productivity” this helpful and skilful man will go home empty-handed thanks to chronic under-investment by a company I dare not name for fear of jeopardising his continuing employment.

While I was being served, almost a dozen would-be customers looked-in, clocked the queue, felt the stress, found nowhere to sit… and left. Installing two more terminals and tables with seats would let staff keep business that currently ebbs away. Upgrading IT, accounting and online help systems would stop shops becoming clogged with basic Inquiries. Conversely, when company investment dips or disappears, either staff do likewise (only to be labelled work-shy) or develop such superlative coping skills of communication, problem-solving and person management they could resolve the current trams impasse and eurozone crisis in their non-existent lunch-hours.

The most successful developed economies invest massively in human capital – not just by sending staff on training courses but by improving every aspect of worker experience, largely at the suggestion of staff and unions. I hear Jeremy snorting with mocking laughter already. Of course some people are at it. And of course some union-led arrangements are staff-heavy and inflexible. No wonder. Like breeds like and cynicism breeds cynicism.

The wonder isn’t that workers disengage – it’s that so many disempowered staff in driven but leaderless organisations still bother. The human spirit lives on despite not because of the Ryanairs of this world. And yet Michael O’Leary’s savage management style is fast becoming an industry standard. What does it do to staff when they demand the equivalent of a week’s disposable income from a panicking, penniless 20-year-old whose bag is a kilogramme overweight? What does it do to trust when staff must triple-check tickets in case their system or their colleagues have failed – again?

The ability to empathise is a marker of humanity. Why then applaud companies whose procedures almost surgically remove it? If human values have become an obstacle to efficiency, then we are all doomed. Not just to a heartless, superficial public world but – paradoxically – to a grossly inefficient one.

Over the echoing din at last week’s Green Energy Awards one winner explained that every aspect of the successful project had been designed and suggested by staff. Management guru Tom Peters has long advocated management by walking around. Now he’s talking about servant leadership where managers exist only to serve their employees.

“The business of leaders at all levels is to help those in their charge develop beyond their dreams – which in turn almost automatically leads to ‘all that other stuff’, such as happy customers, happy stockholders, happy communities.”

He’s right… and ahead of the curve. Is it the destiny of “pressure-managed” Britain to be permanently behind it?