Smart executives know that an organization’s culture drives top-line growth, but it can be difficult and time-consuming for new hires to learn the ins and outs of the culture as they get up to speed. Companies are constantly searching for more innovative and effective ways for their new employees to learn the culture. For example, l’Oreal released its Fit Culture App for new hires last year, which uses “texts, videos, employee testimonials, … quizzes, games and real-life missions” to “give each and every employee, from the moment they arrive, the keys to succeed in full alignment with company values such as multiculturalism, diversity and inclusion.”
More recently, Quartz’s Leah Fessler profiled the onboarding program at the ethical clothing company Everlane, which sets the cultural tone from day one by making every new employee’s first day a “Passion Day”:
“It’s called a passion day,” says Michael Preysman, CEO of the direct-to-consumer clothing startup, which hit $100 million in revenue in 2016. Every Everlane employee starts their new job with a passion day, on which they’re given $100 to spend doing something they love. … There are no limits on what the cash can be spent on, so long as it’s outside of the office and legal. And while they’re not warned ahead of time, every employee has to share how they spent their cash upon being introduced to the entire company the following week. …
Passion days are an extension of an already hyper-individualized hiring process. Everyone who applies to Everlane has to complete a project, regardless of their seniority, to evaluate their skills. “One of our core values is to hire people who are entrepreneurial thinkers—people who are creative and passionate,” Preysman says.
Some of our expert researchers at CEB, now Gartner, had different points of view on whether Everlane’s Passion Day program is an idea worth emulating. Here’s what they had to say:
Andrea Kropp, Research Director: It’s great to see companies putting action and money behind their culture initiatives, especially when the culture they are striving for is very different from the norm. The vast majority of new hires have worked somewhere else before, even if just part-time or in a family business, so they’ve already been exposed to someone else’s culture. If you know your culture is dramatically different, you need something attention-grabbing to show new hires that you are serious and not just paying lip service to the idea of being different.
At the CEB’s ReimagineHR event in Washington, DC, last Wednesday, over 60 diversity and inclusion leaders and other HR leaders came together to discuss where their organizations were in their D&I journey and how best to continue advancing it. Participants in Wednesday’s session answered a series of live survey questions and engaged in a dialogue with panelists Nellie Borrero, Senior Global Inclusion and Diversity Managing Director at Accenture, and Karen Wilkins-Mickey, Director of Diversity and Inclusion at Alaska Air Group, Inc.
The conversation focused on strategy and metrics as well as branding and communications. Although D&I leaders continue to face many of the same issues raised in last year’s peer benchmarking session, a few new themes emerged from the conversation on Wednesday:
1) D&I Leaders Must Align Their Efforts to the Organization’s Values
Gaining buy-in for advancing D&I is still a challenge for many D&I leaders. However, some organizations have found success by embedding D&I efforts into business objectives. When D&I is connected to initiatives or goals the organization already values, senior leaders come to see how it relates to their day-to-day work. One participant said their organization does this by tying measurements of diversity and inclusion to business results in order to communicate the impact of D&I on the business.
Organizations beginning their D&I journey may be tempted to move quickly to get to the more progressive D&I initiatives, but skipping foundational steps such as aligning D&I efforts to organizational values can slow down their ability to move forward in the future. “Don’t jump the gun in your D&I journey,” Wilkins-Mickey said. “Even if you are a senior D&I professional, if your company is new to this space, you need to meet them where they are.”
Writing at Recode, Inkling founder and CEO Matt MacInnis discusses how he discovered his own values as a leader when he left Apple after eight years to start his own company. In the beginning, he explains, he attempted to emulate the tech giant’s famous culture of secrecy, because he had seen it work so well for Apple, but soon began “to recognize that some of the default settings I had adopted were at odds with my own values”:
I did at Inkling what I had been trained to do at Apple: I strictly controlled information flow in and around our tiny organization. I had an aversion to speaking with media. I insisted that new employees sign strict NDAs. And I behaved as though our little-known brand and products were worthy of instant, outsized coverage. It was a tad nutty. …
My own move from middle management at Apple to executive leadership in a startup provided time for reflection and recognition of what is most authentic in me. While retaining some of the most valuable characteristics of Apple — a commitment to craftsmanship, strong top-down leadership and a devotion to hiring A-level players — I also forged an independent course. I found my own voice in radical openness and transparency, a hallmark of the Inkling culture.
We all eventually recognize that we don’t get to choose our core values. Rather, they choose us.
MacInnis’s experience both at Apple and as a founder speak to some of the core lessons of our latest research at CEB (now Gartner) into how organizations can effectively and design and manage culture.
Although the candy company Mars owns some of the world’s most famous brands (who hasn’t heard of M&Ms?), its employer brand is much less well known, Quartz’s Oliver Staley observes. Staley takes a close look at the company’s ongoing efforts to become more attractive to talent as it plans to expand its workforce by 70,000 employees over the next decade. Like other big players in the confectionery industry, Mars has historically been very serious about guarding its trade secrets, but its notoriously secretive culture had the downside effect of limiting the number of people outside the organization who knew what it was like to work there.
The company now faces the challenge of attracting talent from a generation of young people who grew up enjoying Mars products, but may never have thought of it as a place to pursue a career:
To get its message out, Mars is doubling the staff dedicated to luring college students, deploying social media, and honing its sales pitch to woo potential candidates. That often means showering them with M&Ms, and handing out gift boxes stuffed with candy bars and snacks. In making its pitch to MBAs and recent college graduates, Mars also stresses the variety of opportunities it can offer new hires because of its many business lines, and recruiters talk a lot about the company’s corporate culture, which historically combines egalitarianism with eccentricity—sometimes with surprisingly forward-thinking results.
That culture has in some ways been ahead of its time—Staley notes that Mars was ahead of most American corporations in adopting ideas like open offices, flat management, and bonuses based on company performance. The company scores high on lists of great places to work and people who work there tend to stick around. Indeed, that’s one possible reason behind the company’s current recruiting challenge:
Google’s decision to fire James Damore, a senior engineer who circulated a memo criticizing the company’s diversity efforts and making questionable claims about the biological differences between men and women, was bound to fan the flames of the controversy the memo had sparked. Was terminating this employee the right call? Reasonable arguments can be made on both sides of the debate, and as our HR practice leader Brian Kropp remarked in an interview with the Washington Post, Google had no good options here: Whether it had fired Damore or declined to fire him, either decision was going to upset a certain group of people.
One of the challenges that any talent executive or head of diversity and inclusion will face when inflammatory internal communications like Damore’s memo go public is in figuring out whether they are dealing with a single person who has managed to rile up the Internet (the “don’t feed the trolls” challenge), or are facing a real source of tension from a segment of the workforce. If it’s the former, it’s a great opportunity to make sure that people are aware that you are addressing D&I, and that it’s a key part of your core values; if the latter, it could prompt the organization to reorganize its D&I strategy along the lines of what Deloitte is doing, and double down on inclusion to ensure that everyone gets on board.
Below are some thoughts on what the Google controversy reveals about the challenges facing diversity and inclusion, as well as what employers can learn from the debate in order to strengthen their future D&I efforts.
The Dangers of Backlash
The downside for an organization of reacting to an incident like this with absolute rejection is that it contributes to the framing of D&I as a zero-sum game, which gives ammunition to those who oppose it. When an organization treats a skeptic like Damore as a threat, employees who fear being left behind by D&I efforts or having their viewpoints marginalized in pursuit of diversity will tend to see that as proof of their point. While Google CEO Sundar Pichai told employees that Damore’s memo had crossed a line by advancing harmful gender stereotypes, he also acknowledged the more valid concerns it raised about whether Google’s approach to diversity was optimal and whether employees with minority opinions could safely express them in the workplace.
In other words, irrespective of whether Damore violated norms of professionalism and collegiality in the way he voiced his opinions, and of whether the company was within its rights to terminate his employment, Google does not want to be perceived as making rules about what employees are allowed to think.
Broaching the topic of religion in the workplace can mean wading into an emotional and legal minefield, which is why most US companies prefer not to talk about it. Yet as the religious diversity of the workforce increases and religious discrimination complaints are on the rise, faith is becoming an issue some employers can’t afford to ignore. To that end, the French oil company Total has issued an extensive guide to religion in the workplace, Francesca Fontana reports at the Wall Street Journal. The guide covers both general knowledge, such as an explanation of the basic tenets of major world religions, as well as workplace-specific issues such as whether managers need to provide halal food at company meals:
At 92 pages, the English-language version of Total’s guide offers few firm rules but states that employees’ religious practices, such as prayer, should generally be respected and accommodated. Employees aren’t required to read the document, which is available to those who are “curious,” said a company spokeswoman. The company created the guide to aid managers and employees who “may have questions or doubts on this topic, working with people who might not eat, dress or pray the same,” said the spokeswoman.
It’s interesting and telling that Total created this guide to satisfy employees’ curiosity, rather than any legal concern. In doing so, it is demonstrating that religious pluralism and tolerance are among the values it wants to instill in its culture by encouraging and empowering employees to educate themselves about their colleagues’ religious beliefs and practices. Rather than imposing a long list of rules, Total invites employees to understand why these values matter at their company, which our research at CEB (now Gartner) suggests is often a better way of getting the message across.
Netflix’s manifesto on its organizational culture, created by the company’s former chief talent officer Patty McCord and first published as a slide presentation in 2009, has been viewed over 16 million times, while Facebook COO Sheryl Sandberg once praised it as “the most important document ever to come out of the Valley.” On Wednesday, Netflix CEO Reed Hastings announced that the company had revised and updated the document “seeking to clarify the many points on which people have had questions.”
The new version of Netflix’s manifesto is given a new format—10 pages of prose as opposed to a 120-slide deck—and according to Hastings, “reflects the emphasis we put on global thinking and inclusiveness, and maintains our joy of working with stunning colleagues.” The new document, which is worth taking the time to read in full, contains many of the same principles that made the original deck so influential: Netflix’s commitment to employee excellence as expressed through behaviors like judgment, curiosity, courage, passion, and innovation.
One key change is the addition of “inclusion” to Netflix’s list of core values, exemplified by employees who “collaborate effectively with people of diverse backgrounds and cultures,” “nurture and embrace differing perspectives to make better decisions,” and “recognize we all have biases, and work to grow past them.” Another change is that the value of “honesty” is now described as “integrity” instead and stresses the need for respect, in addition to candor and directness: Employees are now explicitly directed to “treat people with respect independent of their status or disagreement with you.” Additionally, the new document spells out Netflix’s approach to parental leave: Much like its unlimited, untracked vacation policy, new parents are “encouraged to take whatever time they feel is right in the first year.”
Variety’s senior Silicon Valley correspondent Janko Roettgers parses the new blueprint and pulls out some key takeaways of his own: