Businesses Face More and More Pressure From Investors To Act on Climate Change

David McNew/Getty Images 

Every spring, shareholders in publicly-traded companies get to weigh in on how they’re run. It’s a chance for investors to vote on proposals to shape corporate policies for things like executive pay and political spending. But as the Earth heats up, annual shareholder meetings have become a battleground for activist investors who are pressing companies for more aggressive action on climate change.

This year, shareholders filed around 540 proposals as of mid-February asking companies to address environmental, social and corporate governance issues, according to Proxy Preview. Resolutions focused on climate change accounted for about a quarter of this year’s total, with the number increasing by about 12% from the same point in 2022.

Investors want to know how companies are contributing to rising temperatures, and what they’re doing about the problem. They’re calling for executives and corporate boards to set targets for cutting greenhouse gas emissions, and then to report on their progress. And they want to know how businesses plan to keep making money as industries are reshaped by the push to cut emissions.

The message to companies is, “set targets, issue plans, give us clear disclosure,” says Kirsten Snow Spalding, who leads investor initiatives at Ceres, a nonprofit focused on sustainability. “And all of it is about, how are you addressing the risks and moving towards the opportunities?”

Are shareholder proposals working?

Most resolutions are non-binding, but just introducing them has proven to be an effective tool for activist investors. Last year, shareholders withdrew a record 110 proposals that were focused on climate change after they struck deals with companies, according to Ceres. Another 15 climate resolutions that went to a vote at various corporations won majority support from shareholders.

“The trend toward climate action is really on the rise,” Spalding says.

But the pace of corporate change is slower than activists would like — and what climate science shows is needed. Scientists working for the United Nations say the planet is on track for catastrophic warming that will cause more extreme weather. Heat waves, droughts and floods that are fueled by climate change are already inflicting severe economic damage and killing and displacing people around the world.

Some of the worst impacts could be avoided by quickly cutting emissions. Right now, though, emissions aren’t falling. Activists say a lot of companies aren’t doing enough to address the threat, despite pressure from investors….

Continue Reading……..

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Source: Activist investors push companies for stronger action on climate change : NPR

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Profitability: The Key To Unlocking Funding Opportunities For Your Business

GETTY IMAGES

Starting a business is a challenging journey, especially for first-time founders who are often juggling multiple roles. Losing sight of the main objective – profitability – is an easy pitfall to fall into. In the first one to three years of business, it is common to show a loss or break even on tax filings as companies focus on growing their brand.

While this may result in low to zero tax payments, it is crucial for business owners to avoid the catch-22 mindset of purposely breaking even or overspending to avoid taxes. Without the guidance of a financial advisor or a background in business, this may seem like a favorable option, but it can ultimately hinder the long-term success of the company and its eligibility for secure funding options.

Profitability is a crucial factor in accessing traditional forms of business lending, such as Small Business Administration (SBA) loans, lines of credit, or even personal loans used for business purposes. A business must demonstrate profitability on their taxes or show they can personally guarantee the loan. Banks and lenders won’t go off profit and loss statements because they fluctuate.

A common misconception many first-time founders have is believing venture capitalists will invest in their company simply because they have a good idea or have been in business for a while and have sales. Shows like Shark Tank, though entertaining, add to this false narrative.

“Unfortunately, too many small companies focus solely on sales, without even understanding if they are profitable. No matter how great your idea is or how high your sales are, if you aren’t profitable, it doesn’t matter,” says Lori Williams of Business Simply Put LLC.

Here are five actionable steps to help you achieve profitability and increase your chances of securing funding for your business.

1. Lower Expenses

As a business owner, letting go of someone can be challenging, but if you can’t afford certain roles, it is essential to take over for the time being. Consider which positions, freelancers, or subscriptions you can cut back on to reduce expenses.

When it comes to vendors, negotiate rates by shopping around for lower prices. If your current vendor cannot match the same pricing, it may be time to change. While switching suppliers can be difficult at first, it can ultimately lead to increased profitability in the long term.

2. Increase Sales

Although it may seem like an obvious step, increasing sales is often overlooked when a business owner is wearing multiple hats in the early stages of their business. However, there are feasible ways to boost sales. If you have a product-based business, consider reaching out to more wholesale accounts or listing your products on wholesale websites.

Leveraging your network through LinkedIn and contact list can also help you connect with potential customers or peers who can introduce you to the right people.

A proactive approach to boosting sales can be highly effective, and email marketing and SMS are among the least expensive marketing tools. Creating strategic campaigns offering discounts and valuable information can incentivize consumers to purchase from your business.

Lastly, consider raising your prices. Founders often avoid raising prices or charging for shipping, for fear of losing customers. While this fear is understandable, not having healthy margins could be a significant factor preventing a business from being profitable.

3. Seek Reputable Financial Guidance

Building a successful business requires sound financial management, but not every business owner can afford a full-time CFO. Fortunately, there are resources available to help you navigate the financial side of your business.

The Small Business Development Center (SBDC) offers free guidance from advisors paid by tax dollars. Other organizations like SCORE and the Small Business Administration (SBA) offer similar services.

Websites like Upwork and Fiverr allow you to list job postings and view potential candidates for accountants and part-time financial advisors or remote CFOs. Before hiring anyone, make sure to vet their experience by checking with past and current clients. Finding the right person or team who fits within your budget can help set you up for financial success in your business.

4. Plan Ahead

Looking ahead and setting achievable goals is critical to ensuring that your business meets its financial objectives. This involves creating a plan for your revenue, funding, and tax planning. “Ideally, you want to know how much you will need in debt next year so this year you show enough net profit to prove you can repay the loan,” says Sebastian De Vivo, List Ventures.

Proper tax planning is essential for any business, and working closely with a CPA or tax preparer can ensure your business is taking advantage of all available deductions and demonstrating a healthy margin of profitability. “Clear communication of your business goals and long-term plans is key to receiving tailored guidance from your CPA and setting your finances on the right path from the start,” advises Julia Shumskaya, CPA.

5. Explore Funding Options

Research and explore all funding options available to you, including grants, friends and family, loans, and investors. Different funding options have different requirements and terms, and it is crucial to consider what is best for the long-term success of your business.

If your company is not yet profitable, it is still a great time to start building relationships with banks and credit unions which can be helpful when you eventually apply for a loan. Ask questions about what the eligibility requirements are for a loan and check in when you have had successes to keep them updated on your progress.

Once you have reached profitability and have worked on the necessary requirements for lending, you will be able to go through the process with more ease.

By implementing these practical steps, businesses can increase their profitability, improve their chances of accessing funding, and achieve long-term success. This tax season and beyond, take the necessary steps to become profitable and secure the funding needed to take your business to the next level.

I am the founder, CEO, and Creative Director of Madame Lemy, a natural and sustainable luxury beauty brand. Synthesizing both of my passions

Source: Profitability: The Key To Unlocking Funding Opportunities For Your Business

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Don’t Let Remote Work Derail Your Career: 3 Ways To Enhance Visibility

Presence and visibility enhance relationships...getty

Working from home can be pretty great, but it also comes with drawbacks. In particular, your time away from the office may be a barrier to advancing your career, building relationships or landing your next promotion.

Many companies are striving for presence equity—seeking to value employees and provide opportunities regardless of where they work or how often they come into the office. But even if your organization is taking these steps, it can still be tough to stay on the radar screen and ensure visibility.

You’ll need to be intentional about how you demonstrate your commitment, engagement, presence and importance—and there are strategies that work best to do just this.

Visibility Is Valuable

Plenty of research has demonstrated people’s behavior is significantly impacted by cognitive biases and mistakes in judgment—ways of interpreting the world and each other that are largely out of our awareness or conscious control. For example, with confirmation bias people tend to seek out and more readily see data which agrees with their current opinions. And with “recency error”, people tend to remember better and weight more heavily the experiences they’ve had most recently.

The implication: When you demonstrate your engagement, others will see future behaviors which reinforce their perceptions of your commitment. Or when you’re present more often (virtually or face-to-face), people will be more likely to keep you top-of-mind.

In addition, sociologically speaking, proximity is one of the primary determinants of relationships. People tend to build stronger relationships with those they see and interact with most frequently. This is largely because they get to know others—what makes them tick, details of their lives and motivations for their behavior.

This is also related to a bias of familiarity in which people tend to prefer and accept people and things that are more familiar, and avoid or shy away from those which are unknown or ambiguous. The implication: Staying in touch will help you build relationships which will matter to your happiness and your career.

A study published in Organizational Science reported that people who had more face time with colleagues—more time observed by others present and working—tended to benefit from getting assignments for better projects and greater career advancement. Researchers found this was the case because their presence was a signal of their commitment to the job, the team and the organization.

The average employee also sees the value of presence for getting ahead. According to a study by ASA and the Harris Poll, 56% of respondents believed those who work in the office 100% of the time have an advantage in getting raises, bonuses and promotions compared with those who work remote 100% of the time. In addition, 95.5% of employers believed remaining visible was important to career advancement, according to a study by Joblist,

The bottom line is that being present, interacting more frequently and getting to know others are important for all kinds of relationships, but also for career growth.

And the good news is you can create visibility in many ways no matter where you work.

Getting On the Radar Screen

Large proportions of employees are taking intentional effort to stay visible. In fact, according to the Joblist data, 38% of employees have gone out of their way to get noticed while working from home and 36% of remote employees had a “visibility strategy” to stay top-of-mind.

Of course staying visible takes extra effort, according to 76% or respondents, but it seems to pay off. The great majority (93%) of managers had a positive impression of employees who were making an effort and staying in touch. In addition, managers said when employees went the extra mile to stay connected, they saw them as more motivated (68%), more engaged (56%) and more productive (56%).

But just as important, the employees had better experiences as well. They reported more satisfaction with their levels of productivity, engagement and job security. In addition, they were less likely to suffer from burnout, imposter syndrome or loneliness.

Being Seen

You can enhance visibility in multiple ways, whether you’re working remote, hybrid or in the office.

#1 – Be Accountable

One of the primary ways to enhance your visibility is through great performance. The Joblist survey found 41% ensured their projects stayed on track and moving forward as a way to enhance their visibility. And 37% focused on details to ensure their work was up to par.

You can also take initiative to identify problems and improve processes. In the survey, 21% of people said they did things outside of their job description, and 21% volunteered for a task for opportunity. Managers reported that when people offered new ideas, it was the number one way they could stay visible, and quantifying their results was also in managers’ top ten ways people could stay connected.

When you promise something, deliver. When you do complete your work, do it well. When someone is counting on you, be sure you come through. You’ll build credibility and people will come to rely on you. Following up, following through and finishing tasks effectively will get you noticed, and it will be the basis for terrific career growth.

#2 – Be Present and Accessible

Another significant way to manage your visibility is to be present, literally and figuratively. Show up in the office when you can, and align your schedule with teammates’ calendars so you’re in the office at the same times as much as possible. When you’re remote, turn on your camera.

Whether you’re interacting from a distance or in person, be focused on the interaction and resist the distraction of devices. Tune in, ask questions and stay engaged with the people around you.

You don’t have to work 24/7 and it’s important to have healthy boundaries, but when you’re working, be accessible and responsive to others. Respond quickly and thoroughly to colleagues’ questions or requests. When you’re out of the office, be sure to communicate it to others so they can plan accordingly.

#3 – Be Connected

Seek out relationships with plenty of people in your organization—those within your team or department, but also those outside of your area. Also initiate interactions with those who are at all levels of the organization.

Increase your visibility by being intentional about working with others, taking the initiative to join a new project team or helping a colleague. In the Joblist survey, 37.4% of people enhanced visibility by helping colleagues with tasks. In addition, 36% checked in with colleagues regularly, and 36% expressed gratitude to others.

Also be sure you’re staying in touch with your leader through regular one-on-one meetings and by reaching out appropriately for problems or to make your boss aware of issues. Track your work and your outcomes in a meaningful way so details about your value and your great results are always available for your boss.

Presence Pays Off

Visibility is related to authenticity. When people sense your real commitment, engagement and dedication, they’ll want to work with you and support your efforts. If you work at a distance, you might need to be more intentional, but ultimately your work will shine through and pay off in career advancement.

I am a Ph.D. sociologist and the author of The Secrets to Happiness at Work exploring happiness, fulfillment and work-life.

Source: Don’t Let Remote Work Derail Your Career: 3 Ways To Enhance Visibility

.

Related contents:

What is telework?, United States Office of Personnel Management“Jack Nilles”, jala.com, JALA International, September 26, 2011Uy, Melanie (March 10, 2021). “Differences Between Telecommuting and Telework”. Lifewire.Woody, Leonhard (1995).

The Underground Guide to Telecommuting. Addison-Wesley. ISBN 978-0-201-48343-7.“Mobile Worker Toolkit: A Notional Guide” (PDF). General Services Administration.Gajendran, Ravi; Harrison, David (2007).

The Good, The Bad, and the Unknown About Telecommuting: Meta-Analysis of Psychological Mediators and Individual Consequences” (PDF). Journal of Applied Psychology. 92 (6): 1524–1541. doi:10.1037/0021-9010.92.6.1524. PMID 18020794. Retrieved February 17, 2022.Byrd, Nick (2021).

Online Conferences: Some History, Methods and Benefits”. Right Research: Modelling Sustainable Research Practices in the Anthropocene: 435–462. doi:10.11647/OBP.0213.28. S2CID 241554841.

How WeWork Has Perfectly Captured the Millennial Id”. The Atlantic.“Telework legislation”. U.S. Office of Personnel Management.“H.R. 1722 (111th): Telework Enhancement Act of 2010”. GovTrack.CHANG, ANDREA (November 12, 2020). “‘

Work from anywhere’ is here to stay. How will it change our workplaces?”. San Diego Union-Tribune. Los Angeles Times.Rosalsky, Greg (September 8, 2020). “Zoom Towns And The New Housing Market For The 2 Americas”. NPR.SAAD, LYDIA; WIGERT, BEN (October 13, 2021).

Remote Work Persisting and Trending Permanent”. Gallup.“How usual is it to work from home?”. Europa. May 17, 2021.WAGNER, ERICH (January 7, 2022). “Report: 45% of All Federal Employees Teleworked in Fiscal 2020”. Government Executive.Bloom, Nicholas (February 10, 2023).

Home is where the work is (video). The Future of Everything Podcast. Stanford University School of Engineering.Rojas, Benjamin (October 13, 2021). “How Remote Work Can Increase Business Profits”. Forbes.

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3 Tips To Announce You’re ‘Open To Work’ On LinkedIn

To use LinkedIn's 'Open To Work' feature effectively, you have to be specific about what you're ... [+]..getty

Every time I log in to LinkedIn, I see a post by someone looking for work that will likely not help them in their job search.

Maybe you’ve seen a post like this too. The person’s profile picture has a green Open To Work banner and the post says something like, “Hey friends, I’m looking for a new role and would really appreciate your support. Thanks in advance for any connections, advice, or opportunities you can send my way.”

To get hired, you need to do more than enable the Open To Work setting on LinkedIn. If you want to stand out in the LinkedIn newsfeed, it’s imperative that you sell yourself in your job search and use LinkedIn more strategically, which is what you’ll learn in this article.

One of the most important things you can do in your job search is to let as many people know as possible that you’re looking for a job. It’s the network effect: 85% of jobs are found and filled through networking and relationships, according to a study by the U.S. Department of Labor. One of the most obvious places to leverage the power of relationships is on LinkedIn.

Using LinkedIn’s Open To Work Feature

To help candidates let recruiters know you’re looking for a job, LinkedIn released the feature Open To Work, which adds a green banner with the hashtag #opentowork to your profile photo. It also surfaces your profile in search results when recruiters and hiring managers search for candidates that align with your experience and what you’re working for.

In theory, this seems like a useful feature for job seekers. However, you only get one chance to make a first impression, and most job seekers sell themselves short when announcing that they’re looking for a new job. For the sake of this article, let’s imagine I wrote the following LinkedIn post to announce I’m looking for a new role:

If someone saw this as they scrolled through their LinkedIn feed, they would not have enough context to truly help me in my job search. This post leaves a lot of questions unanswered and may garner some likes and well wishes, but likely won’t result in any meaningful conversations, connections, or referral.

Here are three tips to help you create a more effective LinkedIn post to announce you’re looking for work and that leverage your professional network.

1. Remind People What You Do

Many people focus on the size of their LinkedIn network and not the quality of those connections. The quest to reach the proverbial 500 connections is a somewhat meaningless goal. Just because you’re connected with people on LinkedIn doesn’t mean people know what you actually do.

This is why it’s crucial that when posting you’re Open To Work you include a sentence or two about what you do, an elevator pitch of sorts, that helps people understand the specifics of what you do. This is especially important because not everyone you’re connected with on LinkedIn works in, or understands, your niche or industry. If you want to increase the chances that people in your network may spot roles that are a fit for you, you must remind them what you do.

2. Articulate What You’re Looking For In Your Next Role

You need to be specific about what you’re looking for. Simply saying “I’m looking for a new role” doesn’t provide people with answers to questions including:

  • What type of job or job titles are you looking for?
  • Are you interested in a specific niche or industry?
  • Do you have a preference about size or stage of company?

This will increase the chances that people bring you more relevant opportunities or make more relevant introductions. Time is crucial in your job search, and this will help you avoid wasting time on opportunities that may not be a good fit.

3. Know Your Deal Breakers

If there’s anything that is non-negotiable for your next role, you should communicate that. For example, do you want to work remotely, stay in your current city, or are you open to relocate to certain cities? Are there certain benefits such as health care or retirement plans that are a must have based on your life needs right now? Include these details in your LinkedIn post so that people can be aware of what you can’t make compromises on.

The Open To Work feature can be an effective way to stand out. But you’ll stand out more, and increase the chances of people in your network helping you, if you can clearly communicate what you do and what you’re looking for.

I am the founder & CEO of Career Strategy Lab where we help professionals design, market, and sell themselves, so they have a fulfilling career and life.

Source: 3 Tips To Announce You’re ‘Open To Work’ On LinkedIn

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Related contents:

“LinkedIn promotes communications lead Melissa Selcher to CMO”. PRWeek. Archived from the original on September 20, 2019. Retrieved September 19, 2019.

LinkedIn’s Azure move is less about scale and more about the speed of innovation”. TechRepublic . December 10, 2019. Archived from the original on December 10, 2019. Retrieved December 10, 2019.“About Us: Statistics”. news.linkedin.com

Reid Hoffman’s Big Dreams for LinkedIn”. The New Yorker. Archived from he original on May 1, 2021. Retrieved October 10, 2015.“About LinkedIn”. about.linkedin.com. Archived from the original on May 28, 2021. Retrieved December 16, 2019.Account Restricted | LinkedIn Help Center”. Help.linkedin.com. December 20, 2013. Archived from the original on August 19, 2020. Retrieved October 6, 2015.

Locations – LinkedIn Careers”. LinkedIn. Archived from the original on November 9, 2021. Retrieved November 10, 2021.“LinkedIn Company Page”. LinkedIn. Retrieved May 3, 2020.

LinkedIn – Management”. LinkedIn Corporation. Archived from the original on February 20, 2009. Retrieved December 7, 2009.LinkedIn Secures $53M of Funding Led by Bain Capital Ventures” (Press release). LinkedIn. June 18, 2008. Archived from the original on August 2, 2013. Retrieved August 1, 2013.

LinkedIn Raises $12.8 Million from Bessemer Venture Partners and European Founders Fund to Accelerate Global Growth” (Press release). LinkedIn. January 29, 2007. Archived from the original on November 1, 2013. Retrieved August 1, 2013.

LinkedIn Premium Services Finding Rapid Adoption” (Press release). LinkedIn. March 7, 2006. Archived from the original on November 1, 2013. Retrieved August 1, 2013.Swisher, Kara (January 27, 2011).

Here Comes Another Web IPO: LinkedIn S-1 Filing Imminent”. All Things Digital. Archived from the original on May 26, 2011. Retrieved January 27, 2011.

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12 Tips For Managers on How To Approach Promotions

[Photo: Tiger Lily/Pexels]

To help you adopt the best approach to an equitable and transparent process in promotions, we asked HR managers and business leaders this question for their best insights. From bringing a marketing approach to internal promotions to developing a clear policy that ensures the process is unbiased, there are many tips that would help you effectively deal with employee promotions in 2023.

Here are 12 tips these leaders shared on how to approach promotions in 2023.

Bring a marketing approach

Employees are discretionary supporters of the organization and fundamental to driving business objectives forward. Rather than promoting them for their tenure or consistency in meeting the requirements of their job, let’s take it up a notch.

Wearing your marketing hat means rewarding employees for their contribution to business growth. Modern Human Resources requires new and better ways of thinking. And as with marketing promotions, we reward our customers for their support and spending, and it is the same with employees. Think of how they may have demonstrated their commitment through one or more of the following examples:

  • Took on new responsibilities voluntarily
  • Provided excellence in building custom/client relationships
  • Recommended other talented colleagues to join the organization
  • Brought in new revenue streams or built efficiencies into current processes —Jody Ordioni, chief brand officer, Brandemix

Make promotions opportunities for continuous learning

Gone are the days when time in a position or tenure with an organization is the major driver for promoting employees. As employers, we need to ensure we are assessing employee potential, their state of readiness, and the necessary support needed for their success. When considering promoting employees, I want to see employees who see the opportunity as continuous development and are committed to excellence in all areas of performance.

Based on the multitude of challenges we have all experienced in the workplace, employees have made it clear they want learning opportunities that will align with career growth and development. As employers, we need to be sure we are being agile in the promotion process and not constrained by traditional means. —Cecil Hicks, talent development executive

Be clear on what the company is able to offer

As employees climb the corporate ladder, opportunities for promotions are fewer and less frequent. That kind of advancement should not be the keystone for an employee’s career development. Begin by asking, “Why a promotion?” Get insight into their intrinsic motivators and personal goals. This should lead into a useful coaching conversation about ways to grow and expand their career.

Be clear on what the company is able to offer: internal learning and development, company-sponsored learning, professional memberships and conferences, and tuition reimbursement are a few common examples. Work with people leaders to up their game in setting stretch goals and challenging assignments, even within other departments. —Jimmy Rose, VP, employee experience, Cotiviti

Find the overlap between personal and company goals

You tap a high-performing employee on the shoulder and invite them to apply for a promotion or offer them one on the spot. You succumb to the demands of a go-getting employee who’s been angling for a promotion since they joined. Or you lay out a structured career ladder with every hoop an employee has to skip through and the next 30 years of their working life mapped out for them. These typical promotion practices are either unfair or outdated in today’s world of work.

My one top tip for approaching employee promotions in 2023 is to facilitate regular development conversations with every employee. Through these conversations you want to understand an employee’s personal goals and you want to keep them abreast of the company goals. You’re then in a position to craft development and promotion opportunities that work for both the employee and the company—that’s when the magic happens. —Bee Heller, cofounder and managing director, The Pioneers

Promote those who are 70% capable and develop them

A successful strategy is to promote employees that have 70% of the capabilities you are looking for and then put in place a robust development plan to grow the remaining 30%. It’s a win-win for the leader and for the promoted employee, giving them the ability to grow into the role and having their leader as a coach.

In order to identify promotable employees who have 70% of the capabilities for their next role, the leader must engage in regular coaching conversations with the employee to help align the employees own development needs and those skills needed by the functional team to execute the goals and objectives for the year.

This alignment between the company needs and those cited by the employee requires the leader to collaborate with their HRBP and the learning and development department such that both the leader and the employee are fully supported. Using this strategy of promoting those that are 70% ready increases employee engagement scores and drives a learning culture. —Shefali Mody, senior manager, learning and development, iRhythmtech

Create growth opportunities with actionable plans

A promotion is not to be seen as the final destination but as part of a development journey. The development journey to achieve a promotion has to be an exciting discovery exercise for the employee and the leader, to know about what employee’s drivers are, expectations, and career desires. To guide employees in this journey for growth, companies should be open to create routes of development that will trigger an actionable plan.

These routes can be seen in the shape of quick challenges to allow them to demonstrate potential, impactful learning experiences to acquire new and relevant knowledge, accelerator experiences to have a firsthand interaction, and exposure with the desired role and/or a multifunctional project to develop crucial collaboration skills.

Everyday experiences along with planned development interactions offer tremendous learning opportunities; the key is to identify the proper route to support the employee development plan and foster the opportunity for growth. —Elsa Zarate, associate director, development, talent and learning, Clip

Clearly outline employee expectations at every level ahead of reviews

For many companies, the end of the year is performance review time. When an employee approaches leadership to talk about a promotion now, they’re too late! Many organizations have their budgets decided, along with what’s been allocated for salary increases, determined in parallel with the end-of-year review cycle.

Decision makers will want to see individuals demonstrating next-level performance for at least 6 to 12 months before they would determine readiness for that promotion. So I encourage individuals to have the conversation now, get clear on what is expected for that next level, make a plan to get there, and get to work. And don’t forget to schedule time to check in to share your progress and wins. —Claudia Germeshausen, executive coach, A Career For You

Factor in colleague feedback when making decisions

Before making any decisions about promoting employees in 2023, it’s important to look at their colleagues’ feedback. What do those who work with them actually think about them? Furthermore, knowing what you know about your staff members from preemployment testing, how might other employees’ performances be affected; especially when there has been competition for that promotion and some inevitably losing out?

It’s important to promote on the basis of job performance, of course, but never lose sight of the fact that one employee’s promotion has the ability to affect all your other employees. —Linda Scorzo, CEO, Hiring Indicators

Promote those who gain new skills

Upskilling represents the search for knowledge and improvement of skills for professionals and organizations. In times of employees’ shifting priorities and a tight job market, acquiring, retaining, and promoting talents is vital to being competitive. Technology, AI, and others are accessible for most companies, from SMBs to big corporations. All of these make me think that knowledge will be the difference in 2023.

Upskilling will continue to grow, encouraging organizations to promote those who are always bringing and contributing new knowledge to the business. In other words, upskilling should be considered when approaching employee promotions in 2023. —Ricardo von Groll, manager, Talentify

Use promotions to fix hiring problems

Research has shown that job switchers receive bigger salary increases than loyal employees. This creates a poor cycle for companies. Good employees are forced to leave a job they like in order to receive a promotion or a raise. This adds to the recruiting challenges of companies that are already behind on their hiring goals.

A portfolio company to a private equity firm I worked for thought about using a different approach. They looked at using some of their recruiting budget to fund a portion of their early promotions. This would, in turn, help them retain good talent, which would take off some of pressure from their recruiting team. —Atta Tarki, founder, ECA Partners and author of Evidence-Based Recruiting

Use micropromotions for greater impact

Employees want to feel like they are taking regular small steps forward rather than one leap forward every two to three years. These small steps give employees regular bursts of motivation and appreciation for their work. We realized that companies should restructure their promotion strategy to break their promotions into micropromotions.

Employees can receive a micropromotion for milestones, new skills, and increased responsibilities every 8 to 12 months. This strategy doesn’t have a dramatic impact on cost, but it does dramatically improve how an employee perceives their ability to grow within your organization. —Melanie Wertzberger, CEO, Shaka Culture Software

Develop a clear policy to ensure the promotion process is equitable

Diversity and inclusion continues to be a focus in most workplaces, however, strategies end at recruitment. Research shows us that historically marginalized groups tend to stay at the lower level of companies, resulting in low leadership diversity, so it is vital to consistently reinvest in your diverse talent as they grow. Developing your talent is just as crucial as recruiting diverse employees.

Research shows that when marginalized groups are considered for promotion, employers can factor in superfluous details and unconscious biases, which are considered and weighted against them.

Managers should work to focus solely on needed skill set, performance level, and complementary skills when considering promotions so that diverse talent has equal opportunity. Simultaneously, employers can retain talent by setting them up for future success through development initiatives so that they will be completely prepared for a promotion in the future. —Jon Starling, VP, talent development, Integral Ad Science

Promotions took a pause during the pandemic in 2020. The Great Resignation gave employees promotions at other companies in 2021. As 2022 comes to a close amid economic uncertainties in the workplace, promotions in 2023 are taking on a sense of the traditional “promote and develop,” while blending in innovative solutions, such as micropromotions.

The bottom line? Employees need to see growth in themselves and their careers. Use these tips to help guide how your organization approaches promotions in the new year.

Brett Farmiloe is the founder of Terkel, a decentralized Q&A site that connects brands with expert insights.

Source: How leaders can approach promoting employees

.

Related contents:

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