Comment Comment
Comment on the blogs Log in here Become a member Register now
 
Lou Burrows

Lou Burrows

11 Jun 2009 | 15:35

(Maximum of 120 characters)
Articles more than one month old can be viewed only by CIPD members or PM Subscribers.


Perhaps, like me, you’re sick of hearing about MPs and their expenses?

Perhaps, also like me, you’re quite intrigued by the range of reactions from people. Reactions such as:
- is it really theft if it's "just expenses"?
- is it really their fault if the system is so poorly communicated?
- isn't this just because they are not paid the going rate for their work and they have to make up the extra somehow?

Why do you know more about their expenses than you do about their recent voting decisions in the House of Commons? Perhaps you work in a culture where it is widely expected that people can claim for a few extra (non-existent) taxis or dinners. Or some nights away when they actually got the last train home.

The more I talk to HR people, the more I've been struck by what is tolerated in the way of expenses claims. I reckon there are a few aspects of culture that can promote a sense of financial responsibility.

First: whether people are trusted with cash. When I arrived at !What If?, I was told that we all sign off our own expenses up to the first £250 because "we can be 100 per cent trusted to take responsibility for the company's money – we are thrifty as if it were our own money".

I asked if there had ever been abuse and was told that in the past 10 years there had been only one person who had taken advantage and had to be spoken to. As we grow, we still find that trusting people to judge for themselves if a cost is appropriate is by far the best route rather than heavy controls.

Second: how we communicate about the cash. Every week we update the whole company on the sales results and the work in the pipeline. Everyone knows week to week how much work we are converting and how we are performing against our target.

Some might say there is too much information, but we think it’s really important that everyone understands how we are doing and can see the hard work paying off. They will be interested as we approach the profit targets as they know this will trigger profit share for everyone, regardless of role.

Lastly, I do think that there is something in the issue of being paid a fair wage for a fair day’s work. We Brits tend to shy away from conversations about salaries unless it’s the review period. Or perhaps a conversation is started when someone resigns over money. We need to change this and get comfortable talking about money. Making sure that people are being paid correctly is incredibly important to how they relate to the company and to ensure that they feel valued – and less likely to be looking for opportunities to “make up” for the value they feel they are losing out on.

 
 

About the specialists

Iain Mackinnon

Iain Mackinnon

Managing director of the Mackinnon Partnership and a public policy consultant specialising in the people side of economic development,...

Ian Buckingham

Ian Buckingham

A specialist in employee engagement. He is the former founding MD of Interbrand Inside and the founder of the Bring Yourself 2 Work...

John Philpott

John Philpott

Chief economic adviser at the CIPD and visiting professor of economics at the University of Hertfordshire. He has been an adviser to...

John Taylor

John Taylor

John Taylor is the chief executive of Acas

Lou Burrows

Lou Burrows

Global head of people at innovation company ?What If! Since joining in 2006 Lou has revolutionised the company's approach to recruitment,...

Peter Honey

Peter Honey

Founder of Peter Honey Publications Ltd. He created the Honey & Mumford Learning Styles Questionnaire and has worked as a management...

Peter Reid

Peter Reid

European Employee Relations Consultant who has monitored employment developments in Brussels for almost 20 years. Peter also advises...

Richard Goff

Richard Goff

Richard Goff is one of the CIPD's Relationship Managers, concentrating particularly on relationships with HR Leaders and engaging them...

The Apprentice

The Apprentice

Jo Cameron is a former contestant on The Apprentice and founder of training and development company Jo Cameron’s High Performance Academy....

Apprenticeships that work

New guidance to help you in developing high-quality apprenticeships

Read the new CIPD guide

HRD Conference 2012

Add value to your business with practical L&D solutions from HRD

25-26 April. Find out more
Links open in new window
 
People Management neither recommends, nor is responsible for, the content of external sites listed here.
Your link here: contact the PM sales team.

Language does not simply reflect what is going on in organisational life: it also influences what people think and what they do

Linda Holbeche, director of the Holbeche Partnership and visiting professor of HRM/OD at Cass Business School