Mike Tumilty, Global Chief Operating Officer, abrdn.

A new normal for workers

With many firms switching to hybrid or home-based working environments, many Chief Operating Officers (COO) are struggling to keep employees engaged and feeling like they are part of the team and that their voice matters in the firm as a whole. 

Mike Tumilty, Global Chief Operating Officer, abrdn, said that keeping employees involved and engaged was a tall order further hampered by the cost-of-living crisis in many countries and other troubles such as rising commuting costs. The important question then becomes:  how can COOs keep everyone on board amidst the current climate?  

“From a financial perspective, it is about trying to help employees link what they do each day and how they can make a difference. This helps them to feel that their organisation cares."

Tumilty’s views were featured in Clear Path Analysis’s October 2022 report, “The Post-Pandemic Office: Operations, Technology, Outsourcing & Managed Services in the Investment Management Industry”, which covered these issues with industry leaders at companies such as abrdn, SS&C | Advent, Mackay Shields LLC, and MetLife Investment Management. 

“Flexibility is to some degree the counter to these new costs of living. In the UK, [we’re having] train strikes [throughout 2022] so a lot of our workers are not going to be able to come into the office and pre-pandemic, they would have had to work out taking a bus or drive, but the bottom line is that train strikes now won’t disrupt our business as people will stay at home and work there,” Tumilty explained. 

He said a clear sense of purpose that aligns with one’s values is necessary. It’s important to be seen as doing something to help society move forward and tackle some of today’s largest issues – such as climate change, ESG, the socioeconomic movement, and working to be more inclusive. “From a financial perspective, it is about trying to help employees link what they do each day and how they can make a difference. This helps them to feel that their organisation cares,” he said. Ultimately, employees who believe in their organisation’s goals are happier and more engaged at work. 

He added there is also the issue of employees wanting to develop their professional qualifications, which could be something they have subsidised or paid for by their organisation. This encourages continuing professional development, which is a vital way to heighten engagement and increase retention. 

Engaged staff - remote or in-person

Staff retention has been one of the key themes of this year’s debate around group working practices, and the reasons for it are stark. A 2022 McKinsey survey listed “uncaring leaders”, “unsustainable work performance expectations”, and “lack of career development and advancement potential” as the most popular reasons why workers leave jobs. 

"“Trying as an organisation to make sure you are societally relevant is very important in this day and age."

Tumilty said organisations must adapt to the times – new cultural norms included – and make themselves as appealing to potential hires as they can if they want to recruit more employees going forward. “I have a son who is 21 and a daughter who is 17 and listening to the outlook and the types of things that would cause them to want to apply for graduate programmes in our organisation is very different from when I [went through this process] 28 years ago,” he said. “Trying as an organisation to make sure you are societally relevant is very important in this day and age.” 

However, there is one thing that will always be a major key to success no matter which cultural changes take precedence: money.

Tumilty added that there is no escaping the fact that remuneration is important, particularly when prices are rising, and the labour market is tough and competitive. The McKinsey study listed this factor as the second highest reason employees leave jobs after workplace flexibility. 

“I do feel that people – and particularly the younger generation – are thinking differently, so it is about how you can become a relevant employer now and in the future. It requires a lot more thought than it did historically,” he said. 

To read the interview in full, and see more from the report, please click here. 

 

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