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Delivering the Family-Friendly Benefits Families Need

“It’s shocking to me how few companies actually know how many parents or how many caregivers for elderly parents they have in their workforce,” said Carmi Medoff, founder and CEO of Onsite Kids, which operates on-site childcare facilities for employers. “It’s usually an off-the-cuff, qualitative answer. So, first thing, please start asking and quantifying.”The importance of affordable childcare cannot be overstated and families need help accessing it. The Center for American Progress estimates that more than half of the U.S. population lives in an area where providers are scarce. And families need help affording it: Childcare costs more than rent in some states, according to one 2024 analysis.But there is far more to being a parent or caregiver than the first decade of a child’s life. Families are complex and changing, said Medoff. “Families start and change every day, every week, every month, every year. Life situations change,” and employers have an obligation to consider the complexities of family life.This was the topic of conversation during a panel discussion at From Day One’s July virtual conference on innovative policies that support healthy families and caregivers. Family-friendly benefits are those that support your workers at every stage of life, from conception or adoption to the early years, college applications, financial planning, menopause, eldercare, and retirement planning—in whatever iterations they occur.Rachel Marling, VP of total rewards at NewYork-Presbyterian Hospital, says an employer’s ability to meet those needs is a reflection of its values. “There are different programs we need to design along that entire continuum, not just to support people, but also to recognize their experience. That’s increasingly important as we think about workplace diversity, acknowledging that people have different journeys, and all of them are of value,” she said.For many employers, this begins with thinking about fertility support, reimagined for all families, including same-sex couples, single parents by choice, and those who opt for an avenue like surrogacy. Well-meaning employers consider primarily the financial components of fertility care, but they miss the adjacent needs of their workers, like the emotional tax incurred by multiple IVF rounds and the need for mental health support, said the panelists.“There’s a reason why we support individuals from preconception all the way through menopause,” said Isha Vij, VP of employer growth at family healthcare platform Maven. The human experience is as varied as it is rich, and every new stage deserves recognition and support.As companies turn their attention to the aging workforce, retaining workers is a growing concern. In some cases, retaining women is a matter of caring for their changing healthcare needs, not only with medical plans, but with in-office support too.Vij helps employers make those considerations. For instance, “think about your in-office accommodations for folks experiencing symptoms of menopause,” she said. “What does your leave policy look like? What does your mental health support look like? All of these things can make a huge difference in keeping individuals in the workforce productive and happy. And, of course, there are reasons on the economic side why it makes sense for employers to do this, like productivity and loyalty.”The panel also urged employers to look out for workers who are caregivers to elderly family members. Marling at NewYork Presbyterian noted how financially and emotionally strenuous the experience can be, and “this is a place where meeting people where they’re at is so critical,” she said. More than just support for regular, face-to-face elder care, NYP offers backup care options and legal support to help with estate planning, wills, and power of attorney.But in the moment of need, employees often need a guiding hand. “We have an eldercare consultant that provides services and caregiver guidance and support with information and referrals, crisis-support counseling, and educational materials and resources,” said Brian Copeland, VP of total rewards at mortgage firm Fannie Mae. “We’ve seen a lot of employees come back with very positive remarks and how they were struggling, they were seeking guidance, and didn’t know where to look. Our eldercare consultant did a wonderful job of bringing that information to them.”The panelists spoke on the topic "Delivering the Family-Friendly Benefits That Working Parents Actually Want"To know what support is needed, simply ask. “For us in HR, it’s very much a listening environment, eliciting opportunities through employee surveys and ongoing touch points to make sure we’re getting a direct line of sight,” Copeland. “And just as important as meeting employees’ needs is ensuring benefits are available consistently. “We make sure to provide the tools and resources so everyone’s on the same playing field, and that it’s not dictated manager-by-manager along the way.”Family benefits are not just a personal matter, but a community matter and a societal one as well. “Offering benefits is a signal to potential employees out in the universe that you support families and signals that your company is forward-thinking,” Medoff said. There is a spill-over effect that benefits the business as well as your reputation as a principled employer. “It shows that your company is taking a stand on social responsibility in the community, particularly for [frontline workers]. Our clients are often one of the largest employers, if not the largest employer, in smaller communities. [Family benefits] demonstrate that you are committed to solving broader societal issues and supporting families.”“The more we acknowledge that each of us has circumstances that exist in our lives that can pull us away from work, or that can physically or mentally detract from the work that we’re doing, and that it’s normal, and that it’s common—the more that we incorporate that into the culture of our organizations,” said Marling of NYP. “That’s a rising tide that lifts all boats.”Emily McCrary-Ruiz-Esparza is a freelance journalist and From Day One contributing editor who writes about work, the job market, and women’s experiences in the workplace. Her work has appeared in the Economist, the BBC, The Washington Post, Quartz, Fast Company, and Digiday’s Worklife.

BY Emily McCrary-Ruiz-Esparza | September 04, 2024

Investing in an Environment of Growth and Innovation

As a 55-year-old tech company, Zebra Technologies has been through its share of mergers and acquisitions. Its first acquisitions were in the 1980s, and in the late 1990s and early 2000s the company purchased a string of small technology firms, and continued adding to its portfolio of hardware and software makers in the 2010s. Notably, Zebra acquired the Enterprise business from Motorola Solutions in 2014. It’s been active in the 2020s too, most recently acquiring Matrox Imaging in 2022.Mergers and acquisitions are inherently disruptive to employees, no matter how smooth the financial transaction. Melissa Luff Loizides, Zebra’s VP of talent for the last 10 years, has been deliberate in integrating and consolidating the cultures of the teams that merge. Loizides spoke in a fireside at From Day One’s August virtual conference on gaining better insight into workers needs and ambition.Rather than overriding one culture with another, her goal is to “identify a culture that would really be representative of the Zebra and of the newly acquired entities together,” she said. “That enables us to go on a journey together and think about how we want to show up and operate with one another. We want to succeed as one. We want to assume positive intent. Those are often hard things to do, especially in corporate settings where there are competing priorities, everybody is resource-constrained, and everybody’s trying to get the best results.”Loizides knows first-hand what it’s like to be on the acquired side; she herself was part of a company absorbed by Zebra years ago. She shows up in the earliest days of diligence, getting to know the leadership teams of the company being acquired. People managers were particularly influential in those early days, she pointed out. They set the tone for the company culture. Loizides called them the “north stars” for the rest of the workforce. For better or worse, “the shadow you cast as a leader who is experiencing their own challenges, that can very easily cascade.”Journalist Emily McCrary-Ruiz-Esparza, left, interviewed Melissa Luff Loizides, Zebra’s VP of talent (photo by From Day One)The company has been able to maintain some cultural momentum throughout years of change. Zebra has been named a Great Place to Work, with 86% of employees saying that the company is a great place to be. Zebra was also named one of Fast Company’s Best Workplaces for Innovators in 2023, and it’s a best place to work for people with disabilities, according to the 2024 Disability Equality Index.Loizides credits the company’s employees with these achievements. A significant part of Zebra’s culture-building is built on consistent employee feedback and individual contributions, she said. “Some of those awards, and many others, are received because of the feedback of our employees. And that certainly says a lot about corporate recognition. [Employees] want to be a part of an organization that’s going to recognize them and create a culture where they want to come to work every day.”Having a firmly established culture helped the company through a CEO transition last year. “We felt really grounded in the culture that existed,” Loizides said of the environment at the time. The effects of Covid really challenged the workforce, and the leadership team paid closer attention and commitment of additional resources to employees’ well-being. The leadership team also decided to focus on refreshing the company values. Though innovation, agility, and working as a team have long been a part of Zebra’s values, the company added new ones: thinking and acting customer-first and making a positive impact on the global community and environment. “With those refreshed values, we could re-enhance and reinvigorate while continuing to cherish some of the things that we already identify as part of our culture.”Emily McCrary-Ruiz-Esparza is a freelance journalist and From Day One contributing editor who writes about work, the job market, and women’s experiences in the workplace. Her work has appeared in the Economist, the BBC, The Washington Post, Quartz, Fast Company, and Digiday’s Worklife.

Crafting an Inclusive Financial Wellness Program to Engage and Empower Employees

Financial wellness programs have become essential for attracting and retaining top talent while fostering an inclusive and engaged workforce. More than 80% of employees want professional help with their finances, says Amy Chou, chief product officer at Addition Wealth, a holistic financial-wellness platform.During a From Day One webinar Chou spoke about leveraging financial wellness programs as an integral component of an inclusive benefits strategy, empowering employees to make smart, informed financial decisions. She shared tips for designing a financial wellness program that effectively addresses the diverse needs and expectations of employees by combining digital tools with human expertise.Why Financial Wellness“Finances are really top of mind for all employees given all the changes in today’s economy,” Chou said. “The stats are really jarring.” According to the company’s research, Chou shares that 78% of Americans are living paycheck to paycheck, with credit card debt at an all-time high of $1.13 trillion. “We have the most educated workforce these days,” Chou said, but with that education comes $1.75 trillion in student debt. 27% of U.S. adults have no emergency savings; 64% of adults say that inflation is what is making it hard for them to save for unexpected expenses. And investing and saving options are becoming increasingly complicated, alienating those who might actually be in a position to start saving.These numbers are causing anxiety, with 90% of Americans reporting stress from their finances, and 34% saying it impacts their mental health. Traditional financial solutions are no longer sufficient and leave a gap in knowledge and service for employees. Financial advisors can be expensive and free tools are often too generic and unable to offer the comprehensive view needed today.Trends Impacting the Financial Benefits ExperienceThe past few years have changed the HR landscape, Chou says. Pay transparency is becoming increasingly important. Market trends have impacted hiring, even though unemployment remains low, headcount reductions have hit certain industries.The economy has changed how employees feel about their finances. Rising healthcare, living, and other costs have impacted employee financial security and demands from their benefits. And in turn, rising costs have impacted the cost of the insurance and benefits themselves, which in turn impact the employer’s bottom line. “This is where we believe financial wellness offerings come in,” Chou said.Evaluating Financial Wellness OfferingsAmy Chou of Addition Wealth led the webinar (company photo)Holistic well-being is increasingly important during turbulent financial times. There are many point solutions and benefits that employees are struggling with how to utilize best, such as inclusion emergency savings accounts, earned wage access, student loan reimbursements, tax benefits, life insurance, and more. “We think that the modern financial wellness program that can benefit an employer and employee alike is really one that stretches across all of these different areas,” Chou said. Wellness programs should be answering key questions like, ‘How do I stretch my income further? And which of these point solutions is best aligned with my personal goals?’The best programs will offer “a solution to help people decide what they should be opting into, how much they should be opting into, or the order by which they need to be doing things,” said Chou. These offerings will benefit employers, also, leading to increased productivity, retention, and more.An Inclusive Employee ExperienceA financial wellness program, Chou says, should be flexible enough to serve employees of all levels, ages, and backgrounds. The best ones on the market should offer the following six components:Holistic offerings that help with all decisions, such as retirement planning and debt management. A high-tech and high-touch model that is user friendly to both employees and employers and integrates easily with your HR systems. Fiduciaries who aren’t pushing specific products in order to make money off of commissions, product sales, kickbacks, referrals and the like may distort their incentives. “Make sure that the financial wellness player is acting in a fiduciary capacity,” Chou said, and only acting in the interests of the employee. One-on-one access to financial experts, such as certified financial planners, certified public accountants, investment advisors, financial fitness coaches and more. “Regardless of age, regardless of demographic, location, etc, if a problem gets too complicated and a person is getting too stressed, oftentimes it can be easier to talk to a person about it and to have that person guide you through and coach you through the situation,” Chou said. “A lot of these decisions are very emotional,” and can’t rely on technology alone. A personal touch may be required. Personalized to your specific company needs, ensuring your employees get individualized and relevant information on your benefits packages, compensation models, and more. “This will drive engagement and better outcomes for employees,” Chou said. Customized to the individual needs of your employees, allowing employees to choose how they want to engage (whether that’s self-service tools, one-on-one meetings, or live large-scale events) and match demographic and educational needs, including paying off student debt and planning for retirement for beginners vs. seasoned investments.The Impact of Financial Wellness Benefits“Once you get an offering that really understands a company, understands a base and understands the employee, you really can make a difference,” Chou said. Many employees appreciate the flexibility of technology-based platforms and the ability to access basic financial education that is unfortunately not really taught in schools, she shares.“You can really make a difference in your employee’s life, but also the families, the dependents, the spouses of these individuals, because oftentimes this employee that gets access to financial education can bring that into their communities and can bring that into their home to really widen the impact of these benefits,” Chou said. “And once people can plan better and manage their finances better, they really get that peace of mind.”Editor’s note: From Day One thanks our partner, Addition Wealth, for sponsoring this webinar. Katie Chambers is a freelance writer and award-winning communications executive with a lifelong commitment to supporting artists and advocating for inclusion. Her work has been seen in HuffPost and several printed essay collections, among others, and she has appeared on Cheddar News, iWomanTV, On New Jersey, and CBS New York.

How to Use Skills Data to Power Development and Achieve Business Objectives

The skills required for success are constantly evolving and organizations are struggling to adapt without clear visibility of the strengths and skills gaps in their workforce. This uncertainty leaves talent management and employee development journeys to guesswork, resulting in lost opportunities and strategic missteps. Being armed with skills data and then acting on it is a key strategy to keeping employees happy, loyal, and developing.Organizations that utilize data about their talent's skills, or catalog and organize the skills workers currently possess, as well as identify the skills needed for future roles, are actively preparing their workforce to tackle new challenges as they arise. During a From Day One webinar, leaders discussed how talent skills data can transform your approach to talent management.As a first step, companies must identify which skills are the most relevant to their business’ present and future, the panelists shared. This decision should not be made just by HR, senior leaders, and stakeholders, but by employees at other levels too, says Marquisa Nash, Head of HR, performance materials at BASF. “[There might be a gap between] what leadership thinks is important and what people think is important,” Nash said.Tomislav Vujec, director of learning at Red Hat, says it’s easier for HR to get a buy-in from business leaders when discussing employee skills as opposed to competencies. “We get to be closer to their problems and we open a door to validate what we can actually do, which is develop a skill. As opposed to risking too much by promising a business change, which often does not only depend on the skill being developed, but other factors,” he said.The rapid changes brought about by the pandemic also emphasized the need to focus on skill-building, says Didem Onem, Head of TA operations and programs at Eaton Corporation. “That made us look at our talent and skills availability and ask ‘where are we headed – and are we ready for that?’ It meant bringing a new type of talent into the organization,” she said. For Eaton, this meant an initiative for upskilling in digitization techniques so that employees would be more prepared for a digital way of doing business. Her team mapped out the new skills plan based on manager feedback, honest self-assessments, and forecasted what would be needed down the line.Those self-assessments, though, can be tricky. “Oftentimes people are not terribly good at assessing their own levels of facility with certain things,” said moderator Lydia Dishman, senior editor for growth and engagement at Fast Company. “Is there a way to make sure that what people are reporting is actually where they are?”The panel of industry leaders spoke about "How to Use Skills Data to Power Development and Achieve Business Objectives" in a session moderated by Lydia Dishman of Fast CompanyLarger companies, especially, must work hard to not lose track of each individual’s growth. “With 600,000 employees all around the globe, it’s hard to know who can do what and what they are good at,” said Abbe Partee, VP, head of global certified learning at DHL. So DHL created a Career Marketplace, which integrates both its learning and performance system. It includes an individual’s skills data not just from self-assessment but also manager feedback, succession planning meetings, and the combined skill profiles of their current and previous roles.“We want to build a culture of learning and continuous education,” Vujec said. That begins at onboarding and continues throughout an employee’s entire career journey, regardless of their level. It’s also important to recognize, he says, that “the foundational skills of today might not be the foundational skills of tomorrow.” In turn, the onboarding itself should serve as a mindset shift to prepare employees for continuous learning, rather than the expectation that development will stop after a few months on the job.Skills data should be something that is embraced by employees. “We know employees want to grow with the organization, and skills is a great conversation to get that going,” said Lucy Beaumont, solution lead, manager and leader at SHL. The biggest shift she is seeing is that the skills conversation during reviews is less about how employees are succeeding in their current roles, but rather where they want to go in the future. “What is your skills potential, and therefore, what is the right career path for you where can you lean into those strengths? If you do have those gaps, and they're relevant to the job you're doing or the job you want to do, how can we get around that and support that?” she said.Post-pandemic, individuals are more acutely focused on whether they are happy in their current position, so it’s important for employers to facilitate those conversations early and help workers move and grow internally, rather than externally, to boost retention.Beaumont says organizations should not only be measuring skills as they stand, but also tracking how those skills gaps are then bridged over time. While pulse surveys are helpful, they can sometimes have a tough time measuring soft skills, such as leadership. Therefore, the hard data must then be analyzed with a human approach. “We do take broad strokes, but then that aggregate view allows us to prioritize and see what it’s hinting at,” Vujec said. HR can allow the data trends to drive what areas will require a deeper, more complex dive.Nash notes this “human skills” area is, ironically, where emerging technology can be the most useful during employee surveys. “We use AI to go back into the comments to extrapolate, to see what other additional data points we can obtain to understand what skills employees are looking for,” Nash said. Then those themes are linked back to the organization’s business strategy and core values.What skills do the panelists see as most valuable going forward? All of them are tied to transformation. They include data analytics, to boost agility in reacting to needs; digitization, to make business more efficient; a digital mindset when it comes to problem solving; and an overall change in agility. And lastly, the skill of learning itself is vital. “Re-skilling potential: what does it take to be willing and able to learn new skills,” Beaumont shared, is integral in today’s rapidly evolving workforce.Katie Chambers is a freelance writer and award-winning communications executive with a lifelong commitment to supporting artists and advocating for inclusion. Her work has been seen in HuffPost and several printed essay collections, among others, and she has appeared on Cheddar News, iWomanTV, On New Jersey, and CBS New York.

Leveraging New Technology to Gain Insight into Workforce Engagement

Depending on who you ask, AI could either be a threat or a miracle. Regardless of your stance, the reality lies in its application: AI is an evolving tool that, when leveraged effectively, can offer powerful insight into your workforce, ultimately driving decision-making and strategic planning. Patrick Hyland, organizational psychologist and strategic advisor at Remesh, an AI-powered employee listening platform, says there’s potential for real transformation from AI within employee research. However, as savvy as the new tech is, people should have a healthy dose of skepticism to see where the potential pitfalls lie.Hyland and other leaders spoke about AI and innovative technology during an executive panel at From Day One’s August virtual conference. Lydia Dishman of Fast Company moderated the discussion. “I really need to experiment with the technology,” said Hyland. “I need to try it, verify it, and suss out the strengths of the technology, and how that squares up with my traditional methods to figure out where the synergistic point is,” he said. The ultimate test is whether the technology benefits both employees and the organization. If it does, the next step is scaling it. “AI is taking this overwhelming amount of data and turning it into employee-led suggestions for progress,” Hyland said. For this to work, organizations must build trust, ensuring employees know who will see survey results and how the data will be used. “If you don’t have that psychological safety, no one will participate fully.”Turning Automation into ActionTapping into the strengths of AI is key, panelists acknowledged. Chris Coultas, Ph.D., senior director, employee performance and engagement at McKesson, says the organization of more than 50,000 relies on regular surveys to offer insight into how to help employee engagement.AI can handle the vast amount of data, developing survey questions, automating administration, and identifying patterns. “The biggest value is in understanding and acting on the data that you get,” Coultas said. AI can integrate data streams and provide actionable insights, helping leaders take effective actions.“With AI you almost have your own engagement coach,” he said. It can help build an engagement calendar with actionable steps, keeping the momentum going between surveys.The panelists spoke about "Leveraging New Technology to Gain Insight into Workforce Engagement" (photo by From Day One)The data and automation of the AI tool is only truly leveraged effectively if those actions are indeed taken, but communicating this is part of the equation. “You should be going back to your team and saying, ‘This is what I think you’re saying. This is what I’m hearing so far. Did I get that right?’” Then you can work together to develop those actionable steps together, he says. Taking a Customized ApproachAnother key to leveraging AI to increase engagement is customizing content, says Rebecca Warren, director of talent centered transformation at Eightfold. “When we use tech to understand what people want, [like] where they’re at and what they need, we’re developing that culture of continuous learning. So it becomes proactive instead of reactive. We’re not serving things up to people and saying, ‘take this training.’” This kind of customization helps meet each individual where they are and elevates them, making employees feel seen and increasing engagement.AI can also help potential hires be seen. It can detect bias, write more inclusive job descriptions, and help recruiters look more at skills. “Tech can also help open up that pipeline, making that a wider reach, getting the information out to more people, and also helping people share it more easily,” said Warren. AI can then be used to collect and analyze data on the diversity of the pipeline. “So, it’s using tech to collect and analyze that data and then help organizations identify areas where they may need or want to improve,” she said. Ethical AI UseFrom data collection, to analysis, to implementation, organizations should be cautious and ensure they’re using AI and new technology ethically. “We have to be cautious to not weaponize the feedback or allow leaders who might not agree with the feedback to become frustrated,” said panelist Sarah Waltman, VP, global talent management and organizational development at Dentsply Sirona.Something AI can’t do for leaders is show empathy and understanding, even if they don’t agree with it. Along with that is transparency. Leaders should share the purpose of new tech and tie it to business priorities to ensure employee buy-in.“You have to share with your organization ‘the what and the why’ of the new tech way before it actually shows up and tie it to business priorities,” she said. Establishing clear ROI expectations and maintaining an open conversation about new tech are crucial. “I am 100% for tech. But I think that the human loop needs to stay connected for that context, for that continuity, for the folks to feel like it’s ethically done. So that human loop and letting people feel listened to and heard, to me, kind of puts that cherry on the top,” said Waltman. By effectively leveraging AI while maintaining a human-centered approach, organizations can enhance workforce engagement and drive meaningful progress.Carrie Snider is a Phoenix-based journalist and marketing copywriter.

Building a Culture by Investing in Every Relationship

Maral Kazanjian, chief people officer at Moody's Corporation, will always remember her first day back after a stint with another company.“It was like rejoining your family or coming back to your college reunion where everyone knows you and cares about you and is so just happy to see you,” she said during a fireside chat at From Day One’s Manhattan conference. “I wish every person going to work could feel that included and welcome for who they genuinely are, because I really felt it in that moment.”Kazanjian, interviewed by Emma Hinchliffe, senior writer for Fortune, says that Moody’s cornerstone value is to invest in every relationship. “And what that really meant to us is me talking with you, me engaging a vendor, a colleague,” she said. “How I show up what I do matters. And the way I do it matters just as much.”Rebranding Human ResourcesOne way Moody’s invested in relationships with its employees was by rebranding the human resources department as the people department. “We didn’t want HR to be perceived as a back-office personnel function,” Kazanjian said. “We knew that truly we have a SaaS business, but our product, everything about what we do is our people.”In other words, “the crux of our business is our human capital. And to be an effective human capital function means understanding your business and driving activity that reinforces the things that matter. And for us, that’s trust and relationships.”Leaders at Moody’s work hard to ensure that every experience within the employee lifecycle, from hiring to talent growth to compensation and benefits, “matters in that value proposition of building a place that you can trust and rely on, and that we can trust and rely on,” Kazanjian said. In turn, that helps Moody’s customers have confidence in the corporation.What Employees Value MostEmployees like to feel they are connected to doing something that matters to the mission of the company, says Kazanjian. “I hear a lot about, ‘How do we tell the story of what we’re doing to our people and to each job, so they feel like they have a purpose and getting up and doing what it is they have to do,” she said.Team members also need a sense of psychological safety, which leads to a company operating with integrity. “If you feel safe, you can call out something that feels off to you,” she said. “If you don’t feel safe, you are not going to call it out with the same confidence and comfort.”Emma Hinchliffe, senior writer for Fortune, right, interviewed Maral Kazanjian of Moody'sKazanjian emphasized the importance of focusing on the whole employee experience. Leaders at Moody’s recognize that “work is just one component of your life, and no one’s life is the same every day. It’s incumbent on us as a company to create a space that enables people to achieve the goals of the company, while living a life that is as rich as they want it to be.”The Importance of InclusionWhen Kazanjian rejoined Moody’s in early 2022, one of the first things the leadership team discussed was diversity, equity and inclusion. “We hired a new officer and spoke about the title of that job,” she said. Each aspect of DEI is vitally important, but it starts with inclusion, says Kazanjian.Moody’s did a lot of rebranding around the idea of inclusion. One of the results was a video posted on the corporate website titled “Stand for Inclusion.”In the video, they “show vignettes of all different kinds of people at Moody's who look different, who have different experiences, who come from different backgrounds,” Kazanjian said. “We talk about how that mosaic of different people is what creates the richness of our business.”Having a diverse group of employees gives Moody’s the broadest perspective of insights. “But it also lets every person know no matter where you come from, you are safe here and you are welcome here.”Mary Pieper is a freelance writer based in Mason City, Iowa.

By Bill Saporito | August 22, 2024

Why a Software Glitch Sent Delta into a Tailspin: The Perils of Getting Technology and People Misaligned

Customer-facing airline employees are some of the most remarkable people in business. How can they not be? The workers on the ground face the annoyed, the demanding, the delayed, the furious, the not-going-anywhere-today, and the inebriated. Then they get a lunch break. Those on the jets face the entitled in the front and the cramped-and-cranky in coach.My admiration for these folks has only increased over the last decade as their ranks have been thinned by technology (with a push from the pandemic) while their tasks have been made increasingly fraught by the air-travel system in which they now toil. And in which we frequently roil.We got to see this combination of imperfect technology meeting overwhelmed staffing earlier this summer during the great CrowdStrike meltdown. Until its cybersecurity upgrade blew up, CrowdStrike was a company known mostly to sys-op jockeys and hackers. Then the company introduced a wonky software update that within hours crippled millions of servers that used Microsoft Windows and all hell broke loose.Around the world, operating systems gagged, including those of major U.S. airlines, bringing traffic to a near standstill. In the U.S., only Southwest, which seemingly still uses floppy discs to run its data systems, escaped the meltdown. With the CrowdStrike collapse, the scene soon became all too familiar: lines of people desperately trying to get somewhere, their options narrowing, their frustration widening as the hours passed. Some would be stuck for days.And among those carriers, Delta stood out for coming apart like a cheap suitcase tossed down a baggage ramp. The carrier canceled more than 5,500 flights, and at one point refused to board unaccompanied minors, creating major angst for lots of parents. Meanwhile, word got out that CEO Ed Bastian had jetted off—Ted Cruz-style—to Paris for the Olympics while his airline was frozen in place. Delta blamed CrowdStrike and Microsoft, and has threatened to sue to recover some $500 million in losses. Microsoft, in turn, blamed Delta’s outmoded technology. During the depths of the outage, Microsoft CEO Satya Nadella emailed Bastian to offer assistance—talk about the ultimate Help Desk—but Microsoft says Bastian apparently didn’t respond. The carrier seemingly turned on its passengers, some of whom reported difficulty in getting hotels from Delta where they were stranded, as well as being low-balled by the refund offers being made to compensate them for lost flights and spoiled vacations. Delta’s service swoon seemed all that more severe given that the airline had reached cruising altitude in the post pandemic years, while rivals such as United and Southwest grappled more often with system freeze-ups.Using Technology to Supplant LaborYet Delta, as well as the other carriers, have been rolling the dice for years when it comes to matching people and technology. During the pandemic the carriers had to cut schedules (40% in Delta’s case) and jobs. As the nation and air travel recovered, they either didn’t—or couldn’t—rehire enough people who had left or were let go to match surging demand. (Remember “revenge travel”?) Increasingly, they relied heavily on technology to supplant labor. And they made us, the passengers, part of the labor force: encouraging carry on baggage by charging for checked bags, then introducing self-ticketing, self-check-in and self-bag-checks. Frontier even tried to eliminate its customer phone support.This latest air travel meltdown magnified an everyday incongruity that exists in the industry in that airlines are carefully configured to cope with the unpredictable—often to no avail. They try to plan for everything, from the catastrophic—a fatal crash—to the complex, such as a hurricane that threatens to spin the entire network into disarray. Then there are wars, revolutions, volcanoes, pandemics, strikes and assorted other calamities that are a regular threat to any global business, but to airlines in particular.At their vast flight operations centers, the carriers have teams ready for everything from a medical emergency on board to a rivet (or a door) coming loose on a 737 Max or a warning light on an Airbus 321 that won’t turn off. There are doctors, pilots, mechanics, meteorologists, Airbus specialists, Boeing specialists, avionics specialists, crew wranglers, airport and operations managers working 24/7 at the ops centers, and yes, people figuring out just who among us is going to get screwed when flights get delayed or canceled.Yet all of that preparation is no match for the way airlines are actually scheduled. They remain vulnerable to the phenomenon known as tight coupling, in which one unit in a system is highly dependent on the next. Cascading failure is almost a guarantee once the first fault is unleashed. Why can’t airlines prevent this from happening? The answer is that, despite the contingency planning, airlines are scheduled for optimum conditions, as though it’s always going to be sunny in Philadelphia, or Panama City or Paris. Which is not the case, of course. Worse, with load factors north of 85%, there’s little excess capacity, and little hope of a quick recovery once the system begins to implode.The contingency planning that airlines do can be undone by what they regularly come up against. Weather is by definition chaotic; technology is capable of catastrophic failure. Try building a service culture around that.Where’s the Service in the Service Economy?Although airlines are the most conspicuous examples of failing to balance people and tech, it seems to be creeping into all parts of the economy, as algorithms try to bring ever more precision to businesses. Especially in retail. The goal is to never have excess labor being employed for a single minute anywhere. In this frictionless world, there is always precisely enough help available to help you make your purchase or to get served.You know how that goes. We seem to live in a nation where there is always one fewer checkout lane open than needed (and don’t get us started on self checkout, which normally requires more than one self to operate). If you’re waiting in one of these lines, this understaffing can seem deliberate.Not too long ago, I was discussing airline operations with David Neeleman, founder of the highly successful new airline Breeze Airways (not to mention JetBlue, Azul, and WestJet) when he mentioned that he routinely passed by long lines of customers—or potential customers—at airport Starbucks. This frustrating level of service drove him to distraction—and this is a man who does not drink coffee. His point was that in an airport terminal, with scheduled flights, you can pretty much know how many people are going to be around your location at any given time. How can they not figure this out?, he asked, incredulously.Perhaps because they don’t want to: the obvious conclusion is that it’s better to be slightly understaffed than overstaffed, especially in businesses that ebb and flow during a day. In my nabe, the usual culprit is our CVS pharmacy, where the line gets 10 deep about the same time every day. Or at Chipotle, where 7 p.m. to 7:30 p.m. becomes a crap shoot as to whether your online order will be ready as the app promises. The problem? There are two hospitals nearby, and shifts are changing about then, something Chipotle’s scheduling software hasn’t seemed to have mastered. One more person-hour would do wonders, the difficulty being that you can’t schedule one person for one hour. So we wait.At Sephora, meanwhile, I seethed in a line on a Saturday afternoon with my wife as checkout terminals remained unpersoned even as the queue expanded. Spotting a manager, I asked, “Can’t you pull people off the sales floor? Isn’t everyone cross-trained?” She, of Gen Z, gave me that “okay, boomer” look before moving on. I’m still not sure whether she lacked the authority to shift salespeople to the front end, or the interest.Dissatisfied shoppers in brick-and-mortar stores are free to leave and not return, or to buy online. Dissatisfied fliers don’t have that option. How many times have I heard an angry passenger screaming, “I’m never going to fly this airline again,” at an agent and thought: Oh yes you are. And that includes Delta. The carrier may have burned some goodwill this summer, but there’s a still deep reservoir it can still draw on—at least for now.That includes its talent pool. As we have again experienced, when the technology chokes, the front-line workers bear the burden for the company, because software doesn’t hear you when you scream at it. The airlines, and many other companies, either need to invest in more dependable technology—or they need to stretch their people a little bit less.Bill Saporito is an editor at large at Inc. magazine, whose work has also appeared in the New York Times and Washington Post. Previously, he worked as an assistant managing editor at Time magazine and as a senior editor at Fortune. He has written for From Day One on the power gap among labor unions and the myth of the “woke” corporation. (Photo by Panama7/iStock by Getty Images)

To Engage Your Workers, Train Them Like All-Around Athletes

Workers have growing concerns about job security, especially with new AI and technology being implemented in the workforce. Many companies aren’t addressing these concerns properly or at all with their workers. But educating and maintaining transparency with AI use is key to employee retention and success. Leaders at Comcast agree. During a fireside chat at From Day One’s August virtual conference, Sonya Echols, VP, HR, for technical operations, network, engineering, and construction at Comcast spoke with journalist Jenny Sucov about engaging, educating and training employees. Comcast uses a mixture of traditional and non-traditional methods to learn about employee needs. In addition to yearly and quarterly surveys, they strive to know their employees well. The company focuses on “making sure we have a culture around communication, open doors, (and) making sure people feel comfortable coming to us,” Echols said. “Organizations, especially the larger the organization, have to have multiple touch points to understand where their employee population is, around their mindset, and what they are dealing with,” she said. Employee Growth Opportunities and Retention Developing knowledgeable employees into future leaders is an important way that Comcast sustains and supports its workforce. Every employee has the opportunity to learn the skills they will need to thrive within their organization and beyond, says Echols. They offer a large content library filled with on demand courses accessible at all times. Comcast invests a lot in who they bring into the company. They want their employees to feel empowered as they move along their career path.Journalist Jenny Sucov, left, interviewed Sonya Echols of Comcast (photo by From Day One)What may seem revolutionary is everyday life at Comcast. Utilizing daily meetings to relay knowledge is an overlooked necessity that Comcast differentiates in. Transferring knowledge prevents an issue of no one knowing how to handle business due to an exit of one employee. It also builds on skills that can later transfer into multiple departments. “We’re focused on building the skill sets they have, [so] they can be successful in other areas,” said Echols.Employees can try out roles they are interested in through job swaps and less-formal mentorship programs. Echols credits the success of mentorship to the commitment of everyone. Comcast leaders feel it is their duty to develop the next set of leaders for the company.Address AI Integration With Employees When asked about AI, Echols says it is important to use technology to our advantage, both personally and professionally. Soon it will be a vital skill in the professional setting that employees need to be prepared for, says Echols. “Technology is here to stay and things are going to continue to change,” she said. Through their focus on surveys and communication, Comcast is familiar with their employees' needs. Organizations should have a more thorough plan for engaging their workers if they want workers to stay with their companies long-term, says Echols. “If you are not having conversations about technology and what it means for your organizations, you have to start now.”Mary Jones is a freelance writer out of Ohio. Her work is featured in several publications including The Dallas Express, NDash, and The Daily Advocate.

Innovative and Engaging Approaches for Leadership Development

“The war for talent is over, and talent won.”This was a quote that resonated with Miguel Oliveira, senior HR director supporting the brand management and marketing teams at Danone North America, he said during a recent From Day One webinar.Leaders are now being evaluated “not only on the results they bring to the business, but on results from engagement, well-being, and retention,” he told moderator Lydia Dishman during a From Day One webinar about supporting tomorrow’s leaders.Amanda Grow, director of customer success for ETU, says the company has leadership training programs centered on skills related to values such as authenticity and courage, emotional intelligence, and psychological safety.“I always want to see inclusive and emotionally intelligent leaders, because that really does have a major impact on every organization and your culture and what you're trying to instill in your employees,” said Grow.Things have changed tremendously in the workforce in recent years, which impacts what leadership looks like, says Johann Laville, the chief learning officer at Merck.Remote work is becoming more commonplace, the workforce is younger and more diverse, and “technology is driving our future at light speed,” he said. As a result, leaders are listening more and focusing more on leading with humility, he says.Tips for Training Future LeadersEarly talent programs are a way companies can develop future leaders, says Minh Pham-Costello, vice president of business management at Santander. Employees can get an endorsement from their manager when applying.It’s crucial to make sure the employee is committed to the program “because sometimes you push programs to people and they either don’t have the capacity or the desire,” Pham-Costello said. It is also important to have programs that cater to senior leaders’ professional development needs.Programs for future leaders shouldn’t be one size fits all, according to Grow.“It’s great to have a global skill set that we’re trying to adhere to, but we also need to dig down and go to the level deeper and really understand how those skills show up at different role levels, different proficiency levels, and more, so that you really can personalize some of the training,” said Grow. For example, a senior leader who takes a junior-level course probably won’t find it engaging.The panel of leaders spoke about "Supporting Tomorrow's Leaders: Innovative and Engaging Approaches for Leadership Development" (photo by From Day One)Oliveira compared leadership training to trying to teach someone how to ride a bike. You can have trainees watch a movie on how to do it or “put them on a bike and have someone hold the bike to let them understand how it works,” he said.When exposing employees with leadership potential to management fundamentals, “It’s really important to create ways and mechanisms to give them visibility to what it looks like without the responsibility of leading someone directly,” Oliveira said. “I still see today many people stepping into their first managerial leadership opportunity and they still lack those fundamentals, and unfortunately, those suffering are those reporting to the individual.”How Employees Can Demonstrate Leadership SkillsAlthough organizations are investing in leadership development more than ever before, individuals still need to take the initial steps toward getting to the next level, says Pham-Costello.“Of course, other people can help you, but when you take the initiative with your career, you are not only developing your skill but also showing the organization that you are committed to the company and to your growth,” she said.Business resource groups (BRG) are essential when it comes to leadership development, says Pham-Costello. A BRG “gives you that visibility. People see you leading and influencing.”Laville said Merck has a true gig economy. This means if an employee wants to demonstrate their capability of being an effective leader and there’s something they are passionate about – whether it’s a topic, division, or product – they can apply internally, be interviewed, and be selected.That employee would then have support from the leader who releases them into the gig and the leader who would accept them “to come in and provide a new value,” Laville said.Seeking mentorship is another way for those who wish to be leaders to get to that level. Mentors are “subject matter experts that you can have some really open conversations with to help guide you on that path,” he said.Editor’s note: From Day One thanks our partner, ETU, for sponsoring this webinar.Mary Pieper is a freelance writer based in Mason City, Iowa.