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The four-day work week has been at the forefront of the flexible working discussion for some time. However, the outcomes-based approach may provide even more flexibility for employees.
So, what is the outcomes-based approach? Lauren Karan, director at Karan and Co, described how the approach works at her company: “Rather than dictating days, hours, and time, we’ve more moved to basically saying these are the outcomes for your role. And because of the nature of the work we do in recruitment, it’s up to the individual to be able to manage their time and outside commitments to be able to meet those deadlines.”
Transitioning to this style has helped to boost productivity for Ms Karan’s workers, as they’re better able to prioritise their time.
“Staff tend to work the hours that they’re most productive and work in line with their individual style. So, I’ll notice some of my staff are morning people. In the morning, you’ll see them smashing out emails, they’re making tons of calls, and that’s when you have high productivity,” she said.
“So, what we learn when we look at outcome-based approach is that individual staff members have different times of the day that they’re more productive. And what you learn is that they log on at different times and power through work.”
Making this management style possible was the way the workforce was altered due to the pandemic, said Ms Karan. With many employers better understanding the value of flexibility and the benefits this brings, the outcomes-based approach can be more easily implemented.
“The way that I see it moving forward in organisations is moving more towards an outcome-based approach. And the reason I see it is because post-COVID-19, people have come back and have had a lot of self-reflection time. And then, from COVID-19, there’s also a skill shortage. So, there’s a lot of people facing burnout that have come back and trying to take another role, trying to take on other responsibilities, and they’re tired and they’re exhausted,” Ms Karan explained.
“It’s now about how can I meet you halfway as an employee? What does your life look like? Do you have school-aged children? Do you have elderly parents? Do you have PT that you like to do first thing in the morning? Knowing that about your employees and knowing what their life is as well as what their work preferences are is key.”
Bringing new ideas to how teams are run is crucial in the modern age of working. The workforce has experienced significant change over the last few years, and with this, new business operation methods have emerged.
Ms Karan continued: “I think where we’ve gone wrong in the past is we’ve become very regimented. We haven’t changed from the industrial age, where we clocked into a manufacturing facility and clocked off. It’s not like that anymore. And therefore, the way that we manage people has to change, too. If we do want hybrid work, flex work, remote work, even if you are in the office, everybody has a different individual style and preference of working.”
“All my team now are mums and have families; it was an intuitive thing for me. If I’m making them feel like they can’t attend the soccer practice or they can’t do the pick-up, that’s going to then make them feel like they’re not meeting that obligation at home, and that’s going to affect their satisfaction at work, which then affects their performance at work.”
While this approach can be beneficial, there are things to consider before jumping in. Proper planning and coordination are key; otherwise, processes can fall apart through a lack of communication.
“I have learned that there are definite positives for this approach, but there are definite things that I’m learning as a leader as well that require more structure. So, the positives are employee satisfaction. And I find the quality of the work that comes through is really good because people are working at their best and there’s less errors and issues with people getting sloppy with work because they’re working around when works for them,” Ms Karan said.
“The double-edged sword or the other side of it is then you need to have really good structures in place around the financial. So, what are your targets? You need to have a structure for checking in on how the person is going against the target. It’s always that balance as a leader between being employee-centric and making sure you’ve got a satisfied employee but also knowing your numbers in the bottom line.”
She continued: “What I’ve learned is you have to also have the business system processes, procedures, and constant check-ins in place to allow for that model. Because if you don’t, then you aren’t monitoring close enough the profitability side of it. So, it’s got to be a balance.”
Jack Campbell
Jack is the editor at HR Leader.
