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Archives for August 31, 2010

Priority Inbox

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From the Google blog:

People tell us all that time that they’re getting more and more mail and often feel overwhelmed by it all. We know what you mean—here at Google we run on email. Our inboxes are slammed with hundreds, sometimes thousands of messages a day—mail from colleagues, from lists, about appointments and automated mail that’s often not important. It’s time-consuming to figure out what needs to be read and what needs a reply. Today, we’re happy to introduce Priority Inbox (in beta)—an experimental new way of taking on information overload in Gmail.

Gmail has always been pretty good at filtering junk mail into the “spam” folder. But today, in addition to spam, people get a lot of mail that isn’t outright junk but isn’t very important—bologna, or “bacn.” So we’ve evolved Gmail’s filter to address this problem and extended it to not only classify outright spam, but also to help users separate this “bologna” from the important stuff. In a way, Priority Inbox is like your personal assistant, helping you focus on the messages that matter without requiring you to set up complex rules.

You can learn more about how this works and how to get started using it in the full post.

Why Companies Should be Generous in Their Pay

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This is explained very well in the Gallup book 12: The Elements of Great Managing, by Rodd Wagner and James Harter. The book is “based on Gallup’s ten million workplace interviews–the largerst worldwide study of employee engagement.”

They make the point — rightly, I believe — that “most employees who feel generously compensated repay the gesture.” For this reason, companies that pay with a generosity of spirit are likely to perform better financially than those that don’t. The reason is that when employees feel that they are being treated well with their pay (rather than the minimum the company could get by with paying them), they tend to match the gesture with more effort. It also tends to result in higher engagement (because of the thought behind their pay — not because of being driven by money), which also results in greater performance for the organization.

Here is what they have to say in their own words:

Most employees who feel generously compensated repay the gesture

One truth reemerges in various permutations throughout this book. It is that human behavior usually doesn’t conform to the logical or mathematical assumptions behind many personnel strategies. This certainly holds true of the tug-of-war over an employee’s salary.

The traditional view assumes that a company should pay as little as possible to secure someone’s services, whether that amount is just a little more than a competitor would pay or the lowest amount for which the worker will settle in his salary negotiations.

The often-overlooked flip-side of that strategy holds that the employee will do the minimum required to make his salary and his bonus. The company wants maximum work for minimum pay, while the employee wants just the reverse. Between these competing forces, the wage is settled, giving both sides a tolerable, antagonistic compromise.

But a funny thing happens in experiments where one person offers a wage and another person decides what level of effort to give in return. If the “employer” offers an above-market wage, the “employee” usually matches it with more effort, even when the worker can get away with doing less. “This suggests that on average people are willing to put forward extra effort above what is implied by purely pecuniary considerations,” wrote researchers Ernst Fehr and Simon Gachter. With conscientious, engaged employees, generosity of pay begets generosity of effort.

While money itself does not buy engagement, it appears an employee’s perception that the company is aggressively looking out for his financial interest leads to productive reciprocation. More than just the money, the thought counts.

The research points to a choice that executives must make. Do they want a workforce that thinks, “I have to fight for every extra dollar they begrudgingly pay me,” or one that feels, “If I look out for my company, they will look out for me”?

Simple questions reveal where a company stands. If a talented employee does something extraordinary or repeatedly distinguishes herself, will it be her manager or the employee herself who initiates discussion of a raise? Does the company spend more to attract outside stars than to cultivate internal ones? Does the company realize its talent is underpaid only after a competitor woos them away?

In matters of pay, as with the 12 Elements, what employees enthusiastically do for the company depends heavily on what the company eagerly does for them.