STEVE, TAKE US BACK TO YOUR EARLY LIFE AND HOW YOU FOUND THE PATH TO A CAREER IN HR.
At college, I was really drawn to mathematics and science and my early ambition was to become a chemical engineer. But I remember a couple of incidents where things seemed to be conspiring against that plan. On one occasion, I was working with a friend on a chemistry experiment which contained benzene – a seriously bad carcinogen – and he fell sick and I thought, “that’s it, I’m in the wrong f field!” What followed surprised all, because although I was a very good student in high school, I was a really poor one in college – maybe I felt like my ambition was dead and I didn’t have a focus on anything to replace it – but my Mother could see I was floundering and she sat me down and said: “Why aren’t you pursuing a career that is more to do with people than science? Everything you do well is when you are surrounded by people!” She was right, of course, but I never saw my natural affinity with people to be in any way connected to my eventual chosen career.
Whether in team sport or in general life, from a young age, I always thought that people should be valued for who they are – it’s what I was taught by my parents – and so it just seemed natural to me. So, when it came to choosing what subject I would study at Ohio University, the closest subject I could find was Interpersonal Communications. The minute I started this new major, I knew I had found my home. OU was a great college, based on a liberal education that was holistic and very people-oriented and I had found my niche. But HR as a profession we know today, simply didn’t exist back then and personnel really looked quite dull – dealing with the nitty-gritty work issues – not very human and focused on being very compliance driven. On graduation, there seemed to be more openings in recruitment than anything else and so that became my first foray into the world of work. I joined a very large corporation in the Fortune 100, but almost instantly, I knew this wasn’t what I wanted. I had never been a conformist and one of the challenges of being in a large corporate environment, I soon discovered, was that you’re expected to follow a very tight regimen of norms and your ability to affect the company is very limited, unless you’re at the most senior level. I had this vision of people being important, influential and having an impact on outcomes, but this was something I did not experience there. I knew that I wasn’t going to make it there, so I took off and went and worked for an entrepreneur, which was about as different a work experience as you could imagine.
By comparison, my second HR role was like the Wild West – very little in the way of rules, policies and structure – and I was tasked with starting the HR function from scratch. The company had about 250 employees in three locations in two states and every rule I knew was being broken, along with many I didn’t know as well. The CEO was a wonderful man and a great visionary, although the way he operated the business clearly needed to be stablilised. The nature of the business was the construction of awnings and convenience stores for BP gas stations and I was seconded to the UK, where the majority of our work was carried out. The construction system was modular and a truly ingenious design, but ultimately my intervention was not enough and the business folded, just as I was attempting to set up a manufacturing base in Milton Keynes. It was an early wake-up call that vision and innovation are nothing without substance and control, but I was beginning to form this vision of what HR could be – supportive, motivating and engaging – and I was determined to make this a reality and so put this time down to valuable experience. I went back out into the jobs market and once again, most opportunities were in recruitment, but I just could not see myself dealing with people in such a cut-and-dry and transactional way. For me, when you hire somebody – it doesn’t matter the role or level – you’re opening them up to a potential that could change their life and you give them opportunity to have new experiences, on top of earning a living, becoming self-reliant and maybe supporting a family. It is about valuing people and providing them with the support and opportunity to thrive. I also compared my experiences at the corporation – which had thousands of employees that I would never know – and the small company, where I could see the impacts of HR intervention with my own eyes, rather than hidden in survey data and I much preferred the latter.
TELL ME ABOUT THE NEXT STAGE IN YOUR JOURNEY.
I bounced around quite a lot during this period of my life, at a time when the economy had tanked and jobs were in short supply, so I wasn’t in the position to be picky. I worked for a manufacturing company miles away from where I was living and really loved working for them. We literally made nuts and bolts! I also had another manufacturing HR role I particularly remember where people sewed seat cushions for cars. There was a lot of repetition and hard work, but the workers were so engaged and driven by quality control, which I found amazingly compelling. Another company made giant lifting machines out of steel and the scientist in me was fascinated in the design and engineering. Time passed and I realised I was working to live and my career in HR really wasn’t progressing and I joined a company which I won’t mention, in a HR capacity and raised some concerns about safety and the owners did nothing. I then warned that if he didn’t address the safety issue, I was going to call OSHA. His response was, “you can’t do that, you’re my HR person!” I quickly left and the very next week, one employee was almost killed and, even then, they didn’t make appropriate changes. Soon after – and not surprisingly – that company went out of business. My direct manager and mentor taught me more in the short time I was there than in all the previous years, about how listening to people with interest and empathy was at the heart of great HR. It’s simple really, but evades many, that if you just give people your time, be intentional, be straightforward and care and you can gain understanding and design initiatives that bring positive change.
As for me, I then went to work for an engineering and architectural consulting f irm in an HR capacity, which was a whole different world, from blue to white-collar and all professional roles. T his was where I had my first female boss, Kathy Coleman and she completed my understanding of the connections between human beings in the world of work. Up until that point, she was covering way too many roles in the company herself, including HR and so when I came in, I was in a department of one, me, but this was familiar territory, building an HR department that could support a fast-growing business. Kathy encouraged me to “fact find and learn” and also study for my HR Certification and be involved with SHRM (the US equivalent of CIPD). This was the moment I started to really motor with HR, looking at culture and workforce planning and strategy and working from a more leadership perspective. I began looking at HR differently, with the approach of looking at connecting recruitment and benefits for retention and making those essential links and we started operating in a much more cohesive way. It made me understand the value of people through not only their strengths, but their differences.
WHEN YOU COMPARE WHAT IS A MORE ENLIGHTENED TIME TO BACK THEN THERE WAS A GENERAL CULTURE OF TREATING PEOPLE AS A COMMODITY AND DRIVING PROFITS AT ALL COSTS
Agreed, but while progress for change has been steady, it’s also been slow. Going back to this time in the early Nineties, HR was at the fulcrum of a revolution to improve the world of work, through good practice, culture and values, but there was reluctance, as some of the so-called softer initiatives were seen as disruptive and even anti-business. For such a small company, we were truly progressive and introduced a four-day work week during the summer and had cookouts every Friday and I recall that these were unusual things that people talked about and made us an attractive proposition for talent. Years later and in hindsight, it seems obvious, but back then, we were unusual. Right now, post-pandemic, we’re at a significantly historic moment, whereby we can differentiate between the outgoing generation that lived to work and the new generation that works to live. That’s a mindset that the more senior decision-makers have to accept and understand. Most of the rules that we grew up with during our careers are now history.
YOU JOINED LAROSA'S IN 2006, JUST BEFORE THE FINANCIAL CRISIS. TELL US ABOUT THE BUSINESS AND YOUR EARLY EXPERIENCES.
It was a great company to join, but a terrible time, because not long after, the US – like much of the world – was plunged into the Great Recession. T he general picture across the sectors was economic stress and mass layoffs and with the restaurant sector being the most sensitive of bellwethers to discretionary spend, we were in survival mode. That said, I’m proud to say that we have not made any redundancies from that tough time until to now. My role then was Director of HR and my first objective was to gain a grip on the business and how it operates. As of last Sunday (at the time of this interview) it was LaRosa’s 70th anniversary and so a long history and legacy business. Consequently, many of the business practices and HR policies needed updating, there was very little strategy and everything was revenue driven and all about hitting your numbers and so in a severe downturn, the pressure was on. From an HR perspective, it was the school of hard knocks, with very little to play with, which stifled a certain amount of creativity. What we did have is a determination to not lose sight of what has made LaRosa’s a great brand, a much-loved restaurant and a caring employer, with impressive longevity. Here in the US, the average lifespan of a restaurant is ten years, aside from the big brands such as McDonald’s, Taco Bell and that cohort. LaRosa’s is such an iconic brand, that was started in 1954 and at 93, our founder, Buddy LaRosa is still in touch with the business. We’re a regional brand – primarily based around Ohio – with 64 locations and the basic operational set up of the business is that corporately, we run ten of those locations – plus a call center, a bakery and a corporate office. The majority of the restaurants in our chain are franchised. We’re a family pizzeria and because of that familiar atmosphere, we’re a favourite for celebrations – birthdays, weddings, anniversaries and even funerals. We really buck some trends too because although hospitality is one of the most transitory sectors, I’m one of very few people who is in a senior role that didn’t start in the kitchen or serving front of house and our retention is legendary. In fact, a recent former CEO now retired, started as a dishwasher and didn’t have a college degree and that typifies the values and culture of this self-made company. By far, LaRosa’s is the best employer I’ve ever worked for. In the world of hospitality, it’s pretty much a unique achievement, almost all the restaurant brands that have outlived that ten-year average have been merged or acquired.
Retention in the restaurant industry is a challenge. In our pizzerias, we expect 20-to-30 percent turnover, just because many people don’t view this as a long term career. We used to try to tackle this to bring the number down, but now we are more sanguine and accepting. That said, we’re not complacent and are always watchful for any fluctuation. The reality is, in the restaurants we’re used to a quick turnover, but we regularly celebrate big anniversaries of our staff in the head office or in logistics and our bakery has people that have been here for 40-plus years. The big mindset shift for me as an HR professional is, it doesn’t matter how long you’re here, let’s make it an enjoyable and productive time and let’s make it a memorable experience, so that an ex-employee comes back as a customer. What really thrills me is when people leave LaRosa’s and go on to do something great. One of our assistant managers, Daniel, just left recently to become a police officer and we’re so excited for him. He had been with us for ten years since the age of 16.
AT THIS STAGE WHAT WERE YOUR DRIVING OBJECTIVES?
I wanted to make sure HR was integrated throughout the company. I was tired of HR being a silo and I wanted a team that connected across the business, that was transparent, open and listened. Then beyond the mandatory administrative support, I wanted to bring in creativity into operations and have values that are grounded. Something that struck me when I was interviewed to join the Company was that we sat and chatted in a booth in one of the restaurants and that really typifies the atmosphere at LaRosa’s. However, HR within the business was not in a good place and soon after joining I discovered that in the past we were nicknamed “the black hole”, which didn’t sound great! The reality is in the restaurant business where the margins are low, staff turnover is high and meeting customer approval is everything, if there’s no stability and consistency, the writing’s on the wall. My boss, Kevin Burrill who was our COO, was a true mentor and he said that for the first three months, I was not allowed to have any ideas. He said, “go visit the pizzerias and just listen to the managers, franchise owners and frontline people. The designated visiting and listening period ended and Kevin called me in and said, “now tell me what we should do.” The problem was that the managers employed in the corporately run ten restaurants was one thing, but the majority of the outlets were franchisees. This in both principle and contract, makes it very different and there’s possible liability from a legal standpoint and so our relationship is more advisory. That said, we have a very good relationship with our franchise owners and we’ve built a mutual trust and this has enabled me to deliver HR solutions for all, regardless of contractual type. Equally, we are confident that they will refer to policies and adhere to procedures, as well as manage elements such as; training, protocol and health and safety, which is primarily left to the individual restaurant managers. Over time, we’ve become a reliable central support team, because even the multi unit operators don’t have the scale to have a designated HR team. We have a franchise advisor group, which is a governing body. We task them with bringing issues to the company that are anything from brand-related, food related, concerns about financial decisions and so on. It’s very open and transparent and we have a very tight collaborative history of listening to them and discussing issues. Also, we are open to hearing their concerns, because if they don’t succeed on the front lines in any of our stores, either our corporate stores or our franchisees, then the brand fails.
LOOKING AT THE LIKES OF KFC AND MCDONALDS - TRULY PAN-GLOBAL BRANDS - LAROSA’S SEEMS TO BE A BUSINESS THAT IS MINDFUL NOT TO GROW TOO BIG.
Growth in our industry is challenging because the margins are so tight, in the food industry and hospitality industries. We are incredibly data-driven in our decision-making and we look very carefully at who we partner with, who should be a good franchisee and whether they align with our brand and values. We’ve had occasions expansion didn’t work out and one of our locations was in Knoxville, Tennessee – about a four-to five-hours drive from Cincinnati and that was just way too far. So, we work within the parameters of what we know and will not contemplate growth for its own sake. Similarly, we’ve tried some growth from a revenue standpoint and we have decided that isn’t the right approach. We want to grow intentionally, organically and for now, we are focused on being a regional brand. A 70-year company with a great culture is hard to replicate in multiples. Notably, from a financial standpoint we can replicate what we do from anywhere, but from a culture standpoint, I think it’s very challenging.
WHAT WOULD YOU SAY IS THE MOST IMPORTANT TREND THAT HR CANNOT AFFORD TO IGNORE?
It has to be valuing people on an individual level and understanding the needs and motivations of employees – not just because it’s the right thing to do – but because it makes a business thrive, through strengths, talent and diversity. Case in point, we just had a person who left a key purchasing role and had been with us for 20 years and we’re promoting somebody internally, because we have been tracking and developing her talent with such a move in mind. Now, she is transitioning into the new role, with a colleague who has 40 years’ experience as mentor. In terms of structure, we’re a very lean and f lat organisation – my department, as an example is four, serving a little over a thousand people. That sort of ratio is pretty unusual, but the way we are organised – with broad acumen and capability and a hands-on approach to HR – it works for us. Ultimately, I expect our team to be businesspeople who practice HR and when they visit any of our restaurants, pretty much know all the staff members by name. I also see individualism and self-responsibility growing in prominence – fueled by our experiences of the pandemic and with the advent of hybrid working – people have had autonomy thrust upon them and they can work from home. As with most things in life, there are positives and negatives showing from these changes to the way businesses operate and the rhythm of life and work. Businesses are having to make big changes to the way they operate and manage people and we’re all at a stage where we’re trialing and working out different approaches.
WHAT KEY LEARNINGS ARE YOU TAKING INTO THIS NEW ERA OF WORK?
Our company never shut down once during the pandemic – we were considered “essential workers” – and we followed all the regulations, kept everybody safe and very fortunately we all kept well, even though many colleagues were in-person and customer-serving the entire time. Our office went home for about two weeks, but then opened again, because our people who could have worked remotely, wanted to support those working in the restaurants. That time taught us all some important lessons and while nobody would want to repeat it, made us focus on what is important in life and the way we work. To our advantage, we were already set up as a flexible/hybrid business. The majority of our restaurant team members are a part-time workforce, with very few people on full-time contracts. So, we were already a variable and adaptable workforce, in both the restaurants and in the manufacturing plant and so work continued without a hitch during lockdown. Post-COVID, the manufacturing plant has built three-day weekends into their schedules. Our approach to work is this, it’s not about how much time somebody spends working, it’s about contribution and adding value. It’s also an acknowledgement that life is for living and friends and family are important. For sure, we agree objectives and expectations, but you cannot work in any other way now than trusting people to be the best they can be and build self-responsibility across the workforce. Performance management is still as pertinent as ever, but the approach and what and how it is measured must be adjusted.
WHY ARE BUSINESSES STRUGGLING TO ADJUST DO YOU THINK?
The whole experience of the past few years has been the ultimate litmus test for what truly exists behind the veneer of brand and values, regardless of sector. Companies that are in some sort of tug-o-war – trying to regain territory and control – that tells you a lot about the cultures of those businesses. For sure, making the right calls is hard, but it comes down to being or becoming a people-first employer, or face rising battles around talent and competitiveness. The media reflects polarised views about how the future of work should look and when certain giant, global firms seem to be going against the tide of expectation, it makes for a confused picture. For me though and for our company, people-first works and really, I would advise that HR, leaders and decision-makers should take a close look at how the best of the small to mid-sized companies have adapted. It’s not all about targets and growing revenue streams, there is a way to be successful that is not about applying more pressure on people to outperform their last targets – that’s the road to unhappiness, stress and burnout. People putting everything to one side, including their families, just to hit the numbers, is a recipe for disaster. I would rather take care of people, equip them to do their job and enjoy it and watch the results.
I attended a people management conference locally and a representative from a large bank began his keynote with: “Now we are forcing our people to come back three days a week”. I raised my hand in the audience and said, “did you hear what you just said?” He looked at his notes and there was an audible murmur in the auditorium. The question is, when will we learn that people are people, not commodities? As I prepared for this interview, I recalled times when I had jobs where I was just about tolerating the work, clock-watching and feeling miserable and that’s a waste of time and potential! Most of us need work to live, pay the bills and take care of family. People have traditionally put up with a lot and work can be a drag for years and years and you have to question the logic there. But what is very clear is, the young generations have an admirable sense of self-worth and an ambition to progress. T hey also have a level of confidence to question things that don’t look right and voice their opinions. I recently spoke at a university to a group of students and asked: “What do you want to do and what does the future of work look like to you?” The first thing they said was money – because they were, of course, students – the second was they wanted to add value, learn and develop, gain a wide range of experiences and have opportunity. If employers don’t meet these demands – because that is what they are, not wish-lists – they will not attract this essential cadre of talent and influence. The other must-have for this young cohort is having the right tools and technology and if you’re a business wedded to legacy equipment and processes, they will notice very quickly. I remember when social media became a threat to some businesses and they tried to clamp down on what people said and all that did was revolutionise employee voice. If people are negative about their employer, the problem is not that this is vocalised, it’s a sign that there is something wrong deep down in the organisation. The power of headliners like #MeToo and Black Lives Matter cannot be ignored and neither can the day-to-day venting of frustrations and whistleblowing.
WHAT IS YOUR VISION, HOPES AND OBJECTIVES, LOOKING AHEAD?
I have the job that I always dreamed about. What’s really fascinating for me is that the next few years represent the end of my career and I hope for two things: One is that the company is set up for success in the future with the next generation and I want to be working on that with my team. Then looking at the bigger picture, I’m so excited about our profession and I truly believe that now, more than at any time in history, HR will be critical, because you cannot take the human factor out of work. AI is undoubtedly a fascinating potential, but people-centricity will always be the driving factor of a vibrant, exciting and successful business. As for the HR profession, as I consider the end of my career, I’m also very excited about the future of the profession. I think that more than any time, HR is a critical component. You cannot take the human factor out of work and I really do urge all of the people management professionals coming up behind me, that being people-first remains the fundamental keystone of running a successful business.
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