3 business announcements that you did not expect to hear
1. Goldman Sachs pledges to link its employees’ pay to integrity and commitment to clients; will require employees to ensure clients have the experience and capacity to understand the products they are being sold; bonuses paid to bankers will depend on their reputation, integrity and commitment to Goldman’s culture. The change, announced at Goldman’s annual investor meeting, was met not with scepticism, but with some praise;
2. after years of chasing numbers, pubs group Mitchells & Butlers sets out plans for investing £50-£80m per annum in rebuilding work: also focussing on staff retention, the group will put effort into persuading young people working part time of the benefits and opportunities of pursuing a career in catering
3. Halfords has embarked on a 3-year rebuilding exercise: returns to shareholders will for the time being take second place to refitting stores and investing in staff. 23% of people who join the business three months later are no longer in the business. That is a problem because Halfords cannot provide the consistent level of service it aspires to, or the level of expertise to its customers.
The company wants to recruit, train and support people to build their careers with Halfords, and will introduce a more formalised training programme with pay incentives at the end of each phase.
It wants to reach £1bn sales at the end of the plan, from £871m currently.
Are we witnessing refreshing changes in business behaviour, away from short term goals and gains, in favour of recruitment, training, and longer term investment in people and standards?