FEBRUARY 2020 MANAGEMENT
The 1% rule in practice
Most manufacturers will be
familiar with the Japanese
principle of kaizen in their
operations – making small,
continuous improvements to
processes to boost productivity
and quality on the shopfloor.
As applicable to HR as it is
to production, the marginal
gains theory – or 1% rule –
has been widely deployed in
businesses because it delivers
results and encourages
innovation, without exposing
the company to undue risk. It
is comprised of three elements:
● Strategy: Analysis of the
problem and its demands,
followed by a detailed review
of the steps needed to achieve
the objective.
● Performance: Build teams of
talented people and identify any
skills gaps that need to be filled.
● Continuous improvement:
Start small and build on your
manufacturers cannot always offer the same
kind of perks seen in an increasing number of
businesses where flexi-time or the opportunity
to work from home have become the norm.
Even so, they will need to develop the right
mix of reward and remuneration to ensure
everyone feels motivated and productive.
Depending on a business’ resources and timeconstraints,
there are dozens of activities that
won’t eat into budgets, from financial advice
and wellbeing sessions to charity work.
Appraisals, staff surveys and mentoring, for
example, all help employees feel valued, while
the information they provide (whether it be
anonymous or not) can shape future policies
that benefit them. This data also enables
those responsible for HR, as well as the wider
management team, to determine what changes
are likely to deliver the best ROI, just as
production teams would do on the shopfloor.
A manager might assume that staff want a
paid-for social event every Christmas when they
would really prefer an employee forum to give
them a voice within the company – something
that costs less and provides more feedback.
The real value of HR lies in being able to align
employee feedback with metrics such as absence
levels, diversity or skills and training to inform
effective decision-making. Policies will always
differ, in line with an organisation’s resources,
constraints and the needs and expectations of
the workforce. However, as long as the data
used is up-to-date, accurate and accessible via
a shared platform, HR can drive up company
performance, one step at a time.
Access Group’s report for manufacturers,
Driving Change in HR: Applying Marginal Gains
in 2019, The Manufacturing Edition, is available
to download at https://bit.ly/2Fy5MEp.
wins, rather than setting targets
that drain resources, lead to
upheaval and fail to win buy-in.
The advantage of this
approach is that it allows HR
teams to implement and test
activities on a small scale and
find out whether they are
successful before rolling them
out across the company.
Even entrenched problems,
such as disaffection among
employees, can be tackled
by giving them the chance to
provide feedback, undertake
additional training or be
supported to progress to the
next level. While HR might not
be able to answer some of the
bigger questions around say,
Brexit, they can provide support
and guidance to EU nationals
about how to prepare.
Taking your first steps
To ensure HR teams get the
most value from the activities
they introduce, they first
need to develop a strong HR
strategy with clear objectives.
It should be underpinned by an
‘employee-first’ mindset that
empowers each person to reach
their potential even if they are
on a temporary contract.
Operational demands mean
Incremental
gains help
HR teams test
schemes before
rolling them out
company-wide
Uber
didn’t hire any HR
personnel until it had
over 500 employees
www.manufacturingmanagement.co.uk 29
/2Fy5MEp
/www.manufacturingmanagement.co.uk