Over the last year, architectural practice and masterplanners Stephen George + Partners (SGP) has doubled in size to around 130 members of staff. This growth has all been organic, so it’s fair to say they’ve had extensive experience in the recruitment process recently. Practice director Nick Austin tells us about the innovative reward scheme at SGP, and how it has helped them attract new candidates – and retain existing staff.
Nick originally trained and worked as an architect, before moving into management and training in HR – the area that he now leads at SGP. With its head office in Leicester, SGP has a long history in logistics, offices, residential, education, retail and mixed-use but has diversified over the last six years to include sectors such as transport, healthcare, interiors and data centres. The Nexus Training Facility in South Shields and Loughborough University Science & Enterprise Park are two major projects in the company’s portfolio.
Turning the review system on its head
SGP introduced its reward scheme in 2016, to help employees take greater ownership of their work, training and career progression. Although managers and employees communicated regularly throughout the year, how reviews were conducted was inconsistent. Expectations on both sides were not always aligned: the reviewee may have thought they had done a good job, only to be surprised to hear there were areas where they needed to improve. Nick explains, “We wanted to come up with a system that defused any nervousness or miscommunication – something that was more of a dialogue and focused on what the reviewee wanted to achieve.”
The new scheme is far more actively linked to the career path that individual employees want to follow. “That is really important,” observes Nick. “It just doesn’t work otherwise.” The first review takes place in January, when reviewees say whether they want to do a good job over the year, a very good job or an excellent job. “A good job is what staff are paid to do. If an employee is comfortable with their work/life balance and operating at the expected level, we are very happy with that,” says Nick. If an employee wants to do a very good job, they are set a number of objectives that they have to fulfil over the year. For an excellent job, they are set greater objectives. As an example, SGP is currently working towards BS EN ISO 19650, so progress against this or BIM related training could form part of the BIM team’s objectives.
The second review takes place in June, when reviewees are asked to provide evidence of what they’ve achieved against their objectives. “At this point, they can determine whether they are on track to meet the goal they set themselves in January,” explains Nick. In November, if the objectives have been met, those completing a very good job will receive a salary increment in the following January; for excellent, this increment is doubled. There is room for flexibility in the scheme: “If you set yourself the target of an excellent job in January, but only achieve very good by November, you will still get the very good salary increment,” says Nick.
Increasing the line of sight
Nick admits that this was a big change to how SGP had previously worked. “People were used to doing their job and being asked to do things. Reviews were inconsistent depending on how they were conducted and may have been perceived as unfair. The line of sight only ran for a year; now, staff can take it as far as they want.”
The system has gone through a number of iterations since it was introduced, as the company refined it. Moderation takes place in December each year, to make sure that line managers are judging achievements to the same standard. “We also run a profit related bonus scheme that links to it,” says Nick. “If you have chosen good, you will still receive a share. If you have opted for very good or excellent, the share will be bigger.”
A draw for candidates
The new approach has brought real benefits to SGP. “It has taken a lot of heat out of the review process,” says Nick. “Now it is a much more pragmatic discussion about an individual’s ambition and their journey with the company. It’s proving to be an incredibly big draw when interviewing candidates. We’ve had people take a salary cut to join us.” It has also improved retention rates. “Previously the ‘unknown’ was where you lost staff,” says Nick. “If they didn’t know when they would get a pay rise, or how they were progressing, they would leave. Now our churn rate is good – people are mostly leaving for significant, life-related reasons, such as moving abroad.” And while Nick thinks it is too much to claim that SGP is taking the lead, its innovative approach is certainly not the norm.
Autonomy and ownership
The reward scheme is an insight into the innovative ethos of SGP. “The senior team is really open to new ideas,” says Nick. “Anyone can pitch an idea to the board; if it’s a good one, the board will feed back and it will be introduced. That’s what I did with the reward scheme. It’s not a case of the senior team dragging staff along, but of staff pushing the company forward. Autonomy is wider than you’d get at other organisations.”
SGP is currently trialling hybrid working, with three days in the office and two at home – another example of giving people greater autonomy over their working life. And this is, increasingly, what candidates are looking for. People want a sense of ownership over their careers, which SGP can offer.
Find out more about working at SGP and the current digital construction opportunities there. For more information about the practice, please visit www.stephengeorge.co.uk