Do acquisitions disproportionately shed older staff?

A youngster about to join a large enterprise after completing a degree at University asked an interesting question last weekend. ‘Does an enterprise that acquires another company use the purchase as a smokescreen to shed older, long-serving, higher-paid employees?’  That’s an interesting and unusual question from someone at the very start of their career. So why did they ask it? Well, firstly their new employer has acquired another substantial company and restructuring activities are underway. Secondly, they knew the Badger had some experience in navigating a number of mergers and acquisitions. Lastly, the tech-savvy youngster had come across online chatter that his new employer’s older staff with long service were being disproportionately targeted during restructuring. The youngster, with no experience within large enterprises, anticipates a long career with their new company, but they were a little perturbed that their new employer might possibly be engaging in age discrimination, something that’s prohibited under the UK Equality Act 2010.

Answering required words that were balanced, honest, and rooted in personal experience of post-acquisition integrations. So, what did the Badger say? Firstly, that acquisitions often lead to reorganisations which can legally justify redundancies based on performance or role duplication at any age or level of seniority. Loyalty and long-service counts for nothing in such a scenario, and older employees may be more vulnerable because they typically have higher salaries and benefits, which means shedding them can significantly reduce payroll costs. Secondly, an acquisition can be a vehicle to change an enterprise’s culture, especially in fast moving industries subject to rapid innovation pressures. This always favours the retention of younger, tech-savvy staff and those with in-demand skills. Thirdly, not every acquisition is a smokescreen for eliminating older, higher-paid employees, but, in reality, some acquirers do quietly use their purchase to shed older, higher-paid employees because they know that it’s normally difficult in these circumstances for individuals to prove age discrimination for their redundancy. Do acquisitions disproportionately shed older staff? Some do, some don’t.

The youngster nodded, reaffirmed their intent on a long career with their new employer, and asked if the Badger had any advice for the long term. Yes. Maintain skills that are current and valuable outside your company, as mergers and acquisitions rarely reward loyalty or long service. As you get older and more experienced, watch out during acquisition integration activities for a) silence about future roles for you or your peers, b) performance reviews, and c) role redefinitions. These often signal something is afoot that affects you personally. Also, never forget that HR works in your employer’s interest, not in yours.

The youngster grinned and said they obviously had lots to learn! The Badger smiled too, pleased that he’d sown a few seeds of awareness in a youngster who will soon learn that things are never quite what they seem inside organisations when it comes to workforce matters.

Work-life balance…

Work can be all-consuming. Organisations emphasise values like ‘employee well-being’ and a ‘people-first culture’, but most really operate with deliverables and timelines as their overwhelming priority. HR departments may advocate for ‘work-life balance’, but business leaders, project, programme, and service delivery leaders always push staff for huge effort and heroics to meet a deadline or milestone. In the IT sector, for example, do organisations ever willingly miss a deadline or milestone because of ‘employee well-being’ or their ‘people-first culture’? No.

The Badger’s just had some downtime in Morthoe on the UK’s North Devon coast. The apartment in which he stayed had wonderful coastal views, and it was while nibbling a scone on its balcony in the afternoon sun that thoughts turned to work-life balance. Life on the North Devon coast still provides access to all of today’s online services, but the sounds, the sea, the geology, the flora and fauna, and the local lifestyle forces relaxation and puts work-life balance into perspective. What did the Badger conclude about work-life balance? Simply that it matters. It isn’t just a trendy phrase. It’s a necessity for sustaining energy, protecting mental and physical health, and keeping one’s mind sharp. It matters because burnout reduces productivity and clouds judgement. Downtime helps the brain reset improving creativity, motivation, and decision making. It also matters because quality time away from work helps to build a broader perspective on life as a whole.

The Badger concluded years ago that there are three certainties regarding people. The first two are a) people and not machines, and b) they are all different. Some thrive on having really intense work periods followed by breaks of really deep rest, while others thrive with a daily structure of predictable routines, boundaries, and pressures interspersed with regular shallower rest periods. We are all different, and so the key to a good work-life balance is simply to adopt a personal rhythm that fuels and refreshes rather than drains your capability. Finding the rhythm that works for you within the terms of your employment contract is important. There’s a paradox, however. Employment contracts normally include a holiday entitlement to rest and recharge, and yet many people don’t take all their entitlement. The reasons for this are numerous, but sometimes it’s because a) the work culture rewards hustle more than rest, and b) that an individual misguidedly thinks that everything will collapse if they take a break. So, what’s the Badger’s third certainty about people? Simple. No one is irreplaceable.

If you accept these people certainties and find your rhythm for work-life balance then you will be healthier, sharper, more productive, and more resilient, and the organisation you work for will perform better too. So, use your holiday entitlement. As the Badger was reminded while nibbling scones in the North Devon sunshine, a break is good for you…

Youngsters outsourcing their mental effort to technology…

Live Aid happened on Saturday 13th July 1985. If you were a young adult then, do you remember what you were doing when the concert happened? Were you there? Did you watch it live on television? The Badger had his hands full that day doing some home renovations while having a one-year-old baby in the house. He thus only saw snippets of the televised live concert. Last weekend, however, he made up for it by watching the highlights broadcast to celebrate the concert’s 40th anniversary.

Watching the highlights brought home why the music at the concert has stood the passage of time. It was delivered by talented people with great skill and showmanship without today’s cosseting production techniques and tech wizardry. What struck a chord most, however, was the enthusiasm of the Wembley Stadium crowd, the vast majority of whom are now grandparents in, or facing, retirement! People in that crowd had none of the internet access, smartphones, or online services we take for granted today. In 1985 the UK’s first cellular telephone services were only just being introduced by Cellnet and Vodafone, and ‘home computing’ meant the likes of the Sinclair ZX Spectrum and the BBC Micro. A far cry from today! Furthermore, those in that crowd represent a generation that thought for themselves and didn’t have their minds dulled by reliance on digital technology and internet-based online services. Their grandchildren, on the other hand, only know life based around the internet, and they often seem oblivious to the likelihood that their reliance on online things like social media might be dulling their minds, nudging them towards a passivity of thought, and perhaps ultimately causing atrophy of their brain.  

Concern about technology dulling human minds isn’t new. In 370 BC, for example, Socrates worried that writing would erode a person’s memory!  With AI endlessly expanding, however, the potential for today’s youngsters to completely outsource mental effort to technology seems very real. More and more  scientific evidence shows  that while the human brain is highly adaptable, digital immersion changes attentiveness, the way we process information, and decision-making. Some brain functions weaken due to digital immersion, others evolve, but the Badger thinks that when our digital world provides instant answers, the joy and effort of discovery through independent thought is dwindling. Always available digital content at our fingertips means fragmented attention spans and contemplation and reflection taking a back seat,  especially for youngsters with no life-experience without today’s online world.

Watching the 40th anniversary highlights thus did more than provide a reminder of the great music of that day. It brought home the fact that today’s  grandparents have something precious – a lived experience of independent thought and contemplation without an overreliance on our digital world. It feels, however, that their grandchildren are progressively outsourcing their mental effort to ever more advanced digital technology which, this grandfather senses, doesn’t augur well for the human race…

Frustration caused by the plague of delivery vans…

Life’s full of ups and downs, and some weeks are better than others! For the Badger, Easter week was full of frustrations, all ostensibly caused by society’s addiction to online shopping with home delivery. Like many, the Badger used his car to visit family, friends, and for errands over the Easter period. Every journey was delayed at some point by the stop, start, and illegal parking activities of vehicles that were part of the ever-growing plague of multi-drop delivery vans on UK streets.

Here’s one example that caused frustration. The Badger drove an elderly neighbour to their appointment at the local health centre, a journey which normally takes ~7 minutes with a route that entails driving through the town’s High Street. Well before reaching this busy street, traffic had slowed to a snail’s pace. This was because a well-known company’s multi-drop delivery van had parked on double-yellow (no-waiting) lines in the middle of the High Street. The driver had left the van to deliver a collection of packages to nearby residences. The illegally parked van caused havoc as car drivers tried to navigate around it against the constant flow of traffic coming in the opposite direction. Just as the Badger reached the High Street, the van driver returned, collected another armful of packages, and walked off with them in a different direction ignoring the obvious disruption their van was causing.

Just before it was the Badger’s turn to navigate past the van, the driver returned, drove off, and stopped again on double-yellow lines 50 metres further along the street. This made the disruption worse because another multi-drop delivery van had parked close by on the opposite side of the road creating a chicane for traffic in both directions. As a result of all this, the 7-minute drive to the Health Centre took nearly 25 minutes, making the Badger’s neighbour slightly late for their appointment. This, and similar experiences on other journeys over the Easter period, triggered some musing.

Online shopping with home delivery has revolutionised convenience, but one consequence is the plague of vans on our roads and the tendency of their drivers to ignore the rules of the road due to tight schedules, high delivery volumes, and the need for frequent stops. Since these van drivers seem to be immune to the rules of the roads, the Badger thinks there’s a need for an enforcement solution. If today’s digital tech can tell you when your online purchase will arrive at your door, then it’s clearly possible to use drone, satellite, and information technologies to a) detect in real-time when multi-drop van drivers park illegally on double yellow lines and b) automatically fine them and their employer for the misdemeanour. It currently seems that no amount of ‘company policy’ or ‘driver training’ makes a difference, but hitting them in their pockets probably will…

Have Millennials benefited from being the first real ‘digital native’ generation?

Millennials are the first ‘digital native’ generation. They’ve grown up with the internet, mobile telephony, and instant information at their fingertips. The digital world of the 1980s and 1990s, when Millennials were born, laid the foundation for today’s advanced capabilities. As Millennials have moved from childhood to adulthood and parenthood,  and from education to employment and family responsibilities, they’ve embraced the relentless wave of digital advances and made them part of their life’s ecosystem. A quick recap of the tech in the 1980s and 1990s illustrates the scale of the digital revolution they have embraced.

The 1980s saw the rise of PCs like the IBM PC, Apple II, and Commodore 64. All had limited processing power. MS-DOS was the popular operating system, hard drives were a few tens of megabytes, and 1.44MB  floppy discs were the common removable storage medium. Software had largely text-based user interfaces and WordPerfect and Lotus 1-2-3 dominated word processing and spreadsheets, respectively. Local Area Networks (LANs) started appearing to connect computers within an organisation, and modems provided dial-up internet access at a maximum rate of 2400 bits/second.

The 1990s saw PCs become more powerful. Windows became a popular operating system making software more user-friendly and feature rich, and Microsoft Office gained traction. CD-ROMs arrived providing 700MB of storage to replace floppy discs, hard drive capacities expanded to several gigabytes, and gaming and multimedia capabilities revolutionized entertainment. Ethernet became standard, computer networks expanded, the World Wide Web, email, and search engines gained traction, and mobile phones and Personal Digital Assistants (PDAs) like Palm Pilot emerged.

Today everything’s exponentially more functionally rich, powerful, and globally connected with lightning-fast fibre-optic and 5G internet connectivity. Cloud computing provides scalable convenience, computing devices are smaller, data storage comes with capacities in the terabyte and petabyte range, and social media, global video conferencing, high-definition multimedia, and gaming is standard. Smartphones are universal, fit in your pocket, have combined the functions of many devices into one, and have processing powers that far exceed those of computers that filled entire rooms in the 1980s and 90s.

But has the Millennial generation benefited from being the first real ‘digital native’ generation? Yes, and no. This generation has faced significant hurdles affecting their earning potential, wealth accumulation, and career opportunities. Student loan debt, rising housing costs, rising taxes, the 2008 global financial crisis and its aftermath, the COVID-19 pandemic, soaring energy costs, and now perhaps tariff wars are just some of these hurdles. When chatting recently to a Millennial group asserting that their generation’s woes were caused by technology, the Badger pointed out first that these hurdles were not the fault of technology, but of ‘people in powerful positions’, and secondly that they should note Forrest Gump’s line ‘Life is like a box of chocolates; you never know what you’re gonna get’. Whatever you get, you have to deal with…and that’s the same for every generation.

Getting an IT job if you have Asperger Syndrome…

Everyone has unconscious bias because it’s an inherent part of how our brain works. Unconscious bias stems from our brain’s natural tendency to categorize and make quick decisions based on our experiences, culture, and upbringing. Mature companies know about unconscious bias and draw attention to it in their staff training programmes, especially those relating to the interviewing, management, and leadership of people. They know that awareness of unconscious bias is important to ensuring that individuals make good, properly objective, decisions. Unconscious bias often raises its head during the interviewing and recruitment of new staff, but most companies emphasise their fair treatment of people with a disability during these processes. But is that actually the reality?

The son of one of the Badger’s long-standing friends was made redundant 8 months ago and they are still working hard to find new employment. They have Asperger Syndrome, a development disorder considered to be on the mild end of the autism spectrum. Before redundancy, they worked for more than a decade at their employer’s data centre as a software developer, technical whiz, and go-to technical problem-solver. They were made redundant as a result of a takeover by a bigger company. This led to the closure of the data centre which was on a small business park now to be developed for housing. What’s made the Badger’s nose twitch is the difficulty that someone with Asperger’s, excellent IT skills, a good work record, great experience, and a strong desire to continue working is having because, as they describe it, ‘I never seem to get through the front-end recruitment processes to talk to anyone who can appreciate my IT technical skills and experience’.

One of many powerful points in last year’s Buckland Review of Autism Employment  is ‘Despite their wish to work, the latest official statistics show that only around 3 in 10 working age autistic disabled people are in employment, compared with 5 in 10 for all disabled people and 8 in 10 for non-disabled people’. Unless you are Elon Musk, who revealed in 2021 that he has Asperger Syndrome, the odds of getting employed when you have the condition are not high. Unconscious bias in companies or individuals will never be fully eradicated, but the Badger senses that there’s something in modern recruitment processes that don’t give those with Asperger a proper chance. For all the positive messaging from companies about diversity and fairness, the reality seems different.

Today’s world needs those with proven IT skills and a strong work ethic whether they have Asperger’s or not. Something seems amiss, and the Badger has the words uttered by a speaker at a training course he attended many years ago rattling around in his mind, namely ‘A disability isn’t a barrier to working, discrimination is’. The words seem as true today as they were then.

When there’s a new sheriff in town…

‘The lunatics have taken over the asylum’. No, that’s not a jab at the world’s leaders, often hyper-wealthy and drunk on power and their own egos, it’s what a young Badger thought many years ago when his employer appointed a new Chief Executive from outside the company. Soon after their arrival, the new CEO appointed more outsiders to  key leadership roles. Unsurprisingly, most of them had worked for the CEO before. The workforce quickly grasped that the ‘new sheriff in town’ and their ‘deputies’ were intent on rapidly and ruthlessly making their mark.

At the time, the Badger was leading his very first systems/software development project. The rationale for the rapid changes made by the new CEO seemed unfathomable to someone who was completely focused on delivering his project. Looking back decades later, having accumulated wide-ranging business and delivery experience, it’s clear the company needed change to sharpen its commercial and financial focus. Indeed, the CEO changed it for the better in these respects, but to the detriment of a great embedded workforce culture that was exceptionally team oriented. Wariness and distrust of the new sheriff and their deputies spread through the company, especially when the scale of the salaries, bonuses, and share options being paid to the new leadership became public knowledge.

The Badger’s respected and long-standing line manager at the time supported the need for change. They were, however, vocal in their dissent about the new CEO’s approach and the chaos it caused. They confided to a number of direct reports, including the Badger, that they expected the new sheriff,  who was ruthlessly intolerant of anyone with the temerity to challenge the changes being promulgated, to exit them from the company. They were right. Within a few months, they left the company having signed a compromise agreement. On their last day at work, they gave the Badger two pieces of advice, namely, ‘When you deal with any CEO or senior executive consider them to be psychopaths until you’re sure they’re not’, and ‘Remember that any CEO or senior executive will be your friend, until it suits them not to be’. These struck a truthful chord which caused the young Badger to learn about the actual characteristics of a psychopath! (In simple terms these are summarized here, for example). Furthermore, these words of wisdom triggered the Badger to learn more about human behaviour and to use that learning to good effect throughout the rest of his own delivery and leadership career.

And that’s the key message from this item. If you have an opportunity to learn about the rudiments of human psychology, then take it and use what you learn when interacting with, and observing, others. His line-manager’s advice stood the Badger in good stead over the years. Keep it in mind, especially when there’s a ‘new sheriff’ with a new set of ‘deputies’ in town intent on change…

Looking into the eyes of…a politician…

Most people in the UK workforce never get to look deeply into the eyes of a government minister. The Badger, however, first did just that some decades ago. The Secretary of State for Trade and Industry at the time visited one of the Badger’s employer’s offices for the type of ‘understanding what we do’ session that sometimes produce snippets on television news. At the time, the Badger was leading his company’s development of a key IT system at the heart of an important major programme within this minister’s remit. The day before the visit, the Badger’s boss told him to attend in case they wanted to discuss progress with the programme. The timing was inconvenient because the IT system was just a few days into a crucial testing activity, but attending was obviously the right thing to do.

The Badger duly arrived early the next morning at the office hosting the visit. The minister and their entourage arrived mid-morning, slightly later than expected, and the company CEO took them on a tour of the building and a number of demonstrations  prepared by local project teams. As they were shown around, the minister hardly smiled. They appeared distant and disinterested, and they spent more time talking to individuals in their entourage than those they were meeting. As the tour concluded, the CEO beckoned the Badger over and introduced him to the Secretary of State as the person delivering the key IT system at the heart of their programme. The Secretary of State shook the Badger’s hand, and while doing so, they locked eyes with the Badger’s and coldly asked ‘Will the system be delivered on time?’ without blinking. ‘Yes’, the Badger answered truthfully. They instantly turned away and asked the CEO about the arrangements for lunch! Immediately after this fleeting interaction, the Badger reflected on what he’d sensed from looking into the eyes of this politician.

Eyes are often called the ‘windows to a person’s soul’. If that’s the case, then this politician had no soul! There had been no flicker of interest, just a constancy of optical contact that was cold, uncomfortable, intimidating, and empty. While the Badger knew that politicians, like many business leaders, are often trained to maintain a certain demeanour, he concluded, right or wrong, that this individual’s personal attributes were unattractive and distrustful because they really didn’t have a soul!

Over the years since, the Badger’s often looked deeply into the eyes of politicians and business leaders. He’s come to realise that some do indeed have a soul, because their eyes broadcast confidence, competence, interest, inspiration, and trust. He’s observed that those with such attributes tend to have lengthy, successful, leadership careers, but those that don’t have tended to falter. So, never avoid direct eye contact with politicians and leaders because, as Al Pacino said in the movie Scarface, ‘The eyes, Chico, never lie’

Knowing when to speak up, and when to stay silent…

People attend meetings in their work environment on a daily basis. Moans about the time meetings take up and their encroachment on an individual’s productive work activity were commonplace during the Badger’s career, and they still are today. That’s hardly a surprise because meetings are a key element of the operational rhythm at every level of an organisation. Meetings are crucial for decision making, sharing important information, problem solving, innovating, building and maintaining relationships, aligning people with expectations, and holding people accountable for achieving goals. That’s why training in meeting-related skills is usually a prominent feature within enterprise training programmes.

Meetings can be gatherings of people in the same room, video or telephone conferences, or hybrid setups involving all of these at the same time. The Badger’s attended a huge number over the years, so what’s the most important thing he’s learned from doing so? This very question was, in fact, recently asked by a family member while bemoaning ‘interminable meetings’ in their own workplace! The Badger’s answer was simply this – know when to speak up, and when to stay silent. It’s something he learned early in his career from participating in a difficult meeting about a failing project.

The meeting had client and supplier representatives in the same room to decide on the future of the project. The Badger was present because he was part of the supplier’s team trying to fix the project and its commercial difficulties. The client and supplier leads, both experienced in dealing with troublesome situations, engaged in a direct but business-like manner. One of the client’s team, however, frequently interjected with vitriolic and negative comments which rankled with some of the Badger’s colleagues, one of whom responded in kind every time. That is until a senior colleague prodded them and whispered, ‘shut up, keep quiet, listen and watch’. The meeting eventually ended with an agreed way forward. In the debrief afterwards, the supplier’s leader pointedly told the team that ‘We all have two ears, two eyes, and one mouth. Use them in meetings to listen, watch and speak in that proportion’. They are wise words.

Knowing when to speak up and when to stay silent is an important skill, particularly in difficult and important meetings. Being a good listener, a good observer of participant  body language, and having good control of the urge to speak for the sake of it are important competences for face-to-face meetings, video and teleconferences, or hybrid meetings alike. Knowing when to stay quiet and when to speak is a good discipline and a trait of good managers and leaders. Remember, while every meeting has a mix of different personalities, the smartest and most influential person present isn’t necessarily the one doing all the talking. It’s often the one doing the watching, listening, and being careful about when they speak and what they say…

‘The Magic Roundabout’ and the tech industry…

The  Magic Roundabout was a beloved children’s programme on UK television between 1965 and 1977. It was produced using stop-motion animation, and it achieved cult status with children and adults alike. Its human characters were Florence, a young girl, and Mr Rusty, the elderly operator of the roundabout. The other main characters were Zebedee the talking jack-in-the box with magical powers, Brian the snail, Ermintrude the cow, and Dylan the hippy-like, guitar-playing, dopey rabbit! It was essential tea-time viewing at the time, and it’s use of stop-motion animation was groundbreaking.

Children’s television programmes, and the technology creating them, have changed vastly since the last episode aired in 1977, and the Badger recently found himself unexpectedly engaged in a conversation comparing ‘The Magic Roundabout’ with today’s tech/IT industry! The conversation happened while visiting a local shop that buys and sells vintage vinyl music records. It’s a lively, friendly establishment, where browsing is encouraged while the owner plays vintage records on turntables behind the till. The Badger’s visit was ostensibly to enquire if any of the vinyl he still has from his youth is of interest to collectors. Before asking, the Badger browsed the shops offerings and a disc from 1975, ‘Funky Moped’ by Jasper Carrot with ‘Magic Roundabout’ on the B-side, caught his eye. It was hard to supress a grin!

Enquiring about the Badger’s own vintage records ultimately led to two things. Firstly, a realisation that some of them are rare and have notable value. One, for example, is his mono Rolling Stones ‘Let it Bleed’ LP in pristine original condition with its original poster. Secondly, it started a discussion with the shop’s owner that ended up not only comparing ‘The Magic Roundabout’ with the tech industry, but also agreeing that Jasper Carrot’s irreverent Magic Roundabout’ routine was, let’s say, of its time!   

It felt surreal comparing ‘The Magic Roundabout’ with the tech industry in a vintage record shop, especially when more similarities emerged than expected. The television programme, for example, featured diverse characters with unique traits and perspectives, and it’s whimsical scripts led to surprising outcomes. The tech industry also features diverse characters with unique traits, skills, and perspectives, and the industry produces surprising outcomes. Both employ advanced techniques embodying creativity, innovation, adaptability, and cross-generation interconnectedness. Both also evoke nostalgia. Who, for example, doesn’t fondly recall their early tech devices and their first forays accessing the internet?

The Badger eventually left the shop reminded that a face-to-face conversation with another person is always an interesting and thought-provoking experience, regardless of what you talk about. Face-to-face conversations are something we should all do more of in today’s world. Walking home, the Badger had the phrase ‘Boing, said Zebedee’ rattling in his head. Hmm, perhaps ‘Boing, said Elon’ might be more apt for today’s world…