Episode 5: Why Octopus Energy doesn't have an HR department
May 17, 2021
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In this insightful conversation, Greg Jackson, the CEO and founder of Octopus Energy, shares his bold choice to run a multi-billion-pound company without a traditional HR department. He emphasizes empowering managers to take on HR roles, fostering a culture of trust and open communication. Joined by Jacob Morgan, a futurist and author, they discuss the impact of language on leadership and the importance of redefining HR to promote employee responsibility and engagement. Together, they explore innovative practices that prioritize empowerment and a people-centered approach.
Octopus Energy's unconventional model demonstrates that a decentralized approach to employee management can enhance direct communication and relationships.
The Future of Work University emphasizes the necessity for lifelong learning and adaptability to remain competitive in the evolving job market.
Both Greg Jackson and Jacob Morgan advocate for a transformation of HR from traditional roles to strategic facilitators of culture and engagement.
Deep dives
Future of Work Skills and Education
The podcast highlights the role of Future of Work University, founded by Jacob Morgan, which focuses on equipping individuals and organizations with necessary skills for an evolving work landscape. It provides training programs designed to future-proof participants, demonstrating that adaptability is crucial in a rapidly changing job market. Jacob emphasizes the importance of lifelong learning and skill development to stay relevant in their careers. His insights reveal how organizations must invest in employee education to foster a culture of growth and innovation.
Unique Company Structure without HR
Greg Jackson's company, Octopus Energy, stands out for its unconventional approach of operating without a traditional HR department, sparking significant discussions. He clarifies that while HR is absent, responsibilities related to hiring, performance reviews, and employee welfare are managed by team leaders and managers. This decentralized model encourages greater direct communication and stronger relationships between employees and their supervisors. Jackson believes that a people-centric organization can thrive without a formal HR structure, provided that the management is committed to fostering a supportive workplace.
The Evolving Role of Managers
The conversation explores the changing dynamics of management, stressing that the role should shift from traditional management to leadership. Jacob Morgan suggests that referring to managers as leaders fosters a mindset change focused on coaching and mentorship rather than command and control. This approach aims to create a more engaged and empowered workforce, where leaders facilitate success for their teams. By encouraging a more collaborative environment, organizations can enhance both employee satisfaction and productivity.
Measuring Employee Satisfaction
Jackson discusses how his organization approaches employee satisfaction without relying solely on traditional HR metrics. Instead, they utilize various communication methods to gather feedback and gauge team morale, including anonymous surveys and a platform called Office Vibe. He underlines that ongoing dialogue and openness are essential to maintain a healthy organizational culture. The emphasis is on understanding employee needs and adjusting strategies accordingly, rather than rigid adherence to predefined KPIs.
The Necessity of Adapting HR Practices
Addressing perceptions of HR's effectiveness, both Jackson and Morgan advocate for a shift in how HR professionals approach their roles. Morgan asserts that HR should evolve to focus on transformation rather than strictly traditional functions, urging HR leaders to take a more active, strategic role within organizations. Both speakers agree on the significance of adapting to changing demands of the workforce, calling for the need for HR to act as facilitators of culture and engagement. Ultimately, effective HR practices should support the broader organizational mission and foster a positive work environment.
In February 2021, Greg Jackson, CEO and founder of Octopus Energy, explained on the BBC's CEO Secrets series why Octopus Energy decided against having an HR department despite its considerable size. The interview headlined 'My billion-pound company has no HR department' sparked an, in parts, heated debate on social media among HR and business professionals and on the day ranked at number two in the most read articles in the BBC news app.
In this episode host Russell Goldsmith met up with Greg to talk about his approach to HR and answer some of the most frequently asked questions Octopus received following the interview, covering topics from conflict resolution to hiring and employee happiness. They were joined by best-selling author, keynote speaker and futurist Jacob Morgan, who is also the host of the Future of Work podcast and the founder of the Future of Work University, to dig deeper into the role of HR and the future of people management in modern businesses.
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