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Saturday, 26 May 2018

By-Elections from Rose Tinted (Labour) Lenses

Afternoon readers

Buckle up for the Lewisham-East by election.

Flashback to the 2010 Labour leadership race, and Corbyn's long term allie, Shadow Home Secretary, Diane Abbott, International Development mogul David Miliband, Harvard Kennedy lecturer Ed Balls and a familiar face in Andy Burnham (again, or should I say, prior to), were vying for Corbyn's predecessor's place in the Labour hierarchies, Ed Miliband.

A seemingly obvious choice at hand, between two brothers, one the eldest son of a famed sociologist and author and the other a fresh-faced courteous Oxbridge non-elitist.

What can be said of David Miliband's rise to the sunlit uplands of international development, other than; his open views are expressly perninent to Corbyn's demise.

Does anyone really know why exactly Corbyn shot to fame? Not really? No? The then party of government had made a lot of mistakes post-Gordon Brown, but none more so than backing one of its longest serving MPs to be its political lead (into two consecutively lost elections, one might add).

Fast forward to 2015, and as the story goes, Corbyn was nominated by a group of peers, who happened to admittedly feel the panel of candidates fielded for the leadership was too clean cut and narrow. Sure, that makes perfect sense. Only, its never a haggle on someone's politics unless that person has insufficient credibility or is incompentent enough to have a mean case of the oral heeby jeebies.

Corbyn was in essense a blank cheque for Yvette Cooper's candidacy, surely.

An Andrea Leadsom type rebuttal by Corbyn would lead to a galvanised flight to safety from the naysayers in the PLP.

The other leadership candidates, Andy Burnham (now, Mayor of Manchester), and Liz Kendall (a back bencher with no front bench experience whatsoever) were merely characters in an epic of Shakespearean proportions that was to follow.

Never mind the fact that the most eligible of candidates, a centrist Etonian heavyweight in Chuka Ummuna had already pulled out, though, David Cameron had the best laid plans of the country under his right arm, Yvette Cooper by all intensive purposes, was a shoe in.

What does this tell us about the Lewisham-East by election?

It demonstrates that Corbyn and Miliband are the link between a bygone age of old Etonian centrist control of this country and a spiral into chaotic socialist melancholy.

Labour's candidate for this, the by election of the year, is as freshed faced as ever, but what is her politics? That is the question.

DisclaimerThese are my views, and not the views of any of my previous employers or corporate affiliations. I can't be held responsible for any comments made on this blog which are contrary to the views of the author. If you take issue with any of the thoughts or opinions on this or any other post on this blog, please feel free to reach out with your concerns. 

Friday, 25 May 2018

New EPHA Study: Food Reform Is Needed in Europe

Morning readers,

I happen to have just come across a quietly published new study commissioned by the European Public Health Alliance (EPHA) and Friends of The Earth (Europe), as early as yesterday. The study is in regards to food and agricultural policy in the European Union (after Brexit), which I blogged about a few days ago. The final joint report is entitled "Policy Principles for Sustainable Food Principles in Europe".

The joint briefing included proposals which Defra will no doubt find interesting, if not just to look at. in order to assertain whether any of the synergies in Europe can crossover into the British market for produce.

To summarise, the financial and operational benefits of roughly ten food and agri-policies overseen by the EU were studied and the report concluded that there needs to be a major overhaul in the wake of criticisms about the Common Agricultural Policy (CAP).

One key objective (amongst many recommendations) in the report was that the EU's competition policy with respect to retail, should ideally be designed to "reduce unfair practices perpetuated by large retailers and food suppliers against weaker trading partners in the food chain". This might be important given the nature of consolidations in global distribution chains.

I've spoken about this before, and my blog on the potential Sainsbury's and Asda merger mentioned the Bayer takeover of Monsanto as a deal which demonstrates the importance of vertical competition as a necessary and sufficient requirement for markets to operate efficiently.

Enjoy the read and have a great day!

DisclaimerThese are my views, and not the views of any of my previous employers or corporate affiliations. I can't be held responsible for any comments made on this blog which are contrary to the views of the author. If you take issue with any of the thoughts or opinions on this or any other post on this blog, please feel free to reach out with your concerns. 

Thursday, 24 May 2018

How MMT Addresses The Concept of Balanced Public Accounts

Afternoon readers,

Second week of the Macro Insights Blog, and we are up and running with a few good conversational topics.

For those who keenly follow the New Economic Perspectives blog, this might be another rather interesting topic. As we have seen in the mainstream press, the funding structure of the National Health Service has taken a politicised leg down over the period of last Conservative governnent, and as such is being questioned by the Institute For Fiscal Studies.

How MMT Explains Govt Revenues

Figure 1: UK government tax reciepts in £ (2015)














Now, as Modern Monetary gTheory (MMT) would have it, governments do not need to raise taxes in order to fund their domestic outlay. Rather, governments are in a position to create liabilities against their accounting identity which are then gradually covered by raising its revenue or tax reciepts. Figure 1 shows the OECD breakdown of tax reciepts in the UK for 2015.

It should be noted that one of my followers mentioned this in a tweet earlier today; paraphrasing the view that tax is realised by governments in order to cover the additional expenditure on the NHS which is brought into existence through deficit spending.


How MMT Explains Govt Spending


Figure 2: UK government spending in £bn (2017)

The above chart in Figure 2 completes the macro picture. By reconciling the UK governments outlay with its revenues, its possible to grasp the concept which MMT academics refer to as the sectoral balance. These refer specifically to accounting identities which must essentially cancel each other out in order to maintain a credible budget deficit.

So essentially, the budget is all but an expectation or an earmark of the government's current or future public accounts.

My question: Do you think MMT advocates have to unreservedly battle with a hypothetical chicken and egg dilemma in this respect?

DisclaimerThese are my views, and not the views of any of my previous employers or corporate affiliations. I can't be held responsible for any comments made on this blog which are contrary to my own views. If you take issue with any of the thoughts or opinions on this or any other post on this blog, please feel free to reach out with your concerns.

Wednesday, 23 May 2018

A Response To The Question

Morning readers,

Hope you are having a great start to your day. Turkish Lira has been in the news recently, which has some relevance to this particular blog post.

In a rather impromtious response to the last Macro Insights post, the question I posed was one of fundemental importance to financial markets in developed economies. The US and others are dealing with a scenario where inflation, future rate expectations and dollar currency appreciation are working together to give investors mixed signals about the outcomes of their medium-term holdings.

Using this 3 factor explanation, and the example of the unexpected spike in U.S. Treasury yields, we can aim to describe what has been playing out in the global markets for some time now, the upside risk premium associated with holding assets with short-to-medium term fixed returns.

We already know that dollar currency appreciations are a net negative for the likes of Chinese and Japanese bond holdings, as they happen to be the largest owners of U.S. debt in the world (upwards of $1trillion each) but more so for any foreign investor in USTs who needs to hedge their debt holdings against currency risk, as an rise in a domestic currency reduces the intrinsic value of holding that country's sovereign debt.

Taking this point further, imagine a real economy (when we say real we mean, where real goods are traded at real prices and inflation is talked down by an independent central bank) where there is also a robust financial market, a central government and sufficient private domestic investment demand.

Textbooks will tell you that the one major theme that could cause demand for yields to rise in such an economy (apart from rises in real rates) is the risk sentiment of a weaker currency. And what are the main drivers of currency depreciation? Current account balances. That's one way to observe the macro picture we see playing out in the developed markets. Balances are affected by currencies and rates, which effect inflation and hence yields.

And as Figure 2 in the transcript of Kristin Forbes' speech shows there is a strong relationship between currency depreciations and current account deficits (as of 2012). There is an almost 70% correlation.

Can the same be said about long-term currency appreciations? The Swiss case is a viable example to look further into.

This particular correlation is already quite pronounced, especially in developed market economies, a Robinson Crusoe (on steroids) kind of dilemma for the markets. So, the irony here is that "animal spirits" can often appear differently in different markets.


As we can see from the above chart, the dollar is slightly up since the turn of 2018. However, if we look at the same time frame for USTs, the assumption about currency appreciation and medium-term debt have not been passed on by the debt markets.

At the beginning of 2018, a weak dollar was helped by higher yields and vice versa, but as the dollar rallied, there was still this unexpected persistence in UST yields, which would ultimately indicate there is capacity for (a slower) growth outlook for risk free assets in the event of a more bullish dollar.


Final note:

As the earlier assumption asserts, I tend to think usually, tightening in central bank policy (mainly, in the form of rates) carries riskier sentiment for equity markets due to the pressure that greater inflation expectations might have on those assets (ironically there isn't much inflation to actually speak of on this occasion), but nonetheless, this is a semi-important point to make.

DisclaimerThese are my views, and not the views of any of my previous employers or corporate affiliations. I can't be held responsible for any comments made on this blog which are contrary to my own views. If you take issue with any of the thoughts or opinions on this or any other post on this blog, please feel free to reach out with your concerns.

A Question For The Readership

Evening readers,

Here's a flash quiz:

"In a world of low correlation, where cost of capital is close to zero, could the rise in a domestic currency stifle global demand for medium term risk-free assets?"

Answer: Will be given tomorrow.

DisclaimerThese are my views, and not the views of any of my previous employers or corporate affiliations. I can't be held responsible for any comments made on this blog which are contrary to my own views. If you take issue with any of the thoughts or opinions on this or any other post on this blog, please feel free to reach out with your concerns.

On Diversity, Venture Capital and Oxbridge Elitism

Morning readers,

Thank you for taking the time to listen to this rant, which most people will have no clue about and which wouldn't effect their daily lifes even if they cared enough to click the link or carry the interest.

As you may have guessed, today's blurb is not very bullish on capitalist sentimentality but it is rather bullish on the notion of "dynamism", a word used by Warren Buffet to describe the resiliance of markets to suffer the insufferable and still overcome the overarching obstacles of pessimism, when needed.

I will start with a very concise position on cronyism in Britain and the Isles and its effect on social outcomes. Dynamism is one thing to remember and in an age of digital revolution, we need to ask the sort of questions that keep things real, questions like: is there also a societal revolution? Do we need one? The product of other people's hard earned labour is, what permeates our society, but in a centralised world, those who are able to capture a previous accumulation of privilage have firmed their own catchment area of success, which the rest of us have little chance of meeting.

Yet, what you find ever increasingly is that the invisible hand becomes more of a forced hand under crony capitalism. The marginal productivity of labour plummits. Ideas become scarce. The process of innovation, the process of homogenisation becomes a less conscious endeavour. Though it happens when we are young and free, many of our ideas are stifled as teenagers in an attempt to reflect and converge to societal standards. We conform and stand down with little reprisal.

How does this relate to crony capitalism you might be asking yourself? In an obtuse way. If you believe that in an age of elistist education, where ideas are increasingly open to all, that those who obtain these ideas from super elitist institutions are the only ones still in with a shout at becoming powerful moguls in our world, then it would be more sincere for such a person to simply come out and confess to an inherent and arrogant supremacism rather than convince us all that business or politique can only regenerate the ideas of those who have similar background to that particular person. That leads to cultural disenchantment and even worse disingenuous immitation.

People like me tend not to gleefully mention these sorts of things on blogs, but I do actually happen to own and run a small-scale boutique fund, which is focused on venture capital in Africa; namely, Sierra Leone, Ghana, Cote d'ivoire, Burkina Faso and several other SSA countries, including Morocco.

My team at Essex Ventures (as the name suggests, the company is based in East Anglia) haven't got the most extensive investment portfolio compared to most of the rival venture firms that you might find in London and the East of England. Neither have the startuos themselves, However, there is hope for us yet. As I have (as fate would have it) been given some light at the end of this precariously opaque tunnel.

Two factors come to mind here, one of which is the lack on funding there is going into black businesses, partly dependent on the funding structure of the largest funds/investment allocators in the country. Seeing these instiutional problems as a means end to becoming more efficiently representative (if there is such a term) of social structures allows us to have confidence in meritocracy, a fundemental part of capitalism.

What also permeates in a very real way is not only the thinking behind where equity is allocated but who allocates it. It is important to grasp the basic concepts of proportional representation in industry, especially in a country where grassroots ideas are largely decentralised. To whom or what am I referring to here?

Well, a friend and colleague of mine, Check Warner, is in the news today regarding her upcoming project at Diversity VC. Check and diversity.vc are focused on bringing a nuanced awareness to the somewhat questionable lack of female executives in the venture capital industry, but also to the noteable absense of prominent black and ethnic minorities (which, as another one of my VC friends, Michael Tefula would testify, is a wholly appropriate way to deal with the disparities that shift the playing field in favour of white and middle class men in the UK).

The problem I find with this scenario is that the kettle has and is still calling the pot black, both Check and Michael graduated from Cambridge and Oxford respectively and have significant privilage to waver about in their personal lives and careers alike. What needs to happen is the upper echelon of this particular industry needs to reflect societal demographics, just look at the example of Arlan Hamilton.

Arlan is a noteable African-American and female VC who recently gave a talk in London (which Check and Michael most probably attended) about her experiences in finding adequate sources of finance for the startups which she invests in, and I'm sure she would have been inundated with questions around the funding of UK small and medium-sized, black-owned businesses.

Why can't we have an Arlan Hamilton here in the UK? Venture Capital is still a strange one if you ask me. My other friend Andy Ayim, who gave the interview with Ms Hamilton, has written extensively on this topic and has a great piece on the struggles and adventures of inadequate recruitment policies in a world in which we all operate in.

Some food for thought for today.

DisclaimerThese are my views, and not the views of any of my previous employers or corporate affiliations. I can't be held responsible for any comments made on this blog which are contrary to my own views. If you take issue with any of the thoughts or opinions on this or any other post on this blog, please feel free to reach out with your concerns.

Tuesday, 22 May 2018

Why Field Programming Will Change Artificial Intelligence Forever

Morning readers,

Just a quick shout to inform those who are in the know, that the Integrated FPGA chip we have all been waiting for is on the verge of being released. The very first Intel FGPA-CPU hybrid of its kind.

Here is a great article for those who want to catch up on this.

To give you some background as to how this might effect the average pursuit of the dynamic stochastic kind, the Economist ran with a fairly odd headline for this story not too long ago, about the importance of these eventualities for consumer tech.

The questions Intel and their team of great people should be asking are two fold; the first is - where is the scope for an in-built design, which can carry the same features as typical FPGA and still keep the valuation of the product realistically affordable? The second is about capitalising on first mover advantages.

One would think that Intel would be on the verge of entering a very competitive market, and you'd be right. However, NVDA are not the least bit interested in field programming, not for the time being anyway.

Away from AI, the niche target market for programable microprocessors includes but is not exclusive to cryptocurrency mining and computational programming tasks (such as hash programming).

Looking forward to seeing this product on the market, maybe before Q4 earnings.

$INTC 3 month chart:



DisclaimerThese are my views, and not the views of any of my previous employers or corporate affiliations. I can't be held responsible for any comments made on this blog which are contrary to my own views. If you take issue with any of the thoughts or opinions on this or any other post on this blog, please feel free to reach out with your concerns.

Sunday, 20 May 2018

Unionised Disputes Across Industries: A Window into Aviation Workers Rights and Collective Bargaining

Morning readers,

Now, we all know that unions have always been a source of liberation in various parts of British industry for the best part of the last five decades, and not just in construction, but public transport and the national health service included. But with greater pressures, comes greater solidarity, none more so pronounced than in an industry which really does have a grip on society: the airlines.

Given airline operators are merely the acquiring intermediary in the industrialised process of manufacturing and servicing of the end consumer, an industrial relations concept that is effective should follow on from the distribution process and not just at the airport terminal itself.

From baggage handlers to flight attendants and security staff to the big cohones; aviation pilots, not much can be said about this particular phenomena in the airline industry other than, it is rife. Very much so, and can completely bring the industry to its knees, if co-ordinated without regard for public interest.

Ireland's circumstances are no different. The incidents which took place in December of last year, where Ryanair were bombarded with requests to recognise unions from 6 different countries including Italy and Germany, were also unprecedented. Air France are suffering from the symptoms of a much more familiar fragility.

So, the question poses itself, are British and European airline unions adequately equipped to manage industrial relations at a time of workplace pressure and increasing demand for air travel?

If collective workers' rights in the aviation industry are not misinterpreted, and are considered for their merits, then it is probably the most respected form of legislative protection there is, and that is a point put across by these NHS research practitioners who in part are facing a similar set of circumstances in the field of Radiology. Noone and Waclawski's (2018) paper poses a similar conclusion.

As with healthcare, a pressing question is being asked of the aviation industry. In certain areas of aviation, there are already adequate protections in place to offset employee fatigue but in others, there are not. Which is what the Irish Air Pilot's Association is calling for from Ryanair, a review of working practices and annual leave.

DisclaimerThese are my views, and not the views of any of my previous employers or corporate affiliations. I can't be held responsible for any comments made on this blog which are contrary to my own views. If you take issue with any of the thoughts or opinions on this or any other post on this blog, please feel free to reach out with your concerns.

Saturday, 19 May 2018

Land Value Capture, Georgism and its Importance to Public Sector Transport Projects

Morning readers,

So, the Royal Wedding is happening today. It is actually happening.

This is part one of a concise literary commentary on the super light heavyweight economics of that man himself, yes, the American Economist, Henry George and his notably heftier counterpart (my opinion) Murray Rothbard.

It is also the start of the second week of the blog and I'm not completely sure why but I am starting to have some ardent reservations with the direction its all going in (I seem to be distracted by Bloomberg and have written quite a few posts on current affairs). So in order to realign my wandering mind away from fact-based blogging, I've put together this post to sort of align my intutions with one another, hopefully with a view to reverting back to my speciality, which is actually labour economics not FX. The following will be a recital into what I call the second order effect of LVT.

I have to admit that stumbling across the concept of LVT and the associated movement has definately been one of the more better experiences I have had this year and as someone who takes interest in these matters, it has probably been one of the more time consuming but illuminating set of discoveries I have had the pleasure of experiencing this year (aside from the discovery of Blogspot, of course).

Moving on to a lovely piece found in today's Guardian Opinion, by railroad connoisseur Ian Jack, on the importance of this week's move by the Transport Secretary, Chris Grayling to sure up the East Coast Main Line in the near future (with a view to reprivatision under a rebranded franchise with National Rail by the end of 2020). Plans which have not yet been publically released by the Government.

The current scenario is complex, and I don't wish to delve too deeply into it on this occasion. The Guardian article (and the links in the page) explain the ins and outs in a very straight forward, narrow manner.

What's important here is the efficiency gains. Yet again, the bug which rears its multifactorial torso to gleefully hack the best laid plans of even the most well-established private sector project.

It is first and foremost a complete outrage that Stagecoach and other operators have not been given more support from this government in the form of financial aid. The ratcheted applause that the Transport secretary has recieved in the mainstream press is just a proverbial echo deflecting away from the austerity that has beleguered the country since 2010.


I have only ever attempted to use the London-to-Edinburgh railway route on one rather impromtious occasion; for an Associate Ops interview with Morgan Stanley a few years ago. But even then, I was put off by the price that the self professed Virgin franchised "speed train" might offer, choosing rather to enquire into a commercial flight from Heathrow to Edinburgh (which at the time, was the cheaper option).


Just goes to show, it is a well-known fact that the East Coast Main Line needed investment and with Virgin seemingly preoccupied with other projects, such as their 45 minute competitor to HS2; the 750 mph HyperLoop One project, where was the investment going to come from?


Not from Virgin. Why? Because the inefficiency between prices, revenue and operating costs are never more pronounced than in this particular sector.

Saying this, the concerns of the East Coast's new operating partners National Rail should be not what invesment is needed but where can the government source funds to acquire the relevent level of expenditure that the railway so obviously needs. That is the question at hand.

Myself and a few of my followers recently had the pleasure of discussing the topic of Georgism online and their views are very much aligned with an amalgamation of natural rights liberalism combined with a courteous incite of rent gap theory of gentrification, but which is nevertheless referred to now as Georgism.

What does Georgism have to do with the rail network? Well, to view the valient side, the advantages are not so much a convergence to metaphysical naturalism, as a lesson in great economics. The mainstay of Georgists in this country, on Twitter and elsewhere, has become the principles underpinning the utopia that is the Land Value Tax.

I don't claim to have the answers to solving this inefficency problem, but perhaps KPMG do?

As KPMG outline, one rendition of Land Value Tax is Value Capture, which while not being so much a London Labour policy, but a breathe of fresh air which the public has inhaled - possibly against the will of Rothbardians - and at a time where the public's purse is pinched. It has proven to be one of the main ways to combat the inefficiency identified in the funding of public sector transport facilities.

The beautiful thing about the Land Value Tax movement, and its propositions, are the intrinsic abilities, that many of its proponents have, to account for the weaknesses in the arguments of opposing view points (for instance, the views of neo-marxists and social libertarians -- not necessarily those who oppose a single-tax). Almost as though their prescription has been ammended to factor in a degree of deviation from the orthodox approach, to what they refer to as Georgist (macro) economics.

One such example:


This irks me, because one aspect I have not posted about yet in my commentary, but that I have come to agree with, is something which underpins the ideal of taxes on inefficient land use, and which ironically speaking probably has a complete songsheet from which Georgists have concucted a remedy for. But only time will tell what the advocates will advocate on this occasion.

What I am referring to here is summarised best by the Rothbardian critique on land prices:

"Georgists anticipate that the revenue from such tax on land would suffice to conduct all the operations of government—hence the name “single tax.”  As population increases and civilization develops, land values (especially urban site values) increase, and single taxers expect that confiscation of this “unearned increment” will keep public coffers overflowing far into the future.  The increment is said to be “unearned” because it stems from the growth of civilization rather than from any productive activities of the site owner"

Firstly, I'd like to take up the point encouraged by neo-Marxists and social libertarians, who have the intrinsic appreciation for the dynamisim of jousting (of the scholarly kind). German Economist, von Thunen, clearly demonstrates how urban land typically has a market value many times that of farmland (because of the "agglomeration effects of economic activity" which create synergies bounded by proximity). As such, it is prevalent to note that prices diverge across locations, around an entity which has some sort of intrinsic value (transport hub, city centre, a football pitch), but the irony here is that resale value of land can be almost certainty be derived from observing these factors.

Secondly, while it might be a step too far to call the opponents of LVT actual socialists, advocates of the Rothbardian critique might side with the view that LVT and by subscription, value capture, will sigificantly increase the reciepts obtained by central and local government from nearby public transport hubs, simply because of the inelastic demands of gentrification.

As the value capture model permeates itself, it's important to note that the single tax movement is still very much strong and alive on Twitter and in the blogeshere.

Thanks for reading,

DisclaimerThese are my views, and not the views of any of my previous employers or corporate affiliations. I can't be held responsible for any comments made on this blog which are contrary to my own views. If you take issue with any of the thoughts or opinions on this or any other post on this blog, please feel free to reach out with your concerns. 

Friday, 18 May 2018

Repost: The Case for Reforming Performance-Based Pay in the City

Afternoon readers,

Nothing more worthy of a mention than seeing Meghan and Prince Harry finally getting hitched this weekend (especially, if like me, you have zero relationship pizazz). The Royal Wedding brigade are out in full force, I presume the whole country is celebrating by waving union jacks frantically at the television. My best wishes goes out to the both of them and may God bless them both with a long and happy marital union.

This post was originally published here

It’s that time of year again folks. Performance reviews, (which will be the topic of conversation in many a breakout room) are taking place as we speak across the country. And as many of us will know, arguably the most difficult aspect of a performance review, aside from the bane involved in facilitating the conversation, is the intimate and often callous component of ‘summarisation’.

Summarisation as one mitigating factor for a manager, affords the notion that employee reviews take place only the once inside the space of 12 months, and as such are deemed to be an effective tool in managing engagement in the workplace, this unfortunately is a forlorn fallacy.

The traditional engagement and incentive model for pay reviewing, has admittedly not been very accurate in modeling or indeed, mirroring the value added to the organisation from all employees on all sides. That is also increasingly evident.

It is unfortunately also the case that, including board-level compensation, most of the remuneration processes in the City boil down to contacts and hierachical influence.

This is one of the reasons why the major challenge of the modern workplace is to tackle work-based incentives. In the age of summarisation, there should be more emphasis placed on investment in technologies that have the ability to ascertain, in an accurate way, the reporting metrics of often spuriously designed subordinated tasks.

The idea of rewards and compensation should be to incorporate task-based responsibilities, which are an avid and sometimes despised part of corporate work, and convert them into similar metrics to that of a product dashboard.

Who has done the majority of the analysis, reporting, reconciliation or coding? That is the question. This quantified decision making process should be algorithmic and incorporated into remuneration systems.

HR Analytics can help in this vein, but while it has the ability to convert otherwise meaningless amounts of large raw data on employees into summarised bite sized and reasonably inferential pieces of data, in dashboard format, the one drawback is the impact on the employee’s experience.

The debate in the employee experience community therefore needs to revolve more around the engagement incentives that inspire employees to increase their productivity, and by that I mean to say, who did what? How long should it have taken? and how long did they spend doing it? That’s all it boils down to.

There needs to also be an understanding that departmental budgets are not infinite. Talent therefore need to be allocated performance-based remuneration in a zero-sum manner.

Such a remuneration model could easily be integrated into prominent workforce planning platforms to make performance reviews and the act of summerisation more easy for operational managers. These system enhancements could feasibly review performance on behalf of the manager, leaving the manager with their own box ticking task at the end of each month.

The metrics system would allocate in-discretionary marks which only senior management in HR would have access to. A leader-board, thereby avoiding the need for the summarised aspect of achieving a high annual bonus.

Then perhaps maybe the idea of managers docking pay, implementing claw-backs or restrictions for inadequate or over-excessive amounts of compensation, and/or the ineffective checklisting concept of performance monitoring, could be done away with, potentially saving companies who chose to do so millions per year in expenses and costs.

DisclaimerThese are my views, and not the views of any of my previous employers or corporate affiliations. I can't be held responsible for any comments made on this blog which are contrary to my own views. If you take issue with any of the thoughts or opinions on this or any other post on this blog, please feel free to reach out with your concerns.

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