Last year employees at California-based insurer Farmers Group were told they could work remotely on a permanent basis. Barely a year later, the company’s new CEO, Raul Vargas, completely reversed the policy, calling everyone back to the office at least three days a week.
This is just one example of how any manager starting a new role can expect to face some big decisions.
The reversal faced significant backlash, not least from those employees who had made major life changes as a result of the initial policy – selling their homes and moving to different US states.
Vargas insists the reversal was to improve “collaboration, creativity and innovation” – but as a leadership decision affecting nearly 60% of the workforce, it could have significant implications on employee engagement, morale and brand reputation.
It’s a cautionary tale for any new leader or manager considering making radical changes to previous policy. It also brings up a question about whether incoming managers and leaders should honour to the decisions of previous leadership – a situation that Dr Victoria Carr CMgr MCMI knows all too well.
Register for Free Access
Not yet a Member, Subscriber or Friend? Register as a CMI Friend for free, and get access to this and many other exclusive resources, as well as weekly updates straight to your inbox.
You have successfully registered
As a CMI Friend, you now have access to whole range of CMI Friendship benefits.
Please login to the left to confirm your registration and access the article.
At CMI, we’re hugely privileged to have contributed to many people’s management and leadership journeys. Take a look back at some of the people we’ve interviewed for some top tips and exclusive insight.
Members See More
CMI Members have access to thousands of online learning and CPD resources. Learn more about our membership benefits
Join The Community
CMI offers a variety of flexible membership solutions, tailored to your needs. Find out more and get involved in the CMI community today.