Culture Head to Head Series – HMRC v IRS

by | Nov 4, 2024 | Case study, Culture

Comparing company personalities using our twelve topic Culture framework reveals the strengths and weaknesses of company cultural behaviours and their employee value drivers. Enjoy release nine of our Head to Head series for CultureExperts

Maybe we need our own efficiency commissioner with Supportive, Progressive, Agility & Bureaucracy and Empowerment Cultural behaviours suffering.

Who wins:
HM Revenue & Customs: More Work-life balance, Collaboration, D&I, Workplace Technology.
Internal Revenue Service: More Purpose, Career Progression and Pay & Reward.

Key Observations and Analysis

Cultural Behaviors

  1. Agility & Bureaucracy
    HMRC scores -69.9%, while the IRS scores even lower at -84.9%. These highly negative scores indicate that employees in both organizations perceive a substantial level of bureaucracy, which they feel limits agility. Streamlining processes to reduce red tape could help improve operational efficiency and responsiveness within both agencies.
  2. Empowered
    HMRC has a score of -44.7%, while the IRS is close at -44.2%. These negative scores reflect employee perceptions of limited autonomy within both organizations. Enhancing empowerment through initiatives that give employees more control and influence in their roles could improve engagement and motivation, especially in a structured public sector environment.
  3. Progressive
    HMRC scores -76.6%, with the IRS scoring even lower at -92.0%. These very low scores suggest that employees in both agencies view their organizations as lacking in forward-thinking practices and innovation. Embracing a more progressive approach—perhaps by fostering a culture of continuous improvement and innovation—could help each agency stay relevant and adapt to changing regulatory landscapes.
  4. Diversity & Inclusion (D&I)
    HMRC has a score of +11.2%, while the IRS has a negative score of -18.5%. HMRC’s positive score indicates a more favorable perception of inclusivity, though there is still room for improvement. The IRS’s negative score highlights a need for stronger focus on D&I initiatives, which could enhance workplace morale and help attract a diverse talent pool.
  5. Collaborative
    HMRC scores +26.8%, whereas the IRS scores 0.0%. HMRC’s positive score suggests that employees generally perceive a collaborative environment, while the IRS’s neutral score indicates an opportunity to improve teamwork and interdepartmental cooperation. Enhanced collaboration could drive more effective problem-solving and service delivery in both agencies.
  6. Supportive
    HMRC has a score of -32.0%, and the IRS scores lower at -49.0%. Both agencies show negative sentiment in this area, indicating that employees may feel a lack of adequate support within the organization, particularly at the IRS. Strengthening support structures, such as accessible leadership and resources for well-being, could improve overall employee satisfaction.

Employee Value Drivers

  1. Purpose
    HMRC scores -68.7%, while the IRS is at -47.8%. These negative scores indicate a disconnect between employees and the organizational mission, with HMRC displaying a stronger perception gap. Clearer communication around the societal impact of their work could help both organizations enhance purpose alignment and foster motivation.
  2. Work-Life Balance
    HMRC scores +42.8%, with the IRS slightly lower at +29.6%. Both agencies show positive sentiment here, suggesting that employees generally feel satisfied with work-life balance, an asset for attracting and retaining talent in the public sector.
  3. Learning & Development
    HMRC has a score of -8.5%, while the IRS is nearly the same at -8.6%. These negative scores reflect employee dissatisfaction with development opportunities. Expanding training and growth programs could help both agencies retain skilled employees and adapt to evolving demands.
  4. Career Progression
    HMRC scores -29.6%, while the IRS is less negative at -12.5%. Both agencies indicate limited satisfaction with career advancement opportunities, with HMRC facing a more pronounced challenge. Structured pathways for promotion and transparent criteria for advancement could improve engagement and retention.
  5. Pay & Rewards
    The IRS scores +39.1%, significantly higher than HMRC’s +3.6%. This indicates that IRS employees feel more satisfied with their compensation compared to HMRC employees. Competitive pay is essential for job satisfaction and retention, and HMRC may benefit from reassessing its compensation structure.
  6. Tech in Workplace
    HMRC scores -47.0%, with the IRS scoring even lower at -75.7%. These negative scores indicate dissatisfaction with technology and digital tools in the workplace. Investing in updated technology could improve productivity and employee satisfaction, particularly as both agencies face modernization pressures.

Summary

In summary, both HMRC and the IRS have strengths in work-life balance and collaboration (notably for HMRC), but face challenges in agility, empowerment, and purpose alignment. The IRS shows a relative strength in pay and rewards (+39.1%), while both agencies need to focus on technology improvements and career progression. Targeted initiatives in these areas could significantly enhance employee engagement and satisfaction, supporting the effectiveness of both organizations in their public service roles.

This analysis provides a clear view into cultural and employee value drivers for HMRC and the IRS, highlighting areas for development and opportunities to strengthen employee commitment and satisfaction.

Ready to Benchmark Culture?

Interested in Culture Intelligence and key questions like:

  • What makes one Culture more effective than another?
  • Does one Cultural personality have more success in the long run and short run? Is a company personality like the signature of the management?

In this series, we explore different Company personalities and how they compare.

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