It was a time of intense change. A new chief executive had come in and set about dusting the cobwebs off the 150-year-old mutual assurance firm in order to create a vibrant, twenty-first century business. To signal this change, it rebranded from Liverpool Victoria to LV=.

For Smith, the job switch could have been considered a gamble. He had been head of HR at Virgin Atlantic, a big brand company with a reputation for creativity and dynamism. Liverpool Victoria was perceived by some as being at the sleepy end of the financial services market.

 

But it’s a move that he is very glad he made – although his wife understandably misses the travel perks involved in working for an airline. In his three years with LV=, he’s seen employee headcount more than double from 2,000 to 5,000 and the firm leap from 22 to the number four slot in the UK car insurance market. It has also become one of the top three life assurance providers in the country.

 

And despite the threat of yet another global plunge into recession, the organisation is still growing swiftly both organically and through acquisition, with Smith currently having 400 vacancies to fill. “When I joined, we were struggling to get people, but this year we’ve had 25,000 applications. Now we are on people’s radar,” he says.

Before he joined, 80% to 90% of employees were hired using recruitment agencies. But Smith turned this statistic on its head and now 80% of the organisation’s hiring activity is direct. This means that, even though staff numbers may have more than doubled, the recruitment budget is £1 million less than was previously the case.

 

 

A year ago, however, Smith took on extra responsibilities to head up the communications function. Communications in LV= encompasses media relations, sponsorship, PR, internal communications, corporate social responsibility and member relations and his aim is to change the public perception of the firm.

“Our goal is to become a destination employer and make LV= a company where people really want to come and join. A few years ago, recruiters would say we were a bit of a sleepy mutual. Now people approach recruiters and say they want to work here,” Smith says.

If it hadn’t been for a stock market crash, however, his story may have been quite different. At university, Smith took on a work placement at a stockbrokers, hoping to enter the profession after graduation.

 

But the crash prompted him to rethink. Instead, he joined Sainsbury’s as a graduate trainee and, from there, found his niche in HR. By his early 30s, Smith had climbed the Sainsbury’s ladder until he was only one rung away from a seat on the board.

 

But he recognised that if he wanted to take that next step, he needed a broader range of experience and so he joined Virgin. “Throughout my career, I’ve been offered many opportunities to move into roles outside of HR, but I really enjoy the people aspects of the role and how that helps the business grow and develop,” he says.

The HR function is uniquely placed within organisations to enable staff to build up a diverse set of skills, Smith believes. Not only is financial knowledge, legal acumen and commercial nous of great value, but it is also important to be good with people and demonstrate leadership skills.

“Commercial knowledge is becoming more important so it’s important for someone in an HR role to have worked in the commercial area, or had it attached to their role, or gone out and come back into HR,” Smith suggests.

“If you have a clear plan and deliver on your promises, incorporating a commercial viewpoint, then people will take you seriously. The best advice I can give anyone starting out in HR is that the perception and reality of your employment brand needs to be aligned and reflect the wider business values,” he adds.

 

 

Keeping in touch with what’s going on within the business at a grass roots level is also key. As retail HR director at Sainsbury’s, Smith would spend one day a week out and about with store managers, while at Virgin he’d visit employees working at the airports.

 

Although there isn’t a shop floor as such at LV=, or even a product that can be physically touched, Smith still ensures that he keeps in contact with staff.

“We want to be easy to do business with, internally and externally, and the only way to do that is to talk to people,” Smith points out.

He believes that the focus of HR has evolved over time from ensuring operational effectiveness and recruiting the right people to involvement in devising strategy. But it is vital never to lose sight of the operational side of the business, Smith cautions.

“A good HR director needs one sleeve rolled down to sit comfortably at the board table and develop strategy, and one sleeve rolled up to get involved in making it happen,” he explains. “I have a saying that we must ‘do the everyday things consistently well’ because if you don’t get the basics right, then you won’t have a foundation to deliver higher-level strategy.”

And with his dual communications and HR role, no two days are ever the same – but that is just the way Smith likes it.

“My role is incredibly varied. One day, I can be at a meeting with the RFU [Rugby Football Union] discussing the LV= Cup that we sponsor. The next, I can be in a resourcing meeting with our advertising agency, looking at developing our HR brand to attract the best talent. All of these elements are important to the business and I appreciate the variety that each day brings,” he concludes.

And finally…

Who do you admire most and why?
It has to be Richard Branson – I worked for Virgin for four years before my current role at LV= and had a great time working for someone I have always admired. He throws great parties as well.

What’s your most hated buzzword?
Any HR-speak. Why not just say it as it is? I hate people who take a sentence and make a paragraph out of it.

What’s the best piece of advice you’ve ever received?
Work hard and play hard – you must ensure that you have some fun along the way.

How do you relax?
I have two young children who I love spending time with. They have absolutely no interest in HR and it’s very easy to switch off from work when I am with them.