News You Can Use

New Section at GyanHR

I plan to introduce a new section on my Blog: NEWS; where I would post news and other updates that would be relevant to HR Pros as well as other interested readers.

To start of, here we go with the first few links:

1. Economic downturn sees an upsurge in labour unrest - From the Business Standard
2. Jet Airways Stand Off resolved - From the Business Standard
3. More B-Schools trying to lure PSUs for placements - Business Standard

Recession: How Flexible Compensation and Rewards Strategies Help

Recently, I met a HR friend of mine who works for a renowned IT services firm in India. As its so usual these days, our talk slowly drifted into the realms of the economic slowdown and its impact. In spite of the tremendous beating that the services industries had taken during the year, his company continued to make profits without resorting to any sort of extensive layoffs or fancy cost cutting measures.

More interestingly the company managed to dole out bonuses to all employees ( around 50, 000 of them) during the worst quarter. Apparently the company made some significant changes in its compensation structure just before the slowdown set in - i.by increasing the proportion of the incentive pay in the overall salary lay out.

This was followed by major changes in the job descriptions of all leaders in the organization - which included improving team performance, increasing the Utilization Rates ( a major parameter which depicts the exact proportion of employees engaged in software development work - closely linked to Productivity), and fostering Innovation ( Bright Ideas for Dark Days!).

The above is a good example of how an adaptive Compensation Strategy has helped organizations successfully tide over tough times.

Here are some lessons that the Recession has reinforced on Compensation Managers:

• Customer Value: A good compensation and reward strategy should inspire employees to enhance customer value ( and Shareholder Value). This, perhaps is the ultimate aim of such strategies.
• Performance Oriented: Organizations today are highly performance oriented; hence a compensation strategy that is not visibly Performance Linked would fail to attract, retain or motivate employees.
• Flexibility: Though compensation strategies are expected to be robust and closely linked to the organizational goals, its also essential that such plans are also flexible enough to handle external situations which may be totally outside the control of the firm.
• Communication and Trust: Also its important that employees are aware of their organization's compensation rationale and that they are taken into confidence before any significant changes are planned in the overall pay structure. Such Transparency will breed trust and avoid the unnecessary rumours that often make their rounds during tough times.

Saving HR - Step 3

Step 3 - Rebuilding a Positive Image through Empowerment

Jay talks about HR getting itself rid of the "Knucklehead Stuff". There exists a serious problem of perception among employees about HR. They always believe that all policies, rules, norms ( or whatever you call it) is the brainchild of the HR guy. And when these policies run against employee well being or end up being unduly restraining, they turn to the HR folks for a resolution - and the HR guy inevitably shows up with the I-swear-I'm-not-making-this-up response.

Employees are annoyed and dismayed by the irony ( or their perception) that if someone is not able to change the rules, then they just cant be in-charge of making them in the first place!

Such employee perception will go a long way in determining the image of HR.

Jay also posts an interesting experience in his blog supporting this view.

Saving HR - Contd1...

Step2 : Outsource the "personnel stuff"

Jay is Bang On! A lot of HR pros spend considerable time and energy managing trivial administrative stuff! While everyone seems to agree that HR should play the role of a strategic partner in Business. the same has not resulted in any concrete action on the ground. Jay has a solution which i cant refuse to agree : "Outsource"

"Outsource it. Send it to India. Offload it to companies who provide these services as an "outside personnel department." Clear your desk of the nickel-and-dime stuff. Then you can focus on developing, managing, and retaining the best talent your company can get."

Saving HR

That HR needs to move to the next level as a Business Partner is obvious, but how do we? In continuation to my post of "Five Things HR Can Do"; How do we save HR? - Post Courtesy Jay Shepherds.

Step 1 — Moving HR to "C" level - Bringing HR to the Spotlight

Most companies have a handful of executives who report directly to the CEO: the Chief Operating Officer, the Chief Financial Officer, the Chief Information Officer, the Chief Marketing Officer, and the Chief Legal Officer (usually called the General Counsel). But rare is the company that has its head of human resources sitting in the"C suite."

This makes no sense. Every company depends upon having the best people — the best talent — it possibly can to succeed. Without top talent, who actually does the operations, finances, technology, marketing, or legal stuff? Why do most companies relegate the recruiting and managing of talent to an administrative position that usually reports to the CFO? Even the term "human resources" — itself a euphemism for the drab "personnel" — demeans the role and its importance. HR professionals often decry not having "a seat at the table," and for good reason. Most companies fail to recognize the strategic role that HR should play.

The Truth about CSR

I have always been intrigued by the sudden love of India Inc towards Corporate Social Responsibility! (CSR).

I had believed that CSR was more of a Social Volunteering by Corporates; a result of their moral guilt born out of their insatiable lust for Natural Resources and their inability to give back in quality and quantity what they have exploited.

CSR has today become a a very powerful diversionary tool which shifts the focus from problems caused by corporate mismanagement (of the environment) to so called pressing social issues!

While most CSR Reports from Business Houses mention of the good things they have done, almost none of them cite the harm they have done to the people and environment around them! The Social Economic Costs of Industrialization is something that most Corporates and the Government have willfully ignored.

I found one such voice in a leading portal http://www.amrc.org.hk/


Check out the link to download the Critical Reflection on CSR

Shasun Shuts Down its Plant in Cuddalore

Controversy has been brewing around the Shasun Chemical's plant that produces drugs in Tamil Nadu. Finally the Government and the Pollution Control Board seem to have got their act together and sent a notice to the Factory asking it to stop all production activities until further notice.

Check out this link on BusinessLine