People and the Economy - What Deloitte has to say

Some very interesting debates from Deloitte.

Companies are expecting a surge in their voluntary turnover rates as the economy recovers. This would add to the already huge number of those who were left jobless when the recession started. The issue is not of HR Departments being piled up with Resumes, but the fact that a lot many of their own turnover would occur with Key Talent in Leadership positions.

This slow down has also shown prospective employees as to which employer is stable and which is not.

The manner in which companies handled the slowdown(especially on Lay Offs and Compensation) would also have an effect on their turnover rates. Companies which laid off indiscriminately would see loyalties shift to more reasonable (and stable) competitors.

• Deloitte on Resume Tsunami

"Once the recovery begins to take hold, business executives and talent leaders can expect a 'resume tsunami' as voluntary turnover rises with leaders and workers with critical skills seeking new opportunities. The depth and quality of retention planning today will likely separate the talent winners from the talent losers tomorrow."

• Deloitte on Managing Talent in a Turbulent Economy

"The Worst May Be Behind Us: For the first time in this longitudinal study, the number of surveyed executives who said the worst is yet to come declined - and significantly, from 32 percent in March to 18 percent in May. At the same time, the group who believes the worst is behind us doubled to 16 percent from 8 percent in March and 6 percent in January."

• Deloitte on Are People Our Real Assets?

CEOs often say that “people are their company’s most important asset,” and that it is the strength of their workforce that will carry the company through tough times. On the other hand, executives are taught that “cash is king” — especially in a business downturn. So what should business leaders do in the face of the current economic crisis? Should they focus on maintaining cash or people? What should they make their top priority?

The recovery would see the return of an employee dominated economy - where Talented employees would call the shots!

Performance Appraisal - To do or Not To Do

Performance appraisals can actually be counter-productive for employees who are in the greatest need of training and further development. This fact is highlighted by Professor Bård Kuvaas from the BI Norwegian School of Management, based on a new research study. ( www.innovations-report.com)

Its that time of the year where most organizations would go through their Performance Appraisal cycles. Every employee who is concerned with his own growth gears up with all the numbers,figures and qualitative statements (and whatnot) to support his/her cause.

There is excitement in the air with employees and managers bearing the burden of expectations and aspirations. This is the what everyone had been looking forward to. Or is it really?


Joel Spolsky in his article Incentive Pay Considered Harmful, April 2000, of provides an interesting contrary view of Performance Appraisals.

"The effect of reviews on morale is lopsided: while negative reviews hurt morale a lot, positive reviews have no effect on morale or productivity. The people who get them are already working productively. For them, a positive review makes them feel like they are doing good work in order to get the positive review... as if they were Pavlovian dogs working for a treat, instead of professionals who actually care about the quality of the work that they do. "

Appraisals are very painful and an unsatisfactory exercise for many. More often the bad effects of Appraisals are neglected. This is a period where more than half the workforce tread with fear and anxiety. Clearly everyone wants to grow but not merely through these mind wrenching exercises! One has to wonder if anyone has done a study to find out the psychological impact of Performance Appraisal processes on people.

Joel Spolsky states his own personal experience furthering the thought...

"Performance reviews were stressful for a couple of reasons. Many of my friends, especially the ones whose talents were very significant but didn't show up on the traditional scales, tended to get lousy performance reviews. For example, one friend of mine was a cheerful catalyst, a bouncy cruise director who motivated everyone else when the going got tough. He was the glue that held his team together. But he tended to get negative reviews, because his manager didn't understand his contribution. Another friend was incredibly insightful strategically; his conversations with other people about how things should be done allowed everyone else to do much better work. He tended to spend more time than average trying out new technologies; in this area he was invaluable to the rest of the team. But in terms of lines of code, he wrote less than average, and his manager was too stupid to notice all his other contributions, so he always got negative reviews, too. "

Negative reviews, obviously, have a devastating effect on morale. In fact, giving somebody a review that is positive, but not as positive as that person expected, also has a negative effect on morale.

According to Professor Kuvaas in Performance Appraisals - A Double Edged Sword May 2006, says

"Performance appraisals and other tools which involve feedback and target management should be adapted to the employee’s individual needs and characteristics. Otherwise, there is a risk of harming the good employees without being able to help the less good."

Clearly the Effects of Performance Appraisal on Employee Attitudes are still not known; making this a question worthy of Debate - Do we really need Performance Appraisals?

But if there are no Appraisals, how do we measure PERFORMANCE? Do we have a less painful alternative?

Why Should we Empower Employees?

Empowering Employees - The Need of Modern Businesses

I came across an interesting article at BizHelp24.com that I considered sharing with you. Its on Employee Empowerment. I am sure all of you would have faced a similar situation as stated below.


Taste this Case:

You buy a Television from an electrical store.

John the sales person advises you, and you go home with the TV.

When you arrive home the TV has a big scratch across the side.

You return to the store and tell John of your problem, and agree that for a partial refund you will accept the scratched TV.

John says this is a fair arrangement, but he needs to check with his line manager if this is ok.

(If John was sufficiently empowered you could receive the refund and leave satisfied now)

John comes back 5 minutes later with his manager, who asks you to explain the problem again. You go through the details of the purchase and the problem, and the manager agrees to the solution, but needs authorisation from the store manager.

(If the manager was sufficiently empowered you could receive the refund and leave now)

The store manager comes back after 5 minutes with John and asks you to explain the situation again. You go through the details of the problem, and the store manager agrees to a partial refund. However first he needs to get an authorisation number from Head Office.

(If the store manager was sufficiently empowered you could receive the refund and leave now)

After 5 minutes on the phone the store manager comes back and agrees to process the refund. Finally the problem has been solved, but at what cost?

To sort the problem the store has paid for:

1. John’s time
2. His manager’s time
3. The store manager’s time
4. The head office’s time

Not only that, but in the process of waiting and repeating yourself you may have (as most people would) decided not to bother shopping with their store again.

If John was given the power to do his job properly, the company would have saved the employee time costs, as well as kept a customer.

The answer in this case would be for John to know, and be able to enforce the company policy.

(E.g.: Maximum 10% discount or replacing the product)

Instead, you became a victim of un-empowerment disease, or “Run and check” syndrome.



Its indeed interesting to know that the same power and authority structures that HR built and protect are at most times responsible for restraining employees from giving their best.

Its time Organizations ( especially HR) show more trust on employees and empower them to face Business challenges. This is especially to those corporations that are so dependent on restraining power structures for their survival thereby crippling all chances of Innovation and Change.

One can see the following benefits of Employee Empowerment:

1. Freedom in Decision Making
2. Total ACCOUNTABILITY for the decisions taken
3. Customer Delight
4. Employee Satisfaction
5. Top Management is freed from Day to Day operational Decision and will have more time for Strategy
6. Gets Rid of Bureaucracy in the Organisation
7. Finally resulting in overall enhancement of Profits.

Do you think otherwise? Please leave your comments!

Five Things HR Can Do

A blogpost from John Summers throws interesting insight into what HR should Really Do.

1. Be curious about the business.
   
2. Measure stuff.
   
3. Stop focusing on cost cutting and expense
   
4. Free people to manage themselves
   
5. Plan, Plan, Plan

The HR fraternity has for quite some time now vehemently suggested that HR needs to move away from being passive support functions to more active Business Partners. But its disappointing to see that still a lot of CEOs, CFOs and so called HR Practitioners are stuck with the traditional roles of HR.

The blame can be squarely put on the HR fraternity for its failure to move away from redundant support activities which are predominantly administrative in nature. Until we project ourselves as those playing a serious role in the Business being run, we will always be sidelined and demarcated as the ones who are always Dispensable.

Are HR folks Listening???

News to Cheer About ! - Is this the End of the Recession?

The Federal Reserve has suggested that the worst of the US recession is over.


It said that while "economic activity is likely to remain weak for a time", it had begun to "level off".

Check out this Link

The US nears Recovery ( BBC Report)

Hope this is good news for the global economy as well!

40 Things to Do When You're Fired!

Who said being fired was the end of the road. Your life may well have just begun!

1. Go for a walk A long walk. Preferably barefoot on a very long strip of beach. Imagine you're leaving the past job and past life behind you with every step you take. Throwing pebbles and large stones into the ocean optional. Avoid swimmers even if they resemble old colleagues.
2. Make a list of everything you hated about your job Keep referring to it when you feel like screaming.
3. Make a list of everything you hate about yourself Burn that list in a little bonfire in a midnight ritual - you are now ready to resume life as a new, improved YOU.
4. Go to your favourite restaurant Order everything you've ever wanted to eat there and eat it all at once. Then order some more.
5. Go for a long swim in the ocean Pretend you're never coming back - but make sure you can. Alert lifeguard on duty before you embark on this exercise.
6. Go for a cruise in your car blasting your favorite song at full volume Then sing along at the top of your voice and don't mind the stares you get from scared or concerned motorists. If your boss sees you, all the better...
7. Take up kickboxing in the evenings A great way to vent your anger and frustration and at the same time network with other angry overworked, underpaid or unemployed professionals.
8. Go somewhere you've always wanted to go Whether it be that 5-bedroom motel in a neighbouring village, a riverside shack in Thailand or a 5* hotel in Switzerland now is the time to indulge. Make sure you stay long enough to unwind without depleting your hard-earned savings.
9. Get your finances in order Make sure you are on a sustainable budget and that your savings are invested at the optimal risk/ reward ratio given your age, state of unemployment and expenditures.
10. Buy a trashy novel and read it all in one go Comfy pillow and assorted junk food items need to be at hand.
11. Call your best childhood friend Cry to her/him about the injustice and degradation of it all
12. Go window-shopping in the most expensive part of town Make a mental inventory of all those items you will buy when you land the next job.
13. Open a cook book and make a lavish dinner for 20 Invite everyone you can locate at short notice. Tell them all when they come that you're looking for a job.
14. Go for a manicure/pedicure Whine to the manicurist about the perils and boredom of unemployment.
15. Go for a long massage Then have them remove you supine, on a stretcher.
16. Go through your old photographs Remember what it was like when you had your whole life ahead of you and the world seemed plush with opportunities. Stay in that mind-frame.
17. Buy all the flavours of your favorite ice-cream brand Then invite one friend to a comedy movie night.
18. Organize all the cupboards in your house Purchase fragranced tissue lining paper, line your clothes closets and put one fragranced tissue paper on top of each meticulously folded item of clothing. Colour code your closets and tissue paper for an added sense of achievement.
19. Put fresh flowers in every corner and crevice of your house Nothing like that fresh scent and the sight of live blooms to lift your spirits.
20. Take up a new hobby Now is the time to discover and nurture the nascent Botticcelli or Tchaikovsky in you. Make sure to offend. Practice musical overtures on anyone who will listen (or won't) and make sure your artistic endeavours grace everything from the milk bottles you hand back to the milkman ev ery morning to the t-shirt your best friend lent you, the window that most overlooks the neighbours' living room and the dining room ceiling your husband took pains to plaster.
21. Go to Disneyworld Regress to that time in your life when only the important things mattered. Local variation on Disneyland will do if finances/ visa requirements/ state of nervous breakdown don't permit travel.
22. Learn a Language Buy a beret and enroll in an intensive French course or pick up German to go with your newly found infatuation with Beethoven. Make sure the course is a daily one and that you take pains to immerse yourself in the language and the culture.
23. Buy a Goldfish Name him after the manager who fired you. That way when the goldfish is deceased - and they have a horrible habit of doing that - your grief will be short-lived. In the meantime, admire the miraculous peace and serenity of this life form in your house. This is NOT a recipe for sushi.
24. Enrol in a Charity Nothing like doing good things for other people to lift the spirit and give you a sense of achievement and fulfillment. You don't need to feel very strongly about the charity - just do something that unselfishly puts you out on a limb for someone else's sake.
25. Open a stock trading account and try to beat the indices Move aside back issues of Cosmopolitan and Archie and start collecting finance and trade literature. You will also need spectacles (rectangular brown tortoise shell), a coffee maker and a computer in the bedroom. Can be done in your Tintin pajamas but make sure you only put your bowling money on the line at this stage.
26. Take up Photography Then redecorate your hallway with a series of bleached wood framed black-and-white photographs of your favorite person or scene.
27. Find a Friend with a Baby Nothing like spending time with a candy-wrapped bundle of innocence and laughs to recharge your batteries and remind you of what matters most.
28. Read Proust's Remembrances of Things Past And console yourself with dreams of buying a French chateau, complete with bubbles, when you succeed in your next job.
29. Do a thorough self-analysis Who are you really? What makes you tick? What do you really like and enjoy? What are your strengths and weaknesses? Where would you like to be? Put this self-analysis down on paper and use it to plan your next career move.
30. Take a Course Hone your skills whether they be business, finance, marketing or other by enrolling in the best course available, in or out of town, and giving it your all.
31. Start polishing your Job Search Skills Sift through job hunting articles on a major site's Career Center and read everything you can get a hold of on job hunting skills.
32. Learn to bake bread An endangered skill and one that is a conversation-stopper in cocktail parties and a sure winner if you are inviting your other half to an intimate dinner for two at home.
33. Exercise your body back into shape Who says you can't look like you did when you were twenty? Join a gym and attend daily for an hour; you should see results within 3 weeks.
34. Post your CV on the best regional internet job site Then lie back while the site's Saved Search does all the work.
35. Practice your interviewing skills on anyone who will listen Read Interview Tips and Interview Don'ts in Bayt.com's career center.
36. Don't waste time No time like the present to network, research companies you want to work for and apply to all the positions you find attractive on a regional job site.
37. Spread the grief Join a Workstyle Community Forum where you can share your experiences, ideas, hopes and aspirations with other professionals
38. Plan for Success Repeat 100 times:- You WILL succeed in your next job, you WILL succeed in your next job, you WILL succeed in your next job... envisioning yourself as a high flyer in your field. Then pick up a pen and paper and plan in intricate detail for that success.
39. Read industry literature Now is the time to catch up on all those trade magazines and periodicals you haven't had time to read on your job. Bringing yourself up to speed on the latest developments in your industry is sure to impress in your next interview.
40. Remember, the sky's the limit You will work hard, play fair and be good to those around you. In short, you will SUCCEED wildly, extravagantly and beyond your wildest dreams. You just need to get started...

Source: http://www.bayt.com/en/career-article-61/

Making HR Human Removers

The Global Slowdown - India Inc's Response and Its Cost to the Indian Worker

As the news of global slowdown perched on the Indian Economy, India Inc was quick to react to ensure that they were well insulated against "all the evils" of recession. And how did they go about doing it?

1. By Chopping their Workforce indiscriminately and making Performance the trump card for retention and separation.
2. By Freezing all Hiring activities - for all positions irrespective of importance.
3. By Shelving most of their investments and postponing all planned capital expenditures.
4. Delaying or moving out of moderate and high risk projects.
5. Renewing their focus on Productivity across the organization.

A careful look into the above measures show that most of these had a negative connotation, except of course the last one!. Years of rapid growth in some of the Industry Sectors had made us believe that we were on a long and swift journey towards economic progress - a journey that no force could stop or hinder. The Indian Economy exhibited such Confidence ( or arrogance if we look at it now) that no one had seen before. The world began to stand up and take notice. Welcome to the New and Strong India.

But Alas! As it always happens in romantic love stories, there arrived a villain - a brute force which was determined to play spoilsport with the emerging romance. Recession. Taken aback by the sudden onslaught of a never before seen force, India Inc. decided to act. And these acts were not anything unique or innovative - nor were they suitable to the Indian scenario. Most of the actions that followed were a typical copy of what their American Counterparts were doing. So, Whats the call for HR here? and Where did India Inc and the Government miss out?

Unlike in the US, where social security is provided to most workers, here in India such a social cover is virtually absent or totally inadequate. So that meant that when thousands of workers/ employees were asked to leave overnight, the burden of providing such security fell on the government's shoulders. I suspect if at all any of the Indian employers ever looked at alternative ways to cut labor costs?

Improving Productivity became the watchword for many companies, with several of them taking bold steps to enhance their output at all levels. But this effort seemed to be too little and too late for them to face the global crisis. This lack of focus on Productivity by India Inc during the good times should be attributed as one of the primary reasons why such massive layoffs were needed.


I was going through an interesting article which professed on why American Companies embrace Layoffs as the Best way of cutting labour costs. Click the link below to access this article.


Why is it that in a recessionary economy, employers primarily use layoffs to cut labor costs? Why don’t they look for alternatives?

Other related articles

• More than 5 Lakh Jobs would have been lost due to the slowdown - Business Standard

• Indian HR good at Cuddling and Poor in Chopping…- By Dr. PVRMurthy on the NHRD Blog