Author Archives: Fuwad Junaidi

How to mitigate attrition post salary increase communication?

You must have heard leaders and talent team discussing the possible increase of attrition post communication of yearly salary increase. Their fear is not unreasonable. We know that there is a high chance of an increase in attrition post yearly salary increase. People do wait for their salary raises and then try for a job change to get higher salary raise over it. It is always a challenge for business and organization.

But, there are ways, an organization can mitigate this impact. I am suggesting some ways which will help. In my opinion, managers and leaders of the organization need to play a more active role in such cases.

Continuous dialogue

When an employee raises his/her concern on the salary increase, it is important that the manager continues the dialogue with the employee and make sure that the employee is given the opportunity to listen. Many employees feel disheartened when they don’t see their managers even bothered about their dis-satisfaction hence becomes a key reason for them to look for a change. A Manager should have meetings with such employee(s) for the next 2-4 weeks to gauge the engagement of the employee and get engaged in dialogue.

During these interactions, managers should speak with such employees on his/her career development plan so that employees can achieve its career target both short term and long term. Managers should also speak about ways manager and organization can help employees in its development path. Both the manager and employee should build the IDP (Individual Development Plan) for the employee.

Interaction with leaders

An Interaction with leaders of the organization of such employee is equally important. Employee wishes to hear from their leaders too. Such interactions tell the employee that the leaders of the organization is aware of his/her concern and affirms the intent of the organization to invest in their people.

An honest investment on people and follow-ups

Having a conversation with the employee by manager and leader is the first stage where both try to neutralize the dissatisfaction of the employee just after the communication on the salary increase.

In stage two, the manager and organization should follow up and put an honest effort to invest in the development of these people. The manager should review their IDPs (Individual Development Plan) on a quarterly basis and discuss progress and the support the employee might need.

HR-Analytics : A driving force towards Diversity & Inclusion

Studying current employment trends, Diversity and Inclusion (D&I) strategy is becoming common. Companies these days are more aware of their workforce and hiring processes than ever. While diversity & inclusion is a good strategy to follow, and leads to increased productivity and talent extraction amongst other benefits, most HR departments only do it halfway.

To embrace this change of dynamics and improve retention & productivity, companies have to go all the way with HR Analytics.

Employees Prefer Working In Places Promoting Diversity:

A survey conducted by Glassdoor, found out that 67% of respondents say a diverse workforce is an important factor when evaluating companies and job offers. It was also found that minority groups’ preference for diversity was much higher.

Insightful Decision-Making:

Diversity needs inclusion and acceptance for combatting bias. Similarly, HR processes require analytics to back their decisions. Any HR data – turnover rates, salaries, employee demographics, are utterly useless if they are not translated into insight. This predictive data can be studied to check how your policies are performing & can be reformed accordingly.. Promotion-based biases can be avoided by studying previous compensations against the variables of diversity.

Understanding the Workforce:

When managing a diverse talent pool, HR needs to stay vigilant and have empathy and problem-solving skills. The more diverse an environment is, the more variables have to be considered for policy development and implementation. But it’s a small price to pay if compared to the progress in performance, creativity and ROIs that diversity brings.

Conclusion:

It is a consistent, complex & conscious effort to make a D&I team but the outcome is twofold. A diversified workforce brings ideas, skill sets, cultures, tackling techniques and unmatched potential even if it faces a temporary backlash. It’s the job of Human Resources to be the change catalyst & consider data-driven decisions a powerful ally.

 

Top 10 Ways to Onboard New Hires

What do you recall about your first day on the job? 

Our first days in a new job are some of our most memorable work experiences. And too often they do not make for positive memories. The typical onboarding process can leave new hires overwhelmed. New hires are inundated with forms, information, and new faces. Yet, at the same time, they may find themselves bored, without a computer, or even a lunch mate.

Employers today are making efforts to build more positive onboarding memories. And, they are doing so for good reason. With unemployment low and competition for the top talent tight, employers need good first impressions that give way to lasting employment relationships. Moreover, today’s lean staffing practices have left employers pressed to fill openings and bring new hires to full competence with increasing speed. They do not have time for overloaded or ill-equipped hires.

In this blog post, I am sharing a number of resources—from tried-and-true onboarding practices to more innovative approaches for acclimating new hires.

10 Best Practices for Onboarding New Hires
1. Think about onboarding during recruiting.
2. Begin formal onboarding upon offer acceptance.
3. Make onboarding “easy” for new hires.
4. Give the new hire some control in the onboarding process.
5. Help new hires join organizational communities.
6. Make new hire training “easy” for hiring managers.
7. Manage new hire performance.
8. Measure the effectiveness of new hire onboarding.
9. Collect feedback from multiple stakeholders of the onboarding process.
10. Hold stakeholders accountable for onboarding success.

Innovative Approaches To Onboarding
Apply Design-Thinking to Improve the Onboarding Process–Genpact applied design thinking principles to onboarding in an effort to reduce early attrition (new hires who leave within 30 days) and to get new hires up to speed faster. Interviews with new hires, among other methods, revealed several areas for process improvement. Improvements have reduced initial, tactical onboarding time from eight to less than one hour and documentation from 39 to four forms. Surveys of new hires show that their experience has improved.

Push Relevant Knowledge to New Hires at the Moment of Greatest Need–MITRE uses a combination of personas, business rules, and cognitive technology to predict what knowledge new hires need and when, where, and how that knowledge should be delivered. It built an anticipatory knowledge delivery system that proactively provides new employees with relevant information at different points in the new hire lifecycle.

Use Knowledge Mapping to Guide New Hires–Tire manufacturing company Goodyear uses knowledge mapping to capture expert knowledge and turn it into learning resources for its less-experienced employees. As part of this process, it creates learning journals that help leaders determine the sequence of training and development opportunities that new hires and up-and-coming experts need.

Prevent Overwhelm by Pacing the Onboarding Process–New hires at APQC go through a “first day, first week, and first month” onboarding process. This process paces their exposure to new people and information with the intent of boosting knowledge retention and fostering lasting relationships. APQC’s onboarding process also has fun activities inserted throughout.

Using Key Performance Indicators to Increase Productivity and Profitability

In most businesses, the employees represent both an organization’s biggest expense, and its most valuable asset. This means the company’s productivity, and ultimately, its profitability depend on making sure all of its workers perform up to, if not exceed their full potential.

To survive and prosper in today’s economic times, companies can no longer manage using financial measures alone. Businesses have to track non-financial measures such as speed of response and product quality; externally focused measures, such as customer satisfaction and brand preference; and forward looking measures, such as employee satisfaction, retention and succession planning.

Key Performance Indicators (KPIs) are a company’s measurable goals, typically tied to an organization’s strategy, as revealed through performance management tools such as the Balanced Scorecard.

Most goals are achieved not through the efforts of a single person, but by multiple people in a variety of departments across an organization. Performance management experts agree that cascading and aligning goals across multiple owners creates a “shared accountability” that is vital to a company’s success. The company then uses its Key Performance Indicators as the foundation to analyze and track performance and base key strategic decisions regarding staffing and resources.

Implementing the key performance indicators of a balanced scorecard typically includes four processes:

  • The company translates its corporate vision into measurable operational goals that are communicated to employees.
  • These goals are linked to individual performance goals which are assessed on an established periodic basis.
  • Internal processes are established to meet and / or exceed the strategic goals and customer expectations.
  • Finally, Key Performance Indicators are analyzed to evaluate and make recommendations to improve future company performance.

Case Study: Lancaster Landmark Hotel Group

The solution:
By cascading goals across Landmark Group’s three London properties, everyone is now aligned together with full line of sight of each others’ goals and objectives. The Group now also has the ability to review more competencies than ever before and has created a true performance-based culture across the group. There is now clear visibility of the company’s Key Performance Indicators on how effectively strategy is being executed and the value it delivers back to the business.

Here are some of the benefits of using Key Performance Indicators through the Balanced Scorecard methodology as a measurement of a company’s success:

  • Employees and managers see the overall corporate goal plan—and understand how their individual goals fit into the company’s business objectives creating a situation in which employees feel energized and engaged in the success of the company.
  • Create shared employee responsibility—by cascading his or her goals with others in the company.
  • Managers more easily stay in touch with employees’ progress—during every phase of goal completion, and offer immediate reinforcement or coaching to keep performance and deadlines on track.
  • Creating an open and communicative environment including quality feedback regarding goals and progress

Cascading Your Strategy Throughout Your Company

Cascading your corporate goals throughout the organization lets you align your entire workforce to the overall strategy. This ensures that everyone is focused on your key business objectives. Translating high-level strategic goals into clear objectives for every business unit and every employee creates a clear line-of-sight – from top down and bottom up—so each individual understands how their day-to-day actions are contributing to overall company success.

This also allows employees to develop goals that link to the organization’s objectives, driving understanding of strategy, generating commitment, and instilling personal accountability.

How Good Your Company Do Employee Recognition Program? – Best Practice

Employee recognition is definitely not a new phrase in human resource management. Traditionally, organizations build recognition programs based on years of service (tenure-based) and use money and non-monetary incentives to increase employee motivation. But it’s not enough to enhance their engagement and productivity in a long term.

According to SHRM/ Globoforce Employee Recognition Survey 2015, top 3 challenges faced by HR professionals are turnover, employee engagement and succession planning. Luckily, effective recognition programs which align with corporate values (values-based recognition) can be the most comprehensive solutions for all of three following concerns.

All of organizations have their own values and try to communicate these values to their employees, customers, partners and the whole world. However, they often prefer to focus on the direct ways which can lead to immediate results rather than invest in long-term processes. How to deliver the company’s core values to employees is the most raised question among HR professionals.

Incentives vs. recognition

Many executives and managers consider incentives and recognition the same. But it’s not really, even though they are all the ways to motivate employees to achieve the company’s goals. Incentives programs focus on final results while recognition programs focus on the whole process to get the results. Of course, the real effects of these programs on employee performance are different. And values-based recognition programs are much better than traditional incentives programs with only yearly rewards. The best practice is the combination between incentives and recognition to timely boost your employees engagement.

Why values-based employee recognition programs really work?

Employee recognition programs in general and values-based recognition programs in particular shares the common objective to make employee feel appreciated and recognized to leverage their positive contribution to the organization. To sync your company’s core values with employee behaviors, the best way is to create a culture of mutual understanding, respect and dedication. Here are some surprising benefits of values-based recognition programs:

– Increase employee satisfaction

By timely and continuous recognition, employees feel that their efforts and contributions are appreciated in both material and spiritual ways.

– Boost employee engagement and productivity

When employees feel that they are an essential part of your company’s picture, more efforts are put into their works. Moreover, a strong sense of corporate core values drives employee contribution and commitment to the company. We can voluntarily work extra when feeling connected with the whole company, right?

– Reinforce corporate culture

Obviously values-based recognition programs help to reinforce corporate culture and even employee relationships. Furthermore, it helps to manage corporate core values better.

– Attract and retain talents

An effective valued-based recognition program can help the employer build a stronger brand. The company with amazing culture will be the destination of all talents, and the place where top performers want to stay in a long term.

How to make a values-based recognition program successful?

A recognition program only benefits your company if it is done correctly. These are some secrets that you must know to create an effective values-based recognition program:

1. Translate your company’s core values into specific behaviors

Clearly defined values are not enough. As mentioned above, every company has its own values. However, a list of core values will make no sense if you can’t communicate them to your employees. The key here is to translate core values into specific behaviors that your employee can easily do in their daily tasks.

2. Deeply understand your employees’ needs and expectations

Even in recognition program, you also need a marketing mindset. It means that you need to do research on what your employees want, need and desire to build a suitable program for them. It requires a lot of efforts to understand every single employee in your organization, but its results will surprise you!

3. Regularly monitor progress and evaluate process

After establishing a values-based recognition program, you need to monitor regularly and evaluate the results to make sure it works in right track. Any inappropriate practices should be correct timely.

How should organizations optimize this trend to achieve overall goals?

Organizations should integrate their core values into every session that employees involve in – from recruitment to retention to win the corporate objectives.

– In recruitment: Build strong corporate values to attract the best candidates

– In onboarding: Educate the core values of your company to make new hires feel connected and committed

– In engagement: Continuously reinforce your company’s culture and communicate core values to employees through daily behaviors

– In retention: Make sure your employees feel satisfied with their job and appreciated enough to keep their loyalty.

In conclusion, always keep in mind that employees are the most valuable asset of every organization to achieve the bottom line. Once you put them in central, they will return the best for you.

What could be the major HR trends that may emerge in 2018.

In the upcoming year HR has to engage itself as a Strategic Business Partner in the system. The tide is changing course and HR as a function is now being given its due place as a Business partner and not just as another money draining department, most view it as.
2018 will also witness greater emphasize on productivity. The last few years have seen HR leaders harp about and focus on productivity. We see a slow change at the horizon. Traditionally, recruiting fresh blood was the solution to most problems. With changing times and assignment based jobs, flexibility is the need of the hour. The jobs have become more flexible and employees are getting the opportunity to craft their own job, to make the best fit with their competence, needs and capabilities. Teams now are not built of people with specific fixed jobs, but of people who have specific skills that are needed to deliver the assignment. Employees with broad skill sets can use certain skills in Team 1 and another set of their skills in Team 2 in their next assignment.
Learning and development has also been evolving over the years. Traditional classroom training has been left behind and learning ‘Real time’ has come to the forefront. A lot of time and resources have been and are still being wasted on classroom training for groups of employees on very broad subjects, often not directed at immediate application, but for possible future use. 2018 should see a rise in real time learning. Going forward big chunks of material should be divided in more digestible small pieces (micro learning). Employees should have easy access to learning material when they need it (just in time). Knowledge and skills can be learnt in a playful manner (gamification) and learning solutions should be made more fun.
Headhunting was limited to HR racking their brains and sifting through resumes on career websites. The penetration of social media has made it easier getting in touch with candidates. Talent pools can now be identified simply by searching hashtags, by posting requirement on Facebook/ LinkedIn. Candidates can be engaged either in groups or individually depending on the platform.
To sum up, 2018’s focus should be on technology! Technologies to find people, connect people, engage people, enhance learning and even replace people! For years, technology has acted as a tool to help with day-to-day tasks, but the focus in 2018 will be ‘technology as a way of life in the workplace’

IMPLEMENTATION OF THE BELL CURVE

The Bell Curve and Forced Ranking are NOT appraisal systems. The Bell Curve is only a tool used by companies to justify their comparison of employees within the company and their budgetary constraints. Once the rating has been decided the appraisal is just a administrative procedure, since the bell curve has become one of the most used tool and an integral part of Appraisal system its generally termed along with the appraisal system.

It is NOT an appraisal tool because it does not have built-in performance standards and metrics to distinguish an Outstanding, Good, Average, or Poor performance.

I think the bell curve appraisal system is better known as the Forced ranking appraisal systems. It require managers to rank their employees from best to worst, apply the rankings to a bell curve and use the results to determine pay as well as who to fire. Actually I know what forced appraisal method is like…like in there are two extremes a good and a bad..and the manager has to rank his employees accordingly…say an honest employee will be ranked in the top 10% and likewise…

Personally I am completely against the implementation of Bell Curve appraisal system. Three major flaws I see in this system are:

  1. This system is implemented department wise instead of the entire employee database and hence there are chances that the worst in some departments are much better than the average in other departments but still they are forced to leave.
  2. When this system is implemented in a department where the performance has been very good and the company cant afford to fire the lower 10% the bonuses and the raise in salary is quite less compared to other departments and hence sooner or later the firm seems the top 20% leave because they are not happy with their respective packages.
  3. This system alongwith improving the top performers in your company would also attract hyper competitive nature among employees and hence resulting into a dysfunctional working environment in the same department.

    Now for the implementation:

    Its generally based on three levels of performances the top 20 is extraordinary the mid 70% is ordinary but the backbone of the company and the rest 10% are the guys who are worthless and cant be trained and hence are fired if the performance doesnt improve for three consecutive years.

    The appraisal system is done department wise and The respective line managers are supposed to rate employees into these three groups.

The candidate who is not able to come out of the lower 10% for two/three years is then fired.
Will have to agree that the bell curve with a few tweaks can be very fruitful.

Before the implementation of the Bell Curve Appraisal System, You have to ensure the following,

a) Use of objective parameters for the performance appraisal system.

b) Determine the reason for poor performance of the employee if there is any.

c) Let the employee take responsibility for improved and only offer your assistance if needed.

d) Document all the performance related discussions with the employee

Now the following came across to me during a discussion with a friend, she used to work for ABB and hence the practice followed by ABB is just awesome a smart solution to the bell curve appraisal system.
The main business strategy of ABB  is customer focus. It aims to achieve it through TQM, time-based management and supply management. ABB has four business segments in Pakistan comprising about 30 independent business areas. Each business area operates like an independent company with its own strategic plans and budgets. Teamwork is central to the achievement of ABB’s strategy. Traditionally, ABB’s performance appraisal system focused on individual performance and results, and its compensation system rewarded high performers. Although eminently logical, this system of appraisal and compensation discouraged teamwork, which was the prime requirement for a customer-focused strategy. ABB has changed its appraisal and compensation system to foster teamwork. There are nine aspects to the current system: –

Change of nomenclature: The present system is called the developmental appraisal, not performance appraisal. This emphasizes the role of appraisal in promoting individual learning and development.

Planning the job for the following year: This provides role clarity and builds a common understanding between the individual and the team leader.

Counseling for development: Counseling is an integral part of the appraisal system emphasizing openness and disclosure.

Team performance: The individual’s contribution to team performance is of major importance.

Process parameters: Process parameters with emphasis on quality, customer focus and systems form the core of the appraisal.

Training: The appraisal system is used to identify the training needs for individuals and teams.

Focus: The appraisal system has a single focus, namely development of individual and teams.

Client-centered: The developmental appraisal system is exclusively client-oriented. There is no complex web of procedures with perforated sheets and flow charts maintained by the human resource department. The forms remain with the team leaders and team members.

Label-free ratings: There is no overall rating with labels such as ‘outstanding’, ‘good’, and ‘average’.

ABB has also developed a system of compensation for its managers that promotes team effort. In ABB, a business area, which is roughly equivalent to a strategic business unit (SBU), is judged on certain performance parameters. Based on the performance of the business area, the team members in that particular business area receive a percentage of the basic pay and allowance as lump-sum payment. All members of the same grade receive exactly the same percentage. Performance parameters include both qualitative and quantitative indicators. Quantitative parameters include orders and profits. Qualitative indicators include factors such as on-time delivery. The company classifies individuals into three categories: –

Group A includes those who perform far below expectations with special counseling being provided to such individuals.

Group B consists of ideal performers with performance exceeding the expectations of the organization. They are given non-financial rewards in addition to flat equal increments.

Group C comprises individuals who perform strictly according to expectations. All of them receive exactly the same amount of bonus and increments.

To summarize Bell curve by itself is strict no according to my opinion but a few tweaks and this should be the best solution.

I hope the above clears all doubts on drawbacks and implementation of bell curve appraisal system.

 

 

Employee Recognition

The goal of employee recognition is to show appreciation for an employee’s achievement and to motivate employees to continue good performance and their commitment to the company.A good employee recognition program helps an organization retain key employees and keep job satisfaction at a high level.

What Employee Recognition Is…..

  • Acknowledgment of an employee’s achievement.
  • It may take the form of a monetary reward or a non monetary reward

Why Employee Recognition Is Important because……

  • Helps to attract and retain employees
  • Motivates employees to perform at higher levels
  • Increases employee productivity
  • Increases healthy employee competitiveness
  • Increases company revenues and profitability and improves quality of business  & services
  • Improves safety &Lowers stress
  • Reduces absenteeism & turnover costs

Types of Employee Recognition

  • Years of service
  • Attendance
  • Completion of certifications or degrees
  • Being voted employee of the month, week, year
  • Performance
  • Suggestion program ideas

Recognition Based on Performance

  • Go  beyond what is expected in their job
  • Suggest a new process or idea that saves time or effort or positively affects the department or team

Ways to Recognize Employees

  • Verbal, written or formal praise
  • Opportunities to attend conferences or training sessions
  • Monetary award or bonus pay
  • Recognition luncheon
  • A gift of company logo items or trophies.

The four essential questions in an Interview.

Having spent at least half an hour taking your candidate through the set of specific behavioral or competency related questions and you are satisfied with the responses, you should then ask the five essential questions that will prove invaluable to any hiring manager.
Whilst these specific questions don’t focus at all on a candidate’s past behavior or personal attributes, they will tell you (very quickly) just how serious the person sitting in front of you is about their job search and ultimately about working for your organization.
1: Why are you really sitting in front of me today?
The answer to this question will reveal whether your candidate is running away from something (eg a hostile working environment, bad manager, job they have grown to dislike etc), or whether they are running toward something (eg a better job, a new career direction, or a new challenge through a more senior position etc).
2: What are you ideally looking for in your next position?
This is where you basically ask your candidate to create a wish list for their next role. Get them to talk through it right there in front of you (and remember to write it all down). Ask them to think about everything from:
– What type of manager they want to work for;
– What hours they want to work;
– Whether they want any more flexible working arrangements
– Whether they expect any particular benefits (eg car allowance, parking, mobile phone reimbursement);
or what additional training they may be expecting etc.
Once you have a full understanding of what they’re looking for, you will know whether you are able to meet their wishes.You will also be able to come back to this list at the time you make them an offer and remind them of exactly what they told you they wanted. No last minute or unexpected demands.

3: What salary are you on now?
It’s an unfortunate fact but the majority of people will typically ‘stretch the truth’ slightly in response to this particular question. Candidates will
always inflate their current salary. Fortunately there is a way to prevent this.
a way to phrase the question might be, “If I were to ask for a payslip, what salary will it indicate you are currently on?”. Whilst it might cause the candidate to become fidgety for a minute, or to break eye contact for a second, you are more likely to get a straight answer.
4: How will your manager/organization react when you resign?
Again this might seem like bit of an odd question to ask the first time you meet a candidate, but it will tell you a lot.
If your candidate tells you that the manager would completely understand and respect their decision or perhaps even that they wouldn’t be at all surprised, then you’re OK.
But if the candidate responds by saying their manager will probably offer them more money, there is only one thing for you to do. Send them back to work, suggest they call a meeting with their current employer and to actually ask for a pay rise. If the request isn’t granted, tell them to then come back to you. After all, why should you waste your time going through the entire recruitment process with a great candidate who, when they resign, is offered more money and then turns your offer down? They’ll be happy but you’ll be back to square one.

Salary Negotiation tips for employer

Hiring a prospective employee usually goes through an arduous process of salary negotiations.  It is understandable, of course, that the candidate wants to receive his or her salary according to his experience and skills, and at the same time the candidate does not want to provide an impression that he or she is asking for too much.  These negotiations could either end up with the employer feeling excited to welcome the candidate or as if he lost a prospective employee who would contribute significantly to your company, or worse, accepting the new employee but ended up paying more than you can afford.

Salary negotiations can consume the employer’s mental and physical energy way beyond its importance because, by the time you reach the stage of making an offer, you have spent the time developing a pool of candidates and have interviewed them for weeks.  And after investing significant time and energy in wooing and getting to know your final choice candidate, more often than not they would counter your initial offer letter.

Although these tips to not intend to comprehensively detail how to conduct salary negotiations, but they ensure that your organization would conduct a successful salary negotiation.

  • Negotiation is not a battle between employer and employee

The essence of salary negotiations is that both parties should win.  If either the employer or the candidate feels they have capitulated—having paid more than the employer could afford or less than the employee could receive—both parties lose.

 

  • Identify the most recent salary and benefits your candidate received

There is a reason why other organizations ask for salary on their job applications, so that they would be able to match what the employee’s current employer is giving (and at the same time they would have an idea who they can afford).  You can either ask for the employee’s proof of salary, or you could also ask former employers during reference checking.

 

  • Know your limits in salary negotiations

Your salary offer should have a limit according to how much your current employees in similar positions receive, the economic climate and job searching market, as well as the profitability of your company.

Any other financial benefits can be included in the negotiation – Even if your salary is non-negotiable, superior candidates will negotiate with you in other areas that may be negotiable.  These include benefits,  tuition assistance, paid time off, a signing bonus, stock options, variable bonus pay, commissions, car allowance, paid cell phone, severance packages, and relocation expenses.

 

  • If you cannot afford the candidate, let it go

Even if you are convinced the final candidate has potential positive impact within your organization, you cannot accept him or her in your company if the candidate is asking for too much.  Most organizations have limit, and you will regret violating your limits if you accept an employee that you end up capitulating.

 

  • Indicate if your initial offer is not negotiable, or barely negotiable

Other employers usually provide their candidates with a “base salary,” which subtly suggests that the employee cannot negotiate that amount.  However, they also say how the base salary can increase in time (either according to a time period, or according to performance).

 

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