As countries all over the world struggle to come out of the recession, the focus of attention has more than ever before shifted to the HR. The stress is not just to come out of the recession safely but to continue to excel in the fields of sales, customer service and technological innovation. The companies now have to retain talent and have to train, educate and mentor them to provide that extra punch in the days to come. In this scenario, how do some companies come on top of the “Best places to work for” list? Why do employees stick around in one company while in another, there is a high rate of attrition. The answers lie, as always, in the people and policies of the organization.
Here is what 20 years of experience of ‘Great Place to Work’ (www.greatplacetowork.in) say: High levels of trust between employees and managers are a common feature of all companies which feature high in their list consistently. They have thus come upon a “definition” of a great place to work: a place where people "trust the people they work for, have pride in what they do, and enjoy the people they work with". The worth of happiness in a company depends on three kinds of relationship as the company found out- between employees and management, between employees and their company or job, and interpersonal relationship in employees.
The first step towards a great HR policy is to create a recruitment and selection process in tandem with company policies and culture. The best companies in the world like Google, Microsoft, Infosys, lays a lot of stress on a strict entry tests, to take the best talent available. Best Employers like Titan Industries, Bharti and HDFC usually go for the top performers in business schools, or in the industry and then groom them to be top performers and give them an environment to take the company to the next level. GE has a separate program to identify top performers across universities, companies worldwide, and their own workforce, and then train them centrally to take on global issues.
To create good relationship between employees and management a workplace needs to have an open management system with open flow of information where knowledge is shared across the hierarchy. Google Inc has been consistently rated the best company to work for by their employers not only at their headquarters in California, but also here in India. The company owes its success to high level of trust among its employees, low politics and its culture of sharing resources, knowledge and wealth. The work environment in Google is not that of an office but of “dream-houses for these geeks to retire to when they want to create something innovative and state of the art.” Technology thrives on commitment, and Google recognizes commitment, by creating the environment where people can be creative, independent and totally “geeky”!
In fact, the best companies all share the open secrets of creating happy employees. The basis is to build a culture of trust and commitment, as Make My Trip, another success story, believes in. Not only do they align their HR policy to the overall business strategy of the company, they also increase employee commitment and capability by their performance management, potential assessment, competency enhancement, programmes as well as career planning. Building trust is very important, therefore there is complete transparency and fairness in rewards, promotions and hiring. Their performance incentives are part of Best HR practices across industries. Employees get ESOPs and can calculate their own bonuses, which are linked to performance. They also believe in creating a “family atmosphere” in the workplace to create friendly sociable workers. Offsites are common, birthdays and festivals are celebrated in-house. There is a feedback mechanism for all HR practices and communication is encouraged.
Infosys Technologies has been voted best employer for many a year in HR surveys. Though it is one of the biggest employers in India, the company retains its small-company feel and culture. Their selection process is bias free and tough equally for everyone. All employees go through regular training and chosen ones take on higher responsibility. The company was one of the first to offer ESOPs and they have performance linked compensation and reward structures, based on individual, team and company. They also make the workplace safe, by providing health facilities, play facilities, crèche services and on call doctors. Workplace safety and hygiene are the first step to building a happy workplace. Wipro too has laid great stress on this factor. Their Performance management, which includes evaluations and feed-back are regular. Many organizations lay a lot of stress on fair performance management systems with 360 degree appraisals and feedback mechanisms. This gives way to training programs to build competencies and also to highlighting best performers and good reward and recognition facilities. Adi Godrej, chairman of the Rs 7500 crore Godrej group leads the company in stating that employees are his company’s greatest asset, and not brands. He states that his employees have strong performance linked bonus system and are provided stock options at all levels of management.
LG believes in sharing wealth not just within the company but also without, through their CSR activities. To ensure a “culture fit” employees take psychometric tests, and eligible employees are then groomed and trained to not just attain productivity but also encourage innovative problem solving. They have “Pizza Meetings” where communication is encouraged in departments. HR is very active and regularly meet up with employees, and there are help desks to address professional issues. LG also has an internal Energy, Environment, Safety and Health Department, yoga, games and singing clubs, and regular training programmes like the “Joyful Working” program to alleviate stress and reduce stagnation. This has ensured LG to be one of the highest recruiters as well as high productivity in the last years. In fact open house discussions and feedback sessions are a part of many top organizations.
Hospitality and retail are two of the primary industries which need very high customer- employee interaction and the success of companies depend highly on customer satisfaction. In this setting, employee satisfaction is paramount. Marriott makes managers responsible for the satisfaction of subordinates. In training sessions the mentor is called a “buddy”, a precursor of friendly work environment in the organization. “Work- Life Balance” is stressed and there is an employee grievance redressal system in place. The results are all there to see. In 2003 90% of employees surveyed, expressed “great pride” in working for the hotel chain. Taj Group of hotels includes all employees, including contingency workers in their programs. Year 2008-2009 was celebrated as the “Year of the Associate” to engage employees and create a workforce with pride in their employer, enhance morale and take bonding with organization to an all time high.
“Happy Families are all alike, unhappy families are unhappy in their own way” begins Leo Tolstoy in Anna Karenina. Companies are much the same. The benchmarks are simple and are for all to use. A combination of these few HR best practices can make any organization a “happy” place to work for and create productive, committed and loyal employees.
This article has been published in the People and Management magazine from Spearhead Intersearch.