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Brainstorming: At Dr Reddy's
Labs |
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Food for thought: At MindTree
canteen |
How
do you break down a complex organisation into something measurable?
With great thought. Three years ago when we changed our survey
partner, we also used the opportunity to add greater rigour to
our Best Companies to Work for in India survey. After much deliberation,
BT and knowledge partner Mercer Human Resource Consulting came
up with a methodology built around four quadrants (for a note
on the methodology itself, see page 78). These relate to HR metrics,
employee satisfaction, perceptions of key stakeholders, and HR
processes and policies.
There were good reasons why, we felt, an
employer had to be studied on multiple parameters rather than
an isolated metric like employee satisfaction. Yes, happy employees
are a good indicator of workplace reality, but they can never
be the only measure. Eventually, all organisations aspire to create
institutions that can outlive their people. And institutions are
built on the back of solid systems and processes. Our HR metrics,
for instance, consider quantitative indicators of people management.
We start by looking at the number of employees (which indicates
the complexity involved in people management; in fact, to participate
in the survey, a company must have at least 200 white-collar employees),
attrition rates, average career tenure, promotion rate (that is,
total number of promotions as a percentage of the overall headcount),
average time for promotion, and go up to things like HR budget
and the actual spend as a percentage of total revenues, training
budget and spend, and gender ratio. This quadrant carries a weightage
of 15 per cent.
Our next quadrant is the most important one;
it's about employee perception. The proof of the pudding, they
say, is in the eating. So, in our survey, we seek feedback from
randomly selected employees on several key issues. These are:
leadership, HR processes, transparency, alignment with organisational
direction, quality of work life, employee development, and the
HR function in the organisation. Given that it has the biggest
weightage of 35 per cent, it can make or break the fortunes of
our survey participants. For example, this year, Bangalore-based
it consulting firm, MindTree, has jumped to #2 from the bottom
of the top 10 list last year. As our story on the company reveals,
MindTree's relentless focus on fair play, integrity and communication
leads a lot of its employees to believe that they work at the
right place. That said, the findings from the employee feedback
are startling. It seems few employees are happy with their compensation
or the role their HR managers play in career counselling. As our
columnist from Mercer, R. Sankar, says (see Managing Employee
Expectations starting page 86), there's a whole lot that companies
are yet to do in people management. For instance, at most Indian
companies, line managers haven't yet been given-or taken, if you
will-the responsibility of managing the careers of their team
members.
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Meeting of minds: At Satyam
campus |
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Tech-savvy employees: At
HSBC India |
The third quadrant evaluates the robustness
of HR processes and policies. What we look for in this quadrant
is the maturity of a company's people processes and policies compared
to the best in class practices across the world. There are five
broad issues that we consider within this quadrant: HR philosophy
and policies; recruitment, selection and induction; performance
and career management; training and development; rewards and recognition;
and culture and work-life balance. Each of these measures is designed
to answer specific questions. Is the HR policy clearly articulated
and supported by well-designed processes? How does a company manage
manpower planning? How are performance appraisals done? Is there
scope for a 360-degree feedback? How are careers planned and managed?
And what sort of a compensation system does the company follow?
These are becoming increasingly important issues for companies
across sectors (anyone who thinks that only it can afford to,
or should, do this is gravely mistaken.) Small wonder, this quadrant
carries the second-highest weightage of 30 per cent.
Finally, we ask for the opinions of four
important stakeholders in the job market: A company's new recruits,
ex-employees, campuses, and search firms. How does this help?
For one, it serves as some sort of a reality check; after all,
we are not talking to employees who are already steeped in the
company culture, but either aspirants or associates who provide
a window into how a company is popularly perceived. This quadrant
has a weightage of 20 per cent.
Our final scores and rankings, consider the
overall scores of companies. But a smart HR manager would do well
to look at her company's rank on each of the four quadrants. It
will immediately identify areas where the organisation needs to
pull up its socks. For example, our best company to work for this
year, Infosys, isn't #1 in internal employee perception, but a
distant #8 (are expectations of Infoscions greater than those
of techies elsewhere?). Satyam, on the other hand, tops the list
on this quadrant. Understandably, it's not easy for a company
to keep all its employees happy all the time. But in a market
where the war for talent only promises to get more bruising, employers
will need to stay ahead of their employees' needs and expectations-even
if you are the #1 employer.
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