Hitesh Keeping Employees Motivated And Engaged

1,285 views

Published on

Published in: Business, Technology
0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
1,285
On SlideShare
0
From Embeds
0
Number of Embeds
13
Actions
Shares
0
Downloads
0
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide

Hitesh Keeping Employees Motivated And Engaged

  1. 1. Keeping Employees Motivated and Engaged in a slowdown
  2. 2. Slowdown has taken companies by surprise <ul><li>We are down from 4 years of 9% growth to 5% growth </li></ul><ul><li>From 20% attrition to 6% attrition </li></ul><ul><li>Financial system has gone into a complete downward spin </li></ul>
  3. 3. Slowdown has taken companies by surprise <ul><li>Lack of availability of capital </li></ul><ul><ul><li>New projects which companies ventured into may not get funded </li></ul></ul><ul><li>Many startups face closure </li></ul><ul><li>Marginal players in most businesses badly affected </li></ul><ul><li>Companies who kept bench or made advance offers stuck </li></ul>
  4. 4. Who is doing well and who is not ? <ul><li>Worst Affected Sectors </li></ul><ul><li>IT </li></ul><ul><li>Real Estate </li></ul><ul><li>Financial Services </li></ul><ul><li>Construction </li></ul><ul><li>Engineering </li></ul><ul><li>Media </li></ul><ul><li>BPO </li></ul><ul><li>Better off Sectors </li></ul><ul><li>FMCG </li></ul><ul><li>Healthcare </li></ul><ul><li>Education </li></ul><ul><li>Telecom </li></ul><ul><li>Insurance </li></ul>
  5. 5. Manpower Excesses in the boom years <ul><li>Relaxed Quality standards in hiring </li></ul><ul><li>High tolerance towards Non Performers </li></ul><ul><li>Massive salary increases </li></ul><ul><ul><li>Many people are currently overpaid </li></ul></ul><ul><li>Over promotions </li></ul><ul><ul><li>Organisation charts have put on many layers </li></ul></ul><ul><li>Poor Leadership in many areas </li></ul><ul><ul><li>Lack of availability of talent </li></ul></ul>Management is partly to blame
  6. 6. What does the slowdown mean for employees? <ul><li>Growth and profits under pressure </li></ul><ul><ul><li>Targets not being met </li></ul></ul><ul><li>Stock Prices fall </li></ul><ul><ul><li>ESOP less attractive </li></ul></ul><ul><li>Company affordability reduced </li></ul><ul><ul><li>Do more with less </li></ul></ul><ul><li>Difference in ability between performers and non performer </li></ul><ul><ul><li>More stark than ever </li></ul></ul><ul><li>Employee morale declines </li></ul><ul><ul><li>Many employees have less work </li></ul></ul><ul><ul><li>Even good people question own competence </li></ul></ul>
  7. 7. What does a slowdown mean for employees ? <ul><li>Pressure on companies to re-look at salaries </li></ul><ul><ul><li>Especially the ones who are overpaid </li></ul></ul><ul><li>Companies may relook its deployment of manpower </li></ul><ul><ul><li>To ensure that good people are in the right jobs </li></ul></ul><ul><li>Employees under pressure to adapt to an environment that they have never seen </li></ul><ul><ul><li>Especially those who are good performers </li></ul></ul>
  8. 8. HR dilemmas companies face…… <ul><li>How do we retain our good people ? </li></ul><ul><li>What do we do with our non performers – do we keep them or do we let them go ? </li></ul><ul><li>What do we do with people who are good but may not be required now, for at least a year or forever? </li></ul><ul><li>What do we do with people who are good but overpaid ? </li></ul><ul><li>What do we do with people who are good but in the wrong role in the company </li></ul>
  9. 9. HR dilemmas ….? <ul><li>Do we differentiate between businesses doing well and businesses which are not ? </li></ul><ul><li>What about organizational culture in times like this ? </li></ul><ul><li>What should be the role of senior management ? </li></ul><ul><li>Do we flatten our structure – improve the tooth to tail ratio ? </li></ul><ul><li>What do we do with ESOPs which are underwater? </li></ul>
  10. 10. What works for one need not work for the other………. <ul><li>Is it a fight for survival? </li></ul><ul><ul><ul><ul><li>OR </li></ul></ul></ul></ul><ul><li>Are you just carrying some extra staff but are still reasonably profitable ? </li></ul><ul><li>Fight For Survival </li></ul><ul><ul><li>You need surgery </li></ul></ul><ul><li>If you are still ok </li></ul><ul><ul><li>Do the right things slowly </li></ul></ul><ul><ul><li>Many of your competitors will self destruct </li></ul></ul>
  11. 11. Strategies for Managing People in a Slowdown <ul><li>Enhancing Productivity </li></ul><ul><li>Cutting Cost </li></ul><ul><li>Retaining Good People </li></ul><ul><ul><li>Letting the non Performers go </li></ul></ul>
  12. 12. Enhancing Productivity <ul><li>Identify key focus areas </li></ul><ul><li>Get stricter (specific & focused) on performance </li></ul><ul><li>Discriminate between performers and average staff by way of salary increases </li></ul><ul><li>Hire good leadership </li></ul><ul><li>Restructure to improve tooth to tail ratio </li></ul><ul><li>Transfer good people from non performing businesses into good businesses wherever possible </li></ul><ul><li>Don’t cut down on small expenses – like tea, coffee, staff welfare, AC </li></ul>
  13. 13. Cutting Costs <ul><li>Higher proportion of variable pay </li></ul><ul><ul><li>Gives people an opportunity to earn more if the economy improves </li></ul></ul><ul><li>Senior Management should lead by example </li></ul><ul><li>Optimize expenses </li></ul><ul><ul><li>Shut down offices </li></ul></ul><ul><ul><li>Minimise travel and out of town stay – use audio/video conferencing </li></ul></ul><ul><li>Take a call on non strategic & non performing businesses </li></ul><ul><ul><li>Downsize them if needed to to protect the main business </li></ul></ul>
  14. 14. Letting Non Performers go <ul><li>Resizing </li></ul><ul><ul><li>A tough decision – but the need of the time </li></ul></ul><ul><li>Non Performers pull down the performance of the company and hurt everyone </li></ul><ul><li>Ensure that you identify them properly and there is consensus </li></ul><ul><li>Do it as a part of a process – Put them on a PIP – give them a chance to improve </li></ul><ul><li>Be humane and transparent </li></ul>
  15. 15. Letting Non Performers Go <ul><li>Traumatic for both the people who lose their jobs and those who ask them to go </li></ul><ul><li>Could lead to other good people also leaving the company (its not the same anymore) </li></ul><ul><li>Do it only as a last resort </li></ul>
  16. 16. Letting Non Performers Go <ul><li>Explore options like leave without pay(sabbaticals), skill augmentation programs, reduced pay, severance packages </li></ul><ul><li>Tell them that you will take them back when things improve </li></ul><ul><li>Senior Management involvement essential – communicate well, be transparent, be compassionate, do it as the last resort </li></ul><ul><li>Don’t make this a regular feature – don’t cut people every week </li></ul>
  17. 17. Retaining good people <ul><li>You should not lose good people </li></ul><ul><ul><li>Can be self destructive </li></ul></ul><ul><li>Differentiate on salary increases </li></ul><ul><li>Empower and Involve them in decision making </li></ul><ul><li>Give them more responsibility </li></ul><ul><li>Give them better jobs </li></ul>
  18. 18. Retaining good people <ul><li>Be transparent, compassionate and fair </li></ul><ul><li>Communicate well – don’t send conflicting messages </li></ul><ul><li>Promise a review when things improve </li></ul><ul><li>Introduce long term reward programs like Retention Bonuses and ESOPs </li></ul>
  19. 19. Retaining Good People <ul><li>Take care of the insecurity factor </li></ul><ul><ul><li>Make them feel wanted </li></ul></ul><ul><ul><li>Communicate regularly </li></ul></ul><ul><li>Involve more people in decision making meetings so that they understand the situation better </li></ul><ul><li>Appreciate good work - Its almost Free! </li></ul>
  20. 20. Thank You Hitesh Oberoi, Director and COO, Infoedge Ltd (Naukri, Jeevansathi, 99acres, Shiksha, Brijj, Quadrangle, Allcheckdeals)

×