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Hitesh Keeping Employees Motivated And Engaged

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