Employee Motivation: Top 5 Myths

While motivating employees is a key factor in an economic recovery, many companies are failing to keep their workers fully engaged in their jobs because they share some common myths and beliefs, according to Suzanne Bates, author of "Motivate Like a CEO: Communicate Your Strategic Vision and Inspire People to Act!" (McGraw-Hill 2009).

Employers must re-examine their beliefs about employee engagement if they hope to accelerate their business recovery and retain their top talent, said Bates, president and CEO of Bates Communications (http://www.bates-communications.com/).

In a typical workplace, only 29 percent of employees are actively motivated and engaged in their jobs, while 71 percent are unmotivated and disengaged - either not engaged at all (54 percent) or are actively disengaged (17 percent) - according to the Gallup Management Journal’s Employee Engagement Index.

"While there has been a slight uptick in employee motivation in recent surveys, this may be only temporary because it's based on survival. As the pendulum swings back, employers should watch out - because employees will look at their jobs and their companies differently," said Bates.

"The Top 5 Myths about Motivating Employees" are at work even during an economic boom. However, in a serious recession, everything changes, and employers' misperceptions can be damaging. "If employers don't re-examine their human resource practices and beliefs about motivation," said Bates, "they risk damaging morale, losing top talent, and lengthening their recovery time."

The Top 5 myths about motivating employees, according to Bates and "Motivate Like a CEO," are:

Myth #1: Money is the number one way to motivate employees. "Salaries and bonuses have been the staple of motivation. Most companies relied primarily, even completely, on monetary rewards," said Bates. "Money is only one of many factors in motivation. Yet companies have become lazy about motivating people instead of giving them what they really crave, which is recognition, praise, and the opportunity to learn."

Myth #2: If you want to motivate people, don’t let them in on the bad news. "This is a particularly damaging myth. Bad news always gets out to employees. They hate it when you hide bad news; they consider themselves partners in the company, and they long for a chance to contribute and make a difference, especially in tough times," said Bates. "The surest way to motivate people is to empower them even with terrible news, so they can come to terms with reality, think their way through the crisis, and contribute to creative solutions going forward," said Bates.

Myth #3: Most employees know what motivates them. "Many people are searching for a larger purpose, and they are not finding it in their work," said Bates. "In challenging times, employers can become a powerful source of motivation and pride among talented people. In a downturn, leaders must talk to employees and help them discover who they are and what motivates them. Spend time with them; ask them why they enjoy the work, what they enjoy most, how they want to contribute, and where they see themselves in the future," said Bates.

Myth #4: You simply cannot motivate everyone. "This was true in boom times, when organizations were bloated and some people you hired were marginal. Those days are over," said Bates. "Now that companies have downsized and are arguably leaner and meaner with the best talent, this is a damaging assumption. It is a leader’s responsibility to motivate employees. It’s time to stop blaming employees, and start looking to leaders to ignite the spark," said Bates.

Myth #5: People are just grateful to have a job, and this attitude will survive the downturn. "Top talent will always have a place to go, and while they may have had less mobility during the recession, your competitors are already looking around to see who is unhappy and ready to leave," said Bates. "Employers who keep believing their people are just grateful to have a job will be blindsided when their top talent walks out the door because they don’t have leaders who are engaging them, praising them, recognizing them, and giving them opportunities to grow."

Ref: Suzanne Bates

People Management

People Management

Cut, Yet Keep!Convincing employees to stay despite a bonus cut… ..

Key learnings:

• Prudence has it that even the most stable of organisations take preventive measures to face recession
• Not paying bonus is one such measure

With recession spreading to more and more countries, even the most stable of organisations will have to start taking anticipatory counter-measures. Of course, most of these measures will be in the form of monetary cuts since cost-cutting is taken as a synonym for survival! But if employees see that things are still OK with their company, and that recession will not hit their industry badly, the one thing that they will not graciously accept is being asked to forgo monetary rewards. In other words, they will still expect the annual or festival bonus.

During an economic downturn, smart organisations would rather not pay bonuses than cut training and recruiting budgets. “Once the economy gets back on track, the bonuses can be dished out. But reviving the functions of recruiting and training after a slump is not easy. Therefore, it is in the interest of every organisation to keep these functions going,” says an expert.

This stand may appear logical to business heads, but unfortunately employees suffer from a short-term vision. So how can organisations, which haven’t been hit hard by recession, convince employees that some counter-measures are imperative regardless of how they are doing during a downturn? This week’s mailer attempts to suggest a strategy on that.

Target talent
Not receiving the annual is the first sign of eventual doom, especially in small enterprises. This assumption, even in the worst of economic times can prompt employees to start looking out. One way to curb this is to form a nexus with top performers and employees with large influence circles, and share with them the real reason for holding back on bonus. Convincing this lot that the bonus cut is a temporary and preventive measure should help convey the message to the bottom-line in a more persuasive manner. Employees are likely to say, “So if they can go without the bonus for all they have done, so can we.” They may also think that if top performers are taking a bonus cut and not leaving, then things outside maybe pretty bad!

Being taken into confidence by the management makes the selected few feel special and they do a good job as spokespersons.

Do not compare
The typical approach to sharing the bad news is informing employees how badly the other industries have been hit, while they are still managing to sail. Then employees will ask, “If we are still posting profits then why penalise us for what others are experiencing?” From an employee’s perspective, if the annual bonus is a promised part of his package, then he should be receiving it whenever the organisation records profits.

Rhetorical speeches on how what is happening to others can also happen to us fall on deaf ears. It is not because the employees are unconcerned, only that they fail to appreciate the long-term measures. Therefore, an effective way to get them to see a bonus-cut as a preventive and temporary measure is to communicate the doom side of recession regularly and subtlety.

Newsletters that carry case studies of enterprises being hit by recession, managers referring to how a friend’s company had to layoff employees, C-level executives commenting on the recession in blogs and fewer organisation-sponsored social events should convey the message that all may not be well below the surface. While these efforts should prepare employees not to be shocked when a bonus cut is announced, the green balance sheet should keep them indoors!

Well-structured
The current volatility of the economy should serve as a warning to organisations structuring their bonus packages. In addition to promising realistic bonuses, a prudent move is to share bonuses on a biannual or quarterly basis. Employees who do not receive their Diwali bonus will still look forward to the quarter. Waiting an entire year in the hope of bonus is too long a wait for an employee, especially when the bonus is skipped.

Denying employees their bonus while the going is good is not easy. But with the economy ‘misbehaving’, even the best of businesses have to tread cautiously, and cutting bonuses is a step in that direction.

Ref: TheManageMentor

A Culture of Learning: Turning Values Into Actions

Creating a culture of learning begins with emphasizing the value of workforce development. Sustaining it entails collaboration among learners, as well as alignment of programs to key organizational goals.

Learning cultures thrive in organizations that consistently reinforce the value of learning. These organizations encourage information- seekers, facilitate educational experiences and consistently demonstrate a commitment to learning by defining the culture in actions, not words.

Learning is not a one-time event. Effective and meaningful corporate cultures understand learning is an essential part of the fabric of the company, woven into all roles, functions, divisions and regions of the organization. Placing value on learning and creating an open environment creates an enduring organization and provides the ultimate source of sustainability.

Too often, education on corporate values and principles is addressed in silos. Corporate attitudes and behaviors are heavily influenced by an organization's culture, and the culture is shaped by the organization mission, core values and traditions. In a healthy learning culture, education is visible in all aspects of the business - so learning penetrates the entire organization to foster a culture of interactivity and engagement. In the case of a company's ethics and compliance education, a company's values come to life in actions that provide competitive advantage to the organization.

This holistic approach to learning - including the company's values, ethical decision making and business risks - is necessary in creating a learning culture. Yet, too often, education is applied to meet compliance standards or the minimums of the law and not necessarily designed to foster a values-based culture.

Evolving Into a Values-Based Learning Culture

Global businesses are faced with a number of new and more complex challenges than ever before regarding how people connect, collaborate and work cohesively and productively. Trend data from LRN's "2008 Ethics and Compliance Risk Management Practices Report," which surveyed more than 420 global companies, shows that one-quarter of organizations have a desire to engage employees in learning, but are challenged to put their corporate values and integrity into action.

When an organization seeks to transform its corporate culture through values-based learning, it is best to initiate the tone from the top and ask executives to define the overall culture to determine whether they consider it to be a learning culture. This assessment should touch a representative sample of organizational stakeholders, in addition to the leadership team - which may include customers, shareholders, suppliers, as well as employees.

Next, a thorough assessment of current programs assists in evaluating the attitudes and perceptions of the organization's learning culture. This assessment should reach employees across roles, functions and geographies to gather a balanced perspective of their educational experiences. The results should be compared to highlight any key commonalities that are important to maintain. However, it also is important to identify any discrepancies in perceptions of the overall culture, as well as the educational programs, to create an action plan that moves the company toward a truly aligned learning culture.

Shifting attitudes and transforming behavior do not happen overnight, but leveraging multiple learning channels within an organization is an excellent avenue to engage the workforce through awareness building and activities that can slowly shift the tide. The focus of any initiative cannot begin and end with awareness, but should repeat consistent bits of information, facilitate forums for informal learning and create a sandbox for learners to test and socialize information, shift attitudes and, ultimately, increase knowledge retention. This type of collaborative learning takes education from the individual development approach and creates a connected environment that builds the foundation of a learning culture.

The work of Judith Harris, author of The Nurture Assumption, challenges the whole way we look at teaching. Her work showed that, historically, the perspective on teaching overestimates the influence of parents and teachers, and underestimates the role of peer pressure. There are some real and practical steps to enhance learning by working with peers in team environments.

As companies work to create a more engaging educational program, they should not lose sight of how best to educate their workforces on mission-critical information in meaningful and sustainable ways. Organizations need to avoid implementing learning initiatives as a one-way communication, risking information overload. Pushing out content onto a corporate intranet, in the hopes that learners read and absorb the information, satisfies a "check the box" approach to education but does not represent a culture of learning.

For example, if an organization is launching a new environmental, health and safety policy, posting a set of compliance rules communicates to the enterprise that leadership is taking a passive approach to education, whereas some organizations take an additional step, requiring their workforces to electronically certify that they have read, understand and agree to abide by the policy. This sends a message that leadership deems these policies critical to the business.

Yet, posting a policy and successfully obtaining certification is only the first step to raise awareness. Where most organizations assume their work is done, a true learning culture believes the education has just begun. The next step is to ensure the workforce understands how to apply the policy in real-life situations it faces in daily work life. We know that recall is enhanced by learning in the context in which one is expected to perform. Yet, most teaching is done in alien environments such as classrooms, training centers or in bland online formats. So create an ideal blended approach that incorporates awareness building, knowledge building and skill building through peer interactions.

Enabling the workforce to translate rules into actions empower the business, mitigates risk and builds a cohesive corporate culture that ideally becomes a self-governing one. Once the awareness around a topic is achieved, it is important to foster a rich learning culture in order to educate, not just inform. This can be achieved by designing a suite of learning experiences that trigger the learner's personal relevance in the equation of the compliance topic.

Learning experiences can take on many shapes and forms, such as interactive modules that enhance the learning experience - to help the learner connect the dots from policy awareness to application. As noted by the Peer Research Laboratory at the Graduate School of the City University of New York, adults retain 10 percent of what is read, 20 percent of what is heard and 80 percent of what is experienced, so it is important to consider experiential learning, which can be facilitated through a variety of learning tools such as live workshops, virtual worlds or interactive gaming. These are all extremely effective ways to turn awareness into knowledge. In a global environment, these learning experiences should be localized to align with regional guidelines.

After awareness building, a guided application of the policies can empower learners to see their ownership in the experience and facilitate greater understanding and relevance. This results in a more compelling and meaningful learning experience and sends a message about the value the organization places on knowledge building. From William James and John Dewey through to David Kolb and Roger Schank, there has been a torrent of theory showing that we learn more by doing; yet, much teaching and training is locked into theoretical knowledge and not a skills-based model. There is hardly a training subject that would not benefit from a boost in experiential learning.

Learner Expertise and Knowledge Sharing

Global audiences today thrive in forums of personalized learning and creative expression. They are self-authoring content and emerging as amateur filmmakers and photographers. Innovations to connect and build knowledge have arrived through collaborative tools such as blogs, wikis, photo streams and machinima clips (animated movies created with gaming technology).

High-impact learning cultures recognize the value in user-generated content and embrace this next generation of tools. Perhaps the easiest and simplest piece of learning theory to put into practice is chunking, which means being sensitive to the limitation of working memory.

Less is more in learning, and it is important to distill information for the adult learner, rather than enhancing, elaborating and creating distracting noise. Additionally, a lack of understanding about how memory works leads to a lack of preparation of material in terms of size of content, order and engagement, which leads to weak encoding, a lack of deep processing and, ultimately, poor retention and recall. In creating a learning culture, it is essential to engage and educate the workforce often with small interactions and incorporate peer and direct manager discussions into the program.

As the workforce continues to grow through globalization, we must remember the value of relationships and the connection between people as an essential element to consider throughout the enterprise. The fabric of any organization's culture is built upon relationships that evolve over time through communication and connections. In a global culture, the core is strengthened by fostering a learning environment that supports relationship building through activities, such as peer collaboration, or particular platforms that allow colleagues to have a dialogue around successes and failures.

Tomorrow's Leaders

Preserving a learning culture requires keeping the learner population at the forefront of the company's strategy. When there are marketplace changes or competitive challenges, it is critical that an organization's learning environment is flexible and prepared to augment its program to support the business.

Today, organizations are challenged to maximize operational performance while increasing retention and driving workforce productivity. Sustained learning cultures build strategies and processes that give them visibility into how talent allocation best aligns with organizational goals and needs. This includes alignment on the cultures, values and mission of organizations. Mature learning organizations recognize this and focus on talent-driven initiatives through performance management processes that integrate values into career development and succession planning.

Taking a strategic approach to succession planning is a powerful catalyst for organizational transformation, growth and development, and ultimately drives cultural sustainability. Developing the skills and talents of the next generation of leaders and transferring institutional knowledge into practical business applications will contribute to ongoing business success and a sustainable advantage.

Ref: Marsha Ershaghi

Four Key Questions Candidates Should Ask Potential Employers

Employer-employee compatibility must be a two-way street for an appointment to be successful over the long-term. To gauge compatibility, candidates should ask potential employers four critical questions during a selection process.

A significantly shrinking talent pool worldwide means that competition is often stiff for organizations trying to identify and retain peak performers. Organizations often invest in testing and assessment programs to ensure that new hires and internal promotions have the right "fit" with the company culture. However, candidates do not always think about whether a company culture is compatible with their own values and professional needs. Employer-employee compatibility must be a two-way street for an appointment to be successful over the long term.

As such, during the selection process candidates should ask potential employers, managers, and peers the following four critical questions:

1. How does this organization listen to employee feedback?Unfortunately many organizations treat employees as nothing more than numbers -- and subservient numbers at that. Consequently, the answer to this question will reveal whether the organization values the wisdom and contributions of its talent pool, engages the employees, and/or instills a sense of company ownership.

2. How does your employee performance evaluation process work?It may surprise you to learn that many companies do not have a `systematic employee appraisal process in place. Therefore, the answer to this question will reveal whether the organization is structured and consistent in its performance expectations. By understanding how your work will be appraised helps to identify clear expectations, which directly feeds the notion of job security, which is a crucial factor to all employees.

3. What opportunities are there for development?Human resource is a concept that does not always have a succinct definition of renewable. By asking this question you are delving into the culture to understand if employees are viewed as investments or merely as replaceable resources. The answer to this question will help you determine if this company will provide you with the necessary tools to progress along your desired career path.

4. How does this organization reward talent?Believe it or not, some companies reward employees who simply maintain the status quo and penalize employees who show initiative and talent. For example, we know of an episode whereby an employee took much time to provide unsolicited but constructive feedback on a piece of marketing material that was full of factual and grammatical errors. Instead of appreciating the employee's efforts in trying to spare the company considerable embarrassment and potential business, the organization largely reacted defensively and stopped including this employee in key interactions. Therefore, this is a potentially challenging question to an interviewer who is also a manager at the hiring company. You will also be able to ascertain how prevalent recognition is within the organization's culture, for example does recognition occur on a weekly, monthly or annual basis. The answer will reveal whether the organization is organized and committed about employee retention and professional development, as well as how it goes about it.

It is also important to note a fifth question for possible consideration: Can employees be themselves at this organization? Sometimes organizations demand that employees conform to management's skewed - or even downright counterproductive - definition of an "ideal employee." With this in mind, the answer to this pointed question will help to reveal management's expectations for employee behavior - that is, whether employees are encouraged to act as company "drones" versus act as individuals with unique personalities and perspectives to be shared and strategically leveraged.

Again, issues with skill set and lack of fit with the company culture are among the top reasons organizations disqualify candidates. Likewise, lack of recognition, advancement and fit with a candidate's value system are among the top reasons why candidates disqualify employers. For this reason, we encourage candidates to conduct due diligence on companies just like employers do with applicants during the recruitment phase.Come to think of it, all organizations should contemplate the four questions above if increasing morale, productivity and profitability are top priorities. A shrinking talent pool means that the onus is now often on companies to convince talented individuals why their time, devotion and energies should be invested in their organization versus their competitors.

Ref: Jim Houran and Whitney Harper

Corporate Peter Pan - Recruitment & Retention

Most times recruiting managers are battling self-created problems like an ill-fitted recruit.......

Internal talent movement and succession planning are surely better recruiting options considering the cost and fit factor. Internally placed employees are more likely to fit better as compared to an external recruit and therefore the time taken to get to work would be considerably less. Despite the advantages, experts say that these recruiting options may fail to deliver if measures to ascertain their workability are not adhered to.

One size fits all

The beliefs that a star salesman would make an excellent manager and a finance wizard would be an effective finance head have no takers now. Earlier people got carried away by past performances and based promotions on the performance of an individual in a particular job. However , the tales of failed leadership and managerial feat are famous when a junior executive was promoted to the managerial level only on the basis of his performance in his previous job. Most times in such cases the appraiser fails to take into account the difference in job profiles of the two jobs and therefore makes his decision with a short-sighted perspective. This logic has failed enough times to let managers know that the only time a person has performed equally well in two jobs is when the job profiles of the two jobs and the competency and skill level required to execute it are the same. It is very rare to see the same performance output from a worker who gets promoted to the next level without additional inputs in the form of training.

This belief is echoed in the Peter Principle, stated by Dr.Lawrence Peter. According to this principle, a person would continue to rise in the organisational hierarchy unless he reaches a natural level of incompetence. The principle clearly states that every time a person gets promoted to a job that is one step higher in hierarchy, the individual will in all probability fail to deliver the same level of performance as he did in his previous role. The relevance of Peter Principle becomes obvious every time a manger makes a wrong decision and promotes his "go-getter" to a position that does not need a "go-getter" but needs somebody who can manage a bunch of "go-getters"! Thus, with Peter Principle at work every time, leaders and managers need to craft their decisions carefully.

Intuition and bias

Another pitfall in the process of right recruiting is intuition and its evil twin bias. These factors together can play havoc with the science behind recruiting and result in decisions that may be far from logic. Recruiting managers justify this by saying that it is humanly impossible to gauge every little nuance of human behaviour and make inference on its basis. Hence, in such times it is the intuitive powers that come to rescue and help them make decisions. While it is not completely wrong to use intuition in the process of decision- making , it certainly is unfair to make decisions only n the basis of intuition. Similarly, we all have certain mindsets and beliefs (halo/horn effect). We associate a smart looking candidate with professionalism, skill and panache. However, this may not always be true. In fact many times looks can be sadly deceptive and can disappoint beyond reconciliation.

BesIdes the halo and horn effect (the practice of making a decision on the basis of a single good/bad incident), experts believe that casualness in the interview process too can lead to bad decision- making. A study on the conduct of recruiting managers in the interview process revealed that , many times the decisions tend to be based on insignificant aspects. These include the way the candidate talks, his family background , his interests and other unrelated attributes. While these attribute are worth learning, they certainly do not make an impressive decision -making pre-requisite. Hence, recruiting managers should get more professional and focus more on job-specific competencies and skills if they want their "peg" to fit in well.

The funnel effect

As a guide to scale skills and competencies needed for different jobs in different hierarchical levels , experts recommend the "funnel effect". The funnel effect underscores the changing skills and competency levels as one rises up the hierarchy . The rise is depicted by an inverted funnel , that also represents the fact that as one climbs up the hierarchy the skills and competencies get more specific .

Recruiting is a scientific process. Hence taking a mundane approach to it can ruin the entire exercise and result in some very damaging recruiting decisions. When recruiting managers sit across the interview table they have to be aware and alert of the pitfalls in recruiting and use their providence to overcome them.

Ref: TheManageMentor

Opportunity in adversity

Staying afloat
In a time when most are feeling the tremors of the global financial meltdown, there are a handful of Indian sectors that are still staying afloat. “If you look at sectors like insurance, healthcare, engineering, you will notice that they are still growing in volumes and value,” notes Ajay Soni, business leader - talent and organisation consulting, Hewitt.

What perhaps is keeping sectors like insurance afloat is the consumer mindset and attitudes. “Unlike developed economies like the USA, savings is in our DNA. In tough times we save even more for the future,” explains N.S. Kannan, executive director, ICICI Prudential Life Insurance.
Industry experts are optimistic and are expecting the private life insurance industry to grow at a 30 per cent rate by FY ’09. “Since core of life insurance is long term savings and protection, these times with sensex crashing will not affect investors’ decisions,” Kannan reasons. “Customer focuses on long term objective and invests over a time period,” he adds. ICICI Prudential has reportedly witnessed 31 per cent growth in its new businesses and 90 per cent growth through renewal premium business in the last six months. “We’ve expanded phenomenally in the last 18-24 months and our bulk expansion has been in the last 6-8 months,” says Kannan.

In fact, from a branch network of 580 offices in FY’07, I-Pru now has 2,055 branches across the country. “We continue to recruit managers and advisory manpower for these new branches that we’ve set up,” Kannan adds.

Sectors galore
Insurance sector is playing an interesting role in the current downmarket scenario. The life insurance industry has pumped in a huge amount in the equity markets. “Firms like ours and other life insurers have been net buyers even in such volatile times," informs Kannan.

Then, there’s healthcare which is also reportedly doing better than most other sectors. “The global financial turmoil has not brought about any major upheavals in the biotech arena,” says Chirag Mehta, head, strategic planning and development, Intas Biopharmaceuticals. Intas Biopharmaceuticals has seen a 100 per cent growth in the FY '07-'08 and is expecting the same for the current fiscal year. “We are on track to achieve this. Our performance this year and in the remaining quarters would be in line with our expectations,” Mehta points out. “We do not see any major business plan change for the near future,” he adds.

This perhaps also implies no major change in the hiring strategy. “We have added over 15 per cent to our manpower base during the last quarter and the trend for the subsequent quarter would remain unchanged,” confirms Dr. Kashmira Pagdiwalla, director, HR operations, Intas Biopharmaceuticals. Elaborating on the areas of healthcare where major hiring is happening, Dr. Pagdiwalla says, “The talent need is growing in the areas of research, manufacturing, marketing and corporate roles.” Of course, these are sectors that aren’t connected to the meltdown. However, even the services sector which has been adversely hit by the recession has pockets of growth. “In the services sector, Telecom is adding to the customer base and reporting continual growth,” Soni points out. One such example is Airtel which has grown at a 30 per cent rate from the last quarter.The way ahead

Soni, like other industry watchers, believes that the way forward is to set the house in order and use this time to create a strong DNA of managing organisation. “This time offers an option of looking at long-term and not just quarterly performances,” asserts Soni. “Forward looking organisations would build themselves for the long term,” he adds.

To put it simply, it’s an opportunity for managers to reflect on their business strategies and plan for contingencies.

Ref: Times Ascent

The New Realities of Talent Development

Knowledge has become very much like the technology products we rely on: once counted on to retain value for five or more years, it now becomes out of date in less than two. What’s worse, the rate at which knowledge becomes obsolete is likely to increase over the coming years. More employees are gaining access to massive, computer-aided knowledge bases. Meanwhile, globalization and offshore outsourcing practices are diversifying our employee population. What does all this mean for the development function and everyone involved? Current processes and programs must be redesigned to account for rapid obsolescence.

Organizations must develop processes to learn faster, share ideas more quickly, and increase the speed at which individuals update their capabilities. This task is made even more daunting by the environment created by downsizing, mergers, and economic pressures. No one has time to learn, and development budgets have been cut to the bone.

Are training and development obsolete?
Many experts now agree that the corporate training department as we know it is fast becoming obsolete. For too long organizations have accepted putting together a catalog of classes, providing facilitators, and implementing every fad from emotional intelligence to exercises in the woods as the equivalent of developing individuals and producing business results. What senior executives want now is a radical new approach. They want to see a direct connection between development activities and increased workforce productivity. They don’t want training or even development. What they want are results that:

• Increase the capabilities of the workforce
• Boost individual output or productivity
• Improve the adoption rate of best practices
• Enhance innovation and creativity in the workforce

In short, senior executives want the development function to radically change into one that increases productivity and delivers business results.

Learning Organizations

The world of business is changing more rapidly now than ever before. With a never-ending stream of evolving technology, expanding global markets, and cutthroat competition tactics, no organization can afford to rest on its laurels.

Organizations aiming for success must maintain a world-class workforce. While it has always been accepted that knowledge and skills gradually become obsolete, we know now that they become obsolete in a matter of months, not years. The new reality facing organizations is this: continuous learning and skill development are no longer options, but necessities. For organizations to become world-class, talent development must become a cornerstone of business. Senior executives have begun to realize the importance of building a “learning organization,” in which every employee, manager, and process continuously improves. Unfortunately, the sheer size, complexity, and speed of change in the global economy makes this goal difficult to attain. The objective is further complicated by a demographic shift in the composition of the workforce, one that many are calling an impending crisis.

As members of the baby boom generation approach retirement age and exit the workforce, they are leaving behind a much smaller, younger, and more diverse population. These subsequent generations come to the workplace with different ideals, needs, and expectations regarding development opportunities. While many organizations have tried, few have succeeded in transforming themselves into a learning organization. Most training and development professionals realize that competitive advantage is at stake, but lack the business knowledge and support needed to create a centralized development organization. It suggests that those involved with developing talent must rethink the current approach, and it offers dramatic alternatives to the status quo. It also challenges the idea that development activities must be centralized in order to be successful, and recommends shifting many development activities directly to the line manager and the employee.

While it may be provocative, traditional approaches to training and development cannot be effective in widely dispersed, lean, and rapidly changing organizations. Everyone is overworked and no one has any time for traditional development approaches and methods. Organizations need simpler management-driven approaches and tools that are designed to make continuous learning and development an integral part of the process.

India Inc.- Do we have the right leadership?

As India Inc is growing, the need for organizations to put the right leaders in place is also increasing. Shortage of top talent coupled with increase in demand for top professionals have pushed companies to take a dual approach: hiring experienced Expatriates and developing in-house talent.

Examples of such changing trends are plenty specially in Retail, Aviation, IT & telecom sectors. A recent research shows India Inc needs 1000 CEO’s across sectors. The ever increasing need for good professionals has led companies to provide learning and development opportunities to talented executives so as to build a pipeline of future leaders. Companies are also putting their middle management cadre on fast growth track and arming them with overseas experience to maintain a healthy pipeline.

Talent acquisition & talent development are not new to India. Citibank, Oberoi, HUL have been talent warehouse for long. However India Inc needs to focus on leadership development as its takes off in its journey of exponential growth globally. The aim is to cultivate a global mindset and learn the international best practices. Today companies like Wipro and Infosys have identified talented executives as future leaders and are mentoring them involving highest level of management.

As more and more Indian companies set off for a global journey and global MNC’s setup their Indian operations, India’s corporate sector is increasingly looking for people with global exposure who can handle the complexities of domestic and international operations.

As companies grow and accumulate a strong and diverse pool of talent, the role of top management executives is going to evolve with equal emphasis on business growth and talent development.

Talent Development

With the increasing strategic importance of attracting talents and transforming those talents into leaders, companies need to equip themselves with an appropriate wealth of knowledge and skills at an international level. As we march forward in the changing world economies those responsible with the task of workforce readiness face a daunting task. The whole portfolio of how to attract and retain employees is now called by a body of knowledge as “Talent Management”

The new age economy, with its paradigm shifts in relation to the human capital, in terms of its acquisition, utilization, development and retention, has placed a heavy demand on today's HR profession. Today HR professionals are expected to comprehend, conceptualize, innovate, implement and sustain relevant strategies and contribute effectively towards giving the company its winning edge. Faced with a tough proposition in attracting and retaining talent, HR heads of companies have started applying what is better known as 'employer branding' strategies.

Talent Management implies recognizing person's inherent skills, traits, personality and offering him a matching job. While there are no magic formulae to manage talent, the trick is to locate it and encourage. Talent management is beneficial to both the organization and the employees.

Essentials of Talent Management
Talent management is the activity of identifying, realizing, and guiding untapped potential in people.
It means nurturing and developing those people identified of having ability and potential and it should form part of any organizations recruitment and retention strategy.
It involves individual and organizations’ development in response to a changing and complex operating environment. It includes the creation and maintenance of supportive people oriented organizational culture.

Talent management brings together a number of important human resources and management initiatives. Organizations that, formally decide to manage their talent undertake a strategic analysis of their current HR process. Talent management approach is adopted and focused on coordinating and integrating the following.

Recruitment- ensuring right people ore attracted to the organization.
Retention- developing and implementing practices that reward and support employees.
Employee development- ensuring continuous formal and informal learning and development.

Aligning Human Resources and Business

Attracting the best and brightest employees, developing them and retaining them is a challenge for any organization. The role of the Human Resources function has changed dramatically over the past few decades and will become increasingly more strategic in nature in the future. With the changing landscape of Human Resources management in the years to come, strategic planning will be the key for HR to meet those needs and to succeed.

It seems that finally CEO’s are willing to give HR Managers a significant role in strategic decisions. To gain a stake as “Strategic Partners”, HR professionals should focus on two major issues- Return & Growth. Hr professionals can create economic value from these sources:

Employee turnover and retention
Revenue Vs Employee Costs
Expenditure on the HR function and related activities

These three factors relate to three important HR goals:

Attracting, developing and retaining staff
Aligning, engaging, measuring and rewarding performance
Controlling or reducing HR costs

HR related measures for growth needs to be handled with care and should be tailored to the organizations' goals. HR measures should be devised keeping in mind increase in performance & profitability. Following can be attributed as growth related HR measures:

Leadership Development
Increased employee engagement
Diversity in work force
Work-Life balance