Managing Non-Performers

By: Maj. Gen. B.K. Bhatia
Date: June 7th, 2010

Introduction

Organizations focus mostly on managing high performers, probably as a risk mitigation measure.

After all the high-performers are considered as the drivers of business and their retention is a high priority for the organization.

This article, however, examines how to manage non-performers which may sometimes be 10-20% of your employee strength. Read the rest of this entry »

Posted in:  HR Best Practices, Performance Management | 19 Comments »

Getting the Performance Appraisal Right

By: Tushar Bhatia
Date: April 19th, 2010

Most companies want to appraise their employees on a periodic basis and their Human Resources department is generally responsible to manage this process. I have often seen that the buy-in and participation from the Line managers is not as much as one would expect. Based on my meetings with a large number of HR managers, Line Managers & Senior Level Executives, I have come to realize that there is much more to a Performance Appraisal than what is truly understood by all stakeholders.
This article discusses how HR Managers can create a Performance Appraisal System that adds true value to the organization and becomes a useful and strategic employee development tool. Read the rest of this entry »

Posted in:  Employee Appraisals, HR Best Practices, HR Technology, Human Resources, Performance Management | 32 Comments »

Variable Incentive Plans: A Motivation & Retention tool

By: Tushar Bhatia
Date: April 6th, 2010

Since the past two years Variable Incentives did not work very well since most employees wanted the security of a high base-pay and meeting targets was largely unpredictable. The economy is on an up-swing again and employers & employees see new opportunities for increasing incomes.

Organizations want to curtail their fixed costs, hence salaries may not increase dramatically and immediately, but Variable Incentive Plans are coming to the fore to retain high-performers and encourage achievement.

As soon as we think of Variable Incentives, our thought goes to the employees in the sales department, but in my recent research I have found that each employee, irrespective of their department can be included in the company Variable Incentive Plan. Although the goals, their relative importance and the expected achievements may vary across job roles. The rest of this article explores the various categories of Incentives that can be applied to employees in different job roles and how HR can use this tool to motivate and retain employees across the entire company. Read the rest of this entry »

Posted in:  Compensation Planning, Employee Rewards, HR Best Practices, HR Technology, Payroll, Performance Management | 18 Comments »

Post-Recession Challenges of Talent Management

By: Gireesh Sharma
Date: October 12th, 2009

Recovering Economies

After a year or so the news on recession is taking a U-turn (not a V-turn though). Officially, analysts are reporting that recession is over, including Google CEO. While it will take some time for recession to pave the way for prosperity and growth for business in general, the prosperity is already on its way to certain economies such as BRIC (Brazil, Russia, India and China).

HR May be Caught Off Guard

Although this is good news for business operations, including marketing and sales, it poses new challenges for human capital. Businesses would no longer run on the old rules, but new out-of-the-box solutions, more comprehensive efforts, innovative thinking, and new skills and competencies would be required to grow and prosper. Needless to say, the demand for both the quantity and the quality of talented employees will grow worldwide. Companies that have fired employees in the past are already feeling the pinch, as they do not have enough bandwidth to execute.

Bloggers like Jon Ingham, who champion the cause of Human Capital Management, are being invited to speak on performance management. The need for performance management is pressing. Read the rest of this entry »

Posted in:  Compensation Planning, Economy, Employee Appraisals, Employee Rewards, Performance Management | 11 Comments »

Employee termination or firing – HR’s role is critical!

By: Gireesh Sharma
Date: September 22nd, 2009

Termination or firing employees at work is a not-so-liked but mandatory process at business. All businesses big or small at time terminate or fire employee because of business compulsions. However, the recent downturn has accelerated the employee termination largely due to financial and performance problems.

Decision to fire an employee is never welcomed, however, there are some acceptable reasons for terminating an employee:

• For poor performance at work or low productivity.
• Being indisciplined or showing unethical behavior at work.
• Not conforming to the company policy.

Above reasons are well accepted by other employees, business community and also by the legal framework of the country and states for growth of business.

Unfortunately, we also witness incidents of “unethical and unacceptable” terminations. These are neither acceptable by the communities nor by the legal framework. It is needless to mention that law has reprimanded such actions of the employers severely, whether they were intentional or unintentional.

It is unethical and legally unacceptable to terminate an employee -

• On basis of sex, race, color, ethnicity;
• On basis of medical disability;
• On basis of religious faith;
• On basis of pregnancy;
• On base of age, etc.

The law says says that it is “illegal to discriminate in any aspect of employment, including hiring and firing”. Read more information on Unethical Discriminatory Practices.

Firing employees also exposes the organization to potential risks ranging from motivational to legal. Here are some of the common risks:
Read the rest of this entry »

Posted in:  HR Best Practices, Human Resources, Performance Management | 3 Comments »

Importance of HR Data for a CEO

By: Gireesh Sharma
Date: August 9th, 2009

I used to believe that HR Data was useful for HR Departments only since the department was responsible for employee development & management activities. Alternately, the CFO and CEO were only interested in metrics such as cost of hire, total compensation, cost for training etc which were more oriented towards financial goals and treated employee costs as a “cost-center”. My perception changed in a recent customer interaction.

It was during an EmpXtrack training session for one of our clients in India, when their HR Director asked that we provide extensive HR dashboards to their CEO. While these reports were available for the HR Managers, I wasn’t sure if it could benefit the CEO in any way and hence I resisted.

Since the HR Director seemed to be a nice & patient gentleman, I thought of arguing a little and also better understand why he believed that the CEO would want to look at all this data. There were over 25 crucial dashboards already available for the CEO and what could be the benefits of having access to 100s of additional reports. Many questions came in my mind like –

• Will the CEO have time to go through the reports,
• What will be the implication of training him in using these?
• What if one of the reports doesn’t work correctly? (It does happen!!!)
• Was the CEO from an HR background or believed in Jack Welch’s theory of HR Management etc. etc.

The HR Director was obliging and I got some deep insights into how CEOs think and work. This also helped me better understand the needs of an effective HR department – especially for a company that has global ambitions and aggressive growth plans.

The HR Director said that they are into a Knowledge Intensive Business Services and their core strength lies in the quality of their people. While meeting potential investors and even large customers, our CEO is often asked following questions:

1. What is it about your management team / people that makes them uniquely capable of executing on this business plan?

AND/OR

2. Do you have the Right Leadership?

AND/OR

3. Does the team have passion for the business? Have they done it before: experience; market experience; intimate contact with potential customers, partners, and suppliers; etc. Read the rest of this entry »

Posted in:  Employee Appraisals, HR Best Practices, HR Technology, Human Resources, Motivation, Performance Management | 1 Comment »

Free Human Resources (HR) Software Download Facts

By: Gireesh Sharma
Date: April 22nd, 2009

Free HR Software

Many visitors on EmpXtrack’s website come to look for Free HR software. Because there are many softwares in different domains that come for FREE, they expect that there can be a Free Human Resources Software too. This post will discuss “Is there any free lunch (software) at all?” for Human Resources Management. I will also try to bust the myths about the softwares that are available for Free.

Why HR Software is NOT free?

Let me begin with why there can’t be free software in HR Domain.

My first argument is that it takes lots of efforts to develop an HR Software, because an HR Software is not merely a plain database of employees information fields (like in an Excel Sheet or MS Access) but a large collection of various types of information which are linked to each other in a logical way so that an output can provide a Common Sense View about the employees.

If I need to define HR Software I will say “HR Software is a process for the collection, analysis, interpretation and presentation of employee’s data. It can provide tools for prediction and forecasting based on data. Thus it can be used for a wide variety of management decisions, financial decisions about manpower, performance of people, succession planning and removal of non-performers.” Such an important software, which provides a total MIS on human resources has to be created with great care. How can you get it for Free. Read the rest of this entry »

Posted in:  Employee Appraisals, Goal Setting, HR Technology, HRMS (HRIS), Human Resources, Performance Management | 38 Comments »

Writing SMART Goals (also called KRAs) from Job Descriptions

By: Gireesh Sharma
Date: April 14th, 2009

Many Managers (Including HR managers responsible for writing others Goals) often ask to help them on creating Goals (Key Responsibility Areas) for different designations, which they can use for setting Goals and/or conducting performance appraisals. While most of these managers are completely aware of their job profile, they find it difficult to shape it in a written form.

Knowing your Goals and writing them effectively is an all-together different game. To describe your Goals (KRAs) you need to have effective writing skills and sound knowledge of terminology. Unfortunately, some executives/ managers may not have a flair for writing and thus unable to write their Goals (KRAs). This is true for HR also. So here are some tips that will help Talent Junction users to write Goals (KRAs) from the Job Descriptions.

SMART: A Smart Goal (KRA) is one which is:

1. Specific : Clearly stated what to do and how to do?
2. Measurable: States how the performance for this goal will be measured.
3. Achievable: It can be achieved by employees if they work really hard (You can draw this conclusion by talking to employee, manager or someone who has done this job successfully).
4. Relevant: The KRA (Goal) is relevant to the job and the performance on this goal will improve productivity of the employee.
5. Time Frame: States a time frame to achieve the goals.

How to WRITE SMART Goals (KRAs)?

Here are the steps how anyone can write Goals (KRAs) from Job Descriptions: Read the rest of this entry »

Posted in:  Goal Setting, HR Best Practices, HR Technology, Human Resources, Performance Management | 29 Comments »

Employee Appraisal Scores can be DECEPTIVE

By: Gireesh Sharma
Date: March 30th, 2009

Recession has done at least one good thing for organizations. Shifting the FOCUS from Gut-feelings to qualitative and quantitative analysis of business performance and decisions.

“I think Steve is a great guy.” doesn’t work anymore. It has to be “Look at John’s sales performance report. It says he is doing great job.”

The next thing that comes into picture is Employee Performance Appraisals. More than ever organizations are looking to set SMART goals and conduct performance appraisals honestly. But does HONESTY itself gives accurate results?

Consider the case of three managers in the same department of an organization in Year 2007. The performance of the teams of these managers was at par with marginal differences.

Manager A: Ram is one of the youngest managers and hails from Generation Y. He is very optimistic and looks for positive side of the employees. He believes in motivating by carrots.
Manager B: Sonia is in the middle of her career. She has high career prospects in the company and looking for promotion in 1-2 years. She likes to play safe.
Manager C: Johnson is an ex-government employee. For him discipline and loyalty come foremost. He cannot tolerate any deviation from policies and authorities. He believes in the stick.

Read the rest of this entry »

Posted in:  Employee Appraisals, Human Resources, Performance Management | 11 Comments »

The Ray of Hope in Recession for Human Resources

By: Gireesh Sharma
Date: March 4th, 2009

EmpXtrack HR Consultants team has released a new case study on the Human Resource Management in Retail Industry. This case study covers the challenges faced by HR in management of employees in an organization having chain of stores in multiple locations.

The organization in the study is one of the largest retail stores chains. They have around 100 retail stores in different locations and looking to expand further to more than 200 store across the country.

Organization has a centralized Human Resource Department located in Head Office. HR decision and process are controlled centrally. However, many HR tasks, policies and procedures are managed by retail Store Managers or regional offices.

The organization used excel sheets to exchange reports. Reports coming from various regional offices and stores were compiled in Head Office by a team of HR Executives and HR managers.

Keeping in view the nature of organization, the case study is equally applicable to organizations having retail chains in Consumer Goods, Health Care, Multi Locational sales offices etc.

Download Counter: 908 downloads so far.

While reading Jon’s Carnival of HR titled ”Carnevale delle Risorse Umane: 18 February 2009 ” I realized how much clouds of sorrow surmount the Human Resources domain due to recession.

And why not, after all it is the Human Resource Department that is bearing the burns. HR has to do the most disgraceful job of laying off people, because Businesses can no more afford to pay them. Employees that are chopped off curse HR, even though most HR Managers will be at no fault . HR that used to be hero at the time of a flourishing economy is now suddenly considered a villain making plans and strategies to show door to people. Adding to the sorrow, HR has also been ordered to chip off salary packages, incentives and benefits, making the life tougher for those who are fortunate enough to remain employed,,and to bear their blames and curses.

Sad, but it triggered me to search for the rays of hope that prove that Recession will not last long. Here is my list:

Hope 1: Determination of Leadership

There is a very strong determination amongst the political and business leadership to curb the recession. Never in the last few decades we saw such a global and massive effort to fight economic crisis. This determination is sure to find ways out of the recession and foray into another blooming decade 21st century. I think recession is the birth pang of human society into a new era.

Read the rest of this entry »

Posted in:  Economy, HR Technology, Human Resources, Performance Management | 8 Comments »

The Future of Human Resources Management

By: Gireesh Sharma
Date: February 5th, 2009

Prayag Consulting, a leading technology marketing firm, recently interviewed President of Saigun Technologies and the Chief Architect of EmpXtrack, Tushar Bhatia, regarding the trends in HR Technology, the future of HR Management and entrepreneurship. Here are some excerpts from the interview that appeared in their newsletter Focal Point.

What the future holds for HR Technology

With the baby boomer generation retiring, there is a massive talent shortage in the Western countries. Organizations will have to optimize their workforce to deliver at the lowest possible manpower requirements, and any solution that can help them do this effectively will be a sure winner.

The maturing of Internet based technology platforms, acceptance of the SaaS concept by the market at large, good security standards and low cost of bandwidth are further enablers. We are fortunately in a good period at the right time and hope to capitalize on the trend.  Read the rest of this entry »

Posted in:  HR Technology, Human Resources, Motivation, Performance Management | 3 Comments »

Why employee performance appraisals are ineffective, sometimes?

By: Gireesh Sharma
Date: January 12th, 2009

One of my HR Community friends, Basheer wrote to me:

> Dear Mr. Gireesh Sharma,
>
> When most people consider traditional performance appraisals a time consuming and expensive task, I also believe they are ineffective in the present work culture of organizations.
>
> I would like to hear from you the better ways to get the performance appraisals done effectively ,successfully and quickly. Or is there a way out of performance appraisals?
>
> Regards.
> A.A Basheer

Basheer’s concern was to a large extent genuine. I would like to share with you what I replied to him:

Dear Mr. Basheer,

Thanks for writing.

I (to some extent) agree with your thought that “most people consider traditional performance appraisals a time consuming and expensive task“. Is there a better way to do it? Yes it is! Read the rest of this entry »

Posted in:  Employee Appraisals, Human Resources, Performance Management | 8 Comments »

What is a bigger problem: Managing employee appraisals or writing accurate appraisals?

By: Gireesh Sharma
Date: December 24th, 2008

While, I was organizing a software training workshop for a major Electric Power Distribution Corporation in New Delhi, I asked Vikram Singh, one of the participating Senior Managers, who has a team size of 150 employees for performance review, “What is the bigger problem when conducting employee appraisals: managing appraisals or writing accurate appraisals?“.

[Background: This 2,500 employee big company opted for EmpXtrack Performance Management System. Prior to using a web-based performance management system, they used paper based appraisal forms.]

“I have a team of 150 people to review, for me managing employee appraisals is a bigger problem. With an experience of 10 years, writing accurate appraisal is not so difficult. It may be difficult for younger managers but not for an experienced one.“, said Vikram. He continued, “For senior managers like me who also have to review appraisal of my juniors’ teams (I have 8 juniors managing teams of 15-20 each), managing appraisals is a far bigger problem. There is already a long list of urgent tasks with me and then managing 150 employee appraisals, usually in a span of 1 month. It makes me sweat.”

Read the rest of this entry »

Posted in:  Employee Appraisals, HR Technology, HRMS (HRIS), Human Resources, Performance Management | 11 Comments »

Ten Tips For Downsizing with Grace in Difficult Economic Times

By: Gireesh Sharma
Date: November 26th, 2008

Difficult economic times call for tough calls, and, downsizing is one of the toughest calls that leadership and HR have to take. Though downsizing is the most hated task and nobody wants to do it; it is a necessary evil for saving a company from an economic collapse.

With little efforts organizations can minimize the effect of downsizing on economy and employees to a some extent. Here are 10 tips that one can consider while downsizing:

1. Do a manpower analysis before you Downsize!

Think twice, do you really need to vacate those seats and happy faces. Do not make subjective decisions!

Work and re-work on your manpower requirements – for today and for tomorrow. A good manpower planning software can assist you and your mangers to accurately assess your manpower requirements. Read the rest of this entry »

Posted in:  HR Best Practices, HR Technology, Performance Management | 15 Comments »

SaaS gets its due recognition

By: Gireesh Sharma
Date: August 14th, 2008

It was refreshing to see the perspective of a leading monthly magazine DARE which talked about SaaS as a

way to lower IT costs. Makes me proud since we were covered as one of the top provider in HR. You can read about the article and even view the coverage here.

And to begin with, we faced our set of challenges too. Many companies are skeptical about security of data, continuous availability of Internet, bandwidth limitations, etc. but many have hopped across to try the new business model. Google’s soaring profits are a testimonial to this.

While reviewing my list of clients in India, I was surprised to see that almost 75% of our customers had adopted the SaaS way of doing things. And most of these companies are not really small. The smallest is about 30 employees (who are using us to manage their sales force) and the largest has over 3,500 employees using our system.

Continue to look here for a detailed cost-benefit-analysis of using the SaaS model vs. an outright purchase of software.==============

Posted in:  Goal Setting, HR Best Practices, HRMS (HRIS), Human Resources, Performance Management | No Comments »