Changing Face of the HR Department

Falguni Sheth | Insights Success

The role of HR department has completely evolved over last decade.

Traditionally it was called as Personnel department where by a normal even an undergraduate person will do basic time office activity like maintaining attendance and doing joining formality of all new joiners.

The HR department that exists today acts like a strategic partner and contributes to a great extent in growth of organization. The task handled by HR department are Manpower planning, finding out right resource at right time at right price through most cost effective way, Retaining talent, Designing innovative compensation pattern, Performance Management Systems , Workable HR Policies, Continuous upgradation of skill through various training, Reward Plan and smooth exit process other than routine attendance & payroll Management which are mostly technology driven.

Each of these module itself is challenging to handle, lets us understand why ?

  1. Hiring Right Talent: Wrong hire is more expensive than No hire.

I would say it’s a history when Owners used to get bunch of application just on mouth publicity of required people. Today multiple source like giving advertisement in newspaper, tie up with placement Agencies, Internal Employee referral , advertising on Job portals are also at times not successful or sufficient in finding our Employable 100 % fit resourse.The amount of time just to find a candidate, Negotiation for salary, reference check, and joining time ..all this takes more than two months where as a person who has resigned gives only one month notice period. Many companies have started keeping notice period as per grade.

  1. Employee Retention:

Gone are the days when employees would consider job as their lifetime commitment. Now a day even three to five years tenure is considered as wow. I feel concept of 4 C‘s i.e. Compensation, Culture, Clarity and Career Path are key to retain employees. Many times absence of even one of this can cause you loosing very good employee.

  1. HR Policy:

The very basic policy like Office timing and leave policies are designed and implemented correctly, can lead to big time productive change. The concept of allowing paid leave has lot of time a big question to decide a benchmark whether to follow respective industry practice or what is as per statutory compliance as this directly affects employee morale. With rapidly change in time there are so many new leave has been given which is not at all obligatory on Employers like paid paternal leave, family demise leave, birthday leave, wedding leave etc. Other policies like Data security , IT policy like not surfing on online shopping portals, job portals during office hours are a must and if not adhered than big time deviation.

  1. Compensation Plan and Benefits:

A ideal compensation plan has to be meeting industry standard, income tax friendly, complete compliance proof and retention tool as well. A employee does not get motivated just by monthly salary so few of variables which are performance linked or tenure linked is highly advisable. Designing salary component one has to be very proactive to avoid all indirect burden of statutory obligation which is applicable from day one but payable during tenure or post resignation. If the same is planned smartly Employer can save huge manpower cost. A proper mix of correct salary , variable and other benefits will surely retain right talent.

  1. Performance Management System:

Many companies’ follows different Appraisal System like 360 degree, Bell curve, rating thru PMS software etc. Not to miss the latest one through AI (Artificial Intelligence).This are different terms used. But what is generally observed that the basics are missing .The company is not clear what to expect from which position, how to convey expectation, how to monitor, and how to convey feedback of performance. Entire process and review mechanism has gaps and then the outcome is disaster either in terms of resignation of an Employee or somewhere no genuine connection between performance and increment.

  1. Reward and Recognition Plan:

As mentioned earlier Employee does not get motivate by monthly salary. At times even if employee has done some good work it is forgotten by next increment or at times it does not really quantifiable for appraisal for eg.taking few responsibility in absence of co employee being absent. At such occasion Employer have to have a well designed Reward plan which specifies different criteria, frequency, and budget to constantly motivate employees and to get best efficiency.

  1. Exit Process:

Whether the exit is because of resignation or termination, its little tricky to handle to keep overall environment healthy. To have complete handover peacefully, computing legal dues, releasing clear service certificate, settling new joiners is not easy specially at times employee just disappear or stop reporting and send a simple resignation on mail. In big company if the same happens with prior intimation the joining of replacement and relieving old employee always has a gap so again it asks for a innovative solutions every time.

The above are some main focus areas for HR dept to perform other than routine activities. Business owners or companies have realized the need to invest in HR department and to hire perfect talent to take company to next level else forget about growth but even survival will be difficult if HR department will not be able to drive entire organization.

About the Author

Falguni Sheth has played a very vital role in establishing HR systems in New Horizon. Her knowledge, expertise and focused approach have shown improvement in saving on manpower cost, employee retention ratio and implementing policies in the organization. She has deep subject knowledge and her involvement with the assignment has resulted into absolute successful completion of the HR Manual.