Thursday, August 18, 2016

SME's Creates a Big Future for HR in India

SME’s creates a big future for HR in India

To consider what the future of HR services will be in SMEs, first let’s look at the current HR practices and approaches being adopted in smaller organizations through a short story. I’ll then go on to envisage the possible growth and how it can generate business opportunity in the future, particularly through the franchise operating model offered by Husys.

Why SME in India?
1.       Currently MSME’s are a huge 51 million size, which is a massive growth from 16 million since 2001.
2.       40% of the workforce in India are in SME segment
3.       SME contributes to 8+% of the total GDP of India
4.       Special MSME ministry is formed in the Govt. of India

A day in life of CEO @ SME: “Ram an owner of a small business firm with 20 people, had targeted to grow aggressively in future. One morning as he entered his office, he found people lined-up for interview which he finished quickly and post that offered his inputs to the operation manager who had come to seek his support on grooming his team members. As it got close to lunch hours, he called for a meeting with all unit heads who supported him on Operations, Sales & Support. The key discussion was on the new hires and the quality of professionals they needed to compete with the outside competition. They resolved to set clear job roles and approach HR agencies to support them and took help of job portals too. 

During the second half, he attended a client meet to resolve a pending customer issue in providing timely support resulting in withholding of his due payment. The agenda of the meet was to resolve the issue and improve the delivery standards and finally the customer satisfaction. 

After his return to office, he gets a notice from statutory authorities on compliance related to Labour laws. An agency was contacted to help him resolve the compliance issue. 

Before closing for the day, Ram sent keynote to all the employees on the way forward and the organizational growth plan.”

This story reflects the typical small business owner dealing with People, People & People.

Why HR is needed?

As you noticed in the story narrated above, appreciation for Human Resource is very much evident over the last 5-6 years in India. Now with a magnitude of biggest bottom of the pyramid opportunity with SME’s makes a good business sense to build something for these units and make them self-sufficient with people in business. 

Currently 40+% of the workforce don’t have a proper support of good HR practices. Doesn’t that make a big sense for HR being a biggest business in India? 

While we do not have exact figures on HR developmental budgets, our estimate of expected spent on HR services by the 51 million SME’s will be a market place for 1.3 billion USD in India (Based on an average spent of 1.2 lacs pa by a SME).

HR Opportunity as Business @ SME’s: 

How are these opportunities serviced right now? While Husys being the only listed organized player in the SME space in India, there are many individual HR Consultants, Recruiters, Trainers, Payroll Vendors & Payroll IT package vendors operating in this space. There has been a franchise business in recruitment and the collaborative work has been happening in bits and pieces. With revolution in smart phones and access to internet the HR technology business in SME’s is going to be the game changer for future. 

Who can capture these opportunities? 

This opportunity of growth in HR can be captured by Non-HR professionals as well as a business proposition. 

This is how non-HR professionals can make a difference in HR Business space:
  • Sales Professionals: Best suited for the recruitment business @ SME.
  • Finance/Account Professionals: Best suited for statutory/payroll management services @ SME
  • Customer Service Professionals: Best suited for employee engagement @ SME
  • Business Operations Professionals: Best suited for training & development of teams in coaching & mentoring at SME’s
  • HR Professionals: Best suited for organizational development initiatives, policy, process & cultural building using the above professionals’ expertise. 

There is a substantial need for integrated approach to support SME’s from HR point of view. 

Husys provides business opportunity which can help them serve as one-stop-shop service integrator. Husys Franchise model works exactly in that space giving opportunity for Franchise to sell HR Operations, Technology & Consulting. 

Husys Value Proposition: Husys has deep understanding of HR services coupled with operational excellence in SME’s from last 15 years and has managed more than 600 HR departments. 

Tuesday, April 19, 2016

India Outplacement Simplified – Final Series - By Husys

India Outplacement Simplified – Final Series

In continuation of our blog post on Outplacement, this is the final series chosen the few question & answers from the Whatsappinar with HR Shapers. Answered for your valuable questions as given below.

31) If a union exists in the organization. Can you share your experience in executing outplacement activity?

GR:  Outplacement is a best tool as a part of the union negotiations and can reduce the intensity of discontentment during the process. There are many examples outside but India, I have to experience at once.

32) I understand outplacement in today's world also means helping outplaced people with opportunities. Does the next company which hires them, hires in a fair manner by not giving a pay cut and other benefits and proper role matching and not force fitting?

GR: Yes, the outplacement support is for the person who affected. Key role of Outplacement is to help him/her to gain the confidence and strategies. Able to get a good position as per plan. While not able to effecting the level/compensation etc., It also based on the person’s individual choice.

33):  On what basis organization select persons for outplacement...and after impact on existing employees and how can as HR justifies the right selection?

GR:  The parameters may be business impact and the positions are made redundant, also that they cannot be relocated into other function and department. Also you may consider how to re-skill if required.  After all these you can able to find the final list for outplace and declare redundant. It is a fair way to handle the redundancies, also give confidence to the teams internally that organization has been fair.

34).Would like your view and experience on one more point. During outplacement activity have you come across a request from the organization management to develop a career transition (redeploying them to other line of business) for employees? If yes can you share your experience and any challenges you would have faced?

GR  Yes there were some requests, but in India we have not handled yet. However, some part of UK our partners handled such needs and world over its one of the key function.  That would be more like a consulting engagement in identification and coupled with re-deployment. Transition to other independent companies is a good choice for large enterprises.

35) Would also like know your views if countries have created laws around outplacement so that employee are protected and it does not give rise to unemployment nos and pay for the country?

GR: France is the only place there is a formal law. In US it’s a best practice and used extensively and part of the HR role.  France : The system in France is fairly complex compared to compare with other countries, with outplacement requirements depending on the type of layoff—“economic” or “individual” that an employee experiences. Economic mass layoffs that are the result of downsizing or restructuring and unrelated to performance require outplacement under very specific legal terms, and the company is obligated to relocate affected employees internally or externally. In the case of individual, or “at-fault” layoffs, outplacement is not mandatory though it may be negotiated or covered under company policies and accepted practices.

In one of the medium size IT co., during 2000-01 recessions, HR did this activity...  By keeping employee on roll post in their notice period, till they got job or upto max 6 months. HR using their personal contacts to place people. It was quite successful. Employees appreciated regarding this. Management had spoken openly what lead to this situation and explored all situations.

It is called as a Garden Leave. The person may not attend the office but on roles till such a level, during that time he/she can find a job. This is needed to be supplemented with support of outplacement so that it’s implemented. In 2001 yes that was the best thing that they could do and definitely we must appreciate them.

36. How do you choose a Vendor?

GR: Some of the Key parameters to review:  1. Expertise of the Agency/Institution proposed to be a Outplacement Group (Most common mistake is to handover to Recruitment agency - which may not be right fit. As they would have only limited requirements to make revenue at any point. Organization should have as many options to reach job market for the Candidates/Coaches.)

37:  What should be criteria while selecting employees for outplacement?

GR:There should be a policy for outplacement as per organization standards. In many cases organization would have a policy and process pre-defined as part of the Business Process.  In case that’s not available, usually the impacting part of the organization when people have to be made redundant to be reviewed. One of the important category in deciding is to see, if they can be repositioned elsewhere before outplacement decision.

38: What can include in a typical out placement:

GR:  1-1 Coaching (in person & virtual), Emotional support (sometimes helping the spouse to come to terms - this is specific to India), Skill improvement programs (LinkedIn, communication, how to start business etc.,), How to take Psychometric profiling’s, Job Search Techniques, Managing social media, CV & Interview Techniques, Negotiations, Onboarding advise.

The outcomes are usually the success of choices that the coachee takes in the stages i mentioned on job, self employment or retirement choices.

39. How do we benefit with outplacement idea specially in tough times which is now the major concern in Middle East. And we HR here is facing this pressure. Want to know how we can use this as our tool and show the organization that this will benefit and how?

GR: Outplacement is a specialized area to support transitioning employees. This will be a brand building exercise with employers. By transitioning support you are projecting the confidence to employees in the organization that they would be taken care in difficult situations.  HR has to play a key role in bringing this external  capability to the organization.

40. I think most of the companies are not sensitive to do so much other than severance package nor do I see we HR professional ready to accept such talent.Can I know your views about this?

GR: In Some cases the HR professionals has a feeling that if its given to agency how would my management thought. We need to accept that this is a process not yet matured in our country and make a right representation to the management for business results.
Actually HR can make best of the Severance package with outplacement. It’s like helping the person effected to catching the fish after severance.

41. Are there any companies which have outplacement as a process and a policy today in India?  And how do you see Indian entrepreneurs taking it?

GR:  While the steps adapted by the International teams can be one way to handle.  However, where the information is in media and internally not yet communicated. There must be a planned communication should go as quickly as possible with the suggested steps that organization is taking and a clear plan that would help the employees. Usually from the top management suppose to help.

42. I want to ask one question that is communication is important tool but I have seen sometime the organization communicate things indirectly through media which creates an anxiety among employees. How will you handle such situation if things are in media and you have to face your employees?

GR: The countries outplacement is practiced as key HR function: US, UK, Parts of Europe - Germany, France etc., Brazil, Argentina etc., and Australia.

43. How is HR looking at outplacement in India?

GR:In India, the exposure and also the knowledge for HR professionals is limited unless someone would have handled in their previous assignments.  But there is an awareness that it is not just placing but a entire process for effective implementation and building employer brand. Yes, we are moving ahead.

44. Do you think as HR professionals it’s a mindset shift rather than a process..?

GR: First Mindset and then built a good process for effective support for organization

45. Can we know under what circumstances the organization decides to take the outplacement route! What are the key triggers?

GR: There is always a news that spreads outside even before internally it effecting. It may be due to other country information which media takes as its happening in our own country.

47. Normally companies and individuals never think about outplacement when any situation arising.... Why is that so?  What’s future of outplacement? Does outplacement provide give options to choose quality vs. quantity to select the best?

GR You are right. Since outplacement is not a regular practice and not as a key function of HR so far hence the quick reaction in many times.

About Husys : 

Husys - Listed on National Stock Exchange - EMERGE - Institutional Trading Platform. India's Only HR Company to be Listed on Stock Exchanges. Husys(R)(, India’s one and only true HR Function Outsourcing firm and India’s first HR Organisation rated by CRISIL under SME category, First HR Company Listed on stock exchanges in India. We are dedicated to build and manage HR departments for small & medium size organizations (SMEs). Since March, 2002 we served more than 600+ organizations in the areas of HR by using our cost effective solutions. We help in the areas of HR Function Management, HR Consulting, Recruitment, Employer of Records, Business Incubation, Outplacement, Talent Acquisition, HR Cloud Based Technology. 
#HRSME, #INDIAHR, #HRBusiness, #Indiahrsupport, #supporthr, #Outplacement, #peo, #outsorcing, #HRoutsourcing, #hrfunctionoutsourcing, #HRinIndia #cloudhr #hris #cloudhris

Tuesday, February 16, 2016

What are you planning this year 2016: How can you build Plan

What are you planning this year 2016: How can you build Plan?

It’s time for review of performance of the previous year interms of organization as well as the Individual employees. This task needs the review of current performance system, expectations from the last year, setting the course of action for review from April last year to current year march... The greater challenge is if you have KRA's set for employees you need to make sure they are reviewed effectively. If the KRA's (or expectations of performance) are not set you have a greater challenge to collate, create a meaningful performance review... have fun...

April is generally the Start of Business Year (Financial Year Start) for Indian Firms. Our Financial year starts on April 1st and ends at 31st March. This month is very significant for all the HR folks because the following activities are expected to be done/co-ordinate for a better future.

Organisational Objective Setting: 

HR to involve in building the organisational objectives for the year based on the mission and vision of the organisation. HR interacts and builds the clarity along with the CEO and the Heads of various Units/Function/Verticals... *Look for inputs for format at the end of this post.

Review of Performance:

Challenges of Transition from last year to this year: 

After the review of individuals and organisation... The greater challenge is to understand the future objectives and integrate into each employee/associate. Also the challenge of reviewing in rationalising the compensation, designations, roles etc.,

The Future:
Actually this is what you can't predict.. But, can you stop! No!!!! So let’s plan to have the details of organisational performance, future objectives, Understanding of each of the individual strengths, performance review data, Plan of action for the function for next year....

Time to Plan for year 2016; Budget Realistically

As you are coming closure to the close of the year 2015 financial year, it’s important that you focus on planning for the next year.  Here are the few steps suggest to ensure that you plan the most critical year ahead to beat the Recession Blues……

1- Define Organizational Objectives for year 2016
2- Identify the various matrices of organizational performance
3- Assign the basic assumptions based on Historical data for last year to future year and Make a tentative Manpower Plan (To be reviewed along the year)
4- Plan control mechanism every month for actuals Vs. Planned

Some of the Key areas of focus in execution of better next year:

1. Define Organisational Objectives for year 2016

a. If you have not done the Clear objective setting till date or did not bother because of the good market condition earlier.

b. It’s time that you tighten the basics of Objective setting & Communication to employees this year which would put you into the driver seat.

c. Some of the Inputs for Creating Objectives
i. Identify the most critical measurements for organizational performance.
ii. Define the objectives clearly using the SMART rule – Simple/Specific, Measurable, Attainable, Realistic/Real-time & Timelines for completion.
iii. Do not take more than 6-8 objectives may include Revenue, New Investment, Business expansion geographies/verticals, Quality, People Development, Technology & specific organizational developmental objectives.

2. Identify the various matrices of Organisational Performance

a. This may include various ratios related to Revenue Vs. People (Month wise, Division Wise and Yearly)
  • Revenue per person/employee
  • Operational activities/logistics per Person/Employee
  • Ratio of support function vs. the number of people in organisation
b. Based on the ratio’s create base assumptions for Manpower Planning ( Need to plan to stretch while assigning for better organizational performance).

3. Assign the Basic Assumptions for Manpower Planning

  • Make division-wise revenue & operational flow expectations
  • Assign the ratios to the future year
  • Create a statement showing manpower requirements division wise/ month wise / year.
  • Critical of this stage is to finalise the numbers & Various Cost implications based on the plan (Financial budget to be interlinked).
i. Map with each of the unit and finalise the realistic people requirements.
ii. Finalise the number of positions and the profiles to be tracked and hired during the next year.
iii. MOST IMPORTANT FOR THIS YEAR: You can list the activities which can be done at a back office create in any of the Institutes/colleges would help to reduce the budget. The Institutes can help you in Research for Business Development, Cold Calling, Creating Database, Identifying potential buyers/suppliers, create presentations and documentations etc., this is the most critical part in the times of recession… You would save atleast 60% of the cost using this model. Create a option for your to try as part of the plan.

4. Control the Plan

a. Identify the time lines to review the actual vs. projected every month
b. Identify the areas where you can tweak the plans to ensure that it goes with your business value

Example of an Objective Setting Format (The following is a suggested format and can be improved to accommodate more specific inputs and timelines for better tracking): Create a Table for Organisational Objective Setting

  • Column1: Key Area of Focus: To achieve a goal of increasing the revenue by 2 folds to generate at least a revenue of 10 crores from all the existing Product/Service lines.  Add any new service lines if required. 
  • Column2: Measurement of Output: To Generate revenues: Product 1 – 3 Crores, Product 2 – 2 Crores, product 3-5 crores
  • Column3: Timelines: Q1 (Jun 2016) : 2 Crores, Q2 (Sept 2016): 3 Crores, Q3 (Dec 2016): 2 Crores, Q4 : 2 Crores *As per the seasonal expectations
  • Column4: Responsibility:  Divisional/Product Heads for Revenue, Operations for Product Delivery. Overview by CEO
  • Column5: Remarks: Comments related to objectives and clarifications if any.

The Other areas of Objectives for organization can be:
  • New Products & Geographies   
  • People Development   
  • Financial Goals   
  • Quality Goals   
  • Technology Goals   
  • Others...
(Suggested not more than 5-7 objectives to be focused in a year as corporate)


Seek Advise

Current Webinars

Popular Posts

GR Reddy on Plaxo

Blog Archive

Popular Videos

Husys On SlideShare

Powered by Blogger.

Popular Posts