HR Panorama

Talent Hoarding – A Hidden Challenge

Source – HRKatha

In today’s ever-evolving world, talent is undoubtedly the most valuable asset that every organization strives to possess and therefore, is always in pursuit of talented employees. However, the process of identifying and recruiting these high-performing employees proves to be a quite challenging task.

Therefore, when a company manages to find talented employees, the manager wants to make sure they stay on their team. Surprisingly sometimes they don’t even realize they are stopping the employees from their career advancements. As a result, this turns out to be a significant concern – Talent Hoarding, whose consequences can impact both the organization and the employee.

Understanding Talent Hoarding

Talent hoarding occurs when a manager intentionally keeps a top employee on their team by limiting that employee’s growth and opportunities, within or outside the organization. Talent hoarding occurs when a manager intentionally keeps a top employee on their team by limiting that employee’s growth and opportunities, within or outside the organization. While it may seem like a protective measure, it’s a detriment to the organization as well as to individual employees as it restrains the movement of employees in advancing new career and growth opportunities.

Research has shown that more than 70% of employees want to pursue advancement opportunities within their organizations.

Occurrence at Workplace

Managers get incentivized when their team performs exceptionally well. Therefore, due to fear of loss in team performance, if a high-performing employee decides to leave, managers take measures to retain their employees.

In case, a team member leaves, managers need to employ a new candidate for the same position, which involves the time-consuming process of recruiting, training, and assigning tasks. So, to avoid these tasks, managers engage in talent hoarding.

Source – morganmckinley.com

Considered as a Hidden Challenge

Talent hoarding is considered a hidden challenge because it occurs behind the scenes, without being clearly visible to people within or outside the organization. These decisions lack visibility as they are untransparent in nature without letting anyone know why the employees are not given opportunities for growth.

Deloitte’s Global 2022 Gen Z and Millennial Survey found that among those surveyed who report “not feeling heard at work”, 47% of Gen Z and 54% of Millennials leave their organization within a year.

This could also involve biases in terms of gender, age, race, etc. which are often concealed. Employees of the organization have limited awareness regarding opportunities available for their advancement, providing leverage to the managers to retain them in their current positions.

Consequences of Talent Hoarding

The consequences of Talent hoarding can be considered from 3 perspectives – Employees, Managers, and Organizations.

For Employees:

The impact of Talent Hoarding is profound on employees. Firstly, it results in reduced productivity as employees are unable to work at their full potential. Their skills begin to stagnate and erode over time due to being deprived of exposure to new career opportunities, ultimately, over time, resulting in diminishing the value of the organization. Moreover, employees seek growth and new challenges, and if they are deprived of them, they lose trust in the organization.

Another concern that is associated with Talent Hoarding is “Quiet Quitting”, an often-seen phenomenon. Talented employees are always eager for career advancement, thereby seeking opportunities where they can develop their skillset and this increases the chances of leaving their current organization.

About 45% of employees who changed their companies between 2014 to 2015 mention that they moved on because they didn’t have career advancement opportunities.

When an individual is derived from growth opportunities despite performing well, it could result in frustration and self-doubt, thereby affecting the overall quality of their work in the organization.

For Managers:

First and foremost, Talent Hoarding can damage the Employee-Manager relationship, leading to a prospect of creating a negative work environment and ultimately causing losses to the organization.

50% of employers reported that at least one of their managers is guilty of holding onto talent too tightly.

This practice can also affect poorly on Manager’s ability as it can be perceived that the manager has not properly coached the employees, thereby undermining the position of the manager in the organization. In addition to this, managers often find themselves in tough situations when a top-performing employee leaves the organization due to a lack of career opportunities. This can disrupt the team’s workflow and create difficulty in filling those vacant roles.

Furthermore, talent hoarding can foster a negative environment where employees feel trapped in current roles, thereby competing for limited growth opportunities, ultimately damaging the team’s working environment.

For Organization:

Talent Hoarding makes it reluctant for other employees to work for such an organization where there is a roadblock to internal mobility and also a negative work environment can significantly impact the overall productivity of the organization. Thus, it damages the organization’s reputation.

Research shows that a lack of internal mobility is the second most common reason employees decide to look for jobs elsewhere.

Within the organization, when high-performing employees remain in lower-level positions, feeling stuck in their stagnant roles, it can impact their ability to bring new ideas to the table, limiting the scope of innovation, cross-functional collaborations and creativity. This can further lead to limitations in the organization’s ability to adapt to new challenges and markets as that will require diverse skill sets.

How HR can overcome this Hidden Challenge

To address this hidden challenge of Talent Hoarding, HR (Human Resources) needs to take the following proactive steps in the organization:

1. Transparency of Career Development – Employees of the organization need to be aware of the available career opportunities while being part of the organization. Also, HR can collaborate with managers to communicate these career advancement opportunities clearly to the individuals.

2. Performance Review – Performance review on a regular basis would enable HR to identify the talented employees that are working and can review their assessment in terms of what career opportunities they are getting and if there is any talent hoarding issue.

3. Utilizing the HRIS system – HRIS (Human Resources Information System) manages employee information and facilitates continuous performance management through performance reviews and feedback. This will ensure that high-performing employees are recognized and rewarded, reducing the barriers to internal mobility.

4. Exit Interviews – Conducting exit interviews is crucial to know the reason for employees leaving the organization and this will help in addressing those issues as this will help in retaining other talented employees in the organization.

5. Incentivize managers – Incentives to managers based on the overall growth of the team and on supporting their employee’s career advancement. Additionally, training can also be offered to managers to help them in becoming better mentors.

6. Cross-training programs – Skills possessed by talented employees of one department can help other employees in gaining those skills and this will provide an opportunity to learn from each other. If all the departments within the organization work efficiently, only then it will help in prospering the whole organization. Some other programs like mentoring programs, and skill-development programs can be organized.

On a Final Note

In this fast-paced world, Talent Hoarding is emerging as a hidden challenge that organizations need to be aware of for sustainable growth. No doubt, it’s important to retain talented employees to progress further but it’s also crucial to not hinder the employees’ career opportunities. Research has found that companies that excel at internal mobility have an average retention span of 5.4 years, which is nearly twice as long as companies that struggle with internal mobility. Organization need to strike a balance between the two and therefore, foster internal mobility within the organization.

To avoid Talent Hoarding, the organization should foster a culture of a productive and engaging environment at the workplace for all the shareholders involved, which will ultimately lead to growth, innovation and long-term success of the organization.

Written By
Shweta Gupta
Under the tutelage of The HR Club
IMI- New Delhi

Effective Use Of HR Technology: Leveraging HRIS And AI In HR Operations

In the current business environment, Artificial Intelligence has been the buzzword for the past couple of years. Many millennials who are working in corporates often refer to AI as a job killer but that is not the case. Artificial Intelligence is just a tool that helps organizations to efficiently streamline their operations. Many industries have started to implement AI tools in their day-to-day redundant activities as it’s saved time and most importantly, costs of the organizations. Although the scope of AI tools is not just to simplify monotonous tasks, they are also being implemented as main functions of organizations. This article explores how AI tools have impacted one of the critical functions of the organization, which is Human Resources.

Human Resource Information System and Artificial Intelligence, the Dream Team?

Human Resources Information Systems (HRIS) and the integration of Artificial Intelligence (AI) have emerged as powerful tools in HR operations, enabling firms to streamline processes, enhance decision-making, and drive employee engagement. HRIS which is the backbone of modern HR operations, has come a long way since its introduction. Initially, HRIS primarily handled administrative tasks like payroll and personnel tracking.

However, with advancements in technology, modern HRIS solutions have evolved into comprehensive platforms that include a wide range of functions ranging from recruitment and performance management to training and benefits administration. Now, AI on the other hand has added a layer of intelligence to HR processes. Through machine learning and data analytics, AI can figure out patterns, predict future personnel requirements, and provide valuable insights to HR professionals in making informed decisions which shows that AI is the game-changer in the field of HR. Also, AI has helped organizations to save costs on the recruitment process which is the most time and resource-consuming process carried out by the HR function of the organization.

Advanced, Enhanced & Impactful Decision-making through HRIS and AI

Data is the fuel for pushing forward the cart of modern businesses and HR is the conductor of this wagon of modern business. The role of HRIS is to collect a wealth of data on various aspects of the workforce namely, performance metrics, employee demographics, and training history and AI can make detailed analysis this data to provide effective insights that drive better decision-making in the organization. Along with that AI can identify trends in employee performance and help HR professionals develop targeted training programs to address employee’s skill gaps.

It can also highlight patterns of attrition, allowing organizations to proactively address retention issues. These analyses allow HR professionals to make informed decisions that align with the overall organization’s goals. AI can learn from any data input provided by HRIS systems and use those inputs to create new rules for future HR practices and policies which ultimately save time and energy for the management.

Diverse Reach of AI into HR Tech Space

The duo of HRIS and AI does not stop at decision-making only, their scope also spans multiple HR-related activities such as

Improving Employee Engagement: Employee engagement is a critical aspect of modern workspace. HRIS and AI work together to create a personalized experience for employees. By analysing employee’s preferences and behaviours, AI can create relevant training modules, career paths, and even tailor made benefits packages. AI also plays a significant role in improving the employee experience at an organization. Chatbots assist employees with HR-related inquiries 24/7, ensuring that they receive timely and accurate information. This accessibility not only improves employee satisfaction but also reduces the administrative burden on the HR department.

Predictive Analytics for Workforce Planning: The most effective tool that AI provides, Predictive analytics, has revolutionized workforce planning. By analysing historical data, market trends, and other important factors, HR professionals can anticipate the future workforce needs of the organizations. This enables organizations to proactively plan for talent acquisition, address skill shortages, and ensure that the right people are present for right the roles at the right time.

Diversity, Equity, and Inclusion Initiatives: DEI is the new talk of the town. Every firm wants to effectively hire individuals from various backgrounds and in that AI can play a vital role in promoting diversity and inclusion within the organization. It can help identify areas where diversity is lacking, whether it’s in recruitment, promotions, or leadership positions. By recognizing these disparities, HR professionals can implement targeted initiatives to create a more diverse and inclusive workplace.

Performance Evaluation and Feedback: Performance evaluations which are done through AI tools can provide a more objective and detailed assessment of employee performance. By analysing a wide array of data, including project outcomes, peer feedback, and individual goals, AI can assist the HR manager in providing a well-rounded evaluation to employees. Additionally, AI can help automate the feedback process, ensuring that regular and constructive feedback is given to employees, leading to continuous improved performance and employee morale.

Sustainability and Green Initiatives: You won’t believe it, but HR technology can also contribute to sustainability efforts. By transitioning from paper-based processes to digital systems, organizations have reduced their environmental footprint. Additionally, the data-driven insights provided by HRIS and AI can help identify areas where resource consumption can be optimized, contributing to a more environmentally conscious workplace.

Cost Efficiency and ROI: Implementation of effective HRIS along with AI leads to significant cost savings over time. By automating manual processes, reducing administrative overhead, and optimizing resource allocation, organizations can allocate resources more efficiently and see a positive return on investment (ROI) in terms of increased productivity and reduced operational costs.

On a Final Note

Implementation of AI tools in the field of Human Resource Management is one of the efficient combinations of modern technology and human efforts the world is witnessing in the current business scenario. Many HR professionals should welcome this change in this field with wider perspectives and look at AI not just as a “Job Killer” but as a way to make their firms leaner, cost-effective, ready for uncertainty and ultimately to maintain competitive advantage.

Written By
Rohan Kapoor
Under the tutelage of The HR Club
IMI- New Delhi

Netflix- Zenith of HR Reinvention

“At most companies, average performers get an average raise. At Netflix, they get a generous severance package.”- Linkedin (source). We all are quite familiar with Netflix as our go-to OTT platform for tv shows and movies. But how many of us are well aware of “How Netflix re-invented HR?” Firstly, one of Netflix’s best engineers realized after layoffs that he’d rather work by himself rather than work with subpar performers. Patty Mccord took a difficult decision as he had to lay off an exceptional bookkeeper with a severance package. He quoted “If we wanted only “A” players on the team, we had to be willing to let go of people whose skills no longer fit, no matter how valuable their contributions had once been.”-PeopleHum (source). A company that practices change from inward to outward evolves faster. Netflix restructured and revamped its human resource functions by taking certain innovative and crucial steps.

The 5 Tenets that Netflix followed that reinvented HR

Hire, reward, and tolerate only fully formed adults.
In this tenet, Netflix has a very unique vacation policy where salaried employees could take a vacation whenever required. Their HR consultant believes that if one is aware of hiring employees who are the best fit for a company’s culture (support and desire for high work performance) then automatically 97% of your employees would do the right thing. Hiring the right people will create a cohesive environment, helping in knowledge management.

Tell the truth about the performance

It has been 10 years since Netflix got rid of its formal performance reviews and adopted an informal 360-degree performance review. In this performance improvement plan, the employees were asked to identify things that co-workers should stop, start or continue. They made use of an HR software system to conduct this review and later held them face-to-face.

Managers own the job of creating great teams

A common element of success at Netflix has been that the managers of respective teams have got the leverage to take the decisions of the team they’re part of. The employees get compensated according to industry standards and norms and their performance. This encourages employees to work harder and more efficiently. This leverage of decision-making at the managerial level of teams gives opportunities to grow, make mistakes and bond well with co-workers.

Leaders own the job of creating a company culture

The HR consultant of Netflix believes that the most important value of a company is “efficiency.” Netflix believes that a company culture shouldn’t be created but a company culture should emerge from its employees and leaders. The company believes that even if highly skilled and efficient people are employed, it is very important for employees to communicate according to the business language (how the company makes money and behaviors that will drive success). Netflix believes to build a company culture the company needs to understand its employees and vice-versa. The leaders need to be aware of sub-culture that might require different management. Seeking excellence by following the principle “people over process”

Good talent managers think like the innovators first – and like HR people last

Too many HR specialists focus on morale improvements such as getting the company onto “the best places to work” or “best company culture” lists. So instead of focusing on adding accolades to the company HR should focus on employees. At least that’s what Netflix did. Such as making their employees aware of the work that they should do to get bonuses, throwing parties for the employees, and offering them T-shirts. The only things that truly inspire employees are their salaries and stock prices. If the company makes a respectable profit, the employees will be driven to do their best, which will benefit the company as well. To keep the most competent personnel, human resources must be proactive and connected with the general theme of the workforce, as well as assist in communicating on their behalf.

What is the basis of Netflix’s tenets?

The values system that Netflix is built on is quite substantial. Values are what Netflix values, instead of theoretically following values Netflix believes in living and breathing the company values in everything they do. Netflix believes that high performance comes through a great team and great leader instead of just having brilliant highly skilled employees on board. Freedom comes at the cost of responsibility, we have seen it in the very first tenet of how Netflix lets its employees make decisions, and take vacation leaves all responsibly, the context is not control– Netflix doesn’t believe in controlling staff to get the best out of them but explain them the business functions they’re into. Netflix is highly aligned and loosely coupled where all the teams work towards a common goal but have autonomy and freedom of their decision-making. Pay top of the market as their HR consultant quoted “One outstanding employee gets more done and costs less than two adequate employees.” Lastly, through promotions and development, Netflix believes people should shape their future within the company rather than the company doing it for them. Early on, the company abandoned formal annual evaluations. They were judged to be overly ceremonial and rare. As an integral part of their job, managers and workers were required to have frequent dialogues about performance.

Conclusion

A lot of companies should learn from Netflix to rebuild and reshape the HRM of their organization. Netflix molded HR in a new and efficient way. It viewed performance, recruiting, and team value in an innovative way and hence came up with the 5 tenets. Talent management isn’t a process but an innovation of business. In the current situation, the company has been quite successful and has transformed itself into a benchmark organization. The fear of lawsuits drives traditional corporate performance assessments. According to the notion, if you want to get rid of someone, you need a paper trail that documents a history of bad performance. Low performers are often placed on Performance Improvement Plans in many organizations. PIPs are dishonest as they never achieve what their name indicates. HR reinvention is the need of the hour.

Written By
Muskaan Mahanti
Under the tutelage of The HR Club
IMI- New Delhi

Unconscious Bias : Women In The Indian Workplace

From “Dear Sir” emails being the go-to, questions about starting a family during interviews, enforcing dress codes to “protect” the employees and labelling someone as “too soft” if they are polite or “too difficult” or “bossy” if they are assertive, women in India have heard it all.

It is well known that women are treated differently based on their gender. The United Nations Development Program conducted research on Gender social norms index based on the findings of research conducted on 80 countries in 2020. The report showed that 90% of men and women hold a bias when it comes to women.

One might think that bias against women is a thing of the past, but that is far from the truth. Due to unconscious bias against women, there is an impact at every level of the workplace. This in turn hinders women from having a say in key decision-making processes. We have many examples of unconscious bias against women in today’s time. For example, even though companies consciously hire women for base level or starting positions to increase their gender diversity ratios, one can see a sharp decline in the number of women employed when it comes to middle and upper management.

How do unconscious biases happen?

Humans are naturally biased, and even when we want to be fair, it is hard to totally be impartial. This is because our mind uses the information it receives by putting it into groups. We tend to use mental shortcuts that use these groups to help us be able to easily understand information and use the same. We all hold unconscious gender biases, even if we do not intend to, as it’s a natural human trait. Sadly, this contributes to workplace inequality.

Categorization of people in this way may lead to undesired outcomes. This may cause assumptions about an employee that may not be true, and this may eventually lead to alienation. Our brain has a natural tendency to rely on of these stereotypes, even though one might not want to.

There has been a lot of research about minority or marginalized groups holding unconscious biases about their own groups. Which is why due to male dominated workplaces, even women might build misogynistic views about women.

Impact of unconscious gender bias

Indian society is full of negative associations when it comes to women and them having a career. Even though women comprise 50% of the consumers, they are a part of only a fraction of the same when it comes to organizations who make decisions for these consumers. These biases are experienced by both, women in the high and low earning bracket. Therefore, it is prevalent at all levels of the society meaning, even if women are able to reach high ranking positions in the hierarchy and become a part of the high earning bracket, they will still not be able to get rid of the unconscious biases that people hold that will in some way or the other hold them back.

Similarly, pregnant women show a high rate of attrition in the upper or middle management level as well, many a times they are denied promotions and bonuses as they are seen as being less committed to the job due to their pregnancy.

Unconscious bias can result in the organization missing out of potentially good candidates during the recruitment process. It can also cost the organization a lot of money as, low diversity and lack of inclusivity when felt by the employees can lead to attrition. As we move up the hierarchy in the organization, we find less and less women. Only 27% of women are given leadership roles in middle management, when compared to men, out of whom 73% are. The same shows further reduction when it comes to senior levels, which has only 21% women representation, according to a report by the firm DDI India. This is despite the fact that various researches have shown that organizations which have diversity in upper management positions are overall more profitable.

Solution

Fortunately, the issue of unconscious biases can be resolved to some extent. The first step that need to be taken is to acknowledge the existence of unconscious biases and the fact that we all hold them, even though they happen without us wanting to.

When we ask someone to explain or justify a decision they have made or a choice they are going with, they might come up with an explanation for the same. But that is not the whole truth. We have just made ourselves used to giving a rationale to the choices and decisions that we make that have been made without any logical input. To help get rid of or at least be aware of the unconscious biases that we have towards women we need to question are decisions, choices and believes even if they feel right. It is this constant questioning of our assumptions that will help us notice the decisions we take that are based on people’s appearance etc.

On an organizational level, during the process of recruitment, organizations can use blind hiring techniques. They will help eliminate the unconscious biases that people hold when it comes to the appearance of the candidate, which includes their gender. Making the recruitment process structured is also very crucial as, when the process is well-structured and defined when it comes to the parameters on which the individual is judged on then, the decisions are based on workplace performance and ability and not based on biases that are held about their gender.

Proper training for identifying and eliminating unconscious bias from the workplace should also take place. According to research done by McKinsey and Company, almost all companies do training related to anti-harassment and discrimination, but far less offer training related to the elimination of biases during the hiring process and performance reviews. If people cannot identify these biases in the first place, they are less likely to do something to eliminate them.

Written By
Aastha Tiwari
Under the tutelage of The HR Club
IMI- New Delhi

The Connector Manager: One that can build the exceptional talent

In the fast-changing and constantly evolving business environment, equipping employees with the right skills to tackle complex situations is one of the biggest challenges that organisations are facing today. In most companies, the line managers are expected to build this talent in the employees. Managers are expected to hold frequent discussions on developments and lavish a constant stream of feedback on their direct reports. One survey of HR leaders found that they expect managers to spend 36% of their time coaching their subordinates but a survey of managers showed that the actual amount averages just 9%. But this should not be alarming because research conducted by Gartner in 2017 showed that there is very little correlation between time spent coaching and employee performance. The research suggested that Connector managers are the best when it comes to developing subordinates.

Who is a connector manager?

After surveying about 7300 employees and HR professionals across various industries, the researchers at Gartner identified four distinct coaching profiles:

Always-on-managers are the managers that HR professions typically idealize. They provide continual coaching and would even go the extra mile to give employees coaching and feedback.
Teacher managers coach employees based on their knowledge and past experiences. They provide advice-oriented feedback and personally develop their subordinates.
Cheerleader managers are like outside supporters. They are available and supportive, but they are not as proactive as other managers when it comes to developing employees’ skills.
And the last is the Connector managers, who give targeted feedback in the area of their expertise, otherwise, connect the employees with the right people who possess the required skills to provide feedback. They spend more time evaluating the kind of coaching needed by their subordinates and then connect them to the right people and resources at the right time. They are active listeners and encourage peer-to-peer skill sharing.

The research conducted by Gartner showed that hypervigilant always-on managers had a negative impact on employee performance. They degraded employee performance by 8%. It was found that the Connector managers are the most successful in building their subordinates’ capabilities. Their better understanding of the employees’ needs, and tailored feedback help employees get the right training for upskilling.

How to be a connector manager?

As Sari Wilde, Managing Vice President of Gartner HR Practice rightly puts it-

“The Connector manager approach inherently puts employees’ needs at the center.”

The most important thing to be a connector manager is to understand your subordinates and their needs. Connector managers spend more time evaluating the needs, interests, and aspirations of their team members and then connect them to the people having the relevant skills to coach them.

Next, connector managers embrace individual indifferences in their teams. They encourage their teammates to express their viewpoints freely which fosters an inclusive environment. This also helps to better resolve the difference of opinion and hence better conflict management.

The connector managers also promote peer-to-peer skill sharing. They create an environment where team members empower one another for success, and individual employees can access the right development opportunities and coaches for their career needs.

One distinguishing trait of connector managers is that they welcome feedback from others. They readily seek out feedback from the employees and implement them to improve their performance. They spend 15% more time learning informally from their colleagues and other managers. Hence, they themselves are a part of peer-to-peer learning.

Connector managers are team players. They value the success of their team as much as their own. Their focus is to determine what their team members need to be successful. They deeply value the success of their team and always encourage their subordinates to achieve new heights.

Hence, to be a connector, managers need to shed their role of being directive and shift towards being self-aware of their knowledge and expertise so that they can assist their subordinates and connect them to the people who can better train them.

What can organizations do?

To develop connector managers, organizations need to create an environment for peer-to-peer learning. Organizations need to make a shift from the traditional way of directing people to self-learning approaches. They systematically need to create opportunities for learning through peer-to-peer coaching.

Organizations need to understand that instead of creating and pushing out new kinds of programs for the employees, they should emphasize creating a “pull” environment where employees seek the coaching that they need. For example, IBM created a marketplace platform called Coach.me for coaching needs and solutions. The platform connects people with their colleagues who can help them acquire the skill they want. This is not only an efficient technique of coaching but also cost-effective.

The organisation also needs to encourage its employees for sharing their expertise. They should provide incentives to the employees for spending time coaching their colleagues. The focus should be on creating a broad awareness that by helping one another grow, they are contributing to the organizations’ success.

On a final note

The focus of managers should be more on the quality of their interaction with the employees rather than the frequency of developmental conversations. The connector manager approach in long term will also reduce the dependency of employees on their managers. Employees will not always have to go to their boss first if they have a strong network and are aware of who can help them. They will be encouraged to seek out answers to their problems. Peer-to-peer sharing will also inculcate team spirit in the employees. Overall, the connector manager approach has the potential to build exceptional talent in organizations and lead them on the path to success.

Written By
Srashti Milan Srivastava
Under the tutelage of The HR Club
IMI- New Delhi

A Leap of Faith-The Rise of Algorithmic HR

In the fast-moving world that we live in, the only survivors are the ones who change with changing technology. Life today is regulated by algorithms, as people say it is all in the algorithm. In simple words, an algorithm is a procedure used for solving a problem. Algorithms that all programmers swear by are slowly making their way to the HRM.

For Human Resource professionals, nothing is more important than hiring and developing people; however, hiring good employees can be challenging and time-consuming. The use of artificial intelligence in HRM would make the job easier and save time as well. The software algorithms that generate & use digital data to augment HR-related decisions to automate HRM activities are known as algorithmic HR. Google was the first company that caused the rise of algorithmic HR. Initially, it wasn’t called algorithmic HR but people operations. It was administered by Google’s People Analytics Team and was driven by Laszlo Bock in its early years.

Why do we need algorithmic HR?

In the traditional HR workforce, managers or HR members have autonomy and authority & such concentration (horizontal evaluation system) of power often leads to workplace politics. At the centre of HRM, there have always been fairness issues regarding workplace performance evaluations, such as gender or race discrimination, workplace politics, and subjective peer review systems. AI may help solve the biases and unfairness in traditional HRM. As per forbes.com algorithmic HR, a form of AI in HRM is going to be the buzzword of 2023 onwards.

How does algorithmic HR work?

Algorithmic HR works with the help of digitization. For example, in digitization, the records of employees on paper can be converted to digital worker records that are stored in HR information systems. The use of sensors and smart devices at the workplace namely smartphones, smart watches, GPS tracking and sociometric badges help organizations digitize worker-related data (actions, location, social relationships, emotional states, etc).

Big data is huge and the speed at which it’s collected makes manual processing difficult. So, such type of huge data from various sources is extracted and converted into a single format with the help of software algorithms. For example, the HRM algorithms used by the company Upwork calculate Job Success Score (JSS) by combining the behavioural data and customer estimations of its employees. A self-learning HRM algorithm makes use of computer-programmed codes to predict a job candidate’s future performance within an organization. Food-delivery companies like Uber Eats depend on self-learning algorithms to improve job distribution by leveraging current data on worker availability, weather conditions, journey time, and consumer behaviours. Algorithmic HR adds to human decision-making by offering predictions that help to forecast the impact of such decisions. For example, descriptive statistics provide additional insights into skill or diversity gaps in the workforce (Deloitte, 2020).

How can algorithmic HR transform HR?

Algorithmic HR can transform HR by reducing its tedious administrative responsibilities, complicated spreadsheets, and paperwork. The saved time may be employed in more productive activities of creating connections with clients, staff, etc. Algorithmic HR is commonly used in talent acquisition, learning & development, employee engagement, and retention & automation. AI can computerize the screening efforts of recruiters and hire the best candidates from a pool of applications received through a one-click apply button. AI-powered applicant tracking systems (ATS) select potential applicants with high match scores for recruiters’ human evaluations, saving time by eliminating unnecessary submissions. AI-based social media analysis (education, social media post, experience, skillset, recommendations, etc) may help in reaching out to passive and prospective candidates who’d be interested in the job.

Algorithms in combination with an effective learning management system can help to create personalized learning tracks based on the skill sets needed. Algorithmic HR is used for predictive training i.e., it enables employees to seek assistance through 24/7 chatbots which also enlist recommended courses based on skill gaps, employee interests, etc.

Employee engagement and retention are of utmost importance to an organization. This can be enhanced through automated virtual assistance for the self-service of employees. When employees have queries about rules and procedures for benefits, insurance, leaves, and reimbursements they may immediately refer chatbots instantly for human-like connection. AI-powered chatbots can understand natural language inquiries from employees and map them to relevant documentation/guides in the form of direct links or brief answers.

AI is used to carry out a sentiment analysis of employees and predict attrition by considering data points such as tenure in the company, performance ratings, etc. AI-enabled automated communication may assist employees quickly getting important information like policy updates, internal announcements, and so on.

What challenges will be faced by algorithmic HR?

The biggest question that would generate with this revolutionizing technology will be its fairness. The main goal of algorithms is to ensure efficient decision-making but the reduction of human involvement in decision-making makes it biased. The main concern of such decision-making is the sample of data on which they’re trained. For efficient decision-making, the algorithms should be tested on new, updated, precise samples of data. Since the empathetic & personal human involvement is reduced it challenges the roles of HRM. The HRM has to adapt to the new algorithmic HR and add value to the organization with reduced human touch and increased automation. It can also pose a risk to the well-being of employees. Real-time behavioural tracking, feedback etc may seem like an invasive way to control employees. Some employees may perceive it as a threat to their psychological well-being and autonomy. Then, as a result of algorithmic management, happiness may suffer.

Conclusion

A balance between algorithmic HR & traditional HR. Is it possible?

Algorithms basically make life easier and enhance accuracy, efficiency, and user experience & save time. However, organizations need to ensure the degree of algorithmic HRM. Automating tasks that humans performed (like providing feedback) represents an enormous change. Transform this change into something positive and sustainable lies in the hands of everyone involved. But managers and HR will play a significant role in creating readiness for change. Algorithms can be multipurpose but human resources aren’t, every organization needs to undergo a careful assessment to predict what percentage penetration of algorithmic HR along with traditional HR is suitable for the well-being of the organization as well as the employees. Proactiveness in the change of management is an important factor for the introduction of algorithmic HR. So, it is important to prepare the firm’s employees for such a change. The potentiality of algorithmic HR is quite big but an organization should never divert its focus from its most valuable asset- its people.

Written By
Muskaan Mahanti
Under the tutelage of The HR Club
IMI-New Delhi

Mass Layoffs : What Happens To The People Left Behind?

There are many problems and issues that affect the world today, one such issue is the economic condition. Economic conditions have an effect on the corporate, business and functional strategies of a company. Therefore, HR as a function must also make changes to deal with tough economic conditions. Tough economic conditions have resulted in the need for HR professionals to demonstrate new ways of dealing with problems as, goings by the book does not work in the face of such an adversity. They are compelled to take difficult decisions that might have an effect on the organization as a whole.

One such decision is the mass layoff of employees. It is a very serious decision as it has a huge impact on a lot of people involved. Layoffs not only affect the people who leave the organization, but also the people who are left behind.

Why are mass layoffs happening?

One of the major issues that has come about due to the current economic conditions is the mass layoffs of employees. This is especially happening in the tech sector. Companies like Amazon, Byjus, Twitter etc. have laid off hundreds of their employees recently.

This is happening as, during the pandemic, many tech platforms saw a huge surge in users. This was because people were stuck at home and fully relied on online platforms and other technology. Due to this increased demand, many companies hired more people to meet this increased in demand. As the severity of the pandemic decreased and people started to go out again, there was a drop in the demand for these platforms, which resulted in a huge drop in the sales of these products. Due to this decrease in demand, many of these tech companies realized that they were now over hiring.

Due to this decrease in earnings, many have adopted a cost cutting strategy to overcome the problem. When companies do cost cutting, labor cost is one of the first things to be reduced. Which is why so many companies are laying off people.

Over hiring due to the pandemic boom and decrease in sales is not the only reason why employees are facing mass layoffs. Issues like the fear of recession and inflation also contribute to the same. Therefore, challenging global macroeconomic conditions and uncertainty are responsible.

Impact on the employees

Even though one might think that only the people who have been laid off are affected by the same, but, the people who did not end up getting laid off also get effected by it. In many direct and indirect ways, layoffs lead to change in the employee’s wellbeing and performance.

This happens as, once the people that have been let go leave the organization, the remaining ones are expected to pick up on the slack and take up the work that was previously done by others. This leads to decrease in performance as the employees get discouraged and overburdened. It also leads to decrease in engagement of the employee with the organization.

Research by Magnus Sverke and Jonny Hellgen of Stockholm University and Kathrina Naswall of the University of Centerbury found out that after mass layoffs, out of the people who were left in the organization 41% experienced a decline in job satisfaction, 36% experienced a decline in their commitment to the organization and 20% people showed a decline in job performance. On top of that, high performers could end up leaving the organization as layoffs can disillusion them. As the best talent won’t want to work in a company that lays people off when there are first signs of trouble.

The fact that these layoffs are being increasingly considered as unfair, can eventually result in decreased loyalty of the employees towards the company. As, lack of transparency and unjust practices make it known to them that in the same way the employees were let go today, they might also be laid off tomorrow. If they feel that the organization is not loyal to them, they might start feeling the same way too. Due to decreased transparency, employees find it harder to align themselves with the company’s goals as well.

Layoffs also lead to emotional distress. Other than the laid off employees, the ones that remain suffer emotionally as well. This is due to the fact that layoffs disrupt the status quo and employees get stressed due to the extra responsibilities they now have.

Conclusion

Changes like market shifts result in companies doing restructuring, which can lead to layoffs. But before considering layoffs, companies should consider other possibilities like, transforming the current loss-making business.

However, this does not always work. In such cases where layoffs are inevitable, companies should make sure that employees are treated fairly. Companies tend to get better financial outcomes post layoffs if, employees think that the same was done fairly and was done due to strategic reasons, not cost-cutting.

Written By
Aastha Tiwari
Under the tutelage of The HR Club
IMI-New Delhi

The Rise of The Corporate Nomads

Since the beginning of time, the only constant has been ‘change’. The business world is constantly evolving with increasing chaos and unprecedented changes. The pandemic has changed the priorities and expectations of employees. There has been a seismic shift towards remote work and more people are embracing a location-independent and technology-enabled lifestyle that allows them to travel and work remotely. Corporate Nomadism is on the rise!

Who are ‘Corporate Nomads’?

Corporate Nomads are individuals who have a full-time employment relationship with their organizations and leverage technology to work location independently. While having a full-time job, corporate nomads work in new geographies with new people having different cultures and values.

People in their 30s to 50s are most likely to be corporate nomads. This does not mean that younger or older people cannot become nomads!

The Rising Trend

As Google CEO Sundar Pichai rightly puts it-

“The future of work is flexibility.”

Now, employees do not want to be confined to their cubes in offices. They want to explore and work at different places at their convenience. Flexibility is no more a luxury; it has become a necessity. A study by Owl Labs in the USA suggests that workers are more likely to choose a company that offers a location-independent mode of work. The turnover rate in such companies is 25% less than the companies that do not offer flexibility.

This is a clear indication of the rising trend of corporate nomadism. The mode of work offered is strongly influencing people’s decision to join a company. Employees are increasingly willing to participate in geographically dispersed initiatives and projects within their employer’s global network.

Although at present there is a small workforce of corporate nomads, the trend is gaining popularity. This is majorly because of the following reasons:

Having a full-time job with the organizations gives the nomads a sense of financial security.
The freedom to travel and work gives them a break from the traditional office setting.
The opportunity to explore new geographies, cultures, and values is appealing.
It offers the employees an opportunity to build an invaluable global network and learn from diverse experiences.

Corporate nomadism allows workers to learn from diverse experiences and build networks that help them grow in their lives.

A New Type of Employee Benefit?

For years, companies have given numerous benefits to their employees to enhance their experience and retain them. In the 80s, companies offered insurance coverage for their employees. Further, many other benefits like paid leaves were introduced under employee benefit schemes. Now in the 20s, the pandemic has unequivocally demonstrated the need to enhance the employee experience to retain them.

The pandemic has led to the rise of destructing trends like the Great Resignation. This has forced Human Resource management to introduce new and unique employee benefits to retain their top talent. One such employee benefit could be the flexibility to work location independently, i.e., allowing their employees to be corporate nomads. Many companies like Salesforce, Deloitte, Twitter, Google, etc. have announced policies allowing their workforces to work remotely from anywhere permanently or for significant periods. Companies are considering this as a major employee benefit that can influence an individual’s decision to join or remain at a company.

What can Organizations do?

Corporate nomads have the hunger to explore the geographies and contribute globally. They learn from diverse experiences. The freedom to work location independently makes the employees enjoy their work while doing it better. Organizations can reap the benefit of the experiences and networks of their nomads.

Firstly, the companies need to make a shift from the fixed mindset to a growth mindset towards the employees. They should be open to the idea of remote work. The companies should not view their employees through the lens of ‘fit for a particular work.’ They should be open to the idea of their workers exploring and working simultaneously. This would lead to the overall growth of the workers by being exposed to new cultures and global projects.

As employees are considering the work mode as an important factor to decide whether to join or leave a company, it is important for the organizations to make it easy for the corporate nomads to work with them. This will help the organizations attract the right pool of talent and retain the top talent. The efforts of the companies to incorporate corporate nomads will make them feel trusted, engaged, and loyal to the organization.

Also, employees are increasingly considering working location independently. Organizations can use this opportunity to encourage employees to develop global talent. Individuals and corporations alike can reap the benefits of job enrichment and change, without requiring individuals to jump into the wrong place with the wrong fit, and without creating a situation where organizations must replace great employees who should never have been lost in the first place.

The company also needs to include corporate nomads in its culture. Nomads and employees who work in offices have huge differences. Employees working in the office are close to the company values and cultures. But the corporate nomads who work freely are not much attached to the company’s values. Organizations should try to find ways to foster connections between off-site and on-site workers. This will ensure that the nomads are attached to the company’s values.

On a Final Note

Corporate nomadism is on the rise. The pandemic has made working location independently a necessity for many workers. Thus, the HRs and the management cannot ignore the rising trend. But not all companies can offer roles that can be performed remotely. Therefore, technology enabled companies should clearly state the job roles with the work mode offered. Overall, the companies should make policies that incorporate the corporate nomads. But at the same time concerns such as confidentiality and cybersecurity should also be addressed. This would be beneficial for both the workers and the organizations.

Written By
Srashti Milan Srivastava
Under the tutelage of The HR Club
IMI- New Delhi

Is the Indian Workplace LGBTQ+ Friendly?

The supreme court’s decision to decriminalize homosexuality on the 6th of September 2018 was a landmark victory in the lives of people from the LGBTQ+ community in India. After following a law made during the British Raj in India for 150 years, the LGBTQ+ community was finally allowed to be themselves.
With September 2022 marking the 4th anniversary of the decriminalization of homosexuality in India, and the Delhi pride parade approaching in November, it becomes important to take a step back and review the changes that have come about in the Indian corporate world when it comes to the LGBTQ+ community’s inclusion in the workplace.

Why now?

Today, one cannot imagine working in an organization that doesn’t move ahead with time. Despite 2021 being a tough year in terms of businesses, companies scored twelve percent more as compared to 2020 when it comes to Corporate Equality Index (CEI). We can increasingly see that the issues of diversity at workplace are being given more and more importance. Research done by McKinsey & Company from 2015 to 2018 has shown that Diversity, Equity and Inclusion improves organizational performance, increases productivity and leads to higher job satisfaction.
With the decriminalization of homosexuality in 2018, companies became more open to making changes and incorporating the LGBTQ+ community in the workplace. Therefore, due to the increase in the importance of DEI and the decriminalization of homosexuality, we can see many Indian corporates making efforts to make the workplace LGBTQ+ friendly.

The progress companies have made

Razorpay was the first fintech company in India to offer health insurance to the partners of the employees, irrespective of their gender. By changing terms used from ‘spouse’ to ‘partner’, their health insurance was able to account for people in homosexual relationships. It also covers gender reassignment procedures with other things. Similarly, in 2019 Tata Consultancy Services also started using the term ‘partner’ instead of ‘spouse’ so that health insurance can also cover the partners of people in same-sex relationships. They also provide provision of financial aid for gender reassignment, which is up to fifty percent of the total cost of surgery (up to 2 lakhs).
Mahindra Logistics has made LGBTQ+ inclusion a part of its five-year roadmap. They have pledged equal opportunity and non-discrimination during the hiring, firing, promotion process etc. for the LGBTQ+ community. Companies like Godrej and Mahindra Logistics treat partners of people in same-sex marriages like they would a heteronormative couple. Due to this, the employee and their partner can enjoy several benefits like adoption leave, compassionate leave for their partner, and counselling services. Mahindra Logistics offers the adoption leave for up to 12 weeks for same sex parents.
In 2016, Accenture became one of the first companies in India to introduce medical cover of sexual reassignment surgery. They also cover mental health consultation for gender dysphoria. In 2021 they updated their maternal, paternal and adoption leave policies to focus on care giving rather than gender binaries. Companies like Hindustan Unilever Limited and Godrej have also created gender-neutral washrooms at some of their corporate locations. Some companies have also made LGBTQ+ awareness a part of their sexual harassment training sessions.
In December 2021, Tata Steel hired 14 trans people to work as heavy earth moving machinery operators at its West Bokaro division. This made the company the first in the country to open core mining operations for people from the transgender community.
Many companies have also launched programs that aim to sensitise and spread awareness. These include, Hues of the Rainbow by Accenture, a program that encourages people to tell their coming out stories. Tata Steel has launched QUEERious, a case study competition for students belonging to the LGBTQ+ community. Godrej has launched ‘Manifesto for Trans Inclusion in the Indian Workplace’ and ‘Leading with Pride’ is a leadership program that has been sponsored by Publicis Sapient for the development of leadership for the people from the LGBTQ+ community.

True Inclusion or tokenism?

Although steps have been taken towards the inclusion of the LGBTQ+ community in Indian corporates, we are still miles away from genuine acceptance. This is because, merely coming up with policies does not put an end to the problem. There needs to be proper and regular sensitisation of people working in companies as, letting go of biases, misconceptions and stereotypes that have been internalised over decades is not an easy feat. At the end of the day, queerphobia is a real thing and LGBTQ+ community being a minority needs safe spaces where they can be themselves without the fear of being discriminated against.
The steps that have currently been taken, have mostly been taken by multinational companies, therefore we have only scratched the surface when we talk about actual inclusion of people from the LGBTQ+ community in the Indian workplace as a whole. A study done by Radstand, a global HR firm in 2021 showed that only one in three companies in India had taken a step towards the inclusion of the LGBTQ+ community. Out of these 70% were multinational companies. A huge part of the population works in companies other than the multinationals and there is a need for them to become safe spaces too.
Lastly, the LGBTQ+ community is a large and diverse community within itself. There is a need for different policies that cater to the needs of all of them to achieve true inclusion.

What steps can be taken to bring about change?

Change starts from the top, it’s only when the leaders of the organizations become vocal, actual change occurs. People are then able to see the importance of being inclusive when it comes to the LGBTQ+ community.
It is crucial to sensitise people who work in the organization or have just started working in the organisation so that they can avoid giving into the preconceived notions that they hold. Useful and regular training and sensitisation is important to achieve the same. The culture of the organization should be that of accepting people who are different from us.
Setting up proper channels to help people of the LGBTQ+ community speak out when they face discrimination is needed so that they don’t feel judged or shy away from making complaints when facing problems in the workplace. Companies should build a support base so that they know they’re being heard so they feel supported and powerful enough to come forward to ask for their rights and make right what’s wrong.
The LGBTQ+ community is very vast and differs a lot, not only that they also belong to different socio-economic backgrounds and therefore have very different needs. Therefore, the policies should take into account the diversity within the community as well.
In conclusion, we have miles to go before we reach what one can call a fully LGBTQ+ friendly workplace but, we are still taking steps in the right direction. The mere existence of LGBTQ+ inclusion in the workplace was almost unheard of a few years back. Therefore, looking back, we are in a much better place now. If companies can rise above tokenism and genuinely work towards the betterment of people from the LGBTQ+ community, we can look forward to the rainbow the future holds for us.

Written By
Aastha Tiwari
Under the tutelage of The HR Club
IMI-New Delhi

The Great Resignation: Is It Really a Great Reflection?

“Dear Sirs, I Quit!

Sincerely,”

The protagonist of Residential Evil entering an office space and finding it empty was an alarming sign of apocalypse. The image gives us a future idea about the consequence of an increasingly spreading trend called ‘The Great Resignation’. Coined by Anthony Klotz, an associate professor in management at Texas A&M University, it has become a breathing nightmare for corporates throughout the globe. In an article published in the May 2021 edition of Bloomberg, while referring to the incessantly increasing disaster, Mr. Klotz predicted mass exodus.

What is the Great Resignation?

To put it in simple words, Great Resignation is a phenomenon during which huge masses of employees quit their jobs owing to a wide array of reasons including, low pay scale, high job dissatisfaction, poor work life balance, no scope of career advancement, and increased cost of living. It is not just a theoretical concept, but a self-reflection of employees who are quitting jobs on the basis of their wants and needs

The Great Resignation — Another Salt March?

Our beloved Bapu walking in the famous Dandi March followed by a long trail of his supporters is a picture engraved in our minds as a symbol of protest against the oppressor. Is this what the Great Resignation is all about? The changes in the industry that the pandemic brought in raised the attrition rates as most employees faced collaborative burnout. It gave people an opportunity to reflect on their work choices. The employees feel disrespected at their workplace due to toxic work culture, no scope for career advancement, wanted relocation, too few or too much of working hours, toxic corporate culture, etc.

Imagine the humdrums of new parents who have to manage their child as well as their work hand in hand. People who work in kirana (grocery) stores or work at low level jobs in big cities don’t even enjoy the benefits of a health insurance, paid time off, or a roof under their head. Experienced workers at young age showed trends of frequently quitting their job due to their desire of spending time with loved ones. Besides, the 9:00 hours market gave the stock enthusiasts great returns and the value of buoyant residential properties gave a sense of security to opt for resignation.

How real is this problem and its future impacts?

The Great Attrition is real and appears widespread across industries. According to a survey conducted by McKinsey in 2021, 40% of the employees have been thinking about quitting their jobs in the near future. The employee turnover ratio is likely to increase as the employees are willing to quit even without a job lined up.

Namaste Grahak! Our Service is Everywhere — Is it really so?

The Great Resignation has affected the white-collar as well as the blue-collar industries alike. That being said, businesses in leisure and hospitality industry are most likely to lose their employees in near future because they’ve been affected disproportionately by the COVID-19 pandemic, high attrition rates, and short-term growth.

The Great Resignation has also majorly impacted the telecom & technology industry. In the year 2021, big tech giants like TCS, Wipro, and Infosys experienced huge attrition rates.

Why did this happen?

Some of the major reasons for The Great Resignation in the IT sector in India are better compensation leading to lateral shifts regardless of company size, flexible working hours, employees finding positions locally in their place of stay, career progression where employees get to work on cutting-edge technology, and finally upskilled employees looking for new opportunities. If this is the condition of huge tech giants, then imagine the appalling condition of small companies.

The IT industry is facing a huge talent crunch. Huge numbers of the current employee base are resigning, causing a burden on the existing employees. This in-turn would lead to The Great Resignation bandwagon in the future.

How to run the business the HR way—Great Resignation to Great Rehire?

The greatest asset of a company is its people—the Human Capital.

We’ve entered another industrial revolution. HR 4.0 shaping the future of the people which in turn will shape the future of the company. This is the revolution blurring the line between technology and people. This fusion of biology and technology has caused ambiguity, adaptability, and pedantry. Let’s focus on the blurred lines, mostly on the workforce of the company.

In such a fast pacing and fast changing world, the HR needs to level up its ground work. They need to customize the company’s induction program. The customization needs to be directed more towards flexibility where the employees have a clear picture about where they can see themselves in the near future as a part of the company. It should boost the leave policies in the company, thus, utilizing it to the employees as well as the companies benefit. It should also provide competitive remuneration to its employees. For example, Google has increased its parental leave policy to 6 months. The attrition rates might reduce if companies are more sensitive towards their employees’ needs, such as boosting paternal leaves, vacation policy, insurance benefits, and allowing mothers who are struggling with finding day care to work remotely, etc.

The HR should also emphasize on employee value proposition as an employer. They should emphasize recruiting employees on the basis of the talent suitability. It should enable the employees to upscale their desirable skills and keep them engaged in a competitive job market.

The company should try to understand its growth drivers rather than concentrating on numbers. The HR should focus on “Why it is failing to capture the engagement of its most experienced employees?”

As an organization’s channel of communication, the HR should also emphasize on agility, time, focus, and engaging leadership. For instance, Indra Nooyi, the former CEO of PepsiCo, is an engaged leader—someone who is excited and passionate about what she does. How exciting these types of leaders make it for their teams? Talent focus is a key element. If the organization quickly prioritizes who its critical talent is, what they do, how they can be utilized, it would definitely lead to employee satisfaction.

Agility is the need of hour. A shift in mindset, hierarchy, diversity, inclusion and conventional rules and regulations of corporate culture needs to change. There should be enough flexibility, creativity for each employee to grow.

The Great Resignation can be replaced with Great Talent Uprising!

Written By
Muskaan Mahanti
Under the tutelage of The HR Club
IMI-New Delhi