![]() Financial Daily from THE HINDU group of publications Wednesday, Nov 19, 2003 |
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eWorld
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Human Resources It's how you are seen that counts Anita Varghese
HUMAN resources and its management are of paramount importance for any business. And it is especially with IT that HR has come to be seen as an important tool that helps guide important management decisions. For IT is an industry which survives solely on the knowledge and expertise of its employees. When a company has a compelling brand image, it saves itself the trouble of trying to convince potential candidates that it is an employer of choice. The company with the right brand image acts like a magnet attracting the best in the industry. HR's main contribution to this brand-building is creating a unique and refreshing work experience for employees. This work experience will set the company apart and make it attractive in the recruitment market. The biggest challenge today then for HR in medium-sized software companies is not recruitment and retention, but that of helping the company create a brand value for itself. Five years ago, the IT industry was on a high and business was booming. Salaries were unrealistic. Now the industry has plateaued and has begun working on market fundamentals. In this background, phenomenal salaries are no longer possible. While in the process of brand-building, HR should basically keep in mind the factors a possible employee would be looking at.
Both these are directly dependent on the company's growth. An active HR will make sure that the company's achievements are projected without it sounding like blowing one's own trumpet. HR, in a way, is performing the role of a PR agency for the company. HR, in collaboration with the management, must have a carefully laid-out plan which decides on what achievements are to be emphasised, the direction the company is moving in and where it will be in three years. All this, if communicated properly to the candidate, will help ensure that the right messages go out in the industry. For instance, a business development manager might not be looking at a medium-sized company as a rule but if the company's plans indicate that in the next few years they are entering the European market in a big way - he might stop to consider the offer. Imagine that it is further explained to him that it is a very challenging job because he will be responsible for the success of the company's penetration into Europe. Projected like that, a professional might think it's worth his while taking up the job because of the challenges, exposure and the unique experience of travelling along an uncharted route. If the company succeeds in hiring a BDM, it is an endorsement that HR has been successful in highlighting the plus points of the company without misleading or giving false promises. That is the first step towards adding value through the company's brand.
Employee-friendly policies will go a long way in building an employee-friendly brand for the company. Training programmes for employees, seminars that they could attend which would help broaden their horizon and travel are all perks a company could keep in mind. These small inputs into employee growth go a long way in the employee looking differently at a medium-sized company. In the absence of these small inexpensive perks, the employee gets the feeling that not much is done by the company for his own personal growth. Viewed from that angle, the loss to the company's brand image is more than the expense the company might incur if it includes these facilities for its employees.
Loyalty and other factors
Once the employee needs have been identified, the next step would be to clearly spell out the target segment of the company. The most successful brands in the world are the ones where the companies have understood their target segment well. The company's target segment would be the huge pool of talent that is out there in the market. What then needs to be highlighted while projecting the company are its employee-friendly policies and its belief that it is the individual that makes the company and not vice-versa. Company newsletters, social gatherings, and participation at various levels in decision-making instil in the employee a feeling of loyalty. This loyalty is what in turn helps make and sustain a strong reputation in the market. It is very important when one talks of building a brand for a medium-sized software company that HR is able to consistently deliver what it promises. There is a very thin line dividing fact and fiction and an HR manager has to be very deft and honest in his projections. False promises and projections lead to colossal damage to the company's image. Take the example of a candidate who was a bit hesitant to join a company because the salary structure did not match his expectations. The HR manager was under tremendous pressure from the management to recruit him, as the client needed someone with his skills onsite. Under pressure, the manager committed to an increase in salary within three months of the candidate joining the company. The candidate agreed to this compromise solution and immediately left for the US to be onsite at the client premise. When he inquired about his revised salary status, HR dilly-dallied and kept putting him off. Finally, when they could not put him off any longer, they had to tell him the company could not pay the promised salary increase. The employee was furious and resigned. He demanded to be flown back at once and told the client the reason for his abrupt exit. Not only did the company lose an employee, but it also fell in the client's esteem. Not to mention the extra travel cost to the company. Another area in which HR normally overpromises is foreign travel. While recruiting, one of the perks promised to prospective employees is a trip abroad. When that doesn't materialise (sometimes due to genuine reasons like cancellation of order by the client) the employee feels that the conditions of his employment are not being fulfilled, leading to dissatisfaction. A good clean honest image will go a long way in retaining employees and attracting newer, finer talent. For this to be translated into reality, there needs to be a slight shift in the management's attitude. There has to be a firm plan in place before the exercise of brand-building begins. HR should no longer be viewed just as an operational area of functioning but an active participant in the growth and development of the company. Management needs to work in tandem with HR, sharing its views, focus and growth areas and formulate an image that is honest, truthful and achievable. Creating a compelling employer brand also involves examining all the facets that go into making your company tick. HR has to involve all the departments - marketing, sales, finance, and customer service and of course management, at all levels, to come up with a cohesive and complete strategy outlining the company's agenda. Medium-sized companies work with smaller teams and hence communication is not only easier but also faster. Your Brand is as strong as your weakest link hence HR has to ensure that in the actual work experience there are no pockets of discontent or dissatisfaction that contradict the brand the company has in the market. No matter how much advertising money is spent, ultimately it is the word of mouth advertising of satisfied employees that will enhance or denounce the brand. A strong brand is all about how the company is perceived by professionals in the industry. It is a misconception that a brand is created a Brand is what emerges from the image the company is trying to project for itself. The lesser the disparity between the conceptualisation and the actual visualisation of the company, the stronger the brand. HR's contribution is mainly in reducing this disparity and ensuring that what the world sees is what the company wants it to see. The author is with Human Resources - California Software Company Ltd, and can be reached at anitav@calsoft.co.in
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