case study - hr and technology for better employee relations

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Open Mind Customer Solution Case Study HR and call centre technology for better Employee relations Context HR function of any company depends a lot upon the HR managers and there effectiveness to communicate with the employees. India has progressed a lot in the last decade and so has the profile and abilities of the employees to work in any organization. Now an employee starting from the lowest level wants to know everything about his companies HR policies and various components of his salaries. But is he able to communicate and solve his issues with the company? Are the HR Managers Receptive to the issues holding the employee? Is improper communication a reason for attrition? Can a company spread across the country have the best HR practices and also cut costs? Overview Country or region: India Industry: Business process outsourcing (BPO) , HR, Employee Care Customer Profile Bharti Walmart Private Limited is a joint venture between Bharti Enterprises, one of India's leading business groups with interests in telecom, agri- business, insurance and retail, and Walmart, the world’s leading retailer, renowned for its efficiency and expertise in logistics, supply chain management and sourcing. The joint venture is establishing wholesale cash-and-carry and back-end supply chain management operations in line with Government of India guidelines. Under the agreement, Bharti and Walmart hold a 50:50 stake in Bharti Walmart Private Limited. The first wholesale cash-and-carry facility named “Best Price Modern Wholesale” opened in Amritsar in May 2009.

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Page 1: Case Study - HR and Technology for Better Employee Relations

Open Mind Customer Solution Case Study

HR and call centre technology for better Employee relations

Context HR function of any company depends a lot upon the HR managers and there effectiveness to communicate with the employees. India has progressed a lot in the last decade and so has the profile and abilities of the employees to work in any organization. Now an employee starting from the lowest level wants to know everything about his companies HR policies and various components of his salaries. But is he able to communicate and solve his issues with the company? Are the HR Managers Receptive to the issues holding the employee? Is improper communication a reason for attrition? Can a company spread across the country have the best HR practices and also cut costs?

Overview Country or region: India Industry: Business process outsourcing (BPO) , HR, Employee Care Customer Profile Bharti Walmart Private Limited is a joint venture between Bharti Enterprises, one of India's leading business groups with interests in telecom, agri-business, insurance and retail, and Walmart, the world’s leading retailer, renowned for its efficiency and expertise in logistics, supply chain management and sourcing. The joint venture is establishing wholesale cash-and-carry and back-end supply chain management operations in line with Government of India guidelines. Under the agreement, Bharti and Walmart hold a 50:50 stake in Bharti Walmart Private Limited. The first wholesale cash-and-carry facility named “Best Price Modern Wholesale” opened in Amritsar in May 2009.

Page 2: Case Study - HR and Technology for Better Employee Relations

The Benefits of Effective Employee Communication Often effective communication with employees is touted as advantageous, beneficial, and the stuff that makes the warm and fuzzy types happy. The 2005/2006 Watson Wyatt Communication ROI Study™ shows that effective communication is a leading indicator of an organization’s financial performance. Some of the findings:

• Companies that communicate effectively have a 19.4 percent higher market premium than companies that do not.

• Shareholder returns for organizations with the most effective communication were over 57 percent higher over the last five years (2000-2004) than were returns for firms with less effective communication.

• The 2005/2006 study found evidence that communication effectiveness is a leading indicator of financial performance.

• Firms that communicate effectively are 4.5 times more likely to report high levels of employee engagement versus firms that communicate less effectively.

• Companies that are highly effective communicators are 20 percent more likely to report lower turnover rates than their peers.

• Two-thirds of the firms with high levels of communication effectiveness are asking their managers to take on a greater share of the communication responsibility, but few are giving them the tools and training to be successful.

• Global firms are not customizing their messages to meet local needs or cultural sensitivities.

• On average, firms within the financial and retail trade sectors rank among the most effective communicators. Health care, basic materials, telecommunications and other service companies rank among the least effective communicators.

Business Challenge How to communicate effectively with its predicted large force of employees spread throughout the country. These employees will be from varied background, part timers, housewives, villagers, low income group people and from different cultures speaking various languages. Apart from effective communication the challenge was to keep the HR management cost to the minimum level "The biggest challenge was to communicate with the team members and Associates located all over the country and disseminate the same information and also cut costs" HR Vice President, Bharti Retail

Page 3: Case Study - HR and Technology for Better Employee Relations

Tools for effective communication – How did the Retail Giant benefited from this One of the retail giant in India “Bharti Retail – Walmart”, started its operations in India in the year 2007 and the very first challenge the HR head of the company envisaged was that how to effectively communicate with its predicted large force of employees which will be spread throughout the country. These employees will be from varied background, part timers, housewives, villagers, low income group people and from different cultures speaking various languages. Apart from effective communication the challenge was to keep the HR management cost to the minimum level. A lot of thought went into this and Open Mind Services Limited was asked to take up this challenge to provide an effective means of communication between the employees and the HR department of Bharti Retail and also make a system which becomes the backbone of the HR department. Open Mind studied the whole situation and understood the future scenario, after deep study and analysis it was thought to have a proper HR helpline centre working on voice technology to cater the employees of Bharti Retail. It was named as MyHR. Functions of myHR:

‐ To provide all the information related to the particular employee and the company like:

o Leave balances

o Policy explanations

o Tax related issues

o Salary issues

o PF/ESI issues

o Full and Final settlement issues

o Help in portal usage

‐ Help in listening and forwarding the complaints of the employees

o Complaints against other employees or management

o Complaints/suggestions related to the stores etc

Although it looks to be a simple idea, but it involved integration of a lot of technology and made open mind set up a unique centre for Bharti Retail. The myHR centre in a very less time became the nerve centre for all employee related activities and it benefited both the employees and the company.

Benefits to the employee:

All the information related to their salaries etc was easily available

Employees were directly in touch with the company representative in the centre

The help line facility was free of cost to them

They did not fear the backlash or unreceptive behaviour of their direct seniors

The centre was always open to hear their complaints and take it to the logical conclusion

More than 95% of their issues were resolved on one single phone call

In case of an escalated issue, it was resolved within a set TAT.

Page 4: Case Study - HR and Technology for Better Employee Relations

The Functions of MyHR (Employees Relationship Center)

Features:

Multi-lingual Service catering to widespread geographical locations.

Toll free no. gives easy access to associate with no extra cost

Work-force composition not being computer savvy hailing from all walks of life, Mobile comm. is the most popular mode of communication in India

Centralization of services ensures standardization and consistency

Increases the efficiency of location HR, as centralized backend allows higher ass. - HR ratio.

Resolution is just a call away, which wins over the limited accessibility of emails at office locations

Page 5: Case Study - HR and Technology for Better Employee Relations

Conclusion: MyHR has helped Bharti Retail transform the way HR is looked upon in a company, It has bonded the employee to the company in a much better way by offering a single window service. Companies does not get created but they are always nurtured to become giants, and a happy employee force works as a catalyst for this Growth.

Staggered Employee force

HR Tele Associate, takes care of all

A Happy Employee Force

Benefits to the Employer:

Higher employee: HR manager ratio ensures enough direct cost savings to the company, It has been estimated that on every 1000 employees a cost saving of over Rs 50 Lakhs per annum. (estimated figures for year 2009-10)

Due to centralization, the accurate information is sent throughout the organisation thus leading to a satisfied employee force.

Company gains the confidence of the employees and gives a better service to them.

At last a Happy Employee leads to better productivity.