ehrm: entrepreneurial human resources management | by ernst & young, people advisory services
TRANSCRIPT
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Entrepreneurial HR Management
The HR of Tomorrow
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Who are we?
EY’s PeopleAdvisory Services (PAS)
Analytics & Insight
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Dr. Katharina Luh-Senior Manager- EY PAS Germany based
Joelle Hobeica- Senior Manager- MENA Lead for the PAS Financial Sector- Qatar based
https://www.zeetings.com/EYentrepreneurialHR
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Why are we here and What we are discussing today?
OurDiscussion
Agenda
Frequently Asked Questions and Entrepreneurial Challenges
The “ONE” Employee Organization: Moving Part of Today’s HR world
HR Strategies for SMEs and Start-ups
Let’s Connect
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Source, Attract, Recruit, Assess, Develop, Retain…
Are inflated salaries
the answer?
Is social media the answer?
Talent pool size? Talent sourcing?Talent attraction?Talent management?Talent development?
Is flexibility and culture the answer?
f
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Entrepreneurial concerns and challenges (Please answer using Zeetings)
What is THE BEST talent source?
A- Channels: universities, recruitment campaigns, job fairs, people events
B- References, social media and short assignments
C- Depends on my industry
How shall I pay/market position?
A- Highest in the market to reflect: aggressiveness and competition
B- Lowest in the market; “it’s justified I’m an SME”
C- Market value for the position based on its weight
How can I be an employer of choice?
A- Make employees happy through continuously incentivizing them
B- Give them a lot of benefits that do not cost much
C- Create the “act as an entrepreneur” culture
What should my structure look like?
A- Comprise all capabilities needed to deliver the strategy; even if bureaucratic
B- Lean structure to reduce cost
C- Full fledged structure but set in a staged out model
What should my operating model be?
A- Do everything in-house; why pay outsourcing services?
B- Do nothing in-house; reduces fixed cost
C- Keep some and outsource others
What do I outsource?
A- All tasks that are hard and I feel I cannot do and do not have the internal capability to do
B- All tasks that are easy but time consuming
C- No tasks that have financial risks and implications
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Moving part of today’s
HR world.
The “One” Employee Organization…
1. One Employee
▶ Be your own boss▶ Face variety of tasks ▶ Simple (statutory) requirements
What does it mean when everything is centred around me?
2. Make or Buy
▶ Find support▶ Invest in manpower▶ Structure human resources
When the time comes where do I get
support?
What do I need to do if I decide to build a
team?3. Employing
▶ Build a team▶ Find personal fit and DNA factor▶ Empower employees
4. Team Culture
▶ Live open communication
▶ Create healthy
environment
▶ Give incentives
How do I manage my employees?
5. Leadership
▶ Evolve your role▶ Transfer decision-making
How does my roles evolves over time?
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Disruptive forces are challenging SMEs and organizations to reassess and consider new transformation plays
Geo-political chaos:
East vs. West,Rising tensions
with Middle East
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Dollar/oil turbulence:
Financial turmoil
2
Increasing globalisation:Borderless and
boundless
3
Demographic shift:
Diversity, inclusiveness,
Gen Y
4
Digital: Innovation, digital,
‘rise of robots’
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These forces generate challenges for leaders, creating the imperative to be agile, innovative, and transform in differentiated ways
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VUCA: Volatility, Uncertainty, Complexity, Ambiguity
https://www.youtube.com/watch?v=OE_RajcThlw
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Putting ‘tangibility’ to the intangible… Flexible SME HR Strategy
Purpose-Led HR Strategy and a Lean Organization Design
The HR Value Proposition
Learning through fun and performing through wellbeing and
happiness
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Breakout Sessions: 5 minutes
‘
A group of 4 started a Customer Relationship Management (CRM) Software whose aim is to support organizations; mostly in the insurance and financial sector; in managing their customer
relationships, portfolio, and experiences.
Upon broadening their service offerings across organizations of several sectors; and, due to market volatility, complexity, and difficulty in growing their portfolio; they started developing several
software which lead them to losing track of their initial mission.
To respond to the diversified portfolio, they started recruiting talents of different backgrounds which lead to a high payroll and a confused HR strategy resulting from a confused organizational strategy
with no clear goal and objective. They needed a solution fast to efficiently react to VUCA…
They heard of “Purpose Led Transformation/ HR”… What could be the purpose statement at the organizational level and a Purpose Led HR Strategy?
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“Inspire and nurture the human spirit – one person, one cup and
one neighborhood at a time”
B2C companies
“We believe in challenging the status
quo. We believe in thinking differently”
“Changing the Way We Work, Live, Play, and
Learn”
“Deliver a better future” “Imagination at work”
B2B companies
“Better power for a changing world”
“Promote and spread happiness”
“Creating possibilities for riders, drivers, and
cities”
Define your purpose! Purpose-led companies have a clear reason for being: we know what they and their HR strategies stand for
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Organisations that embody purpose see significant, measurable results
‘
1.4 times more engaged and 1.7 times more satisfied1
3 times morelikely to stay1
$
Purpose-led companies outperformed the S&P 500 by 10 times between 1996 and 20113
Get (and keep) the bestemployees
Attract, retain and engagecustomers
Increase returns forshareholders
of clients believe a purpose-driven company will
deliver the highest quality products/services
of global consumers would recommend a
company with a purpose, a 39% increase from 20082
of emerging market consumers make cause related
purchases at least annually2 ‘Meaningful brands’ connected to human well-being outperformed the stock market by 120% in 20134
$
1.4x
3x84%
72%
89% 10x
120%
Source: 1. The Energy Project, What Is Your Quality of Life at Work, 2013. 2. Edelman, The goodpurpose study, 2013. 3. Raj Sisodia, Firms of Endearment, 2007. 4. Havas, Meaningful Brands Index, 2013
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Breakout Session: 5 minutes
With the purpose statement in mind; define the gaps of this structure? (Please use the hand-outs on your tables)
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To analyse it better, think of the following…
What is core and what is support?
What are the design principles and philosophy behind the structure?
What are they trying to achieve?
What is their definition of organizational continuity: teaming and culture?
Is the organization bound by geography?
What is the structure’s biggest driver: service, product, customer?
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The SME world is shaping the HR of tomorrow!! The SME of today might be the EY of tomorrow!
Globally distributed-small teams
Intrapreneurial
More womenAdapts to change
fast
Connected teams
Innovation
Tells stories
Focuses on “want”
instead of “need”
Organization Tomorrow
FlatShift profit to
prosperity
Source: Jacob Morgan
Case Study:
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A few tips to memorize on developing structures…
Organization design is Organization design is not
Organization structure (includes spans of control and layering); with minimal bureaucracy
Performance management
Leadership development
Inclusion and diversity
Talent management
Culture
Information systems and technology design
Process design
Roles
Resources
Structure
Capability
Organization design
Span of Control is limited to 6-7 reportees
Job/role design (includes role accountabilities, responsibilities and indicative metrics) need to align to structure and not be redundant
SMEs seek LEAN structures
Lean structures doesn’t mean to limit capabilities; rather regroup those
Empires are not required
Bureaucracy is out and teaming is in
A box; does not mean a person
Stage out and transitioning structures can be created to attend to different maturity stages
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Putting ‘tangibility’ to the intangible… Flexible SME HR Strategy
Purpose-Led HR Strategy and a Lean Organization Design
The HR Value Proposition
Learning through fun and perfoming through wellbeing and
happiness
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Talent Sourcing Channels…
Ease of recruitment via the sourcing channel has been measured using the below factors:
Availability of candidates through the channel
Cost of recruitment via that channel
Time required to conduct recruitment using that channel
Campus recruitment drives, Internships
Career Fairs
Social & Professional networking sites
Head Hunters, Career Websites
Employee Referrals
Company Websites
M EJ
High Low
Analysis on different sourcing channels for recruitment
EMJ
JE M
J
E J
J EM
M
E M JExecutive Management Middle Management Junior Management
E M
Ease of recruitment
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…and it does get more complex!Social Recruiting
What is Social Recruiting?
Using Social Media for attracting or hiring candidates
The attraction of using Social Media as a recruiting tool lies in its ability to reach out to quality passive talentIt can be:
Facebook to engage with potentialemployees
Twitter to take jobs to a larger pool ofcandidates
LinkedIn to search and contact talent at very low cost
Career Website designed to deliver a great experience
YouTube to build Employer Brand
‘
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Once you found them; attract them!
Build the “WOW” effect
Contingent employment versus FTE
Instill flexible/ remote working
hours
Empower/instill Entrepreneurial
Culture
Flexible Employment(industry-based)
Challenges
Cost
Managing people
expectations
Maintaining employer
brand
Competition
Cost and process optimization
Performance based culture
Outsource least valuable
operations
Deliver innovatively
Culture and Operating Model Design Compensation Structure
Payment against
milestones
Small benefits matter
Offer
flexibility:
Buckets
Offer ESOPs; Provident
Funds
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Breakout Sessions: 10 minutes
‘
Organization Y is trying to penetrate the market and build a success story in a different market. Please find the market data on salaries and common market practices on your tables. Based on the
provided, give organization Y recommendations on the below:
What is the organization’s attraction strategy for employment? What compensation elements to focus on?
Where are they supposed to position themselves in the market?Do you recommend payment to be based on positions?
Are they supposed to be lenient with their strategy or not?
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Putting ‘tangibility’ to the intangible… Flexible SME HR Strategy
Purpose-Led HR Strategy and a Lean Organization Design
The HR Value Proposition
Learning through fun and perfoming through wellbeing and
happiness
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Talent Management is a full integrated approach that cannot be diluted… RETAIN THEM through proper talent and performance management
Talent
ATTRACT
DEVELOP
RETAIN
The EY Talent Management Framework
Right Person—Right Skills—Right Job—Right Time
Hiring & Selection Talent Assessment Training focused on Skill Gaps Career & Succession Planning
Employee Value Proposition for key Talent: “What can I offer my best talent?”
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All along while maintaining our wellbeing!
£5mAnnual productivitygain assuming that 1in 5 employees improve productivity
200%A reduction in sick leave by 1 day per employee delivering a 200% ROI onthis benefit alone
75%Average response rate of employeesactivelymonitoring and engaging in their own wellbeing management
Results from organizations with wellbeing solutions with 35,000employees were:
Health Physical and
mentalhealth
WorkPhysical & psycho-social
work environment Content & structure
of workCareer management
Development Leadership
Finance Managing finances Savings &spending
Investment Life after workProtection for
the unexpected
ValuesMotivation &
enthusiasm to workAlignment of
personal &organisational
values
Family & Community
Family support & demands Community
connectedness Influence of
family & friends
Wellbeing at work
