“A year is but a little life and life is but a year repeated” – Chinese proverb
So, what can we expect from HR in 2014? To answer this question, a review of the year might be in order. The current year was a somber one for business as we faced an economic slowdown, high and persistent inflation and a sharp fall in the external value of the rupee. Business confidence was low and investment plans put on hold.
Given the impending elections, it is unlikely that a slew of bold reforms will be announced. Large government spending to boost the economy is unlikely given the high fiscal deficit, which the Finance Minister has promised to rein in. Any prospect of an economic revival will have to wait the swearing in of a new government.
Given this scenario, I venture to suggest the following priorities for HR in 2014:
Focus on productivity and efficiency
As businesses are likely to be watchful, HR should make consolidation and cost control a priority. Budgets for new initiatives is likely to be subdued so the focus should be on getting more done with less and reviewing and scrapping programs that have either passed their use-by date or outlived their utility. HR directors should continue to use technology to improve service levels, empower the workforce and reduce cost.
Reviewing and ensuring compliance
The recent cases of alleged sexual assaults have brought into focus the need to review the policies, processes and mechanisms related to harassment at the workplace and make sure they are legally compliant. Training and sensitizing employees on acceptable and unacceptable forms of behavior, setting up redressal mechanisms and making sure they work are also important. HR capabilities will also have to be enhanced to deal with what has become a serious cause for concern at the workplace.
Fostering innovation
As product life-cycles shrink, companies, especially those operating in highly competitive industries, will have to focus on innovation to retain dominance and relevance. HR has an important role to play in creating a culture that encourages and fosters innovation. This will involve a fundamental redesign of structures, processes, decision-making, rewards and mindsets. It will also involve a review and discovery of selection tools that can help gauge a candidate’s innovation capability.
Enhancing performance, engagement
They will continue to be high on HR’s agenda. Although many companies have put in place performance management systems, very few will claim that they work satisfactorily. Significant improvement is possible in goal setting, performance reviews and feedback. The “yanking and ranking” method has come under review and the challenge of differentiating performance while not force-ranking employees remains.
Making CSR work
The Companies Act has made CSR mandatory for companies. HR has a big role to play in ensuring that CSR funds are effectively deployed. They must put in place rules for deciding CSR spend, aligning thrust areas with the objectives of the organization and the communities it serves, measuring the effectiveness of such programs and linking them to employees’ experience.
While these are high-level priorities, much will depend on the circumstances facing each company. The sector in which the company operates, its ownership pattern, geographical reach and diversity, size and evolution are some of the factors that will determine HR priorities for the year ahead.
Here’s wishing the HR fraternity all the best for 2014.