Evolution of new-age HR practices
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HR processes and practices have evolved significantly over the last few decades. And it essential to know the difference between the HR practices of the past and what we follow in the new-age economy organizations to understand where the function is heading towards. It is also imperative to see whether the linkages of HR are getting stronger and robust with the business. Are already established age-old corporations re-inventing their practices – processes which are critical to handling performance, people, and business?
Here are some significant shifts in the last few decades:
Merit-based performance rules
A level playing field which values what you bring to the table, as opposed to your years of experience, has been created. There is literally no hierarchy that comes in the way of promoting the deserving, performance-based seniority rather than seniority on the number of years you may have put into a job!
Individual performance linked with business
There is rigor in the system as productivity is closely linked to business numbers with little or no ambiguity. Since ‘how much I cost and what I deliver are closely linked’, the system can arrive at super-fast trackers at one end and the bottom performers on the other end. Since performance metrics are well defined, the performance appraisal system is on a look-out to reward deserving talent almost in real time.
Low tolerance for mediocrity in performance
There is low tolerance for mediocrity. But the dearth of talent is causing companies to move away from firing employees, since recruiting the apt talent is also a challenge. That’s one of the reasons why mediocre performers still manage to retain their positions in corporations.
High rewards for high performers
The meritorious employee gets rewarded and walks away with promotions. The reward system in organizations also has put in the matrix of rewarding superior performance with greater compensation – with a focus on driving both, motivation and engagement.
The need to retain good performing talent is a prerequisite of every organization. But the question remains as to how these organizations can equip young managers to become holistic managers or people managers who can get the best out of their team members. Developing this system in an organization is not easy since it’s not just about segregating the good talent but it is also about developing them and sharpening the saw – better their performances for the next round. Here are some things to remember:
Filters of performance
As companies evaluate performance and segregate talent on the basis of it, the performance filters will need to evolve to accommodate market realities and the business environment. Most companies are re-looking at the bell curve-based performance appraisal system, to arrive at their own customized version which suits their organizational culture.
Collective talent review
To take stock of the collective talent pool in an organization, it is critical to identify the talent gaps that exist. As one adopts the end-to-end process for talent pool identification and segregation, the review must also identify those willing and able to take on more responsibility. Therefore, talent reviews should focus on both employee engagement and bridging gaps, both at an individual and organizational level.
Focused development to follow talent reviews
Today the concept of ‘my development’ has taken root, and whilst companies can have systems and processes to benefit ‘me’, the baton of developing ‘myself’ to move ahead in ‘my’ career is clearly in ‘my’ hands. I seek development and can expect my company to help me develop and further provide me with opportunities to grow and develop to take on bigger roles. The avenues to develop have also undergone a change, and involvement with organizational projects, partnering with business more closely, can keep senior talent engaged and motivated to give their best.
Process of co-creation in change management
As organizations undertake Change management initiatives, it is best to create awareness of not just the context but also the consequences of impending change, through dialogues and discussions. A collaborative process of shared visioning allows teams to explore and discover their paths for the future with an eye on opportunities and risks available in the environment. The conclusion of a participative exercise result in buy-in of all team members, ensuring a higher probability of success.
This article is a part of the People Matters- Oracle Let's Talk Talent series. Click here to visit the Let's talk talent page to read more such articles.