Becoming a Best Employer – Research and Insights

Becoming a Best Employer – Research and Insights In collaboration with the Ministry of Manpower, Singapore About this Material This report is prepared for Ministry of Manpower (MOM), Singapore. MOM has commissioned Hewitt Associates to conduct a Talent Research study with global, regional and local coverage. This report focuses specifically on Best Employers to Work For in Singapore, India and China. Within India and China, specific focus has been put on organizations in Bangalore and Shanghai respectively. Contents ▪ Executive Summary ▪ About this Report ▪ About The Best Employer Research ▪ The Quest to become a Best Employer ▪ What Best Employers Have in Common ▪ Case Studies 2 Executive Summary The War for Talent is On! The business media is certainly awash with stories about the ongoing fight for quality talent at all levels. The Appointment pages of major newspapers are thick right across the region. Bookshelves at bookstores are groaning under the weight of publications which offer quick fix ideas on how to fight this battle and come up trumps! Yet some companies are clearly ahead of the pack and seem to have it all sorted out! These companies are achieving better business results, are better able to earn the commitment and loyalty of their people, who gladly do more on their employer’s behalf, and are doing a better job of positioning themselves for longer term success. They are more focused on their customers and doing what it takes to satisfy their needs. They take a considered and thoughtful approach to developing and managing leaders, and so end up with better ones – leaders who are trusted, seen as more effective, and better able to rally their people around business strategies and goals. 3 Becoming a Best Employer is a journey which takes time and effort but requires massive sponsorship from the leaders of the organization and enrolment of employees right through the organization. They spend time and resources building and developing the capability of their employees, and they are clear about what they stand for as employers, deliver on those promises, and so differentiate themselves as Hewitt Best Employers. The Hewitt Best Employers study relies on data collected from CEOs about business conditions and challenges, from HR Managers and Directors about people practices and policies, and from employees themselves about their experiences as employees. and enrolment of employees right through the organization. Becoming a Best Employer requires work and effort on multiple fronts and levels. First up, it is absolutely essential to create and generate Leadership commitment to the efforts. Articulating a Compelling Employment Promise to employees, creating a Differentiated High Performance culture, and creating Aligned People Practices come next. All of these are strongly reinforced by the Leadership Commitment and sponsorship generated right upfront. The Efforts needed are huge! While we will delve into major themes in detail later in this report – one thing is undeniable! Becoming a Best Employer is a journey which takes time and effort but requires massive sponsorship from the leaders of the organization The Results Justify the Efforts! While the efforts needed are certainly huge, the results of becoming a Best Employer justify them to the hilt! The Best Employers enjoy the benefits of significantly higher Employee Engagement levels, Customer Satisfaction levels, a great 4 About the Best Employers to Work For Research Reputation for attracting and retaining talent which all leads to Exceptional Business Results! What Makes a Best Employer? Outcomes of Being a Best Employer? What the Best Employers have in common Best Employers across the Asia Pacific region have in common CRITICAL ORGANIZATIONAL OUTCOMES which are valued by shareholders. Importantly they also have in common key ORGANIZATIONAL CHARACTERISTICS which drive these outcomes. The graphic here sums up the linkages between the two : Compelling promise to employees Leadership commitment Connection to the company and strategy Aligned people practices Engaged employees Satisfied customers Exceptional business performance Embarking on the Journey The Journey to becoming a Best Employer is a tough but an extremely rewarding one. Companies who get The Best Employer status, and manage to hold on to it year after year have it in their DNA to do the right things again and again till it becomes second nature for every employee across all levels. Differentiated highperformance culture Measure the impact and refine 5 6 About this Report This report outlines the key characteristics of Best Employers as have emerged from the research of Hewitt Associates. 5 key common themes have been articulated in detail with supporting examples from the participating companies from across the region. Detailed case studies of Best Employer companies in Singapore, Shanghai and Bangalore are also provided in this report. 7 8 About the Best Employers to Work For Research Comprehensive Research into what makes organizations tick The Best Employers in Asia study examines people management practices in many of Asia’s leading organizations. It provides insights into how organizations can achieve a real competitive advantage through their people, explores what makes an organization a good place to work, and identifies a shortlist of Best Employers in Asia. 9 The study has four main objectives: ▪ To determine what it is that makes organizations Best Employers; ▪ To assess how well organizations currently deliver against this; ▪ To analyze the relationships between Best Employers and business results; and ▪ To identify emerging workplace trends for the future. Hewitt works with clients across the region to make Asia a better place to work. We are committed to ongoing research into what drives employee Engagement in this diverse part of the world, and continuously strive to help clients find a competitive advantage through their people. We are relentless in our efforts to help clients understand the links between employee performance and organizational performance, and work with organizations to help them better understand the link between wanting to create a better place to work and being able to deliver on the promise. 10 About the Best Employers to Work For Research The Best Employers in Asia 2007 study is the largest piece of employee research ever conducted in the Asia-Pacific region. More than 160,000 employees gave Hewitt their opinion of working for their current employers, representing the views of more than 1.7 million employees. In its Fourth Edition In its fourth edition, more than 750 organizations registered to participate in the Best Employers in Asia 2007 study. Conducted in Australia and New Zealand (ANZ), China, Hong Kong, India, Japan, Korea, and Singapore, the study spanned the most dynamic markets in Asia. The Best Employers in Asia 2007 study is the largest piece of employee research ever conducted in the Asia-Pacific region. More than 160,000 employees gave Hewitt their opinion of working for their current employers, representing the views of more than 1.7 million employees. Market No. of Registered Organizations 221 154 30 230 22 64 51 772 No. of Employee Opinion Surveys Received 54,258 33,937 7,439 44,161 4,304 8,479 10,623 163,201 No. of Employees Represented by This Sample 178,051 55,394 61,732 1,244,007 16,821 121,634 59,309 1,736,948 Australia & New Zealand China Hong Kong India Japan Korea Singapore TOTAL 11 A Robust process ensures quality results The Best Employers study uses three survey instruments developed by Hewitt: ▪ A CEO/Most Senior Executive Questionnaire—the CEO of each participating organization was asked to respond to a number of questions concerning what drives and impacts the business, people management issues and philosophies, and how they perceive themselves as a Best Employer; ▪ The People Practices Inventory™ (PPI)— the HR manager of each participating organization provided information on the company’s philosophies, practices, and programs on managing people; and ▪ An Employee Opinion Survey (EOS)—in each participating organization, employees were surveyed randomly on how engaged they are at the company, how committed they are to saying positive things about the organization, how willing they are to stay with the company, and how far they will strive to help the organization achieve its business results. Views of over 160,000 employees representing 1.7 million employees were collected across Asia. The graphic below outlines the robust process used for the study : 2 CEO Perspective (CEO Questionnaire) Employee Engagement (Employee Opinion Survey [EOS]) Analysis and Judging Process – Independent Judges ‘Blind data’, assessing Engagement & Alignment 1 People Practices (People Practices InventoryTM [PPI]) 3 Best Employers announced, further analysis into what makes the Best Employers best 12 About the Best Employers to Work For Research Independent Judging In each market, the independent judging panel chose their list of Best Employers based on their own criteria for being a Best Employer. These organizations were named The Best Employers in that market. To ensure consistency, Professor Roger Collins, previous Chair of the regional Best Employers in Asia judging panel, provided guidance to each local panel on how best to select their criteria and conduct the judging process. The local judges, a mixture of academia, HR professionals, other business leaders, and our study partners, presented their local lists to the regional judging panel as a short list of Best Employers in Asia. The local Best Employers were short-listed for consideration by a regional judging panel, chaired by Professor Arthur Yeung, Associate Dean and Philips Chair Professor of HRM at China Europe International Business School and Professor at the University of Michigan Business School. Professor Yeung has sat on three of Hewitt’s previous Best Employers in Asia judging panels. Hewitt was not involved in the judging process. Hewitt’s responsibility was to prepare all the materials required for the judges to review and make their decisions, i.e., we summarized analysis reports for each of the short-listed companies, and relevant quantitative statistics generated from the study. Before the judges’ meeting, Hewitt also provided background information regarding the study to them so that they would have a clear understanding of Hewitt’s objectives, approach, and methodology. Each local judging panel came up with their own, though overall quite similar, criteria on what makes the Best Employers in their market, based on the materials they reviewed. Some panels looked to the contribution companies were making to their markets and broader communities, some looked at the alignment of people practices and business strategy, while others looked to the complexities of managing older, larger businesses compared with newer, younger ones, etc. At each local judging panel, local issues were considered. The regional panel used the following criteria to determine the Regional Best Employers to Work For: ▪ Senior leadership commitment and effectiveness in people management; ▪ Overall effectiveness in human capital management; ▪ Employee Engagement and alignment; ▪ Customer focus; and ▪ Business success. 13 14 A Deep Dive into our Engagement and PPI Framework Our Engagement Model A key component of The Best Employers study is the extent to which organizations capture the hearts and minds of their employees. We call this “employee Engagement”. Hewitt Associates’ (Hewitt) construct of employee Engagement has evolved from several decades of employee research from around the globe. Traditional employee research was based on the concept of satisfaction, that is, measuring how much people liked working at their organisation. However, there was little correlation between employee satisfaction and business performance. An organisation may have large numbers of employees who are satisfied, but these employees may also be complacent, not creating value or, in fact, eroding value. This realization led Hewitt to develop an approach to employee research that went beyond how much people like being part of their organisation (satisfaction) or how much they want to stay with the organisation (commitment), to measuring how much people want to—and actually do—take action to improve the business results of their organisation (Engagement). 15 What is Engagement? Engagement is the state of emotional and intellectual involvement in a group or organisation—the extent to which an organisation has captured the ‘hearts and minds’ of its people. Engagement goes beyond perception—it measures what it takes to make the company succeed. Engaged employees want to and actually do strive to improve business results. Three key behaviors indicate strong engagement – SAY, STAY and STRIVE. Say Behaviour: Engaged employees consistently speak positively about the organisation to co–workers, potential employees and customers Questions: ▪ Given the opportunity, I tell others great things about working here ▪ I would not hesitate to recommend this organisation to a friend seeking employment Stay Behaviour: Engaged employees have an intense desire to be a member of the organisation Questions: ▪ It would take a lot to get me to leave this organisation ▪ I hardly ever think about leaving this organisation to work somewhere else Strive Behaviour: Engaged employees exert extra effort and engage in behaviours that contribute to business success Questions: ▪ This organisation inspires me to do my best work every day ▪ This organisation motivates me to contribute more than is normally required to complete my work Engagement is the state of emotional and intellectual involvement in a group or organisation— the extent to which an organisation has captured the ‘hearts and minds’ of its people. 16 About the Best Employers to Work For Research Drivers of Engagement Hewitt’s research has shown that there are typically around 20–25 areas of work known as Engagement Drivers, that can potentially increase and decrease people’s Engagement. The Engagement model goes beyond measuring people’s perceptions of each of these drivers. It prioritises the areas for improvement based on their potential impact on Engagement and therefore, business performance. Another key premise of the Engagement model is that the Engagement Drivers are interrelated— they do not operate in isolation. Engagement and the Link to Business Performance Hewitt’s research of 2,500 organisations from around the world, provides compelling evidence of the link between high Engagement and stronger business performance. The premise of Hewitt’s research is simple and intuitive— ‘consider employees a top priority, manage them well and they will work to contribute to the success of the organisation’. Hewitt Best Employer research explores this hypothesis. Hewitt Best Employers, who by definition have a high Engagement (between 60% and 100% of their population are engaged), not only outperform Other Organisations on people management, but also outperform their competitors on key financial measures including revenue growth, profit and Total Shareholder Return (TSR). People ▪ Senior Leadership ▪ Manager ▪ Co-workers Work/Motivation ▪ Intrinsic Motivation ▪ Resources ▪ Work Tasks Total Rewards ▪ Pay ▪ Benefits ▪ Recognition Opportunities Engagement ▪ Career Opportunities ▪ Learning and Development Procedures ▪ People Practices ▪ Managing Performance ▪ Work Processes Quality of Life/Values ▪ Work/Life Balance ▪ Physical Work Environment ▪ Organizational Reputation 17 18 About the Best Employers to Work For Research Winners of BEA 2007 List of Regional BEA Winners 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Spansion (China) Ltd. ~ China Three On the Bund ~ China The Ritz-Carlton, Hong Kong ~ Hong Kong Shangri-La’s Kerry Centre Hotel Beijing ~ China Four Seasons Hotel Singapore ~ Singapore SalesForce Australia & ~ New Zealand Marriott Hotels India ~ India SK Telecom Co., Ltd. ~ Korea Four Seasons Hotel Shanghai ~ China Nanfang Lee Kum Kee Co., Ltd. ~ China The Ritz-Carlton, Millenia Singapore ~ Singapore Satyam Computer Services Limited ~ India UBS Securities Japan Ltd. ~ Japan SEEK Limited ~ Australia & New Zealand Renaissance Beijing Hotel ~ China Aditya Birla Group ~ India Cisco Systems ~ Australia & New Zealand Raffles Hotels & Resorts ~ Singapore Novartis Consumer Health Australasia ~ Australia & New Zealand Domino’s Pizza India Limited ~ India 19 20 The Quest to Become a Best Employer The Raison D’aitre! The Benefits of aspiring to Best Employer Status are manifold. Best Employer companies enjoy and reap the benefits in four distinct and identified areas: ▪ Higher Employee Engagement: Best Employers have a stronger competitive advantage with a highly engaged workforce that is prepared to go the extra mile for their organizations and its customers ▪ Better Financial Results: Best Employers deliver better business results and are more capable of building a sustainable business model ▪ A Strong Reputation that attracts Talent: Best Employers attract The Best talent and are recognized in the marketplace ▪ Better Retention of Key Talent: Best Employers build long term employee relationships 21 1. Why? Higher Employee Engagement Winning Hearts! Best Employers have a distinctly stronger competitive advantage with a highly engaged workforce that is prepared to go the extra mile for their organizations and its customers. Engaged employees display the behaviors that are critical to business success and developing a competitive edge. They speak positively about the company, have no immediate intention or desire to leave, and willingly put in extra effort to ensure strong company performance. The Best continue to have significantly higher employee Engagement scores of 87 percent, compared with only 57 percent in The Rest. The Power of the Brand: Best Employers have a crystal clear understanding of their Employment Promise or Employment Brand to their prospective and current workforce. They are able to map their Employment Brand to their external Customer Brand, and more importantly, bring it to life on a day to day basis for their employees. They make sure that alignment of all their workforce programs to the Employment brand and execution of those is razor sharp. The Best Employers communicate their Employment Brand creatively and continuously ensuring that the message gets through on an ongoing basis. They reap the benefits of a robustly crafted and creatively communicated Employment Brand via higher engagement levels ability to attract new talent from the market place. Clarity of Business Purpose: Employees in Best Employer organizations have a clear understanding of what the business needs. The Best spend time and resources building a strong culture and people practices to support those business needs. The Best develop aligned people strategies and develop the capabilities of team members, so that they are less impacted by employee turnover and skill shortages in the labor market Critical Business Metric: The Best Employers recognize Employee Engagement as a critical factor for business success. 55 percent of The Best use employee Engagement as a performance measure in their organization compared to only 28 percent of The Rest. On the CEO’s agenda: The Best Employers rank employee Engagement as one of their key priorities. 40 percent of CEOs in The Best rank employee Engagement as their number one key priority, compared with less than 20 percent of CEOs in The Rest. Right Through: Leaders at the Best Employers have the highest level of Engagement, typically greater than 90 percent. Because of their high personal levels of Engagement, they are able to create a workforce that is as passionate, motivated, and connected to the organization’s goals as they are themselves. Leaders are less engaged at The Rest, which means they are unable to strongly engage their direct reports. This also creates a domino effect that lowers Engagement throughout the organization. 22 The Quest to Become a Best Employer 2. Why? Better Financial Results Its all about long term sustainability at The Best Employers. The Best take a long-term approach to building a sustainable workforce and focus on growing committed and loyal employees who have faith in the leaders of the company. The Best Employers are best positioned to meet the expectations of shareholders in tangible financial terms as evidenced by: Higher Revenue Growth: The Best Employers have outperformed The Rest in terms of revenue growth over the previous three years. Greater Productivity Improvements: The Best Employers have shown greater improvement in productivity, outperforming The Rest in terms of sales per employee. Strong Growth in Profitability: The Best Employers have demonstrated a consistently higher growth in profit over the last two years. Coping with the Change Monster Like all organizations, The Best Employers face change on an ongoing basis. But change does not faze The Best. They are better position to cope with ongoing change and indeed make The Best out of it compared to The Rest. As part of building a sustainable business, they are adaptable and able to manage change smooth and easily. The Best excel at executing their change process and achieving a better outcome. 87 percent of employees at The Best feel that the excitement is created about changes that are required for organizational success, compared with just 53 percent at The Rest. “The company has to give people a meaningful life in the firm which translates to fulfilling family and life expectations, giving employees a well balanced life.” Singapore based CEO of a multinational Financial Services Firm 23 3. Why? A Strong Reputation that Attracts Talent Brand! Brand! Brand! The Power of a powerful Employment Brand plays out in The Best Employers. CEOs have identified the attraction of talent as one of the top three factors in their organization’s ability to succeed. 81 percent of employees at The Best feel their organization’s strong reputation as an employer comes from attracting the right people they need to achieve their goals, compared with 51 percent at The Rest. Most Best Employers not only have a formally articulated employer brand, but they do ensure that their HR systems and processes are aligned to the employer brand and that they deliver on their employment promise. 81 percent of employees at The Best believe that the organization delivers on the promises it makes to its employees, compared with 51 percent at The Rest. “Attract, motivate and retain the talent. It’s the only competitive advantage we have” Singapore based CEO of a Hospitality Chain 24 The Quest to Become a Best Employer 4. Why? Better Retention of Key Talent Keeping The Best Longer! Not only are The Best Employers doing a stellar job of attracting the right talent from outside, they are managing to win the retention battle as well. While all organizations face the challenge of retaining good talent, The Best are better equipped to keep the people they need. Their employees also see them as promoting people who are best equipped to meet the future demands of the company. Leaders at The Best are perceived by employees to build relationships with all levels in the organization and treat employees as their most valued asset. 82 percent of employees at The Best feel their leaders treat them as the organization’s most valued asset, compared with 55 percent from The Rest. The Best ensure that they create a vivid picture of all the opportunities available for their employees within the organization. At The Best, 82 percent of employees feel that they can fulfil their career aspirations and build long-term careers with the organization, compared with 51 percent at The Rest. Conventional wisdom dictates that managers have a direct correlation with employee retention. The Best have managers that make a difference. These managers are provided with better training and tools to ensure that employees can deliver and improve their performance in the organization. Managers are held accountable for employee engagement and retention, making sure that there is alignment right through the organization. “The way we see the future, we’ll need more of the people we already have – people who go beyond what is expected; people with ambition and enthusiasm; people who will enjoy coming to work every day with a passion to deliver The Best they can to our customers” Singapore based CEO of a multinational Food Services Retailer Employees are less likely to think about leaving the Organization at The Best… Employee Opinions It would take a lot to get me to leave this organization I rarely think about leaving this organization to work somewhere else The Best 85% 77% The Rest 58% 48% 25 26 What Best Employers have in Common The moment you walk into a Best Employer organization, the energy is palpable! Employees in The Best share and indeed bring to life the organizational vision and mission, freeing the statements from plaques and pictures on the wall! The Best have an environment geared towards ensuring that that their employees know what it takes to create value for shareholders and how they can grow as individuals in the process. The Best exemplify solid alignment and execution. Not only is their promise to employees i.e the Employment Brand, clearly articulated, but all their People programs, communications and initiatives clearly aligned to the same. Employees are crystal clear in terms of what is expected of them, as well as what they can expect from their employer. 27 The 4 Big Themes The Best Employers have effective and committed leaders, a powerful leadership and talent strategy, a high-performance workforce, strategic HR functions, and a strong customer focus. 1.Effective and committed leadership The hallmark of the Best Employers is a strong pool of effective and committed leaders at all levels of the organization. Leaders at The Best are more caring, and foster an environment that emphases ethics, integrity and learning. They have high levels of personal engagement, and prioritize their role in building engagement across their organization. They also act as role models, and instill trust from their employees. Leaders at The Best create excitement around changes, and they actively manage their organization’s leadership development. Additional research from Hewitt’s ‘Top Companies for Leaders’ study (held in 2007 across the Asia Pacific region, with 273 participating companies) showcases the role that leaders play in building an organization that is a inspiring workplace. Top Leadership commitment is absolutely necessary and critical to any efforts towards creating an environment where a talented workforce thrives and wants to contribute above and beyond what is expected of them. The Top Companies for Leaders in Asia Pacific have certain distinct characteristics that make them stand out from the crowd: ▪ Leaders Lead the Way: One of the key enablers of building talent and leadership quality and depth is active involvement from the CEO and Board of Directors. But it is more than just involvement and visibility. At today’s leading companies, talent management and leadership is owned by and driven from the top of the house—from the C-Suite and Board of Directors ownership and oversight of talent and leadership practices down to the personal ownership and accountability of leaders at all levels. ▪ Maniacal Focus on Talent: Top Companies for Leaders are serious about investment in top talent. They more actively manage and develop their best talent, and provide differentiated compensation, development, and exposure to senior leadership. ▪ Practical and Aligned Programs: At Top Companies for Leaders, focus is on disciplined execution of talent programs and not just on fancy design. The integration and execution of 28 What Best Employers have in Common programs is what makes them real. Companies differentiate themselves by effectively utilizing their practices to develop talent and leaders in support of their business strategy. ▪ Tipping Point–When Leadership becomes a Discipline: The Tipping Point to move from solid leadership practices to Great is when leadership becomes a discipline. This happens when the other three themes (outlined above) are executed in concert with one another consistently and with depth. Leadership becomes an inherent part of the way the company operates—part of the very fabric of the organization. In organizations where the tipping point is reached, talent development becomes a way of life and indistinguishable from running the business on a day to day basis. Highlights of Best Practices: 1. The CEO of an Asian subsidiary of a European multinational organization in the FMCG sector, is personally involved in identifying and grooming the HiPos. He meets with each of the HiPos, at least once a year and personally tracks the ‘high-risk HiPos’. He also gets involved in the recruitment of Management Trainees and personally visits the campuses for Pre-Placement presentations. All leaders in this organization, above the level of functional leaders are involved in discussing the talent in the managerial pool. The organization estimates that its CEO and Senior Management spend between 31 – 40 % of their time in working on and with key talent. Senior Leaders are responsible for identifying, grooming and retaining the HiPos (High Potentials). Attrition of HiPos is a measure on the scorecard of the entire Management Committee, and not just HR. 2. The Board of Directors of a Global IT Major headquartered in Bangalore, India, serve as mentors and counsellors to Senior Leaders in the organization. They meet on a quarterly basis where they review operational and business issues. Along with the CEO, members of the Board are involved in ‘Leaders Teach’ series where they conduct training for employees as part of their development. Younger employees of the firm are also exposed to the board through the ‘Voice of Youth’ program, wherein they are given the opportunity to participate in board meetings. 3. At a local home grown Asian bank, Senior leaders drive the Talent Assessment Process, where talent under consideration is owned by the entire talent panel, and members other than HR or the immediate supervisor present each individual’s case based on data gathered through performance evaluation, 360 degree feedback and Behavioral Event Interviews (BEIs). 29 2. Talent as a Part of the Strategic Focus Best Employers have clear talent management strategies. They know what it takes to turn off the War for Talent! The magical blend of Top Management commitment, Simple but Aligned Programs, Disciplined execution, Compelling business focused development practices and processes, ensure that they get the results on the talent and business front that they strive for. There are 4 key imperatives that The Best premise their talent management strategies on: CEO ownership of Talent and Leadership Development The CEOs at The Best are directly and visibly more involved in resourcing, succession decisions, and matching the supply of talent with positions as they become available. This is a dynamic process, with 70 percent of CEOs being more regularly involved in attending to this process with the leadership team at The Best compared with 46 percent at The Rest. The Top Companies for Leaders study shows that globally 60% of the CEOs from the Top Companies spend more than 30% of their time and effort directly on leadership issues compared to only 25% of the CEOs from other companies Powerful Leadership and Talent Strategy The Best are more discerning and have a clearer and more focused view of what they need to be paying attention to now. CEOs with The Best highlighted three imperatives that are critical to their organizational success, which they own and proactively drive: ▪ Development of organizational culture (30 percent); ▪ Leadership (25 percent); and ▪ Attraction of talent (25 percent). As the Top Companies for Leaders study also showcases, having clarity around what is important and where senior management time and efforts should be focused on is a critical first step towards long term success in the war for talent. The CEOs and Boards of Directors of the Top Companies spend more time than other organizations focused on High Potential Selection, Development and Mentoring. Robust Performance and Competency Assessment leading to Talent Segmentation The Best focus on performance and competency assessment as a means to segment future potential and top talent. The Best are significantly more likely to have a clearly defined 30 What Best Employers have in Common leadership capability model (95 percent at The Best versus 64 percent at The Rest). Compelling Development Practices and Processes The Best know that the most significant learning and development take place through on-the job experience and build processes and practices that allow experiential learning opportunities for talent and high-potentials. All of The Best ensure that resourcing and succession management decisions are connected to the talent pipeline, while The Rest report the interdependence between talent development and resourcing requirements only 63 percent of the time. The Top Companies for Leaders Study also supports this tenet strongly. Focus on ensuring development of talent through a variety of on the job experiences, simulations etc has yielded strong results for organizations. Geographic mobility, giving early responsibilities to high potentials, change in jobs etc are some of the means used by the Top Companies more readily compared to The Rest. The CEOs and Boards of Directors of the Top Companies spend more time than other organizations focused on High Potential Selection, Development and Mentoring. Highlights of Best Practices: 1. High Potentials in a China based real estate firm go through an unconventional development program wherein short term visits abroad are organized to not only understand mature markets, but also bond together as a team. Formal development programs are articulated specific to each level of talent in the organization. 2. All newly recruited employees at an ANZ based services firm participate in an Induction program within 6 weeks of commencement. Within this program, even prior to commencement, a buddy program is executed, to support new recruits for a three month duration. Executive team members are held accountable to participate in every induction program conducted. Executives do not travel outside Melbourne during the 3 day program in order to ensure they are part of the induction process. In addition the induction and buddy programs are supported by an informative and welcoming online intranet induction site with a structured “self learning” program to help new recruits navigate the people and systems in the organization. 31 3. A high-performance workforce Organizations operating in the Asia Pacific region have the opportunity to tap into the massive potential of the fastest growing region in the world. But to really play an important role in the high growth story requires discipline and focus. Leaders at The Best build highperformance workforces that are accountable, valued, and given the opportunity to grow. The Best organizations make sure that the growth discipline is institutionalized through six distinct people practices : Practice 1 High Achievement Goal Setting: The Best demand more! ▪ The Best set aggressive and demanding goals at all levels of the organization (86 percent of The Best versus 59 percent of The Rest). ▪ Goals are understood, accepted, and supported by employees (93 percent of The Best versus 73 percent of The Rest). ▪ Employees at The Best feel motivated to contribute more than is normally required (83percent at The Best versus 52 percent at The Rest). Performance Coaching : Providing Support to meet Tough Goals ▪ 90 percent of managers at The Best are considered by employees as capable of providing effective feedback and dealing with performance issues, compared with 52 percent at The Rest. ▪ Employees at The Best have managers that inspire them to higher levels of performance (85 percent of The Best versus 57 percent of The Rest). Reviews and Rewards that create a sense of a winning team ▪ Best Employers reward and recognize employees in a way that produces the right results (81 percent of The Best versus 44 percent of The Rest). ▪ Employees at The Best are rewarded for closely achieving aggressive goals more than achieving less aggressive goals (75 percent at The Best versus 56 percent at The Rest). ▪ Employees at The Best see a significant impact of their performance on their pay (75 percent at The Best versus 44 percent at The Rest). Practice 2 Practice 3 32 What Best Employers have in Common Practice 4 Transparent Information ▪ Managers at The Best are equipped and resourced to take the action to drive high performance and create a culture of empowering high performance in their organizations. ▪ 93 percent of employees at The Best have a good understanding of their organization’s goals, compared with 73 percent at The Rest. They also have the information they need to understand the bottom-line impact of their day-to-day decisions (83 percent at The Best versus 52 percent at The Rest). Employees directed towards future critical skills ▪ 81 percent of employees at The Best say they have managers that provide clear direction on skills required for their future success in the organization, compared with 53 percent at The Rest). Growth built into every job ▪ Managers at The Best have the tools and training to provide employees with opportunities to grow in their current job (85 percent at The Best versus 52 percent at The Rest). ▪ Managers at The Best feel that their organizations provide employees with many opportunities to grow and learn without relying on promotions (84 percent at The Best versus 52 percent at The Rest). Leaders at The Best build high-performance workforces that are accountable, valued, and given the opportunity to grow. Practice 5 Practice 6 33 While CEO and Top Management sponsorship is critical to make a concerted effort for Best Employer status, it is critical to have a top of the line HR function and professionals therein. 4. Effective HR Having an Effective HR function is a trademark of The Best Employers. The HR Function in these organizations have a clearly articulated mandate and agenda. Employees at The Best feel that HR is able to identify and implement HR strategies and solutions that are critical to meeting business needs. While CEO and Top Management sponsorship is critical to make a concerted effort for Best Employer status, it is critical to have a top of the line HR function and professionals therein. The Best clearly have an edge over The Rest in terms of overall quality and robustness of their HR teams. The HR teams at The Best have crisply and clearly articulated strategies and tactics to win the war for talent and help shape and continuously reinforce a meaningful Employee Value Proposition. In the 2007 study, we examined the issue of HR Effectiveness. Key areas used to assess HR Effectiveness included HR strategy, HR structure, HR costs, service delivery models, and HR measurement. The assessment of HR Effectiveness comes from the opinions of the CEO, managers across the organization and their employees. In addition, HR employees themselves were asked to rank the areas where they believe they are making the greatest contribution to the business and where they see their largest opportunity to improve that contribution. Interestingly, HR teams in The Best see their greatest contribution as “retaining the people we need to be a successful organization”, and their greatest opportunity as being able to “offer training and career development programs relevant to achieving our business strategy”. In The Rest, HR teams see their greatest contribution as “hiring the people we need at the right times”, and their greatest opportunity as being able to “retain the people we need to be a successful organization”. 34 What Best Employers have in Common The CEO and employee assessments were used to calculate an HR Effectiveness score, which differed greatly between The Best and The Rest. HR Effectiveness as rated by the CEO Employee rating of HR Effectiveness Overall HR Effectiveness rating THE BEST 97% 79% 88% THE REST 73% 44% 58% A key element of HR Effectiveness is whether HR resources are focused and structured in ways that help deliver strong business results. 77 percent of employees at The Best feel that HR is able to identify and implement HR strategies and solutions that are critical to meeting business needs, compared with only 42 percent of employees at The Rest. ▪ The development of HR from a transaction-focused function to a strategic business partner has been seen in varying degrees throughout the region. In general, HR functions at The Best are more at the strategic partner end of the spectrum than HR functions at The Rest. 78 percent of employees at The Best say that their HR function is not only highly effective but that it delivers products and services in an efficient manner. As end users of many HR products and services, it is appropriate to take account of employee views on this measure. ▪ The CEO perspective is clearly also important. Every single CEO at The Best agreed that their HR is effective in strategic as well as administrative areas, compared with The Rest, where HR is seen to have only been effective in traditional areas such as administration and employer employee relationships. ▪ These two votes of confidence in HR at The Best are reflected also in the ratio of HR staff to the total employee population in the study participants. HR Service Ratio – HR staff per full time equivalent employee THE BEST 1.87 THE REST 1.5 77 percent of employees at The Best feel that HR is able to identify and implement HR strategies and solutions that are critical to meeting business needs, compared with only 42 percent of employees at The Rest. 35 Not only do employees and CEOs think HR is effective in creating performance systems that work for their organization; managers also give HR the nod more often in The Best than The Rest. The question of how effective HR is bears out not only in how it is perceived by employees and HR, but also in how effective it is for managers who are usually required to execute on the people initiatives developed by HR. In reviewing just one aspect of performance assessment, the study shows that not only do employees and CEOs think HR is effective in creating performance systems that work for their organization; managers also give HR the nod more often in The Best than The Rest. THE BEST EMPLOYEE PERSPECTIVE HR is effective in providing access to tools to help me understand my performance expectations MANAGER PERSPECTVE I have the tools and training required to help employees improve their performance CEO PERSPECTIVE HR is effectively contributing in providing employees access to tools to help them understand their performance expectations CEO PERSPECTIVE HR is effectively contributing in providing managers access to tools to let them accurately evaluate employee performance 79% THE REST 42% 85% 54% 90% 74% 100% 80% Net net, the HR functions in the Best Employers are more focused on outcomes than activity. They are more efficient, they get more done with fewer resources and they deliver better performance. 36 What Best Employers have in Common 5. A strong customer focus Leaders at The Best understand the link between employee Engagement and customer satisfaction, and they prioritize both in their quest towards building a sustainable business. The majority of The Best create value for their customers by going out of their way to provide tailored solutions and by being responsive to customer needs. The Best understand the link between employee Engagement and customer satisfaction. 55 percent of The Best use Engagement as a measure for incentive compensation. They use customer retention as measure to manage the business and shareholder return. 83 percent of employees at The Best are provided with information that they need to understand the bottom-line impact of their day-today decisions, compared with 52 percent at The Rest. The Best are perceived by their employees to actively solicit feedback from customers and as being responsive to their needs (91 percent of The Best versus 63 percent of The Rest). 89 percent of employees at The Best say they have a rewarding relationship with customers, compared with 69 percent at The Rest. Leaders at The Best understand the link between employee Engagement and customer satisfaction, and they prioritize both in their quest towards building a sustainable business. 37 38 Case Studies of The Best Case Studies of The Best In this section of the report, we present Case Studies from organizations in Singapore, China and India. These organizations present a compelling picture of what The Best in class looks like! While each of these organizations are unique and face industry specific challenges, they all have a common goal – to be BEST positioned to win the fierce war for talent raging around them! 39 Case Studies from Singapore CASE STUDY 1: Introduction to the Organization Under the leadership of Mr. Angelini Giovanni, Chief Executive Officer and Managing Director, Shangri-La Hotels and Resorts is the world’s leading Asia-based luxury hotel group. The group started in 1971 with its first and flagship hotel in Singapore, and now welcomes business and leisure travellers to its 52 deluxe hotels and resorts in key cities in Asia and the Middle East. With new properties currently under development in Europe and North America, the Hong-Kong based group also has a sister brand called Traders Hotel, established in 1989, that caters mostly to business travellers. The Shangri-La Hotel, Singapore is where the legendary hospitality of Shangri-La first began. Consistently ranked as one of the top luxury hotels in Asia and the world, the hotel comprises of 750 luxury guestrooms and suites and is currently managed by Mr. Thierry Douin, Area Manager & General Manager. The comfort of the guests’ stay is guaranteed by the hotel’s executive staff, who are among the finest hoteliers in the world. Shangri-La Singapore has been recognized over the years to receive recognition for their legendary hospitality and luxurious accommodations. Their recent awards include : ▪ “Best Business Hotel in the World”, Business Traveller Asia-Pacific, 2001-2006 ▪ “Best Business Hotel Worldwide”, Business Traveller UK, 2006 ▪ Position 3, “Best Overseas Business Hotels”, Condé Nast Traveler (UK), 2006 ▪ “Best Hotel, Foreign City”, Daily Telegraph (UK), 2005 ▪ “Best Individual Hotel in Asia”, Global Traveler, 2005 ▪ Travel Choice Award, “Favorite Business Hotel”, Time Magazine, 2005 Shangri La, Singapore Best Employer Status of the Organization Shangri-La Singapore ranked 6th in Hewitt’s 2007 Best Employers in Singapore study. Reasons for striving to become a Best Employer For Shangri-La Singapore, taking part in the Best Employers in Singapore study was not only a way to gauge where they stand among others 40 Case Studies of The Best in the industry, but also an opportunity to learn about the successful people practices being implemented by other organizations. In addition to sharing the organization’s success with employees, striving to become a Best Employer has been about communicating to Shangri-La Singapore’s employees that they are truly valued by the organization. That being said, Shangri-La Singapore is not complacent with having come in 6th place in this study. The organization still feels like they have a long way to go and, rather than rest on their laurels, continues to strive for even better results. Shangri-La Singapore Employee Engagement Levels Shangri-La Singapore obtained an overall engagement score that puts them comfortably within the High Performance Zone. According to Hewitt’s research, organizations within this zone can expect their financial performance to exceed organizational averages by around 24 percent. Shangri-La Singapore’s attrition rates are significantly lower than other organizations (The Rest). In contrast to The Rest that lose around 15 percent of new hires within the second year of employment, Shangri-La Singapore’s 2006 data reveals that on average they only lose around 4 percent of their new hires during the same time period. The top satisfaction scores at Shangri-La Singapore are : ▪ Intrinsic Motivation (92 percent), ▪ Customer Focus (92 percent), ▪ Co-Workers (91 percent), ▪ Learning & Development (91 percent), and ▪ Manager (91 percent). THEME 1: Strong Leadership Commitment and Effective Talent Strategy @ Shangri-La, Singapore The leadership philosophy at Shangri-La Singapore is deeply rooted in the concept that the hotel’s standards of service are not determined by management, but rather by the 41 Shangri-La Singapore sets highly aggressive goals and targets that are difficult to achieve. These goals and targets are re-set every year so as to remain relevant and motivating. 42 hotel’s customers. In pursuit of their mission of “delighting customers each and every time”, Shangri-La Singapore has broadened the definition of “customers” to include both external customers (i.e. their guests) and internal customers (i.e. their employees). As such, the focus of the hotel’s leaders is on behaving in line with and delivering on the following five points: 1. Continuously soliciting customer feedback so as to ensure that standards remain current 2. Providing ongoing training and monitoring to ensure that employee performance standards are current and in-line with customer standards 3. Being responsible for providing the tools and resources that employees need to deliver on the job 4. Taking on the role of coach/mentor and guiding employees 5. Always supporting employees in terms of the decisions that need to be taken at the customer point Shangri-La Singapore’s recipe for ensuring that leaders deliver on the above mantras and adhere to the hotel’s core philosophy of “Shangri-La hospitality from caring people”, is to identity leaders that are characterized by a caring nature and infallible integrity. Leaders of this type are then most fitting to care for the hotel’s customers, and to personify “an employer who puts employees first and recognizes that people are our most important asset.” Shangri-La Singapore’s caring leaders are also committed to remaining open to receiving bottom-up feedback. Not only do managers run regular dialogue sessions with their departmental staff, but the hotel’s GM runs similar sessions at which time employees are invited to share their suggestions on how the hotel can improve. These sessions enable Shangri-La Singapore to consistently excel at delivering on customer expectations; not surprisingly therefore, employee comments about the organization’s leadership include: ▪ My management looks after the staff ▪ Understanding staff problems ▪ Generous management ▪ Proper guidance and help is given whenever needed, and full moral support is given without fail ▪ We feel close to senior management Case Studies of The Best ▪ My business unit manager and my manager appreciates and recognises my contribution to this company Additionally, peer pressure is used as a means to drive teamwork and accountability and ensure that employees consistently strive to perform. In return for meeting Shangri-La Singapore’s high performance expectations, all employees are eligible to earn a variable compensation payment. Many staff recognition programs also exist at Shangri-La Singapore, which include monetary incentives such as lunch vouchers, week-end hotel vouchers, etc. In addition to monetary rewards, high performance at Shangri-La Singapore is encouraged by means of public recognition. Shangri-La Singapore’s GM and department heads distribute personal thank you cards to staff who receive compliment letters from guests. On top of that, Shangri-La Singapore has a program called “Hidden Heroes” which allows staff to recognize colleagues who have rendered them support and assistance by submitting a form called “My Hidden Hero”; this form is then displayed on the notice board for all to see. THEME 2: Creating a High Performance Workforce @ Shangri La, Singapore The link between high performance and rewards is well defined at Shangri-La Singapore. Not only does Shangri-La Singapore set highly aggressive goals and targets that are difficult to achieve, these goals and targets, which are balanced between financial and non-financial measures, are re-set every year so as to remain relevant and motivating. To help employees strive for excellence, biannual performance discussions enable employees to understand what is expected of them. Skills training is also provided to employees to help them achieve excellence by building in them the: ▪ Eye for detail ▪ Skills to perform ▪ Attitude to deliver ▪ Passion to delight In return for meeting Shangri-La Singapore’s high performance expectations, all employees are eligible to earn a variable compensation payment. Many staff recognition programs also exist which include monetary incentives such as lunch vouchers, week-end hotel vouchers, etc. 43 Given that the No 1 priority for Shangri-La Singapore’s CEO is to retain and build stronger relationships with customers, the organization has also developed innovative ways to reward employees who deliver great customer service. The organization awards badges to employees who have given exceptional customer service. Employees wear the badges with pride and, in doing so, management hopes that the right behaviours will rub off on other employees. Additionally, the organization has developed an employee recognition program to recognise those who have demonstrated the group’s core values and have gone out of their way to delight customers. Each time a staff receives a guest’s compliment and/or thank-you note/letter from senior management, he/she joins Shangri-La Singapore’s Customer Delight Program (CDP) and qualifies to win awards within the “Silver”, “Gold” or “Diamond” categories. “Diamond” award winners then take on an ambassador’s role for the coming year, getting called on to share with other employees what it is that they do differently at work that enables them to delight customers. of valuing each staff’s voice and contribution, a sense of family belonging has successfully been cultivated at Shangri-La Singapore. “Even though customer needs comes first, we are also here to serve our employees.” To guide Shangri-La Singapore in delivering on their employee promise is their “One Team – One Way Towards Excellence” proposition that is delineated in the “Shangri-La Way” culture booklet. In addition to outlining the organization’s 8 Guiding Principles for delighting customers, the miniature handbook serves as a written testament to the organization’s commitment to its Vision of being “The first choice for customers, employees, shareholders and business partners.” For Shangri-La Singapore, being the first choice for employees means ensuring that the organization’s policies are employee friendly. Additionally, it means that leaders in particular must “walk the talk”, so that the organization’s commitment to employees transcends lip service and becomes engrained as a way of life at Shangri-La Singapore. THEME 3: Providing a Unique Employment Experience @ Shangri La, Singapore The unique employment experience that Shangri-La Singapore provides its employees begins with the caring culture of treating all employees like internal customers. As a result Given that the No 1 priority for Shangri-La Singapore’s CEO is to retain and build stronger relationships with customers, the organization has also developed innovative ways to reward employees who deliver great customer service. 44 Case Studies of The Best Shangri-La Singapore organizes a “family day” at the hotel at which time parents, spouses and children of employees are encouraged to visit their loved one at the work place. THEME 4: Aligning to meet Business Needs and Employee Expectations @ Shangri La, Singapore Employees view ‘career advancement prospects’ as the most important characteristic of ShangriLa Singapore’s employment brand. The hotel offers ample opportunities for employees to move within the group, may it be locally or overseas. Shangri-la Singapore adopts a “promotion from within” strategy for grooming their high potentials; this is in line with one of the hotel’s 8 Guiding Principles, i.e “create an environment where our associates may achieve their personal and career goals”. Due to the challenge involved in understanding customer needs, Shangri-La Singapore provides employees with constant Learning and Development opportunities. Employees at Shangri-La Singapore concur that the Learning and Development programs provided by the hotel are like no other. All new hires undergo Shangri-La’s Singapore acclaimed training program, ‘Shangri-La Care’, which reinforces the group’s customer orientation and commitment to highly personalized guest service. Beyond onboarding, all staff attend at least four hours of training per month. A dedicated training department updates the notice boards/electronic boards and the training calendar with training opportunities. The organization also provides executive development programs in collaboration with Cornell University and the Nanyang Technological University. Innovative HR Practices that drive Engagement and Alignment Given Shangri-La Singapore’s dedication to the Learning and Development of its employees, the organization’s HR Department is soon to roll-out a “Trainers Club” aimed at recognizing the important role that their trainers play in the hotel’s ongoing success. Half-day gatherings will be organized on a monthly basis for the trainers, at which time guest speakers will be invited, team building exercises will be conducted, 45 new training skills will be offered, and small workshops will be organized to develop the trainers’ soft skills, presentation skills, etc. Recognizing subsets of Shangri-La Singapore’s workforce in such a manner is a prime example of the organization’s commitment to infusing a culture of care, respect, and integrity. In their efforts to keeping retention high and turnover at a minimum, Shangri-La Singapore employs several successful strategies. For example, Shangri-La Singapore organizes a “family day” at the hotel at which time parents, spouses and children of employees are encouraged to visit their loved one at the work place. This monthly half-day event not only helps reinforce the organization’s caring culture, but also reassures family members that their loved ones work in a safe environment that has enjoyable facilities. By also introducing family members to the colleagues and managers of their loved ones, family members become comforted by the thought that their loved ones are well taken care of by the organization. In turn, ShangriLa Singapore hopes that family members will become walking ambassadors for the hotel and will not only recommend friends to join the organization, but will also help convince their loved ones to remain loyal to the organization. An additional HR strategy for building retention at the hotel, is the philosophy of “building space” for employees to breathe. As such, all of HR’s initiatives are designed with this philosophy in mind, be it their initiatives around policies and procedures, training and development, expanding employees’ job scope, providing employees with geographically or intellectually stimulating opportunities, etc. Because of such concerted efforts from the hotel’s HR team, Shangri-La Singapore’s employees learn to trust HR’s ability to provide them with the working environment within which the sky is the limit. prefers concentrating their efforts on vying for a better ranking position. A year after! “Now that we are reputed as a Best Employer, there is more pressure from top management. We are more conscious of the fact that we have to work hard to keep up with our position.” Mr. Tan Hung Liang, Eugene Area Director – Human Resources, Shangri-La hotel, Singapore The Journey towards Becoming a Best Employer According to Mr. Eugene Tan, “to become a Best Employer you’ve got to be dynamic and current. You need to look into the horizon and keep abreast of the situation, up to date with new employee trends, and aware of the times. Also, the organization needs to believe in the role of HR. HR has to be viewed as crucial to the organization, as a business partner, and as a member of the Board. If this is the belief, then recognizing the value of people will be more than just lip service; it’ll become engrained in the management philosophy and will transpire in the way management conducts business.” Using BEA Status Effectively Since having won Hewitt’s Best Employer Award in 2007, Shangri-La Singapore has increasingly been using their status both in their recruitment efforts and as a marketing effort during the monthly family days. That said, Shangri-La Singapore is extremely modest in culture, and 46 Case Studies of The Best CASE STUDY 2 : Singapore Prison Services Introduction to the Organization The Singapore Prison Service (SPS) is an agency of the Government of Singapore, and is the organisation responsible for protecting society through the safe custody and rehabilitation of criminal offenders. Institutionalised in 1946 and as part of the Ministry of Home Affairs, SPS operates 13 prisons and drug rehabilitation centres in Singapore. SPS embarked on an organization-wide transformation in 1999. At that time, SPS organized a visioning exercise with the involvement of more than 700 employees, collectively crafted a shared Vision and reviewed its Mission in order to better accommodate the changing needs and expectations of its customers and the public. When the new Vision and revised Mission were later unveiled, the SPS tagline, “Captain of Lives” (COL) was also revealed. In the same year, a support structure called the Housing Unit (HU) Management Visionary leadership that is capable of transformational change is what SPS has at its epicenter. System was implemented to help Prison Officers, through teamwork and purposeful interaction, better perform the dual roles of effective safe custody and rehabilitation of inmates. In the year 2000, many new initiatives were underway. Early that year, SPS established a Prison School where inmates can pursue further education and acquire skills learning. In that same year, the Community Action for the Rehabilitation of Ex-offenders (CARE) Network was launched with the objective of ensuring seamless throughcare in the rehabilitation of ex-offenders by harnessing the resources and services of community partners. 47 A new inmate assessment and classification tool was also adopted (and later updated in 2004), which enabled SPS to provide tailored programmes to meet the rehabilitation needs of the different categories of inmates. Given the challenge of focusing on both the safe custody and the rehabilitation of inmates, the COLs received additional support in 2000 when SPS introduced an ethics helpline and discussion forum. This forum helps officers handle the ethical issues that arise from carrying out their complex roles as COLs. Later in 2001, SPS developed a new set of Departmental Values – HEART – as a way to internalize the values of COLs. SPS also unveiled their corporate image “Rehab, Renew, Restart” in order to raise public awareness regarding the organization’s transformation efforts. SPS has come a long way since it first adopted the vision set by senior management in 1999. Even with a change in leadership on 1 November 2007, SPS’ journey persists and the organization continues to strive to change the way they operate and the way they are perceived by the community at large. 48 Awards In recognition for its ongoing efforts aimed at building a secure and exemplary prison system, SPS has received the following awards: 2001 Awarded the Singapore Quality Class (SQC) Recertified with the SQC Awarded the President’s Certification of Commendation during the National Day Awards 2003 for its significant contribution in combating and containing SARS 2002 Attained the Family Friendly Firm Award Director of Prisons received the prestigious International Management Action Award (IMAA) for his distinctive leadership qualities and outstanding ability in public administration 2004 Awarded the Singapore Innovation Class (SIC) Awarded the Family Friendly Employer Award 2003 Attained the People Developer Standard Achieved ISO 9001:2000 for its Intake Rehabilitation Classification Awarded the Public Service Award for achieving the SQC, PDS and ISO 9001:2000 2005 Awarded the inaugural e-Society Excellence Award for its application of infocomm technology in internet home televisit Awarded the Singapore Service Class (SSC) Director of Prisons was conferred the Public Administration Medal (Gold) during the Case Studies of The Best Best Employer Status of the Organization National Day Awards 2005 – this is the strongest acknowledgement by the nation for the progress SPS has made in the rehabilitation of inmates Awarded the Distinguished Public Service Award for the attainment of key organisational excellence standards namely the SQC, SIC, PDS, SSC and ISO 9001:2000 SPS was awarded the Top Public Service (PS) Award on 10 November 2006. The Top PS Award is the premier Organisational Excellence (OE) award given to public agencies which have attained the Singapore Quality Award (SQA) and 4 other PS21 OE qualifying standards; namely the People Developer Standard (PDS), ISO 9001:2000, the ServiceClass and the Innovation-Class. In 2006, the Singapore Prison Service is honoured to become one of the three organisations (together with Singapore Police Force and Central Provident Fund Board) who have attained the award so far. The award, which is given out by the Head of Civil Service, serves as recognition for our relentless efforts in promoting organisational excellence. SPS ranked 8th in Hewitt’s 2007 Best Employers in Singapore study. Reasons for striving to become a Best Employer SPS’ motivation to take part in Hewitt’s Best Employers study was primarily driven by a desire to be benchmarked against organizations in the private sector. As the only public organization to receive Hewitt’s Best Employers award in 2007, SPS has benefited by obtaining a greater understanding of where their HR policies and practices stand with respect to other study participants. By becoming a Best Employer, SPS has been able to generate greater public and customer confidence in the organization, which is greatly beneficial in the organizations efforts to attract and retain talent, as well as reduce staff turnover. For SPS, becoming a Best Employer also brings them greater community partnership and support for their vision. 2006 Successfully obtained the recertification for the PDS Achieved the recertification of ISO 9001:2000 for Initial Rehabilitation Classification The Singapore Quality Award (SQA) is the highest accolade given to organizations for business excellence in Singapore. The SQA trophy was presented to Mr Chua Chin Kiat, Director of Prisons by Mr Lim Swee Say, Minister in Prime Minister’s Office, at the Business Excellence Awards Presentation Ceremony held on 12th October 2006. 2007 SPS was named as the top 10 companies to work for in 2007 based on level of employee engagement, effectiveness of HR policies, effectiveness of HR policies and business results 49 SPS Employee Engagement Levels SPS obtained an overall engagement score that puts them comfortably within the High Performance Zone. According to Hewitt’s research, organizations within this zone can expect their financial performance to exceed organizational averages by around 24 percent. SPS’ attrition rates are significantly lower than other organizations (The Rest). According to their 2006 records, SPS only loses approximately 5.1 percent of new hires within the first year (as opposed to 19 percent at The Rest), and as little as 3.6 percent of new hires within the second year of employment (as opposed to 15 percent at The Rest). The top three satisfaction scores at SPS are in the areas of Training and Development (90 percent), Customer Focus (89 percent), and Sense of Accomplishment (87 percent). THEME 1: Strong Leadership Commitment and Effective Talent Strategy @ SPS Visionary leadership that is capable of transformational change is what SPS has at its epicenter. Ever since the organization’s transformation began in late 1998, SPS has been successfully reshaping its strategic focus, moving away from a philosophy of deterrence through merely punitive measures towards a more holistic philosophy that combines security with rehabilitation. To drive this change, SPS has devised a new Vision, revised its Mission, adopted a new set of Departmental Values, and developed a new Corporate Image. Employees have been able to internalize and live by the change as inspired by SPS’ visionary and forward-looking leaders, leaders who not only embrace change but who are able to motivate the masses to be “movers & shakers” in their respective roles. Given how imperative it is for SPS employees to embrace change, it is of crucial importance to SPS that they have quality leaders in place to influence and inspire change. Not surprisingly therefore, SPS’ Directorship views leadership quality as having the most impact on the organization’s ability to succeed; as such, one of SPS’ most prominent strategies is focused on organically building quality leadership. For SPS, leadership quality is defined by leaders who not only have the ability to unite employees under a common vision, but who are also champions at building relationships and enhancing working relationships at all levels of the organization. The strong sense of camaraderie and teamwork enjoyed by all COLs is a result of SPS’ leadership ability to build a bond between employees, a bond that has thus far successfully transcended even tumultuous organizational transformation. 50 Case Studies of The Best THEME 2: Creating a High Performance Workforce@ SPS The most important characteristic of SPS’ employment brand is Excellence, meaning that the organization sets high standards and is demanding in their quest to achieve them. The fact that SPS was awarded the SQA in 2006 serves as an affirmation that the organization has succeeded at attaining world-class standards of business excellence. In pursuit of Excellence at SPS, employees have been given a “tall order” – to be Captains of Lives; the challenge and importance of their roles as COLs in turn motivates employees to perform their best for the organization. In return for outstanding performance, SPS employs multiple avenues to reward their best performing employees. To illustrate, supervisors at SPS have the liberty to issue subsidiary awards as and when employees go the extra mile or display excellent behaviours in their work. As another example of their rewards strategy, SPS gives out quarterly “Role Model” Awards to officers who exemplify the HEART values. The Recipients of these quarterly awards are then eligible for the annual “Outstanding Captains of Lives” Award, which is the highest and most prestigious departmental award given to officers. Since 2003, this award has been given annually to the two or three officers who: ▪ exhibit desired behaviours that are aligned to SPS’ HEART Values ▪ pass the latest year’s HEART Individual Physical stands for: Proficiency Test (IPPT) Honour ▪ have at least 5 years of Excel service ▪ have good performance at Agile work Respect ▪ preferably have been active Teamwork in community work From the entire list of role models for the calendar year, 8 finalists will be nominated for the OCOL Award (6 of the most deserving from Clusters A, B and C, and 2 finalists from the HQ Cluster). These 8 nominees will then have a dialogue with a panel comprising of directorate members and, based on their presentation and answers to the panel’s questions, the panel will determine the winners. “Do not be defeated by the challenges or obstacles we face, take courage to fight it and overcome it ... even if you fail at least you know you tried…” CW Wong Tian Lee from PSTS ~ OCOL Award Winner 51 THEME 3: Providing a Unique Employment Experience@ SPS SPS offers individuals the unique employment opportunity to contribute significantly to society by protecting and rehabilitating people who have been found guilty of committing crimes. People who join SPS are therefore not only in the people business, in fact, they play a major role in changing the lives of the inmates. As such, each and every officer at SPS has the opportunity be a change agent, which brings employees great individual gains as well as the satisfaction of benefiting society at large. As a result of this unique employment experience, the sense of accomplishment that employees get from their work proves to be a very strong theme at SPS. To support this claim, when Hewitt asked employees what SPS provides them that is not offered by other organizations, the employee replies included the following: ▪ “I get paid for helping clients become better citizens” ▪ “SPS provides me with a sense of satisfaction as I help inmates succeed in making positive changes in their lives” ▪ “This organization provides me the chance to make a difference to other people” ▪ “Sense of pride” ▪ “Job satisfaction, for the past 26 years” ▪ “Satisfaction and rewards when you touch other people’s lives” ▪ “The job satisfaction of being able to help offenders return to society” organisational vision and goals. During these sessions, leaders actively solicit feedback from Prison Officers on working conditions, difficulties at work, possible improvement areas, etc. This helps the leadership team maintain close contact with the operational levels of the organisation in order to be constantly aware of the challenges on the ground, while staying committed towards supporting their needs. The organizational goals are also aligned to all people practices at SPS. Right from the recruitment stage, applicants are introduced to the role of COLs and are made aware of the impact that such a role has on society. Consequently, applicants can anticipate the sense of intrinsic job satisfaction that would be derived from joining SPS. Once on board, employees receive various Learning & Development opportunities. These opportunities represent SPS’ commitment to ensuring that all employees are equipped with the core and functional competencies needed to perform their roles. Employee contributions that are in line with the organization’s goals are then encouraged by means of ongoing performance assessment and rewards and recognition systems. THEME 4: Aligning to meet Business Needs and Employee Expectations @ SPS SPS’ transformation efforts, which would not be possible without strong leadership and employees’ participation, have resulted in the alignment of systems and procedures to the organization’s Vision, Mission and Values. Every role within the organisation has then been linked directly or indirectly towards providing service to the society at large. This provides each employee a clear understanding of his/her part in driving the organization’s goals. In order to ensure ongoing alignment, leadership at SPS conducts frequent communication sessions with Prison Officers to outline and explain the 52 Case Studies of The Best More so, with a coaching framework in place, employees receive close support and guidance from their supervisors. This further helps staff feel a sense of belonging to the organization while at the same time helps to foster good relationships between supervisors and employees. Ultimately for SPS, the success of having designed the right package of people practices has led to a greater extent of employee alignment to the organization’s goals. Equally significant, SPS’ people practices have been successful in satisfying employee expectations, as can be captured in SPS’ ability to sustain low levels of employee attrition. Ultimately for SPS, the success of having designed the right package of people practices has led to a greater extent of employee alignment to the organization’s goals. involvement of experienced prison officers is used not only to provide inputs for the internally designed role plays, but also to sit in the panel during recruitment interviews. During the role play, the interviewer takes on the role of an inmate and reenacts different scenarios relating to actual situations that happen in prison’s work. The candidate’s reaction to the difficult situations is then evaluated and his / her suitability assessed. These role plays not only enable SPS to assess the candidates’ coping skills in dealing with inmates, but also gives the candidates a flavour of the job they are applying for and the challenges that are associated with such a role. its employees to develop their competencies as well as their technical know-how. Such learning opportunities take the form of formal training and developmental activities. For formal training, employees have the option of taking up classroom training programmes or e-learning courses. As SPS encourages their employees to take ownership of their personal self-development, providing training via an e-learning platform allows employees to grow at their own pace. In addition to adopting a broad-based approach in Learning and Development, SPS encourages a culture of coaching amongst the employees. All supervisors in SPS are coaches who will hold regular coaching sessions with their subordinates. Supervisors use these coaching sessions to guide their coachee to develop individual training plans so as to close their competency gaps. Innovative HR Practices that drive Engagement and Alignment Recruitment One area in which SPS is particularly creative is in terms of their recruitment practice. In this respect, SPS has developed a series of innovative recruitment talks and videos to attract candidates with a desire to be a “Captain of Lives”. In addition to using interactive media, SPS readily uses role plays during the interview process. The Learning & Development SPS’ HR practices are also creative where Learning & Development is concerned. In this respect, SPS provides ample learning opportunities for 53 The effectiveness of SPS’ Learning & Development practices lies in the fact that it is fundamentally engrained in SPS’ coaching culture. Additionally, SPS has developed a set of leadership competencies to guide employees in “unlocking the potential” and “accentuating the sparkle” of not just inmates, but fellow employees as well. A year after! “Being named as the Top Ten Best Employer is an affirmation of the people management strategy that SPS has adopted. SPS will continue to work towards developing our Captains of Lives that will make a difference in the lives of offenders under our charge.” Ms. Lee Kwai Sem Assistant Director Staff Development, SPS employees want to make a difference. Employees who feel as though they have something meaningful to contribute to the organization will, in turn, feel propelled to go the extra mile to ensure that the organization succeeds. Given these points, SPS opines that the road to becoming a Best Employer begins with a heavy focus on leadership development. By having a targeted leadership development strategy at all levels, organizations can begin to build a pipeline of leaders who have the capabilities needed to drive the organization’s direction, shape the culture, and stimulate employee engagement. Aside from developing a pipeline of leaders who demonstrate the necessary strategic and conceptual skills, organizations striving to become Best Employers must also ensure that their top management be effective relationship builders. According to SPS, relationship building skills are paramount when leaders relate with their peers, when they groom, guide and inspire their subordinates, and when they interact with their partners and stakeholders. Using BEA Status Effectively Though SPS admits that they did not expect to be awarded as a Hewitt Best Employer as no public sector organization has been awarded before, SPS employees understandably feel proud to be part of an organization that has been recognized as a Best Employer. Having been given the Best Employer status, SPS has since used the title in their recruitment campaigns. While it is difficult to draw the link between the volume of applicants and SPS’ Best Employer status due to the interplay of various factors at recruitment, SPS does feel that their Best Employer status places them in a favourable light when they take part in campus talks and recruitment campaigns. The Journey towards Becoming a Best Employer According to SPS, there are fundamental elements common amongst organizations that have become and that will continue to be Best Employers. First and foremost, Best Employers have unwavering leadership commitment marked by a strong leadership culture. In addition to driving the organization’s strategic direction, this solid backbone serves as the foundation from which the organization’s culture is shaped and cultivated. Besides having an effective headship, SPS believes that being a Best Employer means creating a working environment within which 54 Case Studies of The Best CASE STUDY 3: Olam Singapore Introduction to the Organization Founded in 1989, Olam is a leading global supply chain manager of agricultural products and food ingredients. With a proven ability to grow organically by exploiting adjacent opportunities, Olam has evolved from a single country, single product trader in 1989, to a multinational, multi product integrated supply chain manager today. Based in Singapore, Olam now operates an integrated supply chain for 14 products sourcing from over 40 origin countries and delivering them to over 4,000 customers in 60 destination markets. Olam today is a global leader in many of these businesses including Cocoa, Coffee, Cashew, Sheanuts, Sesame, Rice and Teak Wood. Olam offers customers an end-to-end supply chain solution. Their distinctive position is based both on the strength of their origination capability and their strong position in the destination markets worldwide. Olam manages each activity in the supply chain from origination to processing, logistics, marketing and distribution. Their complete integration allows them to add value and manage the various risks along the entire supply chain from the farm gate in the origins or producing countries to the factory gate of their customers in the destination markets. Olam supplies to many of the world’s most prominent brands offering them reliability, 55 Across Olam’s worldwide network the organization seeks to create value, at every level, for their customers, shareholders and employees alike. consistency, trust, traceability, and other value added services. This has helped the company earn a reputation as the “brand behind the brands”. Across Olam’s worldwide network the organization seeks to create value, at every level, for their customers, shareholders and employees alike. In the course of the past 18 years, Olam has created significant shareholder value in competitive and challenging markets through their innovative business model. The organization will continue to pursue profitable growth because Olam believes that creating value is their business. Olam is committed to supporting the community and protecting the environment in every country in which they operate, and is excited about the significant opportunities that exist in their business to concurrently create shareholder and societal value. Awards & Recognition Olam’s pioneering business model and unique growth strategy has been featured as a case study in many leading books and publications: ▪ Harvard Business Review, December 2003 ▪ ‘Beyond the Core’ by Chris Zook ▪ ‘Strategy’ by Mark Daniell ▪ ‘Global Future – The next Challenge for Asian Business’ ▪ In May 2007, Olam received three prestigious honours at the Singapore Corporate Awards 2007 and the ‘Most Transparent Company’ Award (Commerce) at the SIAS Investors’ Choice Award 2007. Olam was also named one of Singapore’s top 10 Globalised Companies by International Enterprise (IE). ▪ Sunny Verghese (CEO) was awarded Best Executive in Singapore for 2006 by Asiamoney in January 2007. He was also named Outstanding Chief Executive of the year by the Singapore Business Awards in March 2007. ▪ Olam’s Talent Management practices have also been recognized in The Singapore HR Awards 2006 held by SHRI. Olam has received 7 awards in different categories including Leading Corporate HR award. 56 Case Studies of The Best What makes a true Best Employer? According to Olam’s CEO Sunny Verghese, “A Best Employer creates an enabling environment that encourages maximum discretionary effort. This maximum discretionary effort is achieved by helping employees develop their sense of ownership of the business and, out of the ownership, emanates the discretionary effort that goes beyond the call of duty”. For Olam, the path to becoming a Best Employer has meant nurturing a culture that enhances the company’s ability to work towards and reach their high aspiration levels. At the root of this value is the understanding that people are critical to the organization’s ability to deliver superior results; hence, Olam’s high performance culture transcends the businesses and hierarchies, and also works to bind employees together into a unified organization. Olam’s Employee Engagement Levels Olam obtained an overall engagement score that puts them comfortably within the High Performance Zone. According to Hewitt’s research, organizations within this zone can expect their financial performance to exceed organizational averages by around 24 percent. Olam’s attrition rates are significantly lower than other organizations (The Rest). As per their 2006 internal data, Olam only loses approximately 6 percent of new hires within the first year (as opposed to 19 percent at The Rest), and 5 percent of new hires within the second year of employment (as opposed to 15 percent at The Rest). The top three satisfaction scores at Olam are Intrinsic Motivation (89 percent), Customer Focus (85 percent), and Manager (84 percent). For Olam, the path to becoming a Best Employer has meant nurturing a culture that enhances the company’s ability to work towards and reach their high aspiration levels. 57 THEME 1: Strong Leadership Commitment and Effective Talent Strategy @ Olam Olam’s core belief about leadership is two-pronged. For one, Olam believes that everyone can be a leader; it is therefore up to the organization to provide potentials with opportunities to become leaders. For two, Olam believes that leaders are in the business of making breakthrough performance and not incremental change. Governed by this two-fold philosophy, Olam ensures strong leadership commitment by creating and maintaining an environment of learning and development. The key premise to learning at Olam is that it takes place through experiencing; Olam’s leadership development process therefore includes on-thejob opportunities through role assignments as well as structured job learning. By experiencing pre-determined critical learnings in this manner, individuals are gradually able to improve both individual and organizational performance. In addition to experiential learning, Olam provides managers with structured leadership development programs to enhance their 58 competencies and thereby manage their businesses more effectively. Starting with the Executive Coaching that the organization’s top management undergoes with an external coach, Olam’s development programs have been designed to address development needs at each stage of the leadership lifecycle in the organization. These programs range from The New Leadership Program for the first level of managers, to Mastering Your Leadership Skills for profit centre heads, to Strategic Leadership Skills for senior business leaders, and to Country Leadership Skills at the country management level. The strength of Olam’s dedicated leadership development programs can be attributed to several factors. For starters, the programs are effective in building key organizational capabilities, in enhancing on the job effectiveness by improving role specific competencies, in developing leadership competencies for future roles, as well as in meeting individual aspirations for career and capability growth. The programs furthermore reinforce Olam’s philosophy of promoting from within which, in turn, fosters a greater sense of commitment amongst the management team and strengthens the organization’s ability to retain key personnel. Finally, the programs enable Olam’s managers to develop a common vision and understanding of the company’s values and goals, which help foster intra-business communications, disciplined operational management and an entrepreneurial spirit. Case Studies of The Best THEME 2: Creating a High Performance Workforce @ Olam As a company, Olam does not want to lose sight of the basic reason why they exist, which is to maximize shareholder value over time. Every role incumbent in Olam therefore understands how he or she impacts the specific micro drivers that impact value creation. As a result of Olam’s value creation orientation, the organization’s performance management process is geared towards ensuring that stretch aspirations, goals and ambitions are imbedded in every business plan and at all levels of the organization. Simultaneously, Olam creates the discipline within which accountability can be ascertained, without deviating from the spirit of the organization which centers on initiative and entrepreneurialism. In return for high performance, employees at Olam are compensated and rewarded with a mix of base salary, incentives, equity compensation and benefits. The element of equity compensation exercised by Olam is particularly effective given the organization’s stretch plans and articulated milestones for growth. THEME 3: Providing a Unique Employment Experience @ Olam At Olam, the unique employment experience can be summarized in the organization’s Employee Value Proposition (EVP) which comprises of four main components. The first of these components is the organization’s provision of entrepreneurial job roles with an unlimited and broad canvas to perform. Grounded in the fact that a high level of empowerment has been built into all managerial roles, the entrepreneurial roles that Olam’s managers enjoy provide them the opportunity to manage and build a business with a large degree of autonomy, freedom of decision making, and responsibility for outcomes. The second anchor of Olam’s EVP is the organization’s ability to provide a global career in a winning company. Due to Olam’s global presence and diversity of product groups, the organization promises their employees global careers and the opportunity to move crosslocation and cross function. Olam’s third EVP pillar is the opportunity for employees to create wealth for themselves through a blend of salary, performance bonus and equity compensation. Given Olam’s pace of growth, the organization believes in offering employees a chance to grow along with the company and share in its wealth creation. The last aspect of Olam’s EVP is their aspiration to be a caring and nurturing organization. As an illustration of the organization’s commitment on this front, Olam helps find employment for the spouses of employees who have been transferred to new locations. Given the number of personnel that Olam has in hardship postings (e.g. interior regions of Africa), this final element of the organization’s EVP is particularly important to the organization and employees alike. In return for high performance, employees at Olam are compensated and rewarded with a mix of base salary, incentives, equity compensation and benefits. 59 THEME 4: Aligning to meet Business Needs and Employee Expectations @ Olam As evidenced in the organization’s ambitious strategic intent, Olam’s growth aspirations have for many years set challenging goals. Olam understands however that the human resource function plays a critical role in preparing the organization to meet their future objectives. This is why, in addition to strengthening organizational resources, Olam has developed a business model that hinges on systematic talent planning, developing programs to create high levels of engagement, and building individual skill plans to cultivate expertise and maintain a high performance ethic. Providing employees with numerous growth opportunities helps Olam ensure that the organization and employees at all levels are prepared to meet the challenge of achieving their stated vision and supporting objectives. To support Olam’s developmental business model and drive organizational objectives, Olam has created an organizational culture that is entrepreneurial, team-oriented and non-hierarchical, encouraging employees to take greater responsibility for their careers, to grow both personally and professionally, and to contribute to the success of the company throughout their careers. Olam’s culture also embraces innovation, risk taking, and continuous improvement, thereby enabling employees to make and meet stretch goals with no fear of consequences of underachievement. Ultimately, Olam’s culture fosters an environment that believes in having a sense of ownership, in high discretionary effort, and in giving immediate contribution. The joy of achieving significant results is what drives Olam’s culture of setting extraordinary expectations and goals, as does the fulfillment employees get from internalizing the company’s entrepreneurial “it’s my own business” mentality. Innovative HR Practices that drive Engagement and Alignment Olam deploys many innovative practices to drive employee engagement and align employees to business objectives; two of these practices are highlighted here. The first practice worth elaborating on is Olam’s ‘Share Ownership Plan & Voluntary Share Trading Plan’. Since the inception of the company, the management philosophy has been to encourage employee equity ownership. Hence at the pre-IPO stage of the organization, share ownership was achieved through a Share Purchase Plan, with Olam arranging a loan scheme via a financial institution. From a pre-IPO employee ownership of 24%, post IPO employees at Olam own 17% of the Ultimately, Olam’s culture fosters an environment that believes in having a sense of ownership, in high discretionary effort, and in giving immediate contribution. 60 Case Studies of The Best company. Employees have agreed to impose a voluntary restriction on the divestment of shares so as to retain significant ownership in the company. The planned maximum divestment is 1.5% of total outstanding shares each year. A detailed online trading plan captures the divestment, the process of which is entirely employee managed and voluntary. Olam’s share scheme instils in employees a sense of ownership and assurance, which is much needed given the individual integrity and commitment required for an organization as geographically diverse as Olam. The share scheme has also been successful not only in creating significant wealth for Olam’s employees, but also in ensuring that share owners’ interests are aligned to the articulated growth plans of the company. A second innovative practice at Olam is their Performance Incentive Scheme. The organization’s performance bonus plan aligns performance with efficiency of return from three key resources utilised, namely working capital, overhead expenditure and risk capital. The A second innovative practice at Olam is their Performance Incentive Scheme. The organization’s performance bonus plan aligns performance with efficiency of return from three key resources utilised, namely working capital, overhead expenditure and risk capital. scheme has been designed to eliminate common shortcomings of similar incentive payouts, i.e dysfunctional behaviors such as gaming and negotiating on targets. This incentive scheme creates an organization that is ambitious and entrepreneurial, whilst ensuring that each individual is highly sensitized to utilizing scarce resources judiciously. employee feedback against the best globally. In addition to enabling them to better attract talent and be recognised as one of the Best Employers in Singapore and in Asia, the public recognition has also enhanced the alignment of Olam’s HR best practices for the betterment of business performance. When asked what becoming a Best Employer would mean for Olam, they replied “Employees enjoy a very high work pride in Olam. We believe that becoming a Best Employer would further strengthen the spirit among the employees that they have contributed to building the reputation among the various stakeholders.” Using their Status Effectively Olam has repeatedly been publicly recognized for their outstanding HR practices and capabilities. Such acknowledgement has provided the organization with the opportunity to benchmark their people practices and 61 Case Studies from India CASE STUDY 1: Introduction to the Organization Satyam Computer Services Ltd. is a leading global consulting and IT services company, offering a wide array of solutions customized for a range of key verticals and horizontals. The organization is globally headquartered in Hyderabad, India. From strategy consulting right through to implementing IT solutions for customers, Satyam straddles the entire IT space. It has excellent domain competencies in verticals such as Automotive, Banking & Financial Service, Insurance & Healthcare, Manufacturing, Telecom-Infrastructure-Media-EntertainmentSemiconductors (TIMES). As a diverse endto-end IT solutions provider, Satyam offers a range of expertise aimed at helping customers re-engineer and re-invent their businesses to compete successfully in an ever-changing marketplace. Satyam’s network spans 55 countries, across 6 continents. Nearly 38,000 dedicated and highly skilled IT professionals work in development centers in India, the USA, the UK, the UAE, Canada, Hungary, Singapore, Malaysia, China, Japan and Australia and serve over 541 global companies, including over 158 Fortune 500 corporations. Satyam’s strategic technology and marketing alliances with over 90 top-notch companies helps them provide end-to-end services to customers. Satyam is one of the fastest growing companies in the IT services & BPO sector. They were the youngest (fastest) Indian IT Services to reach the 1 billion dollar mark in annual revenues. Satyam Computers Best Employer Status of the Organization Satyam ranks #2 in the Best Employers India 2007 study. Satyam was also a Best Employer in 2004 Reasons for striving to become a Best Employer One of the organization’s aspirations is to be recognized as a Best Employer in the geographies they operate in. According to the CEO, Attaining Best Employer status is reinforcement and an indication to key 62 Case Studies of The Best stakeholders of the collective and untiring efforts in making Satyam a better place to work. However, despite a global presence and brand name, Satyam faces a common problem that is largely industry-wide: high attrition, coupled with lack of technical skills. Besides increasing the brand exposure and positioning, Satyam believes that participation in a survey like the Best Employer study itself helps recognize and acknowledge the things they do well, while highlighting the challenges and gain insights into the work practices of other world class, global organizations. an inherent confidence in its employees’ ability to deliver (trust and faith in employees) are also some reasons employees choose to stay at Satyam. are fully responsible for a Full Life Cycle Business and are completely empowered to take decisions within that business. This initiative has been undertaken to promote ‘entrepreneurship’ in the organization and to distribute leadership down to the levels below the CEO. This is a great example of the kind of distributed decision making which can exist in a firm. Satyam also established a dedicated wing called the “Leadership Development Group” with an THEME 1: Driving Higher Employee Engagement @ Satyam Satyam’s employee value proposition to prospective employees is around opportunities and freedom. Living up to this promise, Satyam is indeed an attractive employer to prospective job seekers precisely for the systems it has in place around the areas of employee empowerment and growth opportunities. Flexibility at the work place, work culture and THEME 2: Strong Leadership Commitment and Effective Talent Strategy @ Satyam Satyam’s focus for the decade is ‘Growth through Leadership’ called the Full Life Cycle Leaders. These are leaders within the organization who 63 objective to grow best-in-class ‘entrepreneurial’ leaders in the fastest time. This group reports to the Chairman and is spearheaded by two Senior VP Level HR Leaders, who are committed to defining, developing & institutionalizing the philosophy, framework and processes of this group across the organization. This initiative called for vast change in the organizational structure and design, and it was imperative to create and set up the right support structure in place to drive this initiative. Processes like performance management and compensation were realigned to integrate these changes. The Satyam School of Leadership was also set up to expand the organization’s strategic leadership capabilities by providing timely learning opportunities through focused efforts on building strong capabilities. According to the Chairman, “Satyam School of Leadership is built on the philosophy of expanding entrepreneurial energy to help us keep pace with ever-changing global business environments.” STARTRAC, a real time business performance management tool and variable compensation policy, was introduced to encourage each associate to adopt an entrepreneurial mindset and own the responsibility of driving performance. ‘BreakThrough’ is the organization wide talent management platform that enables associates to view positions open for internal talent, apply for suitable openings, and move across roles. ‘BreakThrough’ also offers a platform for the Business Units to advertise critical positions and reach out to internally available talent. This platform seeks to provide a career development / aspiration fulfillment opportunity to the associate and also enhance organizational leadership bandwidth, leverage human capital and efficient talent utilization from an organizational perspective. To improve the effectiveness of this platform, a formal Job-Rotation Policy has also been introduced and implemented with an objective to lay down guidelines governing associate movement (job rotation) from one assignment to another, either within the same circle or between circles. This initiative has been well received by the associates as well as the business leaders and has proved an excellent platform to realize the aspirations of the high performers and hence, improve retention. It has also been recognized as a successful sourcing channel for large ramp-ups. ‘BreakThrough’ is the organization wide talent management platform – enabling associates to view positions open for internal talent; apply for suitable openings and move across roles. 64 THEME 3: Creating a High Performance Workforce @ Satyam Satyam has created a dedicated business / Full Life Cycle Business (FLCB) referred to as “Fast Tracker” program with the primary objective of Case Studies of The Best positively influencing continuity & commitment of high performing Associates through structured interventions. The FLCB aims at retaining the key talent within the organization and nurturing the growth and aspirations of associates who have displayed outstanding performance and potential to take up higher responsibilities and challenges. The FLCB proposes to achieve its objective by applying the principles of: Acknowledge, Align and Accelerate. Acknowledge: Recognizing and Rewarding the participant’s performance / contribution through Skip Level Management etc. Accelerate: Focused Career Development and Management of the High potential associates Align: Creating an Emotional Bond between the participant and Satyam through “Associate Involvement Programs” Satyam also has focused learning and development initiatives encompassing a variety of methods that enhance learning and maximize reach to address the needs of employees spread over 53 countries. 25% of their learning opportunities are managed online. A unique recognition mechanism in place for high performers is an appreciation letter sent to the families of high performers by the Head of HR to thank them for providing support which enables an employee to be a high performer. Keeping all round development in mind, Satyam also aims to extend their training facility to strategic customers and partners. work tasks, Satyam’s social responsibility stance – their motto is ‘10% time from 10% Satyam employees’ - is a highly engaging factor for most employees. Satyam also provides a great physical work environment; great facilities in the work place that help make employees more productive. Innovative HR Practices that drive Engagement and Alignment Satyam’s recruitment model is a unique 3060-90 Model, an internal resource requirement capturing tool available online to all the relevant stakeholders. Through 30-60-90, resource requirements are captured online/globally on a proactive basis which helps the recruitment plans significantly. The process delivers dynamic, 30-60-90 day ‘Resource Demand – Supply Plans’ to all teams. These plans enable the Teams in planning ahead, Resource Allocations, Lateral Recruitment, Infrastructure Upgradation, H1 Visa filings and training & re-skilling of Associates. The goals of the process are THEME 4: Providing a Unique Employment Experience @ Satyam Satyam’s USP is their focus on growing leaders, and therefore providing opportunities. Employee opinions reflect the same; most employees cite challenge and opportunities to learn and work with cutting edge technology as one of the biggest retainers. Satyam is highly regarded for another reason. The organization lives its values in terms of commitment to people, both employees and the society at large. While it does not directly impact 65 to reduce plan variance and improve the predictability of resource requirements across Satyam. The success of this is measured by the reduction in business loss due to non fulfillment of resource requirement requests. With the increasing complexities of business environment, expectations of customers and challenge with availability of the right talent, it is imperative to verify the background (Education, Employment etc) of individuals joining the organization, especially in the industry Satyam operates in. To enable this at the minimum cycle time, the entire background check process across the organization has been virtualized. The success of this is measured by the cycle time of completing checks. Apart from the regular programs for recognizing associates, Satyam has introduced a special reward category named “Special Recognition & Reward Program” aimed to recognize significant improvement in business value across all teams, on a real time basis. The program recognizes the “Top 3 Value Creators” at an organizational level. An interesting initiative is ‘ReMember’, an interactive portal for ex-Satyamites through which Satyam Alumni can reconnect with one another and keep abreast of the latest happenings in Satyam. The portal has been received with great enthusiasm by the Satyam alumni. Alumni can make use of the advantages inherent in becoming a privileged member of the Alumni Portal of Satyam. Apart from the advantages of a networking portal, some remarkable initiatives include access to a Knowledge Center with a wide range of knowledge sources from Satyam, a discussion forum, and a Post Exit Feedback questionnaire to seek valuable feedback from the Alumni on the changes that can be brought about in Satyam. This portal also serves as an opportunity for alumni to explore new professional possibilities in Satyam. Satyam also focuses on HR effectiveness and periodically measures them through surveys. An Internal Customer Delight index which elicits feedback on all of Satyam’s support units forms the inputs on the parameters of Performance, Product and Design. The Associate Delight Index is another half yearly survey triggered for all employees, across levels and solicits employee opinion on work related parameters. The feedback received through this survey forms the inputs for action plans customized for the respective circles. The same is uploaded on the Associate Self Service portal and is tracked and updated at regular intervals. Satyam’s support businesses have a target of virtualyzing 80% of all “non-value adding/ manual” processes to increase efficiency and reduce rework. 66 Case Studies of The Best CASE STUDY 2: Oracle Introduction to the Organization Oracle, founded in 1977, has over 275,000 customers (including 98 of the Fortune 100) in 145 countries. Oracle has been operating in India for more than 19 years, first through a distributorship and thereafter through their own subsidiary since 1993. Oracle is one of the largest multinational employers in India with more than 10,000 employees. India accounts for Oracle’s largest research and development investment outside the United States. Oracle’s business is information—how to manage it, use it, share it, protect it. The world’s largest enterprise software company, Oracle is the only vendor to offer solutions for every tier of business-database, middleware, business intelligence, business applications, and collaboration. Reasons for striving to become a Best Employer Oracle’s participation in the Best Employer study was to primarily strengthen the brand name and create a feeling of pride of being associated with the organization. Oracle has ambitious growth plans for the coming years and in this regard it is imperative to be able to attract not just large numbers, but also the right talent, something that being a Best Employer would help them achieve. Oracle’s biggest challenge is talent management in the sector. Over the years most large players in the field have come to realize that it is not merely important to attract talent; it is also imperative to manage employees’ careers and expectations in order to retain talent. Loss of 67 talent is expensive and drains the system of all the knowledge that has been collected and built. Being regarded as a Best Employer would give the organization an edge over competitors. THEME 2: Strong Leadership Commitment and Effective Talent Strategy @ Oracle India Leadership’s commitment at Oracle is strongly reflected on a day-to-day basis. “Constant communication”, “approachability”, “transparency” and “participatory” are some of the adjectives used by employees to describe the leadership. In terms of leadership development, the organization solicits 360 degree feedback for leaders, and also has development centres in place. Based on the output of the tools, there is executive coaching and refresher courses. Oracle’s talent strategy is simple and clear : ▪ Identify top talent (through a comprehensive 9 grid tool), ▪ provide for cross functional and business mobility, ▪ continuous learning opportunities, and ▪ reward merit. THEME 3: Creating a High Performance Workforce @ Oracle India In the true spirit of creating a high performance workforce, Oracle has a comprehensive assessment process for performance as well as potential. Performance management at Oracle is through an online tool. The tool was developed in house and incorporates goal setting, performance reviews, competency assessment, performance ratings and a summary of performance discussions. The competencies measured are as per Oracle’s Global Competency Framework. Competencies at Oracle are not just in spirit but are used in practice, as Business Units use this comprehensive framework to identify competencies and proficiency levels specific to roles and type of work of employees. Oracle also focuses strongly on high potential management. Every division has a specific process for high potential management through one-onone mentoring, specific development programs at premier institutes like the Indian Institutes of Management, Indian School of Business etc. THEME 1: Driving Higher Employee Engagement @ Oracle India One of the factors that differentiate Oracle as a Best Employer is the fact that the organization lives up to the employment promise it makes. Oracle’s value proposition to employees includes providing depth and breadth in terms of work opportunities, world class education and training, and exposure to new technology. The organization also believes that constant movement leads to growth of workforce and also keeps them highly motivated and engaged. This fact was echoed by employees as well, who cited mobility and movement across the organization and groups as one of the factors that leads them to stay on in the organization. 68 Case Studies of The Best THEME 4: Providing a Unique Employment Experience @ Oracle India Oracle has a favorable work culture and environment. Freedom at work, trust and empowerment are issues that the organization strongly supports, and that has been validated by employees. The organization encourages initiative and rewards this behaviour. Some fun at work initiatives, like quizzes, and all CSR initiatives are employee owned. The rewards and recognition program is one of the key highlights at Oracle, having a vast array of recognition initiatives in place. A unique initiative taken by the organization is to address employee aspirations and enhance the quality of employment experience by way of an Employee Assistance Program for which there is a tie up with a global organization. The organization also provides employees a comfortable physical work environment with world class infrastructure. Managing a very diverse workforce, the organization has also taken care to address various work groups. Typical to most MNCs, there is also provision telecommuting. The organization also has doctors, physiotherapists and ergonomists on call. THEME 5: Realigning to meet Business Needs and Employee Expectations @ Oracle India HR at Oracle prides itself on crafting solutions to meet employee needs based on the business growth and direction. In light of the tremendous growth that the organization has seen and is likely to see over the years, Oracle has a strong HR team in place. They have generalists, specialists & mentors to Business Leaders. They work with businesses across the globe, and follow the shared services model. Oracle also has very clearly articulated strategies regarding communication and have frequent one-on-ones, open house, help desk, policy clarification & Leadership touch time. Oracle has had significant inorganic growth. In such an environment, they have been able to create a sort of ‘one Oracle feeling’ A unique initiative taken by the organization is to address employee aspirations and enhance the quality of employment experience by way of an Employee Assistance Program for which there is a tie up with a global organization. 69 without forcing very standard approaches to HR processes; for example, with respect to performance management, if some unit wants to undertake quarterly feedback, they have the flexibility to do so. Oracle moved to this model 3 years ago and has seen significant improvement in terms of time, cost, quantity and quality. On average it takes 9 to 13 days to bring a new employee on board. Oracle has also created a very strong foundation for a good HR organization. There are Subject Matter Experts within the HR department who work like consultants and focus on key people management aspects such as PMS, Career, Assessments etc. This brings depth and also is a good motivator for HR employees, while at the same time being very useful for most other employees, in terms of having a point of contact for specific queries. At Oracle, Businesses and HR are well aligned, and all lines of businesses can decide how to customize the major HR processes to suit their individual business requirements. Innovative HR Practices that drive Engagement and Alignment Oracle has made significant advancement in the area of recruitment, believing the process to be the first step to having a high performing workforce – identifying the ‘Right’ talent. At Oracle, recruitment is managed internally, including executive search, without any reliance on external consultants. They have also done away with generic walk-ins. The organization uses a simple recruitment model of: Identify> Recruit> Qualify> Evaluate> Offer> Close. 70 Case Studies of The Best CASE STUDY 3: Introduction to the Organization Cisco was founded in 1984 by a small group of computer scientists from Stanford University. Since the company’s inception, Cisco engineers have been leaders in the development of Internet Protocol (IP)-based networking technologies. Today, with more than 52,000 employees worldwide, this tradition of innovation continues with industry-leading products and solutions in the company’s core development areas of routing and switching, as well as in advanced technologies such as: IP Communications, Network Security, Wireless LAN, Storage Area Networking, Home Networking, Video Systems, and Application Networking Services. Cisco Systems India Pvt Ltd. commenced operations in 1995 and is part of the APAC theater. Cisco has 7 Sales Offices in India - New Delhi, Mumbai, Bangalore, Chennai, Pune, Kolkata, Hyderabad with a headcount of around 2000 employees. Cisco Cisco Global Development Center is in Bangalore, and is the largest outside of the US. Cisco also has Joint Development Centers with Wipro Technologies and Infosys Technologies in Bangalore; HCL Technologies in Chennai; Saytam Computer Services in Hyderabad and Zensar Technologies in Pune. Cisco Capital was launched in September 2004 to offer flexible leasing and financial services to customers and partners Best Employer Status of the Organization Cisco ranks #4 in the Best Employers India 2007 study. Reasons for striving to become a Best Employer Attaining Best Employer status is reinforcement & external branding of the fact that Cisco is indeed a great place to work. Cisco’s work culture stresses on being a young company where policies and structure are avoided as far as necessary, in order to make the employment experience comfortable for every employee. The 71 Cisco has a whole gamut of policies and infrastructure which facilitate employees seeking to balance work and personal priorities. Being a networking company, they particularly pride themselves in enabling people to transcend physical locations. Almost all their employees are provided with the tools to work from anywhere and at any time. organization’s growth pattern reflects the same. However, given that the organization plans to grow to 10000 employees in India over the next 3 years, talent retention and sourcing is a problem. Cisco’s unique and specialized areas of operation make it difficult to ‘poach’. Validation of the organization’s best practices will boost their positioning in the talent market, as well as provide them insights into the work practices of other world class, global organizations. rewards for high performance and clear paths for progression, even for those with technical/ specialist skills. Cisco has a whole gamut of policies and infrastructure which facilitate employees seeking to balance work and personal priorities. Being a networking company, they particularly pride themselves in enabling people to transcend physical locations. Almost all their employees are provided with the tools to work from anywhere and at any time. Employees are provided Laptops, data cards for web access, broadband access at home, remote access to systems. The organization does not track attendance and office times as most employees are on global teams and end up participating in calls and meetings from home outside of normal business hours. The Organization’s Data Cisco’s Engagement Score for 2007 was 88%. They were ranked #5 in the 2007 Study. Employee count in India is 2200 FTEs with 18% women. BEA THEME 1: Driving Higher Employee Engagement: How this Organization does it Cisco’s open, vibrant culture is most talked about by their employees. Apart form the technology and quality of work that the company offers, the work environment is an attractive factor. The work distribution is fair, and the employees work in an environment of high trust between managers and subordinates. There are fair BEA THEME 2: Strong Leadership Commitment and Effective Talent Strategy: How this Organization does it Cisco has rigorous induction programs where there are boot camps for technology 72 Case Studies of The Best High performers are recognized in the organization with clearly differentiated, higher rewards as well as nominations for special projects and training programs. There are also mentoring / development plans for high performers. as well as soft skills for new joinees from campuses. Lateral hires go through specific training for each business. In terms of managing performance, there is an e-based tool. Development plans for each individual are formed and there is a firm framework in place. The development framework of 3 Es isExperience 70%, Exposure 20%, and Education 10%. The organization is also focused on identifying and grooming high performing individuals. Identified top talent choose their own career path and are given discretionary stock options. The Cisco sales organization has clear focus on performance as well – each employee sales has a mentor to help guide them through the course of their career BEA THEME 3: Create a High Performance Workforce: How this Organization does it Cisco is focused on leadership development and has a leadership series training program in place. These are 4-6 week programs, where as part of pre-work participants have to work in virtual groups. High performing individuals are also nominated for such training programs. These leadership training programs are conducted by vendors. High performers are recognized in the organization with clearly differentiated, higher rewards as well as nominations for special projects and training programs. There are also mentoring / development plans for high performers. BEA THEME 4: Provide a Unique Employment Experience: How this Organization does it Cisco has heavily employee focused programs. The organization cares deeply not just for the employees but also their family. Apart from formally articulated benefits programs, Cisco has forums like the Women’s Action Network (WAN) and mentoring processes which enable employees to seek support and guidance to manage their careers and life more effectively. Flexible work arrangements, transport facilities, remote working tools, Employee assistance programs, etc. are all a part of Cisco’s value proposition. What brings it to life in Cisco is the culture of leaders and managers genuinely accepting such privileges and encouraging employees to avail of them without guilt. 73 Case Studies from China CASE STUDY 1: Introduction to the Organization Three on the Bund is Shanghai’s premier Lifestyle destination. It consists of four restaurants, a spa, an art gallery, and retail and cultural spaces, and opened in January 2004. Over 600 people are employed across the entire building on the historic Bund. All the business units of Three on the Bund excel in their fields and have won awards ranging from being featured on the ‘Conde Nast Experiences of a Lifetime’ and ‘Hot Tables’ lists, to Huangpu District’s Coolest Enterprise award. Three on the Bund continues to inspire and create new depth and soul to contemporary Chinese Living. be known. We are on a continuous journey. Its not about reaching a particular destination.” The leaders of Three on the Bund think that participation in Best Employers has brought an intangible benefit to the company and industry. And they really want employees to be engaged – “It’s the right thing to do.” Additionally, for the HR team, the participation process in Best Employers is viewed as a learning opportunity for them. Company officials also advocate that it has exposed their brand to a broader market place. Customers especially view recognition like this and CSR favorably. Best Employer status has made it easier to attract talent, especially since the recognition is by an impartial 3rd party. Three on the Bund Best Employer Status of the Organization 2007 Best Employer in Asia (No. 2); 2007 Best Employer in China (No. 4) The Organization’s Data Reasons for striving to become a Best Employer According to the CEO – “The Best Employer status is a recognition of all the hard work and effort our leaders and colleagues make every day to create an environment where everyone feels part of something. We care, and I would like that to In Best Employers 2007, Three on the Bund had an engagement score well within the High Performance Zone. And the top 3 drivers of the engagement were Customer Focus: 92%, Customer: 90%, and Manager: 88% (percentage numbers indicate level of employee satisfaction for each driver.) 74 Case Studies of The Best THEME 1: Driving Higher Employee Engagement @ Three on the Bund From very early on, the management at Three on the Bund was convinced that the organization needed to be a ‘good employer’ to each employee. That initial belief has influenced very strongly the kind of engagement initiatives that have been designed and deployed throughout the organization. “Bund Talk”, a short newsletter designed and distributed by the HR department is circulated every day. The newsletter is part educational and part inspirational. It plays a pivotal role in making sure everyone starts off on the right (and same) foot each day. It helps all employees feel connected and included in the overall scheme of things. Every department holds a forum,” Voice of Colleagues” each month, in which the head of department sits with all employees and shares ideas and information. Employees are free to share whatever is on their minds, be it feedback about working conditions, or improvement ideas. The Department Head takes it as a personal responsibility to come back to the next meeting with answers/reasons/feedback for every issue raised in the last meeting. The Managing Director meets with all department heads once per month to chat in a forum simply called “Afternoon Tea”. All these communication forums serve as a visible reinforcement to the idea of employee participation and ‘voice’. happens rarely. Focus is thus on developing mid-level employees to become managers. As a result, the top executive team of 7 includes 3 Chinese, and this number is expected to grow in the years to come. THEME 3: Creating a High Performance Workforce @ Three on the Bund Three on the Bund measures quality in more ways than one. The prevailing belief is – ‘What gets measured, gets done!‘ “Tip Top” is used to measure quality across 17 different areas in different business units. Additionally, all leaders (100%) have measurable goals, no matter which department they come from – customer facing or support. THEME 2: Strong Leadership Commitment and Effective Talent Strategy @ Three on the Bund The CEO interviews every potential hire without fail! The CEO interview is the final leg of the recruitment process. By interviewing all roles ranging from that of a cleaner right up the ladder, the CEO has his finger on the pulse on why people apply for employment in the organization. The organization’s philosophy is to have as many local leaders at senior levels as possible. As a result, hiring senior people from outside 75 THEME 4: Providing a Unique Employment Experience @ Three on the Bund Work really becomes the employees’ 2nd family in Three on the Bund! The organization strives to provide more than money and a career. They go beyond that by providing enrichment, entertainment, and support. Three on the Bund has strong training programs that stands on three strong legs: #1 Most of the ‘Company Key Training Programs’ are designed and delivered by the training department. At least two company training programs are conducted every month. The training topics are a mix of basic soft skills, company policy and procedures, management concept & theory, people management skills, etc. #2 The ‘Departmental Training System’ is an important part of the overall training system. Currently, the company has developed a total of 60 departmental trainers from different departments. They are responsible for providing on-the-job training and conducting job-related departmental training for their staff. #3 The ‘Programs for Development’ can take various shapes, such as cross section/ department training, training abroad, people of potential program (selected staff have one year training opportunity in 10 different departments), succession program, etc. THEME 5: Realigning to meet Business Needs and Employee Expectations @ Three on the Bund The organization’s philosophy is that it is important to know where the business stands at all points of time. Employees should understand the company’s performance and how it impacts them in times of strength and conversely, weakness. 76 Case Studies of The Best CASE STUDY 2: Federal Express (China) Company Limited Introduction to the Organization Federal Express (China) Company Limited was incorporated in 1999. The organization is a subsidiary of FedEx Corporation, which is the world’s largest express transportation company, providing fast and reliable customcleared, door-to-door guaranteed service to every U.S. address and more than 220 countries and territories. FedEx Express currently serves more than 30 countries and territories in the Asia Pacific market with more than 11,000 employees. In China, the organization has a workforce of more than 3,200 employees. At FedEx Express, the brand promise is that they deliver far more than just packages! Instead its about bringing ‘peace of mind’ to its customers. The employees are given opportunities to make a difference in the lives of people by getting a wedding dress, a life-saving medicine, a computer part or an important business document to customers on time. FedEx has achieved the following Awards: ▪ FORTUNE: “World’s Most Admired Companies” list – No. 4 (2006), No. 8 (2005) ▪ FORTUNE: “America’s Most Admired Companies” list – No. 2 (2006), No. 6 (2005); No. 1 on the Delivery Industry list (2005) ▪ FORTUNE: “100 Best Companies to Work for in America” list (1998-2005). 2005 “Hall of Fame” for claiming a spot on this list every year since its inception ▪ Business Week: The Business Week 50 “Best Performers” list – 2005 ▪ Reader’s Digest: One of “America’s Best Charity Minded Corporations” on “America’s 100 Best” list – 2005 ▪ CEO Magazine: CEO of the Year 2004 ▪ InformationWeek: “InformationWeek 500” list for most innovative users of information technology – No. 25 (2006), No. 24 overall (2004), ranked 2002-05 ▪ Computerworld: “100 Best Places to Work in IT” list – No. 12 (2005), No. 30 (2004), No. 33 (2003); ranked 2001-04 FedEx Express currently serves more than 30 countries and territories in the Asia Pacific market with more than 11,000 employees. In China, the organization has a workforce of more than 3,200 employees. 77 Best Employer Status of the Organization 2007 Best Employer in China (No. 5); 2005 Best Employer in China (No. 7) Reasons for striving to become a Best Employer According to the organization’s CEO, “Firstly, being a Best Employer is critical to FedEx as it make us better positioned to take advantage of business opportunities and weather business cycles effectively. Secondly, being a Best Employer is significant to FedEx as it ensures that we are well prepared for growth and transformation, since highly engaged employees will translate into better business results. Thirdly, being a Best Employer is recognition of our commitment to the Corporate Philosophy “People-Service-Profit”, where customer satisfaction and service excellence starts with employee satisfaction.” According to the HR Team of FedEx China, “Service is more than what we do. It’s who we are. Our dedication to people is best described by our three-word corporate philosophy “PeopleService-Profit”, where customer satisfaction and service excellence starts with employee satisfaction. Only when we place our people first will they, in turn, will deliver the impeccable service demanded by customers, and then profit will follow. By investing the profit back to the employees, they will be motivated to deliver outstanding service to ensure profits and continued growth. Our “People-ServiceProfit” philosophy is therefore a continuous loop that relies on each of the elements to ensure our continued success and reputation as an employer of choice.” THEME 1: Driving Higher Employee Engagement @ FedEx China Employee comments about the organization include, “Great Company”, “FedEx is a big company with good reputation”, “This is a great place to work and I am very proud to be associated with the company”, “Really takes care of people”, etc. One of the key cornerstones of driving higher employee engagement is through recognition awards. These include: ▪ A Service Award concept which recognizes employees who have completed 5, 10, 15, 20, 25 and 30 years of permanent continuous company service. The Service Awards are an expression of the Company’s appreciation of the employees’ personal achievement and dedication to FedEx. Three months prior to the employee’s anniversary milestone, awardees will receive a Service Award Selection packet for selection of gifts from the Service Award Collection. To attract, retain, and motivate qualified The Organization’s Data In Best Employers 2007, FedEx had an overall engagement score well within the High Performance Zone. And the top 3 drivers of engagement are Training & Development: 86%, Manager: 78%, and Customer: 77% (percentages represent employee satisfaction with the drivers.) 78 Case Studies of The Best employees, and to support FedEx Express’ “People-Service-Profit” philosophy the organization regularly reviews its total compensation programs to ensure competitiveness in the local market. ▪ The ‘Five Star Award’ is the most prestigious and sought after award at FedEx. The organization bestows the award for superior performance and contribution to the Company. This award is the company’s way of recognizing employee leadership, creativity, and distinguished efforts in support of its external and internal customers. The honor is given to approximately 300 employees worldwide each year who demonstrate the true spirit of team work and make outstanding contributions to enhance service, efficiency, and profitability. Being rewarded with a Five Star Award is a great honor and is the FedEx way of recognizing those employees who truly go above and beyond. ▪ Excellence Awards are given to individuals in Asia Pacific who make significant contributions above and beyond their respective work duties or scope. Any Officer or Director may nominate employees for the award. ▪ The Purple Promise Award recognizes and rewards all employees for outstanding customer support. It encourages taking extraordinary initiative to provide customer service or good problem-solving skills in the absence of a policy and procedure or under the most unusual circumstances. team is primarily responsible for designing practices for developing leaders in the organization. And 25-75% of a leader's performance assessment is based on their ability to develop leaders in their organization. FedEx is a strong believer in promoting talent internally. To further this belief and bring it to life, it has institutionalized a number of initiatives: Tuition Assistance Program THEME 2: Strong Leadership Commitment and Effective Talent Strategy @ FedEx China The CEO meets with the leadership team weekly to match people resources to opportunities. This provides the CEO a forum to continually challenge and develop key talent. Additionally board members meet with key current and potential leaders in this organization to understand their personal goals and development needs 2-3 times a year. The Leadership/ organizational development Employees are encouraged to take advantage of internal training as well as an individual annual allowance for tuition assistance to develop themselves, and pursue positions they are interested in. By providing generous financial subsidy to full-time employees of up to US$2,500 and part-time employees of up to US$1,250 each fiscal year, employees are able to receive additional formal training and higher education for career enhancement. GOLD Program (Growth, Opportunity, Leadership, and Development) For employees who want to take the first step 79 towards joining the FedEx Express management team, they can participate in the GOLD Program. This program is designed to help aspiring employees develop and give them a fair opportunity to take on future management roles. With the GOLD program, they are able to: – build a strong management team through a rigorous and fair selection process; – provide employees with opportunities for development and growth into management; positions, through a structured process focusing on leadership/ management concepts and skills. The content of the GOLD program focuses on essential qualities required of managers to lead a group of people in an organization, including managing processes. The curriculum is reviewed regularly to ensure relevancy and effectiveness of its content in meeting the changing business environment as well as their internal talent pool. Since its launch in 1998, there have been more than 1,250 employees who have completed the program and more than 330 employees who have successfully moved to management positions. MLT Program (Management Leadership Training) FedEx Express is committed to developing its leaders and unleashing the talent in each manager. The MLT Program aims to provide management with leadership skills essential to perform their daily activities. At FedEx Express, management is committed to their own development. They are encouraged to take advantage of the MLT training courses, actively participate in all of them, and take a personal interest in developing their leadership skills. human resources activities, including hiring, compensation, benefits, and promotion. The FedEx Performance Management System is a tool to manage employee performance and develop employees in a systematic and focused way. The system, which is linked to various human resources systems and programs, including Incentive and Reward system, Training and Development system, Succession Planning and Career Development system, and the Functional Analysis and Job Evaluation, provides diagnostic information about individual, team and organizational performance, and valid information for making decisions on pay, promotions, and other human resource issues. FedEx offers total rewards programs, including both cash and non-cash benefits. Cash benefits include salary, bonus, allowances and incentives. Many FedEx pay programs subscribe to a “pay-for-performance” philosophy, allowing the company to pay employees based on both individual and group performances to motivate employees towards the achievement of its business objectives. THEME 3: Creating a High Performance Workforce @ FedEx China FedEx sets clear performance standards and promotes an open and welcoming environment, with opportunities for employees to discuss their performance with their managers through a formal performance appraisal process. The organization believes that evaluating work performance matters since it helps people do their jobs better, identify and pinpoint training and education needs, assign people to work they can do well, and maintain fairness in 80 Case Studies of The Best Group incentive programs Programs that recognize and differentially reward employees based on performance include those that provide individual incentives such as: Programs providing group incentives include: ▪ Sales Incentive Programs for both management and frontline sales employees ▪ The Performance Pay Program for frontline employees provides an incentive payout based on the achievement of pre-set and market-specific service goals ▪ The Purple Promise Pay Plan for hourly paid and non-exempt salaried employees rewards employees for delivering FedEx’s performance pledge through outstanding customer service All the above incentive programs provide a great opportunity for eligible employees to share in the financial success of FedEx Express. These programs motivate employees to perform at their best by providing outstanding customer service to make every FedEx experience outstanding. THEME 4: Realigning to meet Business Needs and Employee Expectations @ FedEx China FedEx has a history of providing the best quality service – it is one of the guiding principles upon which the FedEx “PeopleService-Profit” philosophy has been built. The organization’s service commitment to customers is encapsulated in their pledge, the Purple Promise: “I will make every FedEx experience outstanding.” This promise is what unites FedEx employees around the world. “We Live to Deliver” is the brand promise which FedEx has used to communicate their brand value consistently for almost eight years. Today, “We Live To Deliver” is more than just an advertising slogan. Over the years, employees have come to identify with it. “We Live To Deliver” encapsulates the spirit of their service. Internally, FedEx has adopted “We Live To Deliver” as the goal and uses that as a platform to motivate their frontline employees to deliver outstanding experiences day in and day out for their customers. Salary Increase Program The Salary Increase Program offers a different approach for allocating salary increases to the base pay of employees. This program, together with the performance appraisal, is an important tool that helps in managing employee performance. Most importantly, it promotes management accountability and flexibility in recognizing and rewarding good performers within stipulated guidelines. Annual Incentive Compensation A variable compensation program that provides management and professionals with an opportunity to receive financial rewards for the successful performance and accomplishment of individual objectives in support of department, divisional, or corporate objectives. The higher the performance level achieved on an individual and organizational scale, the higher the payout. This is in support of FedEx Express pay-forperformance philosophy. 81