hr transformation for small & medium enterprisses in uae

HR TRANSFORMATION

FORSMALL & MEDIUM

ENTERPRISSES (SME) IN

UAE

© Browne & Mohan, 2014

Few Facts & Figures

Small and Medium enterprises

(SME) represent 95% of all the

establishments.

Micro, small and medium sized

firms contribute 72%, 18% and

5% respectively.

SME businesses account for 42%

of the work force of Dubai.

The annual growth rate of GDP

of Dubai is around 4.9%.


SMEs HR Orientation

INSIGHTS

Lower productivity levels are

prevalent due to lack for a

strategic HR unit.

Lack of description of the

KRA/KPIs and effective

performance management

system.

Absence of identification of the

training needs and actual skill

development training provided to

employees.

According to a survey done by

Dubai SME agency, appointed by

Department of Economic

Development, Dubai:-

75% of the survey

respondents indicated that

they do not have a separate

HR unit.

83% of the SMEs do not have

well defined KRA/KPIs and

PMS.

74% of the SMEs indicated

that they do not provide need

based or comprehensive

training.


SME Recruitment & Selection Challenges- UAE

Criteria Current Gap

Purpose Source from web portal and agencies

Source right candidate for right job at the right time

Comprehensiveness No estimation for future and no pool of valid job applicants.

Success rate of selection process ,Estimation of the future man power requirement

Consistency Abstract mode of interviewing

Standardized tools and instruments for recruitment.

Delivery No closure Not successful in bringing right candidate on board.

Outcome The lead time overshoots No knowledge management system to trace back and make corrective actions.


Need to develop a knowledge management system to know the no. of resumes received, screened for telephonic interview, shortlisted for face to face interview and no. of candidates finally rejected and offered job.

Need to assess the quality of interviewer and assess the quality of instruments used for testing.

SME Induction Challenges- UAE


Purpose Major focus on HR rules, information of HR policies and preview of organization.

Focus on actions that drive business, Emphasis on business plan, evaluation of new hire

Comprehensiveness

No validation of training module and no complete picture of role and activities.

The big picture. The extended application of tools and methodologies

Consistency Induction period not the same. Trainer is consistent for all induction processes .Same content bestowed each time

The induction period must remain the same for all new entrants, evaluation on same parameters, The trainer is chosen with respect to the role and responsibility , Training contents should be updated frequently

Delivery Quality of delivery is not measured Timeliness of delivery, Quality of delivery and management of delivery

Impact No impact analysis is done The trainee should have understanding of the company, role and expectations from the company

Outcome Absence of evaluation of trainee post induction

The decision to fit/refit/refuse the new hire Need to develop a process plan to assess the quality of the

interviewer, quality of the trainer, quality of the training content and the consistency of the trainer.


SME Performance Appraisal Challenges- UAE


Purpose basis for salary increment, promotion and reward & recognition

focus on continuous development of individual, team and the organization

Comprehensiveness

major focus on non-cost drivers and given equal weightage

focus on cost drivers of the role, analysis of facilitating and inhibiting factors in performance, identify training needs and feedback.

Consistency the same tool with same weightage is used across entire organization

customize the performance appraisal forms to each department considering the levels and responsibilities of each employee position

Delivery behind schedule to complete the appraisal process

completed and conveyed the results within the stipulated time and delivery management must be owned by HR

Impact negative effects like frustration and dissatisfaction on appraisal results, lack of trust and no proper communication

open appraisal system

Outcome employee training needs are known, high performers are given promotion and rewards like salary increments are given

developmental activities are identified, consistent low performers identification, promotion of performance culture, periodic review and feedback. Need an effective system of acquisition of performance data, interpretation and informed decision

making. Need to know the actual employee performance , their basic salary, to whom increments to be

given, to whom promotion for next position be given, who are the laggards, their training needs and who should be laid off from the company.


SME Exit Challenges- UAE


Purpose To relieve an employee voluntarily or involuntarily

to relieve a laggard/ voluntary exit, identify problem areas and corrective actions.

Comprehensiveness Involves full and final settlement and relieving without proper communication between management and employees

Feedback from employee on job, remuneration & Benefits, Quest Org., senior managers and management.

Consistency Use of a default exit form for all employees with no scope for improvement.

Recruitment of new employee, use of exhaustive form to know areas for improvement.

Delivery Relieved employee before a new hire brought on board.

Knowledge transfer to the new hire/ employee.

Outcome Vacancy created, job activities will be stopped or need to be shared by existing employees till the new hire arrives and training cost increases.

Urgency to recruit the right person for the job and provide knowledge transfer within the notice period.

Need for a standardized process for identification of laggards, taking informed decision to lay off or retain the employee, the procedure to be followed to relieve the employee with no dues, exit interview and quarterly review of reasons for exit, monitoring of attrition rate and alumni meet.


HR Transformation Required

Pressing need for establishment of HR as a strategic unit.

Alignment of organizational objectives with individual KRA/KPIs.

Presence of an effective Performance Management System.

Identification of training needs of the employees and deployment of

skill development trainings.

Traditional reactive

HR

Proactive &

Strategic HR


Three Pillars for Successful HR Transformation


Standardization AutomationConsolidation

B&M HR Transformation Framework

As –is Analysis

ISO GPTW benchmarkin

g

Implementation & review

Measure & Extend

The data collected must be robust, complete, comprehensive and lead to analysis. Align the process and procedures according to GPTW benchmarking. Make relevant changes in organization structure, remove redundancy and under utilization of resources. Review and incorporate changes for betterment of the processes.


Organizational Analysis: B&M Approach

Organizational analysis is a process where we understand organization's systems, capacity and functionality. The information is used to increase efficiency, performance and output. The objective is to collect data and highlight opportunities for improvement.

The first step in consulting is the as-is analysis.

As is analysis-

Detailed presentation of the process as it is currently being performed. When doing an as-is analysis, information regarding all the processes that are currently followed are documented.

As in analysis would give an idea to understand which are the areas that have to catered to immediately. The objective being improvement of methods to reach the goals, measure outcomes and keep improving further on.

To conduct an As is analysis, we use ‘Reference Model’

There are 6 elements based on which details are collected:© Browne & Mohan, 2014

Reference Model for As-is analysis


Strategy- value &

development

Structure- Process

& organizati

on

People- Skills,

competence developmen

t

Culture- leadership

& core values

Resource- Financial & Information Managemen

t

Results- financial & Operational objectives

Recruitment: B&M approach


• Source candidates from recruitment agencies

• No internal recruitment

• No campus selection

AS-is

• Telephonic interview process

• Data capture at each stage of recruitment process

Areas which

require change

with GPTW

• Telephonic process

• Process templates for data capture

Implemented

To seek right candidates from internal resources

Yet to be Implemente

d

Induction: B&M approach


• No long term induction plan

• Induction taken only by HR team

AS-is

• Training on relevant job areas

• Evaluation of Training contents & trainer and performance of new hire

Areas which

require change

with GPTW

Induction plan for new Hires

Implemented

Evaluation of Training contents, the trainer and performance of New Hire

Yet to be Implement

ed

Performance Appraisal: B&M approach


• Yearly performance appraisal

• HR team not involved

• Evaluation is sent to MD to fix % of hike

• Focus on attendance & punctuality rather on performance

AS-Is Entire process

Areas which require

change with GPTW

Not implemented the Proposed process

Implemented

• Establish KRA• Roll out the

proposed plan• Aggregation of

employees based on their performance


d

Training & Development :B&M approach


• 52 days training

• 50 days on the job training

• 3 days training on data entry

AS-Is

• Training analysis based on performance of the individual

• Training content and trainer scrutiny

Areas which

require change

with GPTW

Training need analysis

Implemented

• Suitable internal and External trainers are to be identified

• Training calendar

Yet to be Implement

ed

Employee Engagement :B&M approach

Celebrate Dushera, Eid,

Christmas, annual day and sports

Day

AS-is

• Create quarterly/annual employee engagement calendar

• Engage all employees of Quest working from different geographies

Areas which

require change

with GPTW

Partially prepared the

activities

Implemented

• Employee engagement calendar

• Online engagement of Quest employees


d


Rewards & Recognition :B&M approach

• Awards for completion of 5 years

• Best attendance• Half yearly

incentives based on performance

AS-is

• Introduction of newer awards to motivate employees

• Recognition of team work

Areas which

require change

with GPTW

Partially prepared plan for quarterly recognition

process

Implemented

Roll out plan for rewards &

recognition for each quarter


d


Exit :B&M approach


•Specific notice period for diff designation and exp level

•Exit interview questionnaire

•Response communicated through resp. departments

AS-is

•Exit interview•Process of communication through HR

•Interconnectivity of processes

•Knowledge transfer

Areas which

require change

with GPTW

•New hire/replacement

•Knowledge transfer

ImplementedProcess

adherence


d

Inter- connectivity of processes

Multi stage linkage of the processes

Smooth Data flow to yield meaningful decisions

Managers do not take decisions based on intuition

The company as a whole carries an effective knowledge management system.


Cost saving Better business alignment Deeper professional expertise More consistent processes Improved customer service Greater line engagement Repositioning of HR/people management on the map

Benefits for the clients by B&M HR transformation process


Thank You

Browne & MohanBoard & CEO Advisors, Management Consultants

157/A, 2nd Floor, 10th 'A' Main, Jayanagar 1st Block

Bangalore-560 011 Ph: +91-80-26565164/40951170

www.browneandmohan.com


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