HCM 4.0 THE FOCUS AREAS TO ADDRESS ISSUES OF INDUSTRY 4.0

#PRIORITIZING EMPLOYEE ENGAGEMENT-

 Increasingly, organizations are focusing on improving their employee engagement to drive better performance. According to Gallup research, employee engagement is strongly connected to business outcomes essential to an organization's financial success, such as productivity, profitability and customer engagement. Engaged employees drive the innovation, growth and revenue. Compensation and job security are both very important, but another emerging human resource trend is, the employees having a sense of loyalty to small businesses that are honest with them. An open-door policy and transparency will keep the employees from jumping ship and moving on to the competition. So, start sharing with your employees, discussing issues with them, and getting their input. Make them feel important.

#DEVISING RETENTION GAME PLANS-

 Companies at a risk of high attrition should develop a rigorous game plan to drive higher retention.Inculcating entrepreneurial/ intrapreneurial push - With digital disruption and the unleashing of the entrepreneurial spirit, we will witness a new set of benchmark skills, which were non-existent a decade ago, determining success. Age-old strict practices will decline eventually.

 

#EMPLOYEE BRANDING

 

Don’t make yourself appealing to all job candidates, just the good ones: The volume of people applying for jobs has risen by 33% in the past three years but the quality of applicants has not improved at all. In response, many firms launched employment branding campaigns to establish their company as “a great place to work,” and attract higher quality candidates.But this strategy – called “branding for appeal” – produces pools of applicants of whom only 28% could be classed as high quality. This is because firms just add yet more to the mass of accessible corporate information. And all these conflicting messages – some of which are false – means that 61% of applicants say they are more skeptical of what employers say about themselves than they were three years ago.

Instead, HR teams should take a “branding for influence” approach to attract the best candidates. Instead of releasing another YouTube video full of smiling faces and an uplifting theme tune, savvy firms spend time and money on messages that are relevant to the most important talent segments, and that challenge applicants’ thinking rather than highlight anything good about the company. Those firms that brand for influence almost double the proportion of the applicant pool that can be classed as high quality.

#EMPLOYEE LIFE CYCLE EXPANDS

We’ve seen the definition of a candidate for employment change as the evolution of employment branding and the candidate experience influence how we engage, build relationships and recruit candidates. The same holds true for employees from onboarding to their transition out of the organization as an alumni. The employee life cycle will continue to expand in length as companies will focus on boomerang employees and the building of alumni networks and the hiring of contract and contingent workers who will continue a relationships with their previous employer long after their employee end date.

 

Don’t mistake high-performing employees for high-potential employees: CEB data show that firms with stronger leaders enjoy twice the revenue and twice the profit growth. Yet a high-potential employee (HiPo) program, which is many firms’ main investment to develop their future leaders, is statistically more likely to fail than succeed. Data show that 50% of HR managers lack confidence in their programs, and a staggering five in six HR managers are dissatisfied with the results.

Despite evidence to the contrary, many firms still wrongly assume that a high performer is also a HiPo. In fact, only one-in-seven high performers are HiPos. The reason mistakes are so often made is that there is rarely an objective selection process in place; decisions are rarely backed by any science. Those involved in the HiPo selection process should assess employees based on their ability, aspiration, and engagement with the firm.

 

#  REDESIGN OF PERFORMANCE MANAGEMENT ACCELERATES.

I think the hottest topic now is reinventing performance reviews, including dropping performance ratings. It seems that performance management is changing. Organizations are looking for possibilities to give more regular and more objective feedback to people.People who are very good always want to become better. Most performance management systems today provide helpful feedback for people who are average or below average, but the feedback for top talent is often not so helpful. If you are very good you need more granular feedback than just a subjective rating on a 5-point scale. HR goes soft on performance ratings

The old-fashioned performance review is slowly going out the window. companies will aggressively redesign their appraisal and evaluation programs to focus on coaching, development, continuous goal alignment, and recognition. The days of “stacked ranking” are slowly going away in today’s talent-constrained workplace, to be replaced by a focus on engaging people and helping them perform at extraordinary levels. In the last few years  some big organizations proudly announced that they were reforming their performance management processes. I have very mixed feelings about this trend. Yes, the frequency of feedback should be a lot higher that once per year. Yes, nobody benefits from a patronizing and unequal approach. Yes, assigning people a crude performance rating is not very helpful. But: measuring performance is very important, and the redesign or abolishment of performance management should not mean that one stops with measuring performance as well. Hopefully Performance Consulting will emerge as a trend in 2016.

 

HCM BECOME TECH SAVVY

Increased need for data and analytical tools - The ability to collect, process and analyze "big data" is becoming a crucial factor in identifying and managing the challenges of business lifecycles. Companies that want to gain a competitive edge increasingly need to use analytics to gain data-driven insights into workforce trends and take action to refine recruitment, compensation and other performance incentives to meet employees' evolving goals and interests. Technology will continue to keep us connected globally, driving new innovative ways to identify and evaluate talent.

CONCLUDING - 

THE ACID TEST  - MEASURING HCM

the focus continues on measuring the effectiveness of HR and moving the human resources department from cost center to revenue center. This includes HR building relationships with other senior leadership staff and looking beyond the traditional Excel spreadsheet to measure our impact on the organization. We will continue to look to data and analytics to further prove our worth.

HR needs to start with not with proving our or their worth but with believing it ourselves. We don’t have to justify the reason for being present in executive meetings. Talent and human capital is paramount to the success of an organization. Measuring the effectiveness and impact of HR is important because it helps us speak a common language with our senior leaders. We need to first believe, we have every reason to be in that executive meeting. Our worth is already proven. Talent is the talk of every CIO, CEO, CFO and beyond. Metrics, data, and reporting only help demonstrate the ripple effect of HR in every department of the organization.

 

HCM 4.0 CHAMPION OF ORGANISATION PERFORMANCE EXCELLENCE

 

The business centric HCM manager knows that every business issue (problem and opportunity) has its seeds in deeper human or organizational  issues. HCM 4.0  is the enabler of Business Excellence capabilities   which  could be summed up as - identify and create capabilities such as speed to market, innovation, leadership, collaboration, fast change and culture management  talent inventory .

 

HCM 4.0 aims at building a winning companies  through  a judicious combination of HCM practices, work structures and processes that enhances employee skill, knowledge, commitment, involvement and adaptability.

 

This approach elevates HCM4.0  from being a champion of talent to a champion of  organization performance excellence. HCM is coupled with the strategy master- plan to   CREATE VALUE THROUGH PEOPLE to achieve organizational  vision mission and short term and long term  goals

 

The HCM 4.0 business value proposition is PEOPLE – PERFORMANCE – PROFITS. The starting point is leadership, vision and benchmarking so as to create a sense of momentum and direction amongst employees at various levels in the organization. HCM 4.0 initiatives have to be  specifically targeted to create a greater depth of human capital investment and higher levels of skill formation; which  in turn result in  improvements in the quality of work, higher levels of productivity and innovation and the  standard of services delivered to the  customer.

 

ECOSYSTEM FOR BUSINESS EXCELLENCE

 

HCM 4.0  emphasizes a radical transformation in organizational performance through the concept of continuous performance assessment for future performance development and by motivating employees with a comprehensive compensation and reward management system. This is further reinforced  by engaging people in the  shared vision and values of the company. This will  increase HCM’s credibility to prove the point that it’s the people within the organization who actually provide a competitive edge to the organization.

The successful companies go beyond simply balancing these requirements; they create work situations that combine these demands to get the best out of the employees to meet the short-term and long-term needs of the companies. E.g., Google, Toyota etc. No single best example exists; each organization must customize its system to meet its own unique strengths and needs.

 

FINAL WORD

 

REVAMPING HCM 4.0 means have top class policies systems process and continually improving practices all aligned to an overarching business strategy - all designed to overall quality of human capital throughout the organization

 

 

With best wishes

Dr Wilfred Monteiro

 

LIMITED COPIES IN PRINT – BUY ONLINE

Website Link - https://www.himpub.com/BookDetail.aspx?BookId=8926

Amazon Link - https://www.amazon.in/dp/9356936099?ref=myi_title_dp

 

 

HCM 4.0 MODEL KEY AREAS WHERE THE FUNCTION NEEDS TO CLEAR ITS BACKYARD & REINVENT ITSELF FOR INDUSTRY 4.0

 

Here are KEY areas HR need to pay attention to TO REINVENT ITSELF AND ALIGN IT TO CHANGING ENVIOURNMENT AND BUSINESS PRIORITES OF THE COMPANY AND INDUSTRYThe vision and mission of an organization can only be achieved if the leadership of the company works in harmony with its HR function

TALENT IS BROADER IN SCOPE

Slowly talent management gets a broader scope. Still in many organizations the focus is narrow, on the talent pool inside the organization. “How can we engage and retain our talent?”. The talent pool is broader. More and more talent does not want to be employed by (big) organizations. They are self-employed, and are interested if you can offer a challenging opportunity. Others prefer to work for start-ups. 

The trend: connecting to talent outside the organization, and design new talent development programs that are also beneficial for these groups. This can be done directly, or through intermediaries.

Attract and retain “enterprise contributors”: Data from surveys of HR and line managers show that the average company needs to improve employee performance by 27% just to hit the revenue and profitability targets set by senior managers. HR teams should look beyond conventional performance management based on improving individual performance and develop a cadre of “enterprise contributors”. These are employees who perform well individually and who accomplish tasks by working effectively with and through others.

 #TO A BROADER DEFINITION OF TALENT RETENTION

Many organizations have very specific definitions of talent. 

Example:
“A high potential has a minimum of four years work experience, of which at least two in our organization, with the potential to grow to general management positions, or specific specialized positions in research and development, with at least level A2”.

The notion of more diverse talent groups is slowly entering organizations. The wishes and expectations of talent differ, and also change over time.- Some people are looking for a career in one organization;
– Some people are looking for a couple of years experience, and their plan is to move on afterwards (although they might not express this when you interview them);
– Some people are not looking forward to be employed by a big employer, but they like to be involved in challenging complex projects;Organizations that define talent too narrow might miss opportunities to connect talent to their organization.

 

 

#EMPLOYEE ENGAGEMENT AND CULTURE AS TOP PRIORITY.

The new era of change is expected. Current economic climate demands smarter operational methods of business. The challenge to stay ahead of global demographical shift and growing competition seems to lean towards one common theme, Employee Engagement interconnected to Culture. The fact that Employee Engagement may have not been the center piece historically has a distinctive strategic place in business today. Executives must place Employee Engagement and Culture as their top most priority in 2016. This growing necessity has benefits and those that embrace will be victorious.

# LEADERSHIP BY OBJECTIVES

Secondary to this theme is Leadership, having the right people that know how to lead teams, inspiring them on a journey to success and on the way creating an exemplary brand. Further, learning and development which forms the foundations of the brand has an equal foothold in this highly commercialized world. This triangulated theme is NEW revised HR Trend in 2016. Be in it to win it!" 

# IMPROVING THE EMPLOYEE EXPERIENCE.

I believe that HR is starting in new journey in terms of focusing. We have been dealing with HR transformation for the last 25 years, implementing new technology to streamline our processes. The time has come to focus on improving the Employee Experience.

Marketing and sales departments have to improve & develop the customer experience in order to increase market share and revenue. Our employees at every level have seen this improvement and are now looking forward to seeing this improvement not only focus on external customer but also internally to improve their journey.

Every function has implemented new processes without looking at the big picture in terms of employee journey and it has become a painful process between financial / HR / IT / Procurement / Benefits processes. All those departments are using different technology / workflow and documentation to perform the task that they have transferred in the last decade. Improving the Employee Experience in a challenging environment will drive engagement and retention. 

FINAL THOUGHTS

INNOVATIVE HR PRACTICES :Thinking out of the box,

Aligning themselves with the unconventional hiring and retention plans, if the need arises- Thinking out of the box, has not just remained as an interview question anymore, but instead compelling the HRs to do so. Companies are getting ready to hire outside the boundaries, knowing the risk of it, but taking a chance to succeed in getting and retaining the purple squirrels.

 

 the CHRO must plan for the future. HR, through its particular lens into the business, has a unique perspective on the people challenges and opportunities we face. The CHRO must drive a view into the future – developing an understanding of future skills gaps, labor market opportunities, and the impact of potential mergers and acquisitions.HR continues to be about relationships rather than programs and a deep understanding of the business. The key skill set for future HR people will be how to effectively understand and manage the impact of mergers, demergers and globalization. These changes have profound impact in the workplace.

 

the HCM 4.0 BUSINESS CENTRIC MODEL; pathbreaking model to turnaround a sluggish human resource function

 

 

We often hear generic statement like "HR MUST ADD VALUE TO THE BUSINESS..." The aim of this book is to highlight the value of 'human capital' as a strategic tool for business competitiveness. In the era of the fourth Industrial Revolution (also known as Industry 4.0), the Human Capital Function needs to secure an acclaimed role as an agile function; overstepping operational hurdles to become a strategic partner… thus a recognized contributor to the business bottom-line.

 

Some companies attempt the HCM function's turnaround in a piecemeal or sporadic manner; by adopting myriad ideas or fads. This trial and error approach needs to be replaced with (what this book elucidates) – the HCM 4.0 BUSINESS CENTRIC MODEL; which structures disconnected ideas into a cogent model; to dovetail seamlessly with the business strategy.

 

This book gives a practical framework which enmeshes the discordant HCM processes and practices into an holistic HCM Master Plan. The Model guides the way to the HCM function becoming business centric – first by being outward-looking to be in touch of the market conditions; and then inward-centred to gauge the organization readiness level to address hardcore business issues. All this can become real only if functional/business managers are co-opted as stakeholders. HCM needs to revamp the function and embrace the norm of "management-by- measurement" and acquire the new competencies and mindset HCM professionals need to be abreast with changing times

 

THE AIM OF THIS BOOK

 

In the last decade some companies have attempted partially and piecemeal  to  adapt myriad   ideas  about  strategic  HR.  Some companies through trial and error have found some byways to  implement them. The breakthrough needed is found in the HCM 4.0 BUSINESS CENTRIC MODEL espoused in this book.

 

It aims to   take  the human  dimension  of organizations to a holistic strategic  level. This book has a practical roadmap to transform clichés like ‘people matters’  and  ‘people are our  #1 asset’ into  a tangible business plan,  make talent a competitive  advantage, and significantly make contribution to the strategic growth  of their organization. Many authors and practitioners have espoused  individual   elements but the key is to these disconnected  ideas into a cogent model.

 

KEY FEATURES OF THE BOOK

I have drawn many lessons from my consulting experience.  I got the opportunity to work with   company directors and owners of diverse business sectors. They are all street-smart businessmen from whom I learnt several  business ideas  from them. I in turn had to debate and discuss my big idea that the LAST  competitive  advantage in a rapidly changing business world IS THE HUMAN RESOURCE EDGE.  I owe them a ton of gratitude for getting the chance to implement my ideas in their enterprise; and refine my own learning. 

 

HCM 4.0 is a robust framework, which takes us to  the strategy journey from concept- development of the master plan; alignment to business strategy. It interlinks environmental analysis with analysis of the firm - the two hemispheres of strategic management. It guides  moving away from the traditional inward looking approach - at operations and best practices and crossing the chasm to be  outbound looking at the markets and external challenges in the changing business environment.

 

CEOs in todays scenario of cost crunching; are compelled to ask for more measurement and accountability. Consequently  the HCM function is  under pressure, internally, to show REAL VALUE. In response HCM  leaders are on a sticky wicket.  A  probable reason could the HCM function has never highlighted its  contribution to creating business value;  added except in trendy, unquantifiable, and wannabe terms. the model  directs to Management-By-Measurement - to give it a real-time base sing principles of evaluation.

 

 Finally HCM 4.0 MODEL  hits upon the tricks and tactics of execution.. Each part of this book gives steps to design, manage, and implement the model. The aim of this  model is to approach the subject from a practical  angle. . Each segment of the model involves a roadmap for ‘’getting things done’’  this book is  most application based every concept is linked to practical application. I  have  tried to share  experiences  and  insights into  how every HCM manager needs to  wrestle  with complex  issues  and  helped  turn  ideas  into action Numerous examples of human resource practices are provided throughout the book, which can be practiced across the spectrum of industry; by companies both small and large. 

 

BENEFITS TO THE READER

 

The New and improved HCM 4.0 MODEL needs HCM professions who are commercially adept and are able to move ahead of the blind curve and anticipate business challenges. The book addresses the issue the new competencies HCM professionals; who  need to acquire the ‘business centric’’ mindset which can enable all senior HCM professionals to discuss eyeball to eyeball with the counterparts in the functions.

 

Here is a chance for Human Resource managers (who aspire to be  serious practitioners)  to learn strategic ways of managing human resources They  need to  understand why a strategic approach is necessary. It will also help them define a coherent framework; new and enriched  roles in the process to , execute the HCM master-plan and deliver results .   This book will be a help to senior managers , who must support HC strategy and take the lead in developing it, The functional managers need to be in harmony with the HCM strategy to support it, provide resources for it, and constantly reinforce and adjust it .

CONTENTS –

 

Part I - HCM 4.0 MODEL BLUEPRINT ON THE DRAWING BOARD

1: HCM 4.0 Writing a New Mandate —Becoming Strategic and Proactive

2: Aligning HCM 4.0 Plan to Business Strategy— An Holistic Approach

3: HCM Master Plan Summit —A Comprehensive Exercise to Turnaround Your Function

4: HCM 4.0 Model Inward/Outward Approach

5: Company-wide Cross-functional Approach —Line Manager's Role in HCM 4.0

 

Part II - HCM 4.0 EXECUTION AND THE ART OF MAKING THINGS HAPPEN

6: HCM 4.0— Strategy Execution: Changing Gears—From Planning to Execution

7: HCM 4.0 Implementation —Pitfalls and Precautions

8: Key Deliverables of HCM 4.0 Value Proposition

9: How to 'Sell' the HCM 4.0 Value Proposition?

10: HCM 4.0 Sharpens the Strategic Edge —Carving Out Its New Role Space

Part III - HOW TO WIN CREDIBILITY FOR THE HCM 4.0 MODEL?

11: HCM 4.0 Management-by-Measurement

12: The Evolution of Management-by-Measurement

13: Management-by-Measurement — Charting the Course Step-by-step

14: Sample List of Strategic Metrics —Helping HCM 4.0 to Prove its Worth

Concluding Agile HCM 4.0—Embrace Disruption

 

LIMITED COPIES IN PRINT – BUY ONLINE

Website Link - https://www.himpub.com/BookDetail.aspx?BookId=8926

Amazon Link - https://www.amazon.in/dp/9356936099?ref=myi_title_dp

 

With Best Wishes

Dr Wilfred Monteiro

 

 

HCM 4.0 TALENT IS THE READ VALUE ADDITION TO ANY COMPANY

 

HCM 4.0 states that it adds value to the business bottom line through its judicious and prudent Talent Management System . HCM 4.0 is  about delivering business success through understanding what we actually mean by talent, and how it will achieve the specific goals of the organization.  It is about ensuring that we value the natural talents and aspirations of our people.  It is about ensuring that we understand what blockages can spoil all our hard work.  It is about operating people processes that join together not only with each other, but with the business's goals.  And finally, it is also about understanding how to manage people for alignment as well as ability.  If we adopt these approaches, not only will business success follow, but we should also have fulfilled and effective people.

 

#REDESIGN AND RESKILL THE HCM  FUNCTION.

Surprise: in our global Human Capital Trends research the need to “Reskill HR” was rated one of the top five challenges in every geography around the world. Why?  Because HR itself is changing dramatically and we need to continuously skill our own teams to maintain our relevance and value.

HR researchshows statistically that high-performing companies invest in HR skills development, external intelligence, and specialization. In the coming decade  if you aren’t reinvesting in HR, you’ll likely fall behind.

 

#REINVENT AND EXPAND FOCUS ON TALENT ACQUISITION.

As the economy improves you will need to more aggressively and intelligently source and recruit. The talent acquisition market is the fastest-changing part of HR: new social recruiting, talent networks, BigData, assessment science, and recruiting platforms are being launched every month.

#TALENT, SKILLS, AND CAPABILITY NEEDS BECOME GLOBAL.

In coming years  key skills will be scarce.  Software engineering, energy and life sciences, mathematics and analytics, IT, and other technical skills are in short supply.  And unlike prior years, this problem is no longer one of “hiring top people” or “recruiting better than your competition.” Now we need to source and locate operations around the world to find the skills we need.

You must expand your sourcing and recruiting to a global level. Locate work where you can best find talent. And build talent networks which attract people around the world.

 

#INTEGRATED CAPABILITY DEVELOPMENT REPLACES TRAINING.

The “training department” will be renamed “capability development.” Companies will find skills short and they will have to build a supply chain for talent. Partner with universities, establish apprentice programs, create developmental assignments, and focus on continuous learning. Companies that focus on continuous learning in 2014 will attract the best and build for the future.

 

#TALENT ANALYTICS COMES TO FRONT OF THE STAGE.

Talent Analytics is red hot. More than 60% of you are increasing investment in this area and company after company is uncovering new secrets to workforce performance each day. Many are  building a HCM  analytics center of excellence and invest in the infrastructure, data quality, and integration tools you need. This market is finally here, and companies that excel in talent analytics have improved their recruiting by 2X, leadership pipeline by 3X, and financial performance as well.

 

#INNOVATION COMES TO HR. THE NEW BOLD, CHRO.

One of the top three challenges companies now face is “reskilling their HR team.” This points to the issue that HR itself, as a business function, is undergoing radical change. Today’s HR organization is no longer judged by its administrative efficiency – it is judged by its ability to acquire, develop, retain, and help manage talent. And more and more HR is being asked to become “Data-Driven” – understand how to best manage people based on real data, not just judgement or good ideas.

As a result of these changes, our research shows a new model for HR emerging – one we call High-Impact HR. In this new world HR professionals are highly trained specialists, they act as consultants, and they operate in “networks of expertise” not just “centers of expertise.” And driving this new world is a strong-willed, business-driven CHRO. In the coming decade  organizations should focus on innovation, new ideas, and leveraging technology to drive value in HR. This demands an integrated team, a focus on skills and capabilities within HR, and strong HR leadership.

 

BOTTOM LINE: EMBRACE THE FUTURE

the coming decade  looks to be an exciting and critically important for Human Resources. The economy will grow, employees will be in charge, and HR’s role in business success will be more important than ever. Finally, the CHRO must plan for the future. HR, through its particular lens into the business, has a unique perspective on the people challenges and opportunities we face. The CHRO must drive a view into the future – developing an understanding of future skills gaps, labor market opportunities, and the impact of potential mergers and acquisitions.