HRnomics!

HRnomics or the economic principles of strategic human resources management are those basic rules of our business strategy, which align the people strategy with the business profitability. It is commonly seen that business houses and startups are focusing intensely on generating cash and reducing operational cost, however, what is seen missing in this roller-coaster ride are the people who are the fuel to drive these cash engines.

Though we have a huge supply of workforce in the market but still the demand across the industries is not being fulfilled and there is a supply gap of skilled resources. We should focus on the internal development and grooming of the current workforce to meet these demands.  It is required that the business houses need to frame career plans for the employees and put the employees in charge of their careers. Investments are much needed in the career development plan and learning/certifications rather than investing on a new hire. The new investment here is a sunk cost as the resource would take time to groom, be productive and adjust to the culture.  Vice versa if this cost was spent on existing resource it would have taken efficiency and productivity to a next level, which would have resulted in far better engagement levels and appreciated revenue.

Recognition in any form is that incentive, which is a differentiating factor in the employer brand. Rolling out bonuses is a one time key affair, however, regular social recognition of work, profit sharing and employee stock option would have a larger impact on the intrinsic motivational factors.

With the Gen Y/Z/Millennial workforce, there is a huge tradeoff between money and role. Today’s workforce demands more of quality work and enhanced job value rather than being stuck with same job routine. Data has shown that a substantial chunk of employees leave the organization for better defined entrepreneurial roles. Innovation is another factor, which is impacting the workforce market conditions as people nowadays have more exposure to new technologies and platforms to ideate.  Companies need to invest on R&D and create ideation labs and also protect the intellectual rights.

The overall company value depends on the worth of its employees which is directly related to the investments made by company in terms of money (Learning), material (Resources/Tools) and time (Innovation/R&D).

EEW!: Empowering Entrepreneurship at Work

Exhibiting entrepreneurship at work is an attitude. No matter where and which place you are in, the attitude will never die. It challenges your inner thoughts and never asks you to adapt rather it embraces critical thoughts, reasoning, innovation and continuous improvement.

How do you empower your employees to be innovative and act as entrepreneurs in your organization? An engaged and empowered entrepreneur will not only increase the company’s profitability but also be more productive and satisfied. As always, The Culture of the organization defines these values and nurtures innovation. If innovation , freedom and democracy is in the core DNA of the organization it would never fail.

Now, how do you define or propagate this unique culture-

Promote wacky ideas- In the team meeting, do not put your foot down on some bizarre idea, rather as a mentor see the dollar value and nurture it. This helps in identifying the entrepreneurs and also brings those ideas to see the light of the day.

Act like an owner- Employees should be empowered to take decisions as in a democratic setup and they should be regularly mentored to tackle the issues at the core. Hence, the decision making should be simple and de-centralized.

Socialize the ideas- The idea that you believe is crazy may be apt for another situation and in future you could use it too. It would be worthy to archive and socialize those ideas for others to dissect and tweak as per their requirements. You never know, it may be a golden boot for others.

Regular Recognition- It is always a wise idea to recognize the ideators of your organization. Go for a social recognition platform and give them their due even though it may be a small idea for you. It helps in employee satisfaction and acts as instigator to think on something new.

Show the mirror- Communicating the right business updates in a timely manner is the key to innovation. Employees would not be able to give you cost effective methods if you don’t show them the real picture or how the future looks like.

Above all this is the leader’s capability to lead by example. If the leader is not open to ‘Open Communication’ channel or receptive to new ideas, you cannot expect your employees to be innovative and exhibit entrepreneurship at work.

  “A loss of entrepreneurial spirit often results in a less fun, creative and passionate work environment”- Michael Kerr (Humor at Work)