Take Note

CEOs are taking an increasingly bigger role in the people agenda as the talent grab becomes more competitive. Is HR performing up to their bosses’ liking? And if not, what can HR do to be better at their jobs? Lisa Cheong finds out what the view is like from the top.

Recruit well, retain the best, and train the rest. In a nutshell, that is what bosses want from HR practitioners.

It's no secret to bosses that having good talent will make the difference between a sub-par business and a stellar one. According to PricewaterhouseCoopers' 11th Annual Global CEO survey, 58% of 1,150 CEOs surveyed strongly agreed that the people agenda was one of their top priorities. And in this tight labour market, bosses are taking a hands-on approach to recruiting, retaining and developing the company's cream of the crop.

However, this does not mean HR practitioners can kick back and relax. While bosses say people policies are driven by a collaborative effort between senior management and HR leaders, the execution lies solely with the HR department.

So what do bosses really expect from HR?

Driving people forward

Because of the company's strong emphasis on its people, it is no wonder Mary Yeo, managing director of UPS, likens herself to an HR manager.

The logistics company, which started its Singapore operations two decades ago with just 30 employees, currently employs approximately 1,700.

The logistics industry is constantly changing, says Yeo. UPS, for example, has restructured its business to provide more value-added services for its customers. In light of dynamic business conditions, it is imperative that HR understands the business in order to recruit new employees for the company effectively. Thus, UPS makes it a requirement for HR leaders to enter the market as a salesperson to get a deeper understanding of what the market is like.

Yeo says: "So my HR manager has a KPI in his measurement where he has to make X number of customer visits in a month. So actually he goes out with his namecard that shows he is a senior HR manager, but pushing doors to say: ‘Hi, I'm from UPS, and I'm here to promote my services. I just want to see how I can help you.'"

Sharing UPS' people management and HR policies has proved to be a winning strategy for the logistics company. Yeo says the company has garnered many business contacts this way. "We have clients who come in our doors through a different mean - through more of a relationship. We are more of a partner than of a normal salesperson canvassing for business."

Yeo cites an example of a client, whom after reading of UPS' people policy in the media came in for a meeting not to attend a sales pitch, but to field HR management knowledge from UPS. "Later she called and asked, ‘Aren't you interested in my business?' and I replied, ‘ But you will come to me.' And true enough, five years has passed, and they have been one of our very loyal customers."

To learn more about the business climate, Yeo suggests HR practitioners not only attend human resources events, but also events that pertain to the industry that they work in - even if it has no direct relevance to their HR work.

Talent development is also an important and key component in the business, as most of the managers UPS has in its ranks are promoted from within. As such, UPS recruiters are encouraged to look beyond the paper qualifications of applicants and try to recognize candidates' potential as future supervisors and line managers.

"HR practitioners should work smarter. I always tell HR managers, ‘When you look for a driver, don't just look at whether the person has a relevant Class 3 or Class 4 license. Look at the person to see if he can be the next hub supervisor. And if not, what are some of the things HR has to do to when he comes onboard so that he can take the position of supervisor when it becomes available next.'"

Yeo gives an example a driver who joined the company in 1998. With an energetic and aggressive persona, honesty and the willingness to learn and put in the extra mile at work, the driver rose up the ranks and is now about to finish a three-and-a-half-year stint in UPS Dubai as a general manager.

Yeo says, "He probably never dreamed that he would be a general manager some day."

The responsibility of plotting an employee's career progression is a combined effort by HR and line managers alike, although HR acts as executor of the function.

With an in-house computer system containing the individual profiles of all the employees, HR is tasked with refreshing profiles and pushing the various department heads to ensure that staff development plans are executed.

"HR is like a watchdog. While they may play the administrative role by reminding others, they play an critical role when an employee is due for a move."
However, plans and processes can only do so much. Yeo says to be an effective HR leader, practitioners need to have passion for the job.

"When we select HR managers, especially leaders, we are particular about what (qualities) the person actually has. If the person doesn't enjoy talking and working with people, the person doesn't fit into the role."
Yeo believes that by them giving a wider exposure to the working world, HR leaders would be able to lead more effectively. To do so, its HR managers are now collaborating with other logistics players to develop ideas on how the industry can hire handicapped workers.

Essentially, Yeo admits that there is no perfect one-size-fits-all policy, and HR should not apply a cookie-cutter approach to all employees.
"Dealing with the human being aspect of the business, no two persons are alike. However, your standard guidelines may still apply, but you may have to tweak it around."

HR can ‘make or break' business

In a service-oriented industry, employees are the driving force of the business because they are the people on the ground who interact with clients day in and day out, says Gerald Lee, deputy CEO for The Ascott Group.

In the past eight years, The Ascott Group has seen rapid business expansion into new countries such as Russia, Georgia and Kazakhstan. At last count, the company held 158 properties, almost four times the size it was in 2001 when it only had 41 property holdings.

This rapid change means the company is now more sophisticated.
Along with the new investments, the company requires trustworthy employees who can helm the operation in order. Most importantly, Lee says they want people with the right values of "integrity and thinking that is aligned to our corporate values and culture".

However, The Ascott Group believes that headhunting is not just up to HR. Lee says senior management has to chip in and bear some responsibility in recruitment and on-boarding as well. Lee says it is part of his job to spend a "fair bit of time" networking with industry contacts and colleagues to scout for potential senior management leaders for the company and how they can fit in future opportunities.

Whether it be through databases, personal contacts, headhunters or by other means of recruitment, Lee says HR has to be more proactive in scouting for talent the company needs.

Lee readily admits the HR function has its own shortcomings - it cannot encompass the entire recruitment search. The executive says when it comes to the upper rungs of the corporate ladder, only senior management would be able to sess a top-level "heavyweight". But HR can still play an active role in sourcing ground and entry-level staff, including going to schools to attract new recruits, Lee says.

In addition to attracting top-quality talent, Lee says HR must also find ways to reduce employee turnover. As competition heats up in booming economies such as China and Vietnam, The Ascott Group has seen new competitors attempt to poach its staff. Hence, HR must keep itself updated on the latest compensation & benefit trends in developing markets, where the demand for top talent is fierce.

While not all employees stay with a company solely for the money, Lee says most of the rank-and-file staff still look to C&B packages to make sure it is on par with the rest of the market.
"Whatever information that they get can help us decide on the amount of salary increments for staff, bonus payouts and promotions. So if the information is not right, we may not, for example, pay staff well enough such that we can retain them for long."

If there is something Lee requires from HR, it's to help the company differentiate itself from its competition, "be it in terms of our training programmes or opportunities in the company".

Timeliness and keeping with the pace of the business direction and development is also key for HR. Citing the example of the company's new expansion of properties in new markets such as China and Europe, Lee says HR has to make sure recruitment is in sync with the business. "The management staff will ask , ‘How are we going to get there with the right HR plan?'" Therefore HR needs a sound plan to assist senior management in achieving their goals and help facilitate the recruitment process - from staffing to training and development.

Lee says, "There has to be a coordinated plan. We can't hire too far in advance and have people sitting around. This would also rake up unnecessary costs for us. On the other hand, if we are slow, then we have properties opening up and not enough people to run them."

With properties spread across 255 cities and 23 countries, one important function of HR in The Ascott Group is imparting the values and corporate culture to its international operations staff. "Because they [international operations] are located so far away, if we do not have enough communication with them, they would just run on their own. So HR can organise and disseminate the right information and to keep them posted on what is happening here in the headquarters, as well as to find ways to transmit the values so that they are aligned with our thinking. "

HR harnesses mass communication tools, such as emails, newsletters, collaterals and internet broadcasts, to transmit information to its staff.

On top of that, when senior management travels to new properties, HR organises opportunities for executives to speak with employees.

At the end of it all, Lee says HR is important because if its employees do not perform up to par, it can make or break our business.

"So we have to make sure that we bring in the right people, the best that we can find, train them to the best of their ability and provide the environment that will allow them to go their furthest," he says.

Top-notch HRs pull star-studded cast

According to Philip Leong, regional vice president, managing director, ASEAN Operations, Infor Global Solutions, one of the competitive advantages top companies have is their ability to attract grade "A" talent. Furthermore, this talent will be able to pull other grade "A" talent in as well, Leong says, creating a multiplier effect that staffs the company with talent of the same caliber.

Since the company believes that employees are the building blocks of any organisation, Leong says it is without a doubt that HR plays an important role in the company. At Infor, he adds, HR is given the task of helping to "identify, attract, retain and nuture talent".

So, can good employees have a direct effect on the company's bottomline?

The answer is a definite yes, says Leong, as a talented salesperson is an asset to the business while a poor salesperson becomes a liability
But while it is easy for bosses to view sales executives as assets, contributions made by support functions such as HR, finance, IT and administration, should not go unnoticed, says Leong. This is because they form the foundation of the business and help complete the workflow process.

"Imagine if an employee's computer breaks down and there is no IT specialist to troubleshoot the problem. This will lead to many lost business opportunities as a result of the downtime," Leong says.

One of the ways Infor's HR team has enabled the company to do its job better is by identifying the motivational factors of employees.

"As a result of HR's inputs, we have been able to create a happy working environment, and happy employees are more productive, therefore leading to better profits," says Leong.

Despite Infor's success, Leong says HR must improve staff retention, especially in a market where an employee has too many opportunities to choose from. As part of Infor's retention strategy, the company aims to provide its employees with development opportunities to grow within the company. The company also keeps its staff engaged by encouraging them to be involved in activities out of the office, such as its recent "Plant-a-tree" day.

In his experience, Leong feels that HR is sometimes seen as a separate function, outside of daily business operations. It needs to keep its function relevant and its strategies aligned with the company's growth.

Infor takes a review of their HR policies every year in order to ensure the company meets, "or even exceeds", industry standards. The HR team is also involved in the company when it plans for its growth forecast, "so that they would understand the kind of talent we need and the limitations we have based on market conditions."

At the end of the day, what the executive expects from its HR is boiled down to the three R's: "recruitment, retention and review".