Role of HR post Covid crisis

Work from anywhere

What could be the role of HR in the post Covid scenario ? This is a question, which may be lurking in the minds of many people. I would state that HR could evolve their “Ten Commandments” post the Covid crisis is over and employees gradually trickle back to the workplace.

1. Job Security : In the post Covid scenario, most employees would be worried about their jobs. This would mean a lurking fear that their organisations would have lost revenue for more than a few months and this could result in job losses for many. So, the first duty of HR could be to make the CEO communicate to all employees how they plan to get over this crisis and assure employees at all levels that they would not lose their jobs.

2. New Workplace : The new workplace will have a new normal. It will not be the same place of work like in the past. Apart from physical sanitisation of everything, there would be silence and loneliness at the workplace. There is need to make people adapt to this new work environment through effective communication and counselling by the managers and leaders at all levels.

3. Cost optimisation : While HR leaders should try their best to save jobs, they could be the champions of cost reduction efforts in the organisation. They could engage with employees at all levels and enable formation of teams so that cost reduction is in everybody’s radar and the organisations are able to make up for the losses incurred by this pandemic.

4. Employee engagement : In the post Covid scenario, employee engagement actions become all the more critical. It is important to make employees adapt to the new workplace and at the same time realise that we need to continue to serve our customers, suppliers, employees, shareholders and all other stakeholders as we did before.

5. Work from anywhere : While the Covid crisis forced organisations and employees to adapt to the work from home option, it may be an opportunity for HR in organisations to enable employees to work from anywhere. This means no fixed workstations, laptops for everyone and they could work from any office or any place of their choice in the future.

6. Re-engineering processes : This is a great opportunity for HR to facilitate all the functions in the organisation to challenge all their existing processes and eliminate unwanted ones, simplify those needed and automate wherever possible. The shop-floor could also be digitised and automated so as to minimise human interface in routine operations and use employees for human value addition, which robots or machines cannot do like listening to and attending to customer grievances.

7. Rewrite the HR manual : Just like the Constitution of a nation gets amended from time to time based on the needs of the nation, this is a great opportunity in the history of the organisation to re-write its HR manual. It may be helpful to keep it simple, eliminate unnecessary bureaucracy and all paper work if possible.

8. Productivity : While many of us may not realise that India still has one of the lowest labour costs in the world but our productivity is not on par with the best in the world. This reset post Covid gives us an opportunity to rejig our productivity levels at the shop floor, in our offices and also in all our processes with suppliers and customers. For eg. is it possible for all employees to deal with all HR processes through their mobile phones and eliminate all paper work in the future.

9. Digitalisation : The ability to go digital in all aspects of work is a real possibility in the new workplace. Sales can happen online and service can be remotely handled. This means manufacturing can be digitilalised and automated and so can be all other processes. If banks can provide all their services through digital means so can all other organisations and this is the best time to transition and go digital, wherever feasible.

10. Employee Health & Safety : This crisis provides the best opportunity for organisations to rewrite its health and safety standards. It is not only physical health but mental and emotional health and wellness, which will get tested post this crisis. So , it is the best time for organisations to prepare for similar unknown crises in the future.

While I may not have listed down all possible things, which HR leaders could do post this crisis, I have focussed on the most important and called them the “Ten commandments for HR”.

Do let me know if I have missed out anything ? You can make your own “Ten commandments for HR” based on the needs of your own organisation.

S Ramesh Shankar

12th May 2020

The plight of decision makers in a crisis

Pond Heron

I have always wondered how difficult it would be for decision makers to make decisions in a crisis. The current Covid crisis is not an exception. Every country is trying to deal with the crisis in their best possible way. However the citizens are unhappy with the decisions being taken by their respective governments.

In a democracy, it is much more difficult to take decisions as compared to other forms of governments. Here, if you decide you are criticised and if you don’t, you are criticised. Either way, there will be people waiting for you to take a decision and then they are ready to pounce on you as to how bad a decision it was.

I sometimes wonder if these critiques ever put themselves in the shoes of those who decide. If there is a lockdown, they say livelihood is lost and if there isn’t one they say lives are lost. Those in governance are finding the right balance between protecting lives and saving livelihoods.

The beauty of a situation like this is that everyone becomes an expert on everything. We have common men and women advising us on how to deal with preventive health to deal with the virus. Whereas, even doctors and health workers are finding it difficult to deal with an unknown virus.

We have arm chair economists advising us on how to revive the economy and save livelihoods at the cost of lives. Some business honchos have even gone to the extent of saying that the economic downturn will result in more loss of lives than the Covid crisis.

The governments in the centre and the states are trying their best to decide what they think is in the best interest of its citizens. However, we all are restless and are ready to pounce on any decision taken by the state or the centre in our country. We do not realise that the people we have elected to take decisions supported by smart and knowledgable bureaucrats have more information than we have to decide on matters to deal with this crisis.

While we all have become public health experts, economists, administrators and futurologists, we forget our duties as citizens. We are the first to violate a guideline set by our local government on the pretext of being educated and knowing what we are doing. We go out to buy things which are not essential or demand for services from others risking their own lives for our comfort.

We do not realise how difficult it is for the urban and the rural poor. The situation is tough especially for the urban poor and most developed cities today run on the work of the migrant labourers. As citizens, we need to find ways to support these people during this crisis and not sit back and blame only the government in power for not doing anything. Are we capable of taking care of our security staff, our maids, our gardener’s, housekeeping staff and so on. If each of us commit to take care of people who touch our lives every day then the problem is simpler for the government to handle.

In a crisis, the most important factor to remember is that there is only one leader and all of us have to be diligent followers. Like in the Army they say, the word of the commander is their religion. So, we need to behave. We have elected governments at the centre and the states and we need to trust our people in power including politicians and bureaucrats to deal with this crisis effectively.

Let us learn to be trusted followers rather than quack experts in every field especially in a crisis. If I can put myself in the shoes of those in governance, I may realise how difficult it is to decide. I am an office bearer in our community association and can tell you that it is very difficult to deal with community decisions in a crisis like this. We have only 25 families living in my community. Imagine someone deciding on behalf of a billion people or even a few millions in a state.

As in the photo above, it is wiser to sit at home and admire the pond heron eating fish in your pond rather than sit in your arm chair and criticise the decision makers in a crisis.

Trust is key in a crisis. Follwership is our duty. Let us empathise and appreciate the difficult role of the decision makers by being self disciplined and following whatever guidelines are given to us.

Let us make a difference by being positive always and being enablers rather than detractors in a crisis situation.

S Ramesh Shankar

2nd May 2020

How to reduce employee cost without reducing employee numbers ???

I have always wondered as to why organizations tend to focus on employee cost reduction at the first instance under any crisis situation! While employee cost in most organizations especially in manufacturing sector will be a negligible as compared to material cost, the tendency is to focus on how to reduce employees in order to tide over any crisis.

    I was reminded of the famous British management thinker Charles Handy.  He once spoke in Delhi for the Economic Times summit and shared a beautiful formula, which can be depicted as follows :

                                              Business Success = ½# x 2*x 3$

Note ; # reduce employees by half, * double your sales and $ profits will treble.

He explained that most CEOs believe that in any crisis situation if they are able to reduce employees by half, their sales will double and their profits will treble.  He further went to state that as long as CEO’s remember that they could also fall in the half of employees who are let go, they would take the right decisions for their organizations.  This is the bitter truth even today.

     The Covid crisis will impact businesses adversely.  Many CEOs would think of ways and means of cutting employee numbers so that they can tide over this business downturn.  While that may be an easy way out, CEO’s may have to realize that employees win customers and employee loyalty sustains organizations.  With this premise in mind, I thought I could share ideas of how employee cost could be optimized even without having to reduce employee numbers.

    In this article, I will attempt to share a few ideas of employee cost reduction without having to reduce manpower :

a.     Employee Salary reduction :  While many organizations may consider this a taboo, it is fine in a crisis situation to reduce salaries rather than people losing jobs.  It has to start from the CEO and go downwards and not the other way around.  If possible, we should spare the lowest level of employees in this exercise.  

b.     Salary structure review :  This could another way of linking salary more to performance than level or designation.  Further looking at fixed to variable pay, review increments, promotions linked to role, salary bands etc.  There are multiple ways to do this and can be done without employees losing jobs.

c.     Benefits Review :  There are various benefits which organizations evolve over a period of time.  This is the time to review the same and monetise wherever possible or eliminate them.  It could range from leave, holidays, copay in medical insurance and so on.  There are again varied ways of dealing with this without impacting employees in any direct way.

d.     Review Organization structure:  It is the right time to make the organization leaner and more effective.  Invariably, in most organizations, layers get added just to create positions for people to be promoted or someone’s ego to be satisfied.  Every part of the organization can be reviewed and all unnecessary levels can be eliminated.  This will make it more efficient and responsive to customers.

e.     Employee involvement & engagement :  This is the best time to harness the full potential of employees.  Those who do the work know best where we could improve and reduce cost.  So, if we are able to find ways and means of involving employees in idea generation and execution, cost reduction can easily be achieved in different aspects of work in all functions.  We need to suitably reward employees for the same linking it to the savings accrued and the benefits to the organization.

f.      Hidden subsidies :  Organizations tend to build a lot of hidden subsidies which are neither visible to the employees nor to the organization.  It may be time to review all of them and again monetise them or eliminate them if they don’t serve the purpose for which it is created.  This could include canteen, transport, concierge, travel allowances etc. 

g.     Review office spaces :  Real estate is one of the biggest cost amongst all overheads.  Now that even the sceptics have accepted “Work from Home” as an option, it may be worthwhile to review the need for large office spaces and reduce cost.  We could consider 50% of field sales and service staff to work from home and visit offices may be once a week to submit claims or follow up on issues.  We could review offices, factories, guest houses and the like and rationalize the same.  We could also eliminate fixed seats for employees and make flexible offices spaces as a way of life. 

Employee will not mind any of these changes provided we communicate effectively and authentically.  Any employee will appreciate that it is better to take a cut in salary or benefits rather than lose a job.  If employees are told that all these measures will ensure job security for all, it will be highly appreciated.  The success of all these measures will lie in effective planning, communication, execution and rigorous reviews.

I thought about all this with only one objective of saving jobs.  I will be happy to consult with any organization pro-bono to plan and execute any or all of the above ideas.  I can detail them out for you in consultation with your internal teams so as to customize it for your organization.

I need not be paid a single rupee for this service.  If the organization is able to save jobs, my mission is accomplished.  If the organization saves employee cost without reducing its number of employees and is able to quantify savings, I will be delighted.

At the end, if organizations achieve their goals, we can find ways and means of contributing to my social cause of “Eradicating preventable blindness amongst children” and I will be highly indebted to them always.

I have committed to find ways and means of giving back to society in the second innings of my life and saving employee jobs in a crisis could be one way of accomplishing my mission.