When we reimagine HR, what do you think should HR stop doing?
I think HR is very important and should evolve with the times. I talk to a number of people across the industry, and I would say that in many organizations, HR is seen as a political unit. Why do people feel that? First, HR should rid itself of politics. HR has a lot of confidential information, and it should not trade in that. The HR department should be staffed with people who can maintain high confidentiality. The biggest problem in every company is that people say HR professionals blabber, and hence they do not trust them. So the dividing line between a good performer who needs to be promoted and somebody who doesn’t need to be promoted is becoming a problem.
So if you don’t have people with very high integrity who have high trust in the organization, the HR department is doomed to fail. What more should an HR department do? The HR department has only three alphabets: C, D, and E (Culture, Diversity & Engagement). Harnessing culture and filling the organization with diversity is their job. Don’t go for the same people from the IITs and IIMs. Bring in a diverse workforce because the challenges of tomorrow require diverse ways of thinking and ease of engagement. So it’s culture, diversity, and engagement. Everything is fine if we can score high on these three. More than anything else, the HR department must be like Caesar’s wife—it should be above suspicion.
How much transparency can an organization have? Instead of focusing on business, why are we focusing on transparency?
Why do employees come and work for a company? The first reason is that they believe in the purpose of the company. They believe the purpose and direction of the work are worthwhile. The second reason is good people, good colleagues, and a good culture. The third reason is that they believe if they perform well, there will be progress and recognition. So, in this world of purpose, you have to give them as much information as possible because they can always source data from somewhere else. They would rather hear it from you first. If they hear it from you, they tend to trust you more. If they keep hearing about the company from outside sources, they may begin to question why they are working there. I think there are no limits to promoting transparency in a digital world. For example, salary information for many companies is already available on Google. I don’t know how it got there, but it has. Organizations should provide employees with whatever information gives them peace of mind and reinforces their belief that they are working for an open and transparent company.
In today’s context, as a CEO, what are the three or four things that you would measure HR on?
The first thing I always evaluate an HR professional on is whether they are aligned with the business. They must truly understand the business and its key drivers, meet customers regularly, and recognize that without business there is no HR. HR must always remain aligned with business objectives. Unfortunately, in a matrix organization, that alignment is often missing. HR is becoming its own vertical and operating independently. It has to remain connected to the business, and I say that for every matrix function, but especially for HR.
We are measuring everything today, and in the process, we have lost the meaning behind what we measure. That is one of the biggest leadership challenges today. We measure a lot without truly understanding the significance. For example, what is the meaning of work? Why does someone come to work? What is the meaning of contribution or productivity? Therefore, the second thing I would hold an HR leader accountable for is developing a culture that drives accountability, responsiveness, and productivity.
So, two things matter the most: being aligned with the business and developing a culture that ensures the organization is more competitive than others.
We treat our customers so well, but employees are still treated as second-rate citizens. Why is there a difference in the way customers and employees are treated?
If I treat someone as a volunteer, I will treat them differently. If I treat them as bonded labour, I will treat them differently. People are free agents—you cannot buy their loyalty with money or shares. Millennials, in particular, do not think much about pensions, insurance, or gratuity. They see these as outdated concepts. So you cannot retain people by simply offering financial benefits and expecting them to stay. Those days of hostage HR are over.
Watch the full session- https://www.youtube.com/watch?v=9gVQLJ-PzG0
