How Can we Ensure Employees' Loyalty to the Organization?

 

Source:  Shilton Symon's LinkedIn account 

I came across this post by Shilton Symon, a Group Tax and Compliance manager and LinkedIn influencer. I got curious and looked at the comments, and many did agree with him. One remark even mentioned that he has been with one company for several years and has been giving his best to the company. But whenever it's time for the company to return its efforts, there are always the same excuses... and so on (I guess you get the picture).  Work life realities, there are still many organizations struggling to put together an equitable reward system.

As an HR practitioner, this can be tough to handle if you have no reward program in place. Also, this can happen if your performance management is not aligned with a well-designed reward system for the employees. The kind of leadership that an organization has, and the effectiveness of its HR management strategies play a vital role in employees' satisfaction.

Shilton Symon redefined "Employees' Loyalty" by aligning it with the current scenario or trend in workforce management. We cannot expect this generation to stay longer in an organization if their needs are not met. Sad to say, today's generation is a smart generation. They are not martyrs, or the culture has changed -- they know what they are entitled to and they will give you their best, provided that you acknowledge that they are acknowledged as partners in meeting organizational objectives.

With this change in culture and workforce demand, the Human resources management team should be able to communicate to executives and organizational leaders how to sustain exceptional employees. With a very good combination of HR programs, demoralization may not be an issue, and we can expect loyalty from our employees. We would rather maintain efficient, effective, and exceptional workers than have meager, long-staying employees who just stay with us because of the regularity of their salary.

WHAT CAN WE DO AND HOW SHOULD WE DO IT?

Start with the basics, meet employees' needs

If we are leaders of our respective organizations, we should see to it that the employees are well compensated and that their effort equates to their market value. When we hire, we have high expectations for the position. The question is: is your compensation and benefits package competitive enough and at least meet the minimum range for the job's market value?

Salary increases yearly as the minimum wage order increases yearly in our country. However, there are some employees who have been with us whose salary may have moved minimally as well. The incoming employees may ask for higher salaries compared to the incumbent employees. If you offer higher salaries to new employees, it would surely impact the morale of long-staying employees in the same position. Check if you consciously adjust your salary structure as wage order increases the minimum wage for the lower ranks.

Also, have you promised salary increases to your employees? Is it written in your policy? Some organizations forgot to honor this promise to their employees. The problem of not meeting the targets and not being able to have enough funds for salary increases becomes a regular excuse for the organization. Note that this is an indication of organizational inefficiency, if this occurs before the pandemic, and still the same case or result after the pandemic. As the leader in your respective industry, you have the obligation to honor your promises to the employees.

Ensure that you have an effective Employee Relations program

When an organization is still small, communication is much more open. However, as the organization expands and grows, communication becomes complicated.  

The role of HR plays a big role here. When there are more employees, it is imperative that communication with employees is open and fluid. The first-line managers have the responsibility to communicate with their subordinates and determine if they are faring well with their jobs. The first-line managers should have skills in coaching and mentoring, as well as providing guidance to their second-liners. HR, in turn, should ensure that supervisors and managers understand and practice this leadership skill - employee relations. If supervisors and managers are not skilled in cascading policies, processes, and standards to employees, the bigger problem would be for HR. HR may be blamed, though it's not within their jurisdiction.

HR is expected to have a feel for every employee. They are the consultants for the leaders and the managers in terms of handling employees. Their tools are the HR programs like performance management systems, compensation & benefits packages, learning and development plans, job evaluation, and talent management programs.  

Performance Management System

Performance management serves as a platform for immediate superiors to give feedback to their subordinates, whether they are meeting the organizational expectations. It allows the managers to check on each employee that they manage, and provide the mentoring if necessary. It also serves as a platform to commend employees for a job well done.

The performance result should be aligned with the reward system. It is common for some organizations to give incentives and bonuses across the board. Though it may seem fair to give equal benefits, actually it is not fair for performing employees. They may feel that since everybody receives the same monetary benefits whatever their performance (may it be poor or outstanding), what is the use of giving extra effort? Average performance may become the standard of the organization if this is the case. But if incentives, training, and other forms of rewards are aligned with their performance, then employees will get the message that if they want to travel and be more noticed for promotions, they would have to perform more than the average.

Performance is not always equated with income or profit. Do not forget that the support services also contribute to the achievement of organizational objectives. Without the help of support services, the operations people will not be able to perform their functions well.

Learning and Development Programs

Check if each employee is growing in the organization. As a case, an employee who entered an organization as an expert, bringing in a lot of improvements and resources to our organization, does not mean he or she doesn't have any training needs. They can only be at their best if there's continuous development. They can only give what they have.  

Also, those who are not involved in the operations, may not be able to bring clear income to the organization. But if you look at what they have contributed to the realization of the organization, should be accessed and be given equivalent compensations. Being negligent of their expertise may result in losing hard-to-find talents.  

Job Evaluation and Compensation-Benefit Programs

Check the important job or functions in your organization. Usually, leadership posts and high-risk posts are the hardest to place. Job evaluation should be conducted regularly to ensure that you have an aligned compensation-benefit package with its market value. Competition for specialized skills is becoming severe, especially for posts that involve critical-thinking skills, management skills, and leadership skills. Routine jobs are now becoming obsolete as technology and AI addresses them. Mental skills are even challenged by AI. It can generate responses by consolidating available information on the web. But higher skills like critical thinking, analysis, and curation of information will stay.

Consistency in the implementation of compensation standards speaks loudly to employees.  Timely delivery of services, clarity of policies, and equitable treatment provide security to employees.  If not done efficiently, and effectively, employees can be unforgiving because today's consumerism bothers everyone.  Gone are the days that we are secured to have enough.  That's the same reason why insurance and emergency funds become significant to every household.  As HR, it is our responsibility to ensure that the salaries and benefits are released on time and accurately.

Other non-monetary benefits add value to our organizations.  Especially if these benefits would address the current needs of our employees.  After the pandemic, we realized the value of HMO cards and mental hygiene programs.  Current workforces are also looking at the newer working conditions such as the "working from home" setup, due to the increasing difficulties of commuting or the need to be present at home for their families.  Note that several platforms have sprouted for online WFH jobs or freelancing.

If this article makes sense, please share.  If you have some comments or questions, feel free to message me using the comment or feedback form.

How HR or Recruiters Process Your Application?

Photo source:  Getty Images

There are so many job vacancies in the market. And there are much more applicants not finding a job.  

Are you an applicant?  Why are you looking for a job?  A job is not a career.  Are you looking for a career? 

When applying, we need to determine our personal objectives.  Human Resource (HR) or recruiters are eager to find the right candidates but there's a formula to finding the right fit for the position.  HR don't just hire applicants who finished a college fit for the post.  They are also looking for the right attitude, potentials, and cultural fit.  How you state your personal objective in finding a job tells the HR that you know what career path you want to make or how you will carry out yourself in a work setup.

A Well Written Resume is Never Enough to Land you a Job.  Yes, your curriculum vitae (CV) is the gateway for HR to see if you have the skills, knowledge and experiences necessary for the position.  Work life realities, above your resume, HR would have to see your decision-making skills and so they ask you situational questions to determine how you think.  

Nowadays, there are several online tools and resume-writing services to help you prepare your CV. They can align your resume to the job requirement by adding information that determines your skills and competencies. Your job is to prove that what you have written in your resume is true and correct. HR, through interviews, validates this information. There are also some assessments that measure your skills. So be honest with your resume. Have confidence in selling yourself and do not feel frustrated if you fail, because it's for your good and the company. If you are not fit for a post, you may find yourself struggling very hard during the probationary phase. You may lose time, effort, and confidence if you think of it as a trial-and-error venue. That is why I always advise new graduates during career talks that if they are going to apply for a position in a company, prior to applying, try to study more about the organization, and see if they meet the minimum criteria for the job.

Companies are looking for employees who would stay long.  This is the reason why HR or recruiters ask "Where do you see yourself 3 years or 5 years from now". They are gauging you if you are a keeper. Though this is not fixed, and the employee may change their mind later on, still if you have a mindset that you just need to get experience for a year to find your dream job, this will be reflected in your actions and answers. Your sincerity during interviews will show.

Your Entry Job may not be your Career plan, but it surely is your 1st step on the ladder.  Learn well what kind of organization you will apply for. The 1st Job you'll get from that company may not really be your target career. But know that within that organization, the career that you are aspiring for may open its doors for you in the future. Do your job well and you will have higher chances of getting your dream job when opportunities come. Companies now are very conscious that they need to show the career path plan to their employees so that they will not jump off the board or resign. Employees may transfer from one position to another and through this, the company would be able to keep the knowledge resources. It is more costly to hire constantly than to retain employees. The risk lies in operational delays that resulted from retraining, and adjustments needed by new employees.

Let me end my tips here so that you will not have information overload. My last word is carefully plan for your application. Be ready for the interview by keeping yourself informed about the position and the organization.

 

Why is it necessary for Credit Unions to conduct process reviews?

 Work life realities... Shortcuts may be fast, but if you want quality outputs, take the long road by understanding the principles behind why we need to go through processes.

As managers of our respective functions, there are times that we have to sacrifice some meetings and prioritize preventive measures to bring everybody to the same page, particularly if it has something to do with our major goals and objectives. Just this morning, we skipped our usual Monday devotion and had a separate meeting to discuss our report for the balanced scorecard. We zoom in on our major programs and projects so that we will be able to see where we are in our annual plans.

During the BSC (Balance Score Card) deliberation, we saw that there were some activities that we haven't attended yet. So, we have to review which processes were missed and address them ASAP.  

After our BSC meeting, another meeting ensues. It's the orientation on the ISO Process evaluation plan to align us with the process review objectives. Many may say that too many meetings hamper operations, resulting in delays and missed deadlines. But process review and evaluation is one meeting that we should not miss.  

If you are a new manager or supervisor, these are what we need to understand why process review is very important for the achievement of our strategic objectives:

1. Decision Making: Process evaluation offers insightful information and useful insights that can aid in making well-informed decisions. credit unions can spot trends, patterns, and areas for improvement by examining key performance indicators. Strategic choices, resource allocation, and initiatives for process change can all be influenced by this information.
2. Members' Satisfaction: Regularly reviewing and evaluating processes helps credit unions understand the needs and expectations of stakeholders, including members, employees, and partners. By aligning processes with their requirements, credit unions can enhance satisfaction levels, improve relationships, and foster a positive reputation.
3. Performance Improvement: Recognizing areas that are inefficient, ineffective, or out-of-date is made easier by routinely assessing and evaluating procedures. Credit unions can find possibilities for improvement, streamline workflows, and increase overall performance by examining the current processes.
4. Quality Assurance: Process review and evaluation ensure that established procedures and standards are followed consistently. Credit unions can uncover deviations, non-compliance, or potential quality issues by evaluating the effectiveness of processes. This aids in preserving quality service and fulfilling members' expectations.
5. Risk Management: Process review and evaluation help identify potential risks and vulnerabilities in existing processes. Credit unions can find gaps and put the right safeguards in place to reduce risks by evaluating the effectiveness of control mechanisms. This contributes to improved risk management and ensures compliance with relevant regulations and standards.
6. Cost Optimization: Evaluating processes allows credit unions to identify areas of unnecessary duplication, resource wastage, or inefficient practices. Credit unions can save costs, increase resource efficiency, and improve operational effectiveness by simplifying processes, removing bottlenecks, and cutting out unnecessary stages.
7. Continuous Improvement: The idea of continuous improvement is fundamentally based on reviewing and evaluating processes. By regularly assessing processes, credit unions can foster a culture of learning, adaptability, and innovation. Processes can be improved, new ideas can be tried out, and improvements can be made over time using feedback from evaluations.

Overall, process review and evaluation give credit unions the tools they need to find areas for growth, maximize performance, control risks, and manage hazards. It is a crucial procedure for credit unions seeking operational excellence and maintaining their competitiveness in a fast-paced financial market.