I have recently been appointed as an HR manager in an organization within the manufacturing industry. The leadership is expecting me to implement strategies that will enhance the productivity of the workers and foster their commitment to the success and growth of the organization. I would appreciate your expert advice on how best to proceed in this regard.

One significant challenge we are facing is the high labor turnover rate, despite offering competitive salaries. I am seeking guidance on how to address this issue effectively. Your insights would be invaluable. Thank you in advance.

From India, Jaipur
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Hello,

A few questions need answers!

How large is the organization? How many workers, employees, staff, supervisory, and management employees?

Employer-Employee Relations are first ECONOMIC in nature, and only later when the employer's credibility is established that EMOTIONAL bonds may develop! At the ECONOMIC level, what matters are Rights and Responsibilities/Duties. Performance is a response to the satisfaction or dissatisfaction of the workers with what they are paid. Extra efforts, commitment, and sustained contributions to production and productivity have to be EARNED by the employers.

But just paying more does not help you earn credibility, nor being too strict helps!

The simple rule is "Do not avoid what is due to the Workers/Employees, and Do not give up what is your right to receive." First achieve this state, and only then can we consider things like incentives, productivity bonuses, extra facilities, etc., that will bind the workers emotionally and psychologically to the organization and motivate them to put in inspired performance!

The subject is too vast, and there are no easy or simple answers since one is perpetually dealing with a fluid situation, and collective behavior is way too complex to understand and modify compared to individual behavior!

If this response makes you ask more questions, more focused, more inquisitive, and more wide-ranging, I will be glad to provide appropriate suggestions!

Regards,

Samvedan

November 13, 2010

From India, Pune
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Hey Samvedan,

Thanks a lot for the details and the knowledge you shared. Obviously, it has raised many questions in my mind.

First of all, I would like to give the answers to your questions. It's a small manufacturing company, having 80-100 workers and 20-25 employees. They have 3-4 persons in the managerial staff.

Regarding your statement, "Extra efforts, commitment, and sustained contributions to production and productivity have to be earned by the employers," could you please elaborate on this?

During my interview, they mentioned that they expect me to help reduce the labor turnover rate, increase employee attachment to the organization's success and growth, and bring positive energy. I hope you understand my query.

My question is, what different types of activities can I incorporate into my daily routine to meet their expectations? It's a challenging task, and I am determined to succeed.

Your insights and advice will be very motivating. Thanks again.

Regards,
Renuka
renuka.prashar@yahoo.com

From India, Jaipur
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Hello,

Your reply tells a fair amount about the situation. If you have this strength of workmen, I am certain functions like "Time Office, Payroll, Leave management, and Statutory Compliances" are organized and in place even before you joined.

Does your company comply with the requirement of paying "Statutory Minimum Wage" applicable to your industry and revise the same every six months as required by the law?

If the answers to both above are affirmative, then your organization has happily achieved the first benchmark in employer-employee relations, which means that your workmen and employees are not justified in nursing any grievance against the employer (except, of course, for more wages and benefits!).

If labor turnover and attrition are important problems being faced by your organization, what are the reasons your workmen go away? If the remuneration, working conditions, and treatment are perceived by them as irritants or unfair, workmen would always be on the lookout for alternate employment, causing low commitment to the present job. This is rather tricky. Even if your organization has achieved this basic benchmark, workers all over will always clamor for higher wages and better benefits. This situation is complicated further if the organization is making good profits, the business is growing, but the employee costs (wages and benefits) are or are perceived by the recipients as low.

Greater commitment and improved performance revolve around how emoluments are structured, at what level they are set, and how supervisors and managers treat workers. If the organizational culture is harsh, authoritarian, undermining human dignity, and such areas are ignored for any reason, aside from attrition, employees may organize themselves into a Trade Union (internal or external, is an issue apart!) unless your organization already has a Union of workmen.

To earn better efforts, the work atmosphere, culture, and working conditions must be supportive, inclusive, and non-threatening. If you put in place first the compliances and coverages under various applicable legislations, establish work norms, treat workmen as important constituents of the organization, establish training inputs, recognize and reward contributions from workmen, then you are well on the way to have earned the essence of the principle "Extra efforts, commitment, and sustained contributions to production and productivity have to be earned by the employers."

In terms of routine activities, just remember that there is always a "sophistication gap" between the Management and the Workmen, which makes workers insecure, and this insecurity manifests either as extremely defensive or even offensive behavior. Collectively, they will even suspect your perfectly normal interventions.

I would advise as follows:
1. Communicate, preferably in their native language or at least in Hindi, freely but so as not to please or pamper to establish a dialogue.
2. Be proactive in receiving their grievances, complaints, problems and respond as fast as you and your organizational system permit, but please do remember that you are an aid to those who are responsible to extract work performance, and you shall never undermine them.
3. Workers, organized or otherwise, expect from employers: Uniformity, Consistency, Fairness, Firmness, Some amount of generosity, and above all, Recognition.
4. If you follow these simple rules, you will gain fairly easily for yourself and for the organization the all-important credibility.

But always be upright (not be an egoist), protect your own self-concept and dignity, and at the same time grant them theirs.

Your workmen/employees are your partners in progress and prosperity, and not your slaves!

Kindly do not get tired or exasperated by this rather long reply. But you have an open invitation to raise more questions. I will be glad to assist always but within my capabilities!

Cheers,
Samvedan
November 14, 2010


From India, Pune
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Greetings,
Though I have nothing to add on , yet couldn’t help commenting on this discussion. A request to Renuka, 'Samvedan', you are interacting with, is my mentor. I have been learning from him since last 4 yrs. Put across all your questions and make sure you are fully prepared as you are learning from the best.
I feel blessed to have known him. So would you. Happy learning :)
Regards,
(Cite Contribution)

From India, Mumbai
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Hi,
Sure (Cite Contribution), I am really feeling the same thing. I don't have much practical knowledge of HR activities, as I have just 2 months of experience yet. But the answers given by Mr. Samvedan are really helping me to feel like I can do it. Please, Mr. Samvedan, keep sharing your expert views and professional feedback. They are really precious. And yes, I will surely have some more questions to ask. Thanks again for your time and concern... Keep guiding me.

Regards,
Renuka

From India, Jaipur
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Hi, Mr. Samvedan,

There was a question on my mind that I was thinking of clearing with you. Could you please tell me what exactly my plan should be for the first 15 days to make a positive impression on the MD? Given the 3-month probationary period in this job, I aim to do my best in the initial days. As you know, sir, the first impression is the last impression...

Please assist me. Your feedback and guidance would be greatly appreciated.

Thanks in advance.

Regards,
Renuka

From India, Jaipur
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Hello,

Thanks for your PM, to which I have replied.

Now, regarding your question about deciding priorities for the first fifteen days, considering that your probation period is set to be three months!

Firstly, are you the only HR in the organization? If yes, who was looking after the function before you joined? I think you should spend some time with such a person to understand the current status of HR in the company. If such a person is your boss, leave him alone, but remember, when you discuss matters with him, he probably would have more knowledge about the issues that you may not have found out.

In the other scenario, meet with the Production Manager and Supervisors to gather their perspectives on HR in the organization. I am certain that only a few might open up to a stranger like you. So, in dealing with them, stick to facts, receive their opinions if they choose to volunteer, but do NOT keep digging for their opinions.

Check on the following:

1) Time Office functions such as recording attendance, leaves, etc.

2) Statutory Compliances including coverages under various labor legislations such as the Factories Act, ESI, PF, Gratuity, at the minimum.

3) Understand the Payroll function, whoever may be in charge presently.

4) The form of interactions with workmen/employees, whether there is a Union of employees or an informal committee of employees through which the company interacts. This will help you determine if the working style is informal or formal, as well as if the culture is authoritarian, democratic, or permissive.

This work could extend well beyond the first fifteen days, but that is fine.

Now, in terms of interactions with your boss and colleagues during this period:

1) Do not pass judgment on any matter. You may have an opinion, but certainly not a judgment at this stage.

2) Do not take a position unless you are absolutely certain about it.

3) Ensure that your learning attitude is visible to all at this stage.

4) Since you are unlikely to know the power hierarchy in the organization (which could be different from the formal hierarchy) and the "likes and dislikes" in the organizational culture, maintain an innocent, non-partisan, non-imposing profile. Do not be biased by anything anyone says to you. Be nice, kind, receptive, and absorbing in the learning mode.

The organization should ensure that you have understood the scenario, the company culture, and are a willing part of the same, and that you can contribute in a positive way.

Your career stage should reflect your knowledge, attitude, patience, and moderate views. Avoid being sharp in your communication to impress others or exude confidence. Instead, show maturity without appearing synthetic or clinically perfect. You should aim to appear as a normal human being.

Perhaps I have included more than you were looking for, so feel free to ignore anything that seems out of tune.

Regards,

Samvedan

November 17, 2010

From India, Pune
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Hello Samvedan Sir,

The information above is really full of guidance and has shown me the path I am to go on. From the very depth of my heart, I am truly thankful to you, Sir. I will try to do as you said. Thanks a ton. Keep sharing your expert views.

Regards,
Renuka

From India, Jaipur
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