The answer lies in learning, unlearning and relearning, which is the mandate for success.

Culture of continuous learning

Central to preparing for the phenomenon called ‘permavucalution’ is the notion of perpetual learning. “It’s not just about acquiring new skills but also unlearning outdated ones and relearning in alignment with evolving organisational needs,” emphasises Anil Mohanty, CPO, DN Group. This culture of continuous learning lays the foundation for a workforce capable of navigating the complexities of the modern workplace, where AI integration is not just a possibility but an inevitability.

As highlighted by industry experts, including leaders from Maruti Suzuki and other prominent organisations, traditional approaches to strategic planning are becoming obsolete. Instead, businesses are embracing a mindset of learning, unlearning and relearning to navigate through the complexities of the modern world.

“Businesses must cultivate resilience, fortifying themselves against unexpected disruptions while remaining poised to capitalise on emerging opportunities.”

Anil Gaur, senior HR professional

AI: A catalyst for transformation

Artificial Intelligence (AI) is at the forefront of this transformation, promising to revolutionise industries and streamline operations. Systems enabled by AI have the potential to make decision-making more efficient, reduce manual intervention and enhance accuracy. “Leaders must emphasise the need to view AI as an enabler rather than a threat, recognising its ability to simplify tasks, accelerate processes and improve overall productivity,” advises Mohanty. Additionally, they must stress the importance of adequate training and preparation to harness the full potential of AI and ensure that all stakeholders are equipped to embrace this technology.

The fourth industrial revolution, driven by advancements in AI, machine learning, 5G technology, robotic and quantum computing, presents both unprecedented opportunities and challenges. To remain competitive, businesses must invest in up-to-date technological infrastructure and foster a culture of digital literacy and innovation.

“It’s not just about acquiring new skills but also unlearning outdated ones and relearning in alignment with evolving organisational needs.”

Anil Mohanty, CPO, DN Group

Embracing uncertainty

The advent of the VUCA (Volatility, Uncertainty, Complexity, Ambiguity) era further underscores readiness in the face of constant flux. What was once considered an exceptional circumstance has now become the norm, demanding a paradigm shift in mindset and strategy. “Businesses must cultivate resilience, fortifying themselves against unexpected disruptions while remaining poised to capitalise on emerging opportunities,” emphasises Anil Gaur, senior HR professional.

Furthermore, the need for flexibility and adaptability has never been greater, as businesses must navigate unpredictable disruptions such as economic downturns and public health crises such as the COVID-19 pandemic. To thrive in this environment, organisations must embrace a more iterative and responsive approach to strategic planning, continually reassessing their strategies to capture emerging opportunities and address evolving challenges.

Therefore, rather than overestimating future growth or relying on long-term projections, businesses are encouraged to focus on short-term strategies that prioritise agility and flexibility. By staying attuned to current market conditions and avoiding overly speculative assumptions, organisations can position themselves to respond effectively to unforeseen challenges and capitalise on emerging opportunities.

Logic and pragmatism

Amidst market fluctuations and economic uncertainties, leaders emphasise the importance of logic and pragmatism in decision-making. Rather than chasing quick gains or engaging in speculative practices, businesses are advised to pursue gradual, incremental improvements. “This entails avoiding excessive risk-taking, maintaining a balanced approach to planning and prioritising long-term sustainability over short-term gains. By adopting a logical and methodical approach to business strategy, organisations can navigate through turbulent times with resilience and confidence,” suggests Mohanty.

Crisis as catalyst for innovation

Agreed, there is a perpetual state of crisis, but then it also presents an opportunity for innovation and evolution. Startups, buoyed by government support and venture capital, are driving change and challenging established norms. However, as Gaur cautions, “the journey from inception to success is fraught with challenges, requiring not only creativity and strategic direction but also the ability to navigate crises of leadership, autonomy and control.” 

Embracing change with confidence

As organisations embrace the imperatives of learning, adaptation and resilience, they are better positioned to thrive in an ever-changing business landscape. With the right mindset and strategic approach, organisations can transform challenges into opportunities, paving the way for a brighter and more prosperous future in the dynamic world of modern business.

However, “despite the urgency and significance of the ‘permavucalution’ phenomenon, awareness and adoption remain limited within the business community, particularly in regions such as India,” points out Gaur. While some forward-thinking organisations and industry leaders have begun to embrace the permavucalution mindset, many others remain unaware or indifferent to its implications.

He further suggests, “Moving forward, it is imperative for businesses to prioritise education, awareness and proactive action in response to the permavucalution paradigm. Professional bodies, industry associations and thought leaders have a vital role to play in facilitating discussions, disseminating knowledge and driving organisational change.”

While the road ahead may be fraught with uncertainty, it also presents boundless opportunities for those willing to embrace change and innovation. By harnessing the collective ingenuity of industry stakeholders and leveraging the transformative power of technology, organisations can navigate the turbulent waters of modern commerce with confidence and resilience.

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In today’s VUCA (volatility, uncertainty, complexity, and ambiguity) landscape, small and big companies are continually facing uncertainty and volatility in their operations. The working environment is increasingly becoming very complex and ambiguous. This has put human resources into a challenging situation in terms of making definitive decisions in the workplace. HR has to look constantly at new tools for making risk-free decisions, and this is where the help of HR analytics comes in.

HR analytics is the use of statistical methods like factor analysis, correlation and regression and making use of different sources and variables to arrive at meaningful insights. It helps HR understand the dynamics in the workforce.

One cannot rely on a person’s experience or tacit knowledge to base one’s decisions on, but on real data and numbers to back one’s workplace decisions. This has proved to add value and improve workforce resource utilisation and deployment. HR analytics is not about merely collecting vast amounts of data, but analysing and processing it to provide meaningful insights. These insights are then used to provide the answers sought by the company, to the following questions, among others:

• Will the predictive attrition model help identify who is going to resign in the next, three, six or 12 months? What is the efficiency factor of this predictive model?
• Is the new tax-friendly employee compensation and benefits programme driving higher retention?
• Are the highly engaged employees at the workplace highly productive? Are they spreading positive employer brand in the workplace and social media?
• Will work from home/flexible working hours lead to better engagement, and to what extent?
• Which generation of employees (Gen X, Gen Y, Gen Z , Millennial) is contributing more towards profitability?
• What are the major reasons for attrition? Is the preventive HR intervention effective in controlling attrition?
• Is there any correlation in employees who are leaving within six months of joining?
• Is there any relation between employees who stay within 10 km radius and retention?
• Is the newly designed Employee Fraud Risk Management effective? Is there any correlation between frauds committed by habitual noncompliant employees/ disengaged employees?

Finance function decisions are based on data, such as graphs, charts, etc. However, in HR, it is based mostly on the relationship component and there is always the risk of being judgmental when it’s a person making decisions. Through HR analytics, this risk can be minimised.

HR can study the behavioural competencies of high-potential employees and share the data with the recruiting team to help them identify potential employees. This data can also be used in training. HR often comes up with various mechanisms intended to achieve employee satisfaction, leading to employee engagement. But today, the mechanism depends on what the employees value more and whether it is going to achieve the outcome.

Based on the HR analytics data, human resource policies are customised, for example, the recent decision by the Government of Delhi regarding the odd and even number cars taking turns to run on the roads. This has led some companies to offer Delhi metro cards to employees and encourage them to take local public transport instead of using their cars. Some companies are exploring the option of working from home.

People management is being accomplished with change thanks to evolving HR analytics. It gives a clear view of performances and drives the organisation towards its goals. This has led managers to understand their employees better and contribute towards planning for their training and development. In turn, the employees will be motivated to be more in tune with the culture of the organisation.

People analytics empowers HR with the ability to identify the gaps between employees and training, which is necessary to be bridged. This is especially important with new hires to help them understand expectations and workflow processes quicker. By digging into insights, HR managers can not only identify which hires will be low but also the high performers.

Predictive analytics contributes to analysis of the workforce beyond the mere basis of academics. While recruiting, many companies look for candidates with high academic records. But this is not full proof of a candidate’s ability to perform. Some bugging questions come to mind:

• Why does one programmer perform better than the other?
• Why do some average employees succeed while some perceived as good recruits fail?
• How much time does it take the new employee to be productive?

One way to employ the use of HR analytics is acceptance and deployment of HR management systems and cloud storage availability. These make it possible for organisations or companies to store all their data in a manner that can be integrated with other workplace operations.

Such cloud software today is readily available and affordable. It is time for employers to take advantage of this progress. By deploying HR analytics, companies collect data based on attrition, retention and other HR aspects. These metrics are then used further to look for trends based on ratios and accounts. The data is then vigorously analysed to give Google insight into employee trends. These insights could be effectively used to shape the organization’s policies and decisions. Businesses have noted that the ability to take initiative is a better indicator of actual performance.

Companies are deploying predictive analytics to drive their HR strategies. Employee data from all locations is analysed and processed to develop programmes based on age, demography and tenure. Information from predictive analytics/HR analytics is used to attract, retain and manage the right talent. To change the course of the manner in which they deal with employees, data-based information is used like predictive attrition models and exit analyses. This predictive modelling tactic is more handy than trying to figure out later why an employee left.

The new approach of HR/predictive analytics provides the ability to measure, quantify and qualify employee data. The new method digs into the ‘why’ rather than the ‘what’ to get the better perspective of things.

HR analytics helps to develop a workforce that is engaged, agile and flexible by using data to gain valuable insights on employees. In the diverse Indian context, the need for HR analytics is felt even more because every company has a broad array of people to manage. Proper management of this varied workforce is a prerequisite for greater synergy and productivity within an organisation. Companies must look towards HR analytics as the new tool to power an organisation’s success through smart people management.

(The author is a HR consultant.)

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