Sterlite’s solution was a bold three-pronged attack, shattering the mould of traditional appraisals. Transparency, fairness, and individual growth became the cornerstones of their new system. One of the first things to go was the dreaded bell curve. No more categorising employees against each other in a fight for limited rewards. Instead, Sterlite focused on rewarding absolute performance. “Someone exceeding their goals by 115 per cent gets acknowledged for that achievement, not compared to someone else,” explained Pande. This eliminated the time-consuming debates about rankings and ensured everyone who met or exceeded expectations got rewarded.

But fairness wasn’t just about the present. Sterlite understood the importance of investing in the future. Their ‘Job Worth Model’ meticulously evaluated the market value of each role, ensuring salaries reflected not just current worth but also anticipated future demands. This helped mitigate the risk of losing talent to competitors offering better compensation. It was a future-proof strategy that recognised that a satisfied and valued workforce was the backbone of any successful organisation.

“The potential for higher increments based on increased proficiency fuelled a growth mindset within the organisation. Employees were no longer cogs in a machine; they were valued partners whose development was seen as an investment in the company’s future.”

Ruhie Pande,  group CHRO, Sterlite Power

Next came the expertise factor. Sterlite recognised that continuous learning and development were crucial not only for individual growth but also for the company’s continued innovation. Employees were assessed based on their current skill level, from beginner to expert. This not only recognised their contributions but also incentivised them to keep learning. The potential for higher increments based on increased proficiency fuelled a growth mindset within the organisation. Employees were no longer cogs in a machine; they were valued partners whose development was seen as an investment in the company’s future.

But potential wasn’t ignored either. Sterlite used a robust ‘talent-assessment process’ to evaluate an employee’s potential, ability, and overall fit. This multi-layered approach ensured consistency and fairness in assessing potential across the organisation. Variable pay, with the possibility of earning up to 150 per cent, was directly tied to this assessment. Here, Sterlite was acknowledging that some individuals possessed the drive and talent to excel beyond their current roles. By identifying these high potentials and rewarding their potential, Sterlite was investing in future leaders who would drive the company forward.

The linchpin of this system was the OKR (objectives and key results ) methodology. OKR ensured everyone, from top to bottom, understood how their individual goals contributed to the company’s overall objectives. There was no cap on variable pay, further motivating employees to strive for excellence. Production goals cascaded down from top-level profitability objectives, ensuring everyone was aligned towards a common purpose. Imagine a well-oiled machine where every part functioned seamlessly to achieve a greater goal. That’s what Sterlite was striving for – a company where individual ambition and purpose were harnessed to drive organisational success.

This new system wasn’t without its challenges. Rewarding potential was a leap of faith, and ensuring accurate talent assessment was crucial. Budgeting also required adjustments, as there was no longer a system of ranking and elimination. Open communication with employees was paramount to ensure a smooth transition. However, Sterlite successfully navigated these hurdles, and the feedback from employees was overwhelmingly positive. They felt valued, heard, and invested in, a stark contrast to the often-negative sentiment associated with traditional performance reviews.

The company’s commitment to continuous improvement didn’t stop there. Regular benchmarking ensured they stayed ahead of market trends in compensation and performance management practices. Variable pay was awarded twice a year to reflect market fluctuations, keeping employees engaged and focused on delivering results throughout the year. Looking ahead, Sterlite planned to digitise the entire appraisal process, catering to the mobile-first preferences of the younger generation. The goal? To streamline discussions and focus on providing valuable developmental feedback, not just debating performance metrics. Performance reviews, once a dreaded formality, were being transformed into meaningful conversations about growth and development.

Sterlite Power’s innovative approach to appraisals proved that performance reviews could be a tool for growth, not just a box-ticking exercise. By focusing on transparency, fairness, and individual development, they created a system that benefited both the company and its employees, ensuring they remained a leader in the ever-evolving energy sector. In a world where the only constant is change, Sterlite had embraced a performance management system that was flexible, adaptable, and future-oriented, positioning them for success in the years to come.

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While external perspectives can fuel innovation, empowering internal talent to match global standards should be the primary focus. Establishing learning academies for talent identification and upskilling, along with building a strong pipeline for future leadership roles, is an effective strategy. Balancing internal and external talent through equal opportunity programmes is vital for cultural and operational readiness, positioning organisations to stay ahead.

Work reimagined: Office redux, remote reign, or hybrid harmony in 2024?

To navigate the ongoing discourse on workplace flexibility, organisations must recognise the diverse needs of their workforce. A holistic strategy is essential for long-term thriving and crucial for preventing employee burnout. An ideal approach should embrace diverse generations and working patterns, offering a range of work arrangements from traditional office-based to remote options, and fostering a feasible hybrid model. This allows employees to strike a balance that suits their individual circumstances. Providing flexibility empowers employees to work in environments aligning with their styles and preferences, leading to increased job satisfaction, engagement and higher productivity.

Balancing internal and external talent through equal opportunity programmes is vital for cultural and operational readiness

Trust tinderbox: Can organisations reignite the employee spark in 2024?

For me, empowering employees to voice opinions and concerns is a cornerstone of building and sustaining trust. At Sterlite Power, we ensure transparency through quarterly leadership connections, keeping the entire organisation informed. Our chatbot allows employees to submit concerns or feedback directly shared with the leadership for timely resolutions. Feedback from the chatbot and regular pulse surveys enable thorough planning. Leadership is committed to actively listening and taking meaningful action, fostering a sense of ownership and trust, signalling that employees’ voices matter in shaping the organisation’s direction.

Payday revolution: Flex, on-demand and commuting costs—2024’s compensation conundrum

For corporate employees, we offer shuttle services to the nearest location, enhancing the commute’s convenience and cost effectiveness. We prioritise security measures, especially for women employees, ensuring a safe commuting experience. At the shop level, efforts are underway to minimise benefit disparities between corporate and shop employees, guaranteeing equitable financial support throughout the organisation. This inclusive approach demonstrates our commitment to addressing the diverse needs of our workforce.

This article is sponsored by Thomas Assessments

43 leaders predict the upcoming trends for 2024. To download the e-copy click here

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“We actively assess evolving skill requirements and tailor our programmes to address them effectively,” explains Ruhie Pande, G-CHRO at Sterlite Power.

“We don’t wait for training requirements to arise; we pre-emptively curate programmes, ensuring our workforce is equipped with the necessary skills.”

Ruhie Pande, G-CHRO, Sterlite Power

 

This proactive approach manifests in initiatives such as Project PD Next, PM Next, and ‘Stakeholder Management Excellence’. These programmes bring industry experts on board to curate specific training, ensuring employees receive comprehensive preparation for their roles and responsibilities. For leadership positions, the company offers sessions focused on emotional intelligence and team leadership, forming part of a broader framework that encompasses both functional capability and leadership development. This allows them to cultivate future leaders from within, fostering a sense of ownership and commitment to the organisation’s success.

Pande highlights the company’s commitment to internal mobility, stating, “We achieve a 25 per cent internal mobility rate, one of the best in the industry.” She further added, “This demonstrates Sterlite Power’s dedication to providing employees with opportunities for growth within the organisation. Newcomers benefit from the ‘Powerpath’ programme, which facilitates smooth assimilation and results in a low early-attrition rate of just 10 per cent. This also reflects Sterlite Power’s commitment to investing in its employees and ensuring they feel valued and supported from day one.”

Beyond its core focus, the ‘Serentica’ upskilling programme facilitates workforce movement within the company by 20 percent. This fosters a culture of shared knowledge, experience and growth within the company, empowering employees to explore new opportunities and fuelling the Group’s overall success.  High-potential talent identified through the ‘nine-boxer framework’ is retained through a combination of incentives, including rewards, ESOPs, and dedicated development support. “Impressively, 96 percent of our Top L talent remains with us,” reveals Pande. These individuals are then strategically placed across various organisational domains, ensuring their skills are utilised to their full potential and contributing to the company’s overall success.

Identifying these potential candidates happen through internal ‘Learning Advisory Councils’, ensuring a proactive approach to training needs. By actively seeking inputs from business units, the company identifies key areas of focus and tailors programmes accordingly. For instance, if the ‘Learning Advisory Council’ in the manufacturing facility identifies a need for TQM and TPM training, along with a notable demand for Six Sigma expertise, the organisation proactively engages with stakeholders to identify individuals who require training and nominates them to participate in relevant programmes.

Acknowledging the distinct needs of different groups within the workforce, Sterlite Power has developed programmes like ‘Empower Her’, which caters specifically to women aspiring for leadership roles. This initiative demonstrates their commitment to diversity, equity, and inclusion, creating a level playing field for all employees to thrive.

Pande emphasises Sterlite Power’s proactive approach to training, stating, “We don’t wait for training requirements to arise; we pre-emptively curate programmes, ensuring our workforce is equipped with the necessary skills.” These programmes typically take six months to a year to complete, with quarterly progress monitoring in place to track their effectiveness. Partnerships with premium B schools such as IIMs and project management institutes ensure that these programmes are executed effectively and deliver tangible benefits to the participants.

Safety is a top priority at Sterlite Power, with mandated training programmes, such as sexual harassment prevention. This commitment to a safe and inclusive work environment further contributes to employee satisfaction and retention. Additionally, annual engagement surveys are conducted to gather valuable feedback and identify areas for improvement. Regular communication channels, including connections with the CHRO, skip sessions with line managers, and frequent town halls by the CEOs, also play a crucial role in fostering transparency and building trust within the organization.

“Looking ahead, our focus is on physical and mental health as a unified initiative,” reveals Pande, indicating a holistic approach to employee well-being. This commitment to employee well-being extends beyond just physical health and encompasses mental health initiatives as well.

Combating monotony is another key focus, with job rotation implemented for select teams to provide diverse experiences and keep employees engaged. Long-term rewards and recognition mechanisms are also offered to select teams, further motivating and incentivising employees. Leaders actively engage with employees at all levels, fostering a sense of connection and purpose while emphasising broader organisational goals.

Finally, Sterlite Power partners with external consultants to gain deeper insights into factors contributing to employee satisfaction and longevity. “We value constant innovation in people practices, strong leadership, and HR partner engagement,” concludes Pande. “This ensures that our employees not only join us but also choose to stay with us for the long term, creating a positive work environment that fosters excellence and fuels our success.”

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Organisations are now experimenting with a variety of models to cater to the business requirements, while keeping employee safety and flexibility in mind. The hybrid model has become the most common go-to approach, as organisations have realised that ‘no one size fits all’. Work arrangements are being tailored basis the job.

The virtual world has challenged the relevance of organisational hierarchies and their impact on workplace dynamics as well as the ways of working and engagement.

In the virtual model, there will be a whole new workforce joining organisations in terms of career 2.0, gig employment and so on. These employees and their fitment into the organisational structure will also have an impact on the traditional organisational hierarchy and pyramid.

In a hybrid model, leaders and executives will need to address how they are managing fairness and equity across the increasingly varied employee experience.

Fairness and equity will be the defining factors and this is being reflected in various ways — figuring out the future of work; who will work from home; and how that will affect performance, pay and growth opportunities within an organisation.

Change in leadership development programmes in 2022

Effective leadership looks very different today than what it did two years ago. The pandemic has catapulted the need for critical management skills such as empathy, adaptability and resilience.

To lead organisations effectively at a time when emotions and uncertainty levels are high, soft skills have become more important than ever before.

The virtual world has challenged the relevance of organisational hierarchies and their impact on workplace dynamics as well as the ways of working and engagement

As more and more employees work from home, leaders need to adapt to virtual leadership. It is critical for the leaders to actively listen and engage with employees to uncover and address concerns on the go, and identify roadblocks to work towards proactively. Therefore, there is a clear need to curate development programmes that train leaders on these skills.

We also need to identify effective ways of deployment in a virtual world where digital-first learning programmes will be the focus.

Broader strategy to boost DE&I in 2022

One of the positive outcomes of this pandemic is that it has forced historically traditional organisations to start conversations around a psychologically safe workplace and mental health of the employees.

It is one thing to hire diverse candidates, and quite another to build a culture that is inclusive to everyone. To make sure no one is left out, organisations need to make data-centric decisions instead of relying on their gut feelings. Targets for diversity and inclusion programmes must include gender representation, as well as inclusion at various levels of the organisation.

As the world becomes more volatile and continues to disrupt our lives, it is essential to tap into ideas and expertise from people with different backgrounds and experiences. Improving diversity will hold the key to unfolding newer ways of thinking, reaching out to a wider range of customers and in turn, having a significant impact on an organisation’s bottom line.

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Happiness@work is powered by Happyness.me, a part of the consulting division of House of Cheer Networks, a full-service people, technology, media and entertainment hub specialising in Creation, Curation and Consultancy, to help companies reimagine their business and growth strategy.

In the latest episode of Happiness@work, Prajjal Saha, founder & editor, HRKatha interacts with Ruhie Pande, CHRO, Godrej Housing Finance. Pande shares her insights on how happiness at work can be achieved with the right leadership in place.

Happiness@work video series is powered by Happyness.me

The post Evaluating culture fit of leaders is more important for a happy workplace appeared first on HR Katha.

This is not the first time that the Company has announced a day off on a Friday. In the past, during the second wave of COVID – 19, the Company took similar initiatives when it sensed the increasing stress levels amongst its employees. This is the third time that Godrej Housing Finance has declared a Friday off to allow a prolonged weekend to its workforce.

The pandemic has created turmoil in the lives of people, with many suffering personal loss. Therefore, the Company, recognising the mental and physical toll that the pandemic took on people, decided to allow its employees to stay away from work for three days, to relax and recharge before returning to work with renewed energy on Monday.

The overall purpose of these ‘switch-off’ days is solely to give employees a much-needed break from work, to unwind, especially since the boundary between personal and professional life has been blurred for most of late.

The HRBP team at GHF has a finger on the pulse of its employees and is in regular touch with them to take feedback on their health. It keeps a close watch on the stress levels of the employees, and whenever the onset of burnout is sensed, the Company announces a ‘switch-off day’ to allow the employees to pause.

“At Godrej Housing Finance, we aim to create a culture where taking breaks is normal. Thus, we will continue to announce ‘switch-off’ days from time to time”

Ruhie Pande, CHRO, Godrej Housing Finance

The organisation encourages all employees to spend such extended weekends with their kids, partners and other family members and truly enjoy the day off, while following all COVID-19 protocols set by the state government. The idea is to allow employees the time to take care of their health, pursue their hobbies and spend quality time bonding with their family members.

During these breaks, GHF advises all employees not to engage in any work-related activities or schedule official calls or meetings. It asks them to refrain from responding to any official mails till Monday.

Pande shares that the Company has observed that after such extended breaks, employees return to work with a lot more energy, as they get adequate time to recharge and unwind. “Switch-off days, is a great way for employees to get a complete downtime from their professional responsibilities,” she points out. After all, these extended breaks help them reduce stress by unwinding and spending quality time with family and friends, or using the opportunity to pursue their passions. “With these periodic breaks, we have observed employees coming back to work relaxed, rejuvenated and recharged,” shares Pande. She feels such breaks have “become essential, especially during the pandemic, when work-from-home has become a normal culture and the boundaries between work and leisure have blurred.” Besides, with other forms of relaxation such as vacations and outings having become impossible, “this initiative has certainly had a positive impact across the organisation,” shares Pande with HRKatha.

“Such breaks help employees to be more motivated and productive at work,” points out Pande. She explains that “studies have shown that employees who take adequate breaks are better equipped to be innovative and engaged. And as the adage goes, an engaged employee is a productive one!”

The decision to declare Friday an off and allow an extended weekend to employees was a collective decision taken by the HR team at GHF.

Pande also assures that such day-offs and extended weekends will not remain a one-off activity, and that GHF will continue to announce such pauses periodically from time to time. “At Godrej Housing Finance, we aim to create a culture where taking breaks is normal. Thus, we will continue to announce ‘switch-off’ days from time to time,” reveals Pande.

The Company has also re-launched its Employee Assistance Programme or EAP, with some new offerings that cover the immediate dependents of employees as well. Additionally, GHF consistently encourages employees to make use of their privilege leaves.

As of now, GHF is working on a hybrid model with employees coming to the office on rotation and the field sales team working as per their regular routine.

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