How to resolve Employee conflicts

 Guest Post by Patrick Del Rosario

It can be tempting to turn a blind eye to pesky employee squabbles and hope they simply work themselves out. Unfortunately, though, workplace disputes rarely work themselves out on their own, and even the smallest disagreements can escalate into more serious problems if left to fester for too long.

According to recent research, between 24 and 60% of management time is spent on dealing with conflicts and anger in the work place.

While it may seem like all this time would be better spent on some other aspect of running a business, it is important to keep in mind that employees are the very thing that keep a company going, and in order to keep your workforce productive, happy and stress-free, interventions are often necessary.

Here are a few tips to keep in mind when settling conflicts in the workplace.

1. Stay neutral and listen to both sides of the story

When dealing with conflicts amongst your employees, it is important that you stay neutral and don’t pick sides. Picking sides will only worsen the problem and prevent you from coming up with a workable solution that sits well with both parties involved.

In a small business setting this may be more difficult, because you work so closely with people that the line between your professional relationship and your friendship can become blurred.

Before you even attempt to mediate a conflict, ask yourself whether or not you will be able to stay neutral and keep an open mind. If you don’t feel that you will be able to do this, for whatever reason, you should seriously consider bringing in a third party mediator, who can leave their personal opinions and feelings out of the matter.

One good way to help keep things neutral is to take the mediating outside the office. This will prevent other employees from feeling caught in the middle of it, and being away from the office during the discussion can help everyone feel more at ease.

During your meeting, try to give both parties a chance to speak their part without being interrupted by anyone. Then, once everyone has had their say and gotten the grievances off their chest, they will be more willing to listen to what others have to say and see the situation from another perspective.

 2. Stick with the facts

Most employee squabbles are very emotionally charged, so it is important that you as the mediator are able to keep the emotions out of the picture and listen only to the facts that are being presented.

You will probably hear lots of feelings and assumptions, but while these may be very valid concerns to the person in question, what he or she assumes or perceives may not necessarily be correct. For example, you may be told things like “I feel like he doesn’t respect me…” or “I know that he doesn’t like me…” While these are certainly real concerns, you cannot do anything with assumptions and emotions.

So, in order to get to the bottom of it, ask questions like “why do you feel that way?” or “what makes you think that?” In this way, you can learn more about specific actions and behavior that might have caused the problem.

You will also have concrete facts to go on, rather than vague assumptions about what another person may be doing or thinking. Once you are aware of any problems (whether real or perceived) you can go about helping your employees to see areas in which they need to improve or change.

Keep in mind that while you do want to get the straight facts, you will probably have to wade through a lot of emotions to get to them, which will take time and patience. Always try to be understanding of your employee’s predicament, and don’t downplay their issues by telling them to get over it or move on.

3. Ask your employees what they would like to do to resolve the conflict 

Even once you have heard both sides of the story, you may still be at a loss as to where you should begin. Sometimes, asking the employees themselves what they would like to do to resolve the issue is a good way to come up with a workable solution that both parties are in agreement with.

Also, you should always consider the possibility that the company’s practices or management methods may have played a part in the dispute. If this is the case, try to get feedback from your employees about how you could improve the team’s morale and encourage better collaboration in the future.

Try to help your employees become part of the solution rather than looking at them as the problem. If you are able to approach conflicts in this way and stay open to suggestions and feedback from others in the company, your mediating will be a whole lot easier in the future.

Guest Post - About the Author: Patrick Del Rosario is a Filipino business and career ninja. He works at Open Colleges, one of the pioneers of Online education in Australia and one of the leading providers of human resources courses and cert iv training and assessment

Employee Retention - Getting it right

Changing times needs different strategies to engage and retain key employees. Organizations adopt different approach towards managing talent and working towards improving deliverables for business profitability. 

Mckinsey study shows that too many companies approach the retention of key employees during disruptive periods of organizational change by throwing financial incentives at senior executives, star performers, or other “rainmakers.”The money is rarely well spent. Many of the recipients would have stayed put anyway; others have concerns that money alone can’t address. Moreover, by focusing exclusively on high fliers, companies often overlook those “normal” performers who are nonetheless critical for the success of any change effort.

Some of the key observations are:

Find the “hidden gems”

Once HR and line managers have generated a thoughtful and more inclusive list of key players (usually 30 to 45 percent of all employees), they can begin to prioritize groups and individuals for targeted retention measures— 5 to 10 percent of the workforce.

The key is to view each employee through two lenses: first, the impact his or her departure would have on the business, given the focus of the change effort and his or her role in it; and second, the probability that the employee in question might leave.

Mind set matters

One-size-fits-all retention packages are usually unsuccessful in persuading a diverse group of key employees to stay. Instead, companies should tailor retention approaches to the mind-sets and motivations of specific employees (as well as to the express nature of the changes involved).

Retention is about more than money

Executives mustn’t view employee retention as a one-off exercise where it’s sufficient to get the incentives packages right. Rather, best practice approaches build on continuous attention and timely communication every step of the way to help employees make sense of the uncertainty inherent in organizational change.

Ultimately, what many employees want most of all is clarity about their future with the company. Creating that clarity requires significant hands-on effort from managers, including the ongoing work of tracking progress so that companies can quickly intervene when problems arise.

Targeting retention measures at the right people using a tailored mix of financial and nonfinancial incentives is crucial for managing organizational transitions that achieve long term business success; it’s also likely to save money.

Strategic Planning in Uncertain Times

Strategic planning becomes a daunting nightmare in challenging economic times. Anticipating change and creating framework for future growth needs in depth understanding of trends which can indicate future changes with fair degree of certainty. Mckinsey article has few tips on planning during these transitioning times.

Be realistic about scenario planning

In a highly uncertain environment, the advantages of scenario planning are clear: since no one base case can be regarded as probable, it’s necessary to develop plans on the assumption that several different futures are possible and to focus attention on the underlying drivers of uncertainty. Senior executives outside the strategic-planning group—even those accustomed to developing scenarios—may find the diversity and complexity of this year’s scenarios bewildering. It’s critical to bring such executives into the process early: for example, by kicking off the planning process with a scenario-development exercise involving the full senior team. Similarly, as the process of reviewing business units gets under way, a company can inculcate an appreciation of the threats it faces and of its collective strategic response by inviting executives from a number of divisions to participate in the proceedings—rather than hold one-off events between the senior team and the leader of each individual unit.

Intensify monitoring

The company’s strategy, in short, must account for many more contingencies than it has until recently. Since the effectiveness of such a strategy depends on an organization’s ability to adjust rapidly as the fog starts to lift, managers must identify and intensively monitor key indicators suggesting which scenario might unfold.

Look beyond the crisis

Given the vastness of the economic change now under way, the temptation for many planners will be to gaze, mesmerized, at the unfolding crisis. That’s a mistake, for at least two reasons.

First, devastating as the current downturn may be, it cannot roll back fundamental market trends—such as the aging of consumers in Europe and North America or the continued economic development of Brazil, China, India, and Russia—which will continue to create strategic opportunities and threats. Managers must focus their eyes—and resources—on these trends no matter what happens.

Second, planners who become fixated on current economic events run the risk of overlooking a core responsibility: evaluating the effectiveness of current strategies. Although the crisis may force companies to suspend or redirect some of them, others will remain relevant even in the changed environment.

Given the background of the cataclysmic changes which have happened in the past few months, planners today are better prepared to anticipate and work towards a more change responsive plan of action.

Salary Compression – A HR Nightmare?

If there's one thing that's tipping the scales for fresh employees and leaving the veterans out in the cold, it's salary compression. There's no room for loyalty to the company when market conditions have to be taken into consideration and new hires have to be paid according to industry standards. With the internal annual rate of increase between 4 and 7 percent and the industry annual rate of increase touching 10 to 15 percent, there's a huge disparity between what more experienced workers earn and what their fresh-faced counterparts just setting foot in the company make.

The situation is compounded year after year, as those with the company for a longer period of time continue to earn comparatively less than those who've come after them. HR professionals and managers have been put in a bind by salary compression – they're forced to pay the going rate for the best of the new talent to hit the market even as they risk the ire and resentment of individuals who have slogged for the company for more than a few years, but who are earning a significantly smaller amount than those coming in, even with the annual hike in their salaries.

Older employees are forced to change jobs then, since they are likely to be paid the higher market rates by new employers, which means that more new employees have to be hired at current market rates, and more money has to be spent on recruitment and training costs and on higher salaries. This leads us to the questions - Isn't it more rational to increase the salaries of older employees on par or at slightly higher rates than those of their newer colleagues? Is it worth the low morale, frustration and reduced productivity that older employees exhibit when faced with the news that their juniors, people they have to take under their wings and train, are taking home more money than they are? Does this make for a workplace conducive to harmony and cooperation?

Employers are struggling to address these issues without emptying the company's coffers on salary alone. In an attempt to retain valued and experienced employees, they are offering perks like the use of company transport, phone bills at the company's expense, access to health clubs and paid vacations. Some companies are restructuring their pay levels in a new attempt termed broad banding where employers assume more flexibility in defining job descriptions and adjusting pay scales accordingly. Others offer bonuses and incentives on a performance-based model.

A job market with a limited amount of skilled labor and a large number of jobs that require highly skilled professionals gives employees the upper hand – they are able to dictate terms and threaten to quit if they're not paid what they think they're worth. But then, too much of job hopping is seen as a sign of instability in industry circles, unless the employee has something really special to offer in terms of skill and ability. At the end of the day, it's up to organizations to affect the trade off between retaining experienced employees at a higher pay or spending more to bring in new ones and train them well.

This article is contributed by Heather Johnson, who regularly writes on HR manager. She invites your questions and writing job opportunities at her personal email address: heatherjohnson2323 @ gmail.com

On ROI, HR Skills & Perception about HR Function

ROI on Training and Leadership programs

Training evaluation usually takes into account the following factors.

• Reaction-How the participants reacts to the program

• Learning-Depending upon the nature of the program ways to measure the learning has to be worked out.

• On Job behavior -To access the effective changes for the desired result on the team and the individual.

• Business result-how the change in behavior has positively impacted business result.

• Calculating the return on investment (ROI).

Most of the organizations focus only till stage 4 of the evaluation process. Typically there are 3 aspects which are considered to be looked at under ROI.

• Desired Impact- has the training program been effective it facilitating change as it was desired. Training is one of the many tools available; it must justify its effectiveness as a viable business solution to remain relevant and viable.

• Cost –to substantiate that the cost incurred leads to positive impact of profitability.

• Improve the design and content of future training programs on the basis of feedback received.

The best way to evaluate the ROI on training is to do a control group experiment and evaluate the performance of both the teams on the basis of pre identified hard and soft data points like absenteeism, productivity, morale, enthusiasm etc. Only if the pre determined targets are achieved for the group which has undergone training is evident it would be viable to have effective ROI assessment. However ROI assessment has its own challenges since the effectiveness also depends on individual willingness and openness to change behavior through structured intervention.

In my personal experience the best training programs are run by people who have demonstrated exceptional leadership ability and have proven track record of being a performer and great achiever in any field of life. Only those who are exceptional achievers can inspire others raise the bar and achieve new heights.

New Skills for HR Professionals

HR function in itself is the core of any entrepreneur activity. For any organization to be effective it needs great managers and great managers must be great team leaders having exceptional people capabilities. However Marketing (Business development and Sales) and finance are two functions which HR professionals must have to become quite essential entrepreneurs. In one of my earlier post on my blog I had opined on “selling skills for HR professionals”. Cross functional expertise is a core competency for HR professional as it is involved in Hiring, training, mentoring, developing career path and designing robust performance management system and policies for all functions in the organizations. Unless it has the necessary know how of business, functional, operational and strategic goals of teams it will never succeed in performing its role effectively.

Perceptions about HR department

Depends on what we are trying to achieve, we keep reading lot of surveys and findings on the role of HR in organizations and what is expected from HR teams .Perception of employees will change only if the expectations are aligned to the common goal. As long as HR leadership in your teams are able to differentiate and successfully execute the employee value proposition and integrate the same with organizations people’s philosophy ,in my view it would have done its core function.

HR must re-define and change the way it sees itself, it ought to articulate its business value proposition and strategic contribution more effectively. It should become a viable change agent in driving the strategic goal of organizations. Only when these goals are achieved we can expect changes in the way HR function is perceived.

Inflation's impact on HR function

Inflation is a cyclical economic phenomena, in a globalised world inflation in not just driven by internal economic variables but also get influenced by common economic concerns like global oil prices, entry and exit barriers to economies, food grain production etc. The current inflation trend is cost push inflation which is more driven by the rise in the cost of essentials goods and services. It even leads to rise in wages in excess of any gains in labor productivity, this leads to increase in unit costs of production and thus further spiraling prices.

Generally when Inflation is more demand driven (total demand for goods and services in an economy exceeds the available supply) it leads to increase in the production of goods and services. This means more employment opportunities and higher demand for skilled labour and if supply fails to match the demand for skilled and highly skilled labour, wages move northward and it also leads to higher attrition in organizations where even demand for labour is more.

In case of Cost push inflation the demand for labour does not necessarily goes up,on the other hand organizations looks for ways to reduce cost and reduce redundant work force as the cost of services and managing a non productive workforce goes up. Cost push inflation also leads to demand for higher wages to meet the growing expenses and organizations face dual challenge of managing external as well as internal cost push .This often leads to wage price spiral which means increase in wages will drive cost of goods and services.

In such situations it becomes very critical for the HR team to take the right decisions on:

• Hiring the best talent-To ensure that the value added is more than the cost
  

• Improving productivity - Initiate ways to enhance productivity per employee, to have better retention programs to engage the high performers.
  

• Review the compensation and benefits applicable: Change in economic scenario drive the compensation structure, too much of market uncertainty would mean that variable and bonus component of employees needs to be aligned to marked realities.
  

  
  

• Partner with leadership on decision making- Don't forget the role of the ear piece of senior leadership in your organization, HR has to come up with relevant findings and metrics which helps the organization meet challenges better.
  

  
  

• Communicate effectively and timely: In such economic scenario it becomes very critical that right information reaches employees at the right time. Even if it's a decision which is likely to negatively impact the compensation or benefits of the employee, it's very critical that the rationale for change and how it will help the organization and its workforce to meet the challenges are well articulated by leadership and HR teams.
  

Employee Performance Management System

Talent management is one of the most critical and ever challenging activities for any HR team. Sound performance management system is quintessential for the success of any talent management strategy for any organizations. While lot of organizations have automated their Performance evaluation and rating processes a large number of small and medium enterprises continues to struggle between legacy systems and new age Human capital management systems which integrates different aspects of performance measurement and also integrates it with other ERP and HRIS (human resource information system) .Some of the key factors which needs to be considered while adopting automated IT system based performance evaluation model are:

• A well defined performance management tool should focus on arriving at role based assessment and evaluation matrix which is duly aligned with the competencies defined for each role.

• Ratings must translate into performance index scores and should follow the philosophy of the performance evaluation and distribution method generally followed, for example –MBO, Force rating method or Behaviorally Anchored Rating Scales.

• Key tasks and related competencies for each task should be duly mapped and performance grading should have pre set values assigned to the tasks performed.

• It must consider the various variables which have influence of the final deliverables. These variables will again be unique to the roles and competencies.

• Performance index must be benchmarked for different performance scales (best, average and below average performers)

• It should integrate metrics and milestones from any other HR or Internal systems, to enable evaluator assess more accurately with the help of readily available data for specific tasks.

• Should capture qualitative aspects and clearly identify the strengths and performance highlights like client appreciation, key differentiators and initiatives etc.

• It should help in identifying the developmental needs (training, mentoring etc) on the basis of the gaps, based on the assessment against the desired superior performance level.

• Basis Performance management aspects like SMART Goals (Specific, measurable, attainable, realistic and timely) needs to be factored and assessment must be done again pre defined goals and role based evaluation parameters.

• It must cover relevant feedback and evaluation ratings from all stakeholders apart from the manager and next level reviewer to enable more holistic and 360* overview of the employees performance.

• Periodic review and update features to give a comprehensive assessment for the performance calendar, should not necessarily be open during a particular time during the evaluation window but allow periodic ratings to be weighted for the purpose of cumulative index score.

• It should help in identifying the readiness of the employee to perform a higher role and also capture the future career aspirations.

5 ways to get more done in your Workday

A major complaint among HR professionals these days is a severe lack of time. This is a common concern across the professional landscape and something that we all combat every day. You probably find yourself hoping for more hours to get more done. This isn’t going to happen but there are ways you can make more productive use of your time to make sure that your “to-do” lists are completed by the day’s end. Here are five ways you can create this needed time:

1. Switch your hours. If the 9-5 shift isn’t providing you enough time to get everything done that you need to then consider working longer. Wake up an hour earlier and get to work that much earlier. The earlier you get to work the less interruptions you’ll encounter. While your free time will be cut into you’ll feel more satisfied that you got more done.

2. Multitask. This is the catchword of the day and it’s here to stay. If you’re trying to further your career then listen to audio textbooks while in the car. Waiting for a doctor’s appointment or your car to get fixed? Bring a book that is appropriate for your job or paperwork.

3. Cut out activities that eat up time. Turn off the television if you have one in your office. Cut out the twenty-minute chit-chat session in the morning with your friends by the coffee maker. Don’t surf the internet for anything not related to your job. Resist these temptations! These extraneous activities can severely cut into valuable time that you could be spending on getting stuff done.

4. Work faster. This may sound like a no-brainer but it’s hard for people to change their work habits. Learn to type faster by taking a typing course or tutorial online. Be a better reader as you scan for the details that you need and cut out the meaningless text that takes up your time. Make your own deadlines that are independent from the natural deadline attached to a project. This will create a sense of urgency that will make you work faster.

5. Preparation is crucial. If you have tomorrow lined up before you leave work today then you’re in good shape. The worst thing you can do is come into the office in the morning and have little to no idea what you should be doing. It will take you an hour to plan your day. Be prepared with your tasks for the next day and you’ll get off to a running start when you arrive!

This article is contributed by Heather Johnson, who regularly writes on the topic of career exploration. She wanted to share a guest post on HR Funda and I was more than happy to feature her post .She invites your questions and writing job opportunities at her personal email id: heatherjohnson2323@gmail.com . If you have any guest post to contribute, please drop me a mail on ajitchouhan@gmail.com

HR Challenges -Time to act

Prioritizing key activities and focusing on strategic areas of concern continues to be a challenge for majority of HR professionals. Most of the studies which focus on challenges faced by HR professional continues to highlight the ever increasing pressure of attracting, engaging in retaining talent.

In a recent study by i4cp when respondents were asked about the main barriers facing HR in 2008, 44% of the 355 responding companies rated lack of time as having a high or very high impact on HR’s ability to achieve its goals.

“HR professionals are singing a familiar refrain,” said Donna J. Bear, senior research analyst at i4cp. “They’re citing not enough time, talent or money and too many conflicting priorities as top impediments to accomplishing their employers’ goals.”

Besides not having enough time, nearly four in 10 respondents cited “conflicting organizational priorities,” “scarcity of workforce talent” and “financial resources” as having a high or very high impact on achieving their goal of filling their employers’ ranks with high-potential workers.

Regarding their own ongoing development, HR professionals recognize the need to develop competencies that are both broad and high-level. The study’s respondents ranked leadership first among all the competencies needing further development, with 55% of all organizations ranking it as high or very high in importance. Also, 50% of organizations ranked change management as a high or very high priority, and innovative thinking is also a competency that HR professionals must develop, according to the 47% of respondents who said it ranked high or very high in importance.