Monday, December 15, 2008

Work And Life Balance

Work life and personal life are the two sides of the same coin. According to various work /life balance surveys, more than 60% of the respondent professionals surveyed said that are not able to find a balance between their personal and professional lives. They have to make tough choices even when their work and personal life is nowhere close to equilibrium. Traditionally creating and managing a balance between the work-life was considered to be a woman's issue. But increasing work pressures, globalization and technological advancement have made it an issue with both the sexes, all professionals working across all levels and all industries throughout the world. Achieving "work-life balance" is not as simple as it sounds.

Work life and personal life are inter-connected and interdependent. Spending more time in office, dealing with clients and the pressures of job can interfere and affect the personal life, sometimes making it impossible to even complete the household chores. On the other hand, personal life can also be demanding if you have a kid or aging parents, financial problems or even problems in the life of a dear relative. It can lead to absenteeism from work, creating stress and lack of concentration at work.

Work-personal life conflict occurs when the burden, obligations and responsibilities of work and family roles become incompatible. Obligation of one can force an individual to neglect the other.

Changing & increasing work pressures
A decade back, employees used to have fixed working hours or rather a 9 to 5 job from Monday to Friday. The boundary between the work and home has disappeared with time. But with globalization and people working across countries, the concept of fixed working hours is fading away. Instead of just 7 or 8 a day, people are spending as much as 12-16 hours every day in office.

The technological blessings like e-mail, text messaging and cell phones which were thought of as tools to connect them to their work being away from their workplace, have actually integrated their personal and professional lives. Now professionals find themselves working even when they are on vacations.

The ever-increasing working hours leave the individuals with less time for themselves and to pursue his hobbies or leisure activities. This hinders the growth of the person as an individual in terms of his personal and spiritual growth. Professionals working in the BPO industry, doctors and nurses and especially IT professionals are the few examples who are facing the brunt of the hazard constantly.

Reasons of imbalance:
There are various reasons for this imbalance and conflicts in the life of an employee. From individual career ambitions to pressure to cope up with family or work, the reasons can be situation and individual specific. The speed of advancement of information technology, the increasing competition in the talent supply market has led to a "performance-driven" culture creating pressures and expectations to performance more and better every time. Also, many a times, many people find it difficult to say "NO" to others especially their superiors. They usually end up over burdening themselves with work. The increasing responsibilities on the personal front with age can also create stress on personal and professional fronts.

Effects
Constant struggle and effort to maintain a balance between the work and personal life can have serious implications on the life of an individual. According to a survey, 81 per cent of the respondents have admitted that their jobs are affecting and creating stress in their personal lives. The pressures of the work or personal life can lead to stress. According to studies, it has been found to that such situation can take a toll on the person's health both physiologically and psychologically. Heart ailments, cardiovascular problems, sleep disorders, depression, irritability, jumpiness, insecurity, poor concentration and even nervous breakdowns are becoming common among the victims of such imbalance. Pressure, stress or tension in work life can lead to bad social life and vice versa.

Solutions:
Many experts have given different solutions to this problem.

  • TIME MANAGEMENT is one of the best solutions which can help to reduce the imbalance between the personal and the work life of the employees. Prioritizing the tasks and planning the activities can help to take out some free time which can be utilized for other purposes.
  • Taking some time out for hobbies and leisure activities, spending time with loved ones can help to beat the stress.
  • Learn to say "no" if required.
  • Sharing the responsibilities will help and don't commit for something which is practically impossible.
  • Utilizing the flexible working hours option of the organisations to get some free time.


Conclusion:
Juggling between the obligations towards the families and expectations of the organisation and constant struggle to maintain a balance can work can have serious implications on the life of an individual. Therefore, it is important for employees to maintain a healthy balance between work and their private lives. This will help them achieve their personal and professional goals as well the organisation they are working for.

Work And Life Balance

Sunday, December 14, 2008

What Is Attrition Rate?

The attrition rate has always been a sensitive issue for all organizations. Calculating employee turnover rate is not that simple as it seems to be. No common formula can be used by all the organizations. A formula had to be devised keeping in view the nature of the business and different job functions. Moreover, calculating attrition rate is not only about devising a mathematical formula. It also has to take into account the root of the problem by going back to the hiring stage.
Attrition rate: There is no standard formula to calculate the attrition rate of a company. This is because of certain factors as:
• The employee base changes each month. So if a company has 1,000 employees in April 2004 and 2,000 in March 2005, then they may take their base as 2,000 or as 1,500 (average for the year). If the number of employees who left is 300, then the attrition figure could be 15 percent or 20 percent depending on what base you take.

• Many firms may not include attrition of fresher who leave because of higher studies or within three months of joining.

• In some cases, attrition of poor performers may also not be treated as attrition. Calculating attrition rate:
Attrition rates can be calculated using a simple formula:

Attrition =(No. of employees who left in the year / average employees in the year) x 100

Thus, if the company had 1,000 employees in April 2004, 2,000 in March 2005, and 300 quit in the year, then the average employee strength is 1,500 and attrition is 100 x (300/1500) = 20 percent. Besides this, there are various other types of attrition that should be taken into account. These are:
• Fresher attrition that tells the number of fresher who left the organization within one year. It tells how many are using the company as a springboard or a launch pad.

• Infant mortality that is the percentage of people who left the organization within one year. This indicates the ease with which people adapt to the company.

• Critical resource attrition which tell the attrition in terms of key personnel like senior executives leaving the organization.

• Low performance attrition: It tells the attrition of those who left due to poor performance.
Attrition Costs
One of the best methods for calculating the cost of turnover takes into account expenses involved to replace an employee leaving an organization. These expenses are:

A. Recruitment cost
The cost to the business when hiring new employees includes the following six factors plus 10 percent for incidentals such as background screening:
• Time spent on sourcing replacement

• Time spent on recruitment and selection

• Travel expenses, if any

• Re-location costs, if any n Training/ramp-up time

• Background/reference screening
B. Training and development cost
To estimate the cost of training and developing new employees, cost of new hires must be taken into consideration. This will mean direct and indirect costs, and can be largely classified under the following heads:
• Training materials

• Technology

• Employee benefits

• Trainers’ Time
C. Administration cost
They include:
• Set up communication systems

• Add employees to the HR system

• Set up the new hire’s workspace

• Set up ID-cards, access cards, etc.

Tuesday, December 9, 2008

How Can HR Manage Difficult People at Work

Every organisation, every workplace has people with diverse backgrounds, religions, educational qualifications, experiences etc. Most importantly, they differ in their personalities and attitudes. Most people are polite, easily accessible and cooperate with others. But every organisation has a few people who are simply difficult to deal with or difficult to manage. "Difficult people" as they are generally referred, exists in every workplace. They can be in the form of a bad boss, a difficult co-worker or a non-corporative vendor or customer.

Difficult people become the problem employees for an organisation very soon. From the organisation's point of view, difficult people in a workplace is a problem because not only do they

themselves perform feebly, but also affect other employee's productivity, and often become a bottleneck for the people around them to perform efficiently on their jobs. A negative person can affect and hinder the organizational processes like change.

Types of difficult people in an organisation:
Difficult people in an organisation and be characterized and categorized into the following types or categories:
• Uncooperative - These are the people who are concerned only about their needs and work, often creating troubles and conflicts for others. They don't cooperate with others and have the tendency to create tension at workplace.
• Power Seekers - There are few people who can be categorized basically as power seekers. They always look for some chance or the other to seek more authority and power over others and show their superiority. To seek the spotlight (attention), or to be in the good books of the boss, they can even become the 'yes man' of their boss and go to the extent demoting or creating problems for others.
• Complainer - This category is for the people who keep complaining about the organisation and its systems, their co-workers etc. Although there are complainers who complain against the genuine issues and do good for the organisation. The most dangerous type of complainers is the "malcontent complainer" who offers no valid suggestions but problems, and they drain out the energy from the organisation and have a demotivating impact on others.
• Pessimists - Another category of difficult people in the organisation is of pessimists. They are the set of negative people in the organisation who can find fault in almost everything and everybody. With their negative mindsets, they can create negativity in their surroundings.
• The aggressive employee - Aggressive employees, especially an aggressive boss, is the most difficult set of people in an organisation to deal with. They are the people who refuse to accept their faults and flaws, and consider themselves to be always right. They are found to be dominating in nature and believe that they "know-it-all". Such people fail to mature and acknowledge other's valuable ideas and suggestions. Such employees are often referred as "The hyena" indicating rude, aggressive, authoritarian and negative people, always blaming others for their failures.
• The wild cat -is the category of people who are generally found very irregular at their work. Also, they are known to create and spread rumors in the workplace, always making excuses and blaming others for their inadequate performance. They have the tendency to create stress at their workplace.

MANAGING DIFFICULT PEOPLE AT WORK:
Difficult people can be irrational, abusive, creating problems persistently or simply difficult to get along with. Every organisation has to decide whether and how to deal with them without having an adverse effect on the organisation's environment, employee's productivity and their morale. A few ways of dealing with them are:

Talk to them: Be patient and polite, talk to them with a personalized touch explaining them the situation. Don't confront or blame them, and listen to them. Give them a piece of your own mind, understand if there is some problem they are facing. Reinforce the good part of their behaviour.

Don't be a difficult person for them! Don't rush things and explain your point of view with care. Don't point fingers or try to judge them as a person. Be unbiased and systematic I your approach.

Always agree to disagree: Talk to the person with an open mind and positivity. No two individual are alike and there can always be disagreements. Personally disliking towards a co-worker or boss should be dealt with care. Always try to find the positive way out.

And last but not the least
Take concrete action: Once you are completely aware of the problem, through with all the possible solutions and the situation doesn't get any better, don't shy away from taking any concrete action for the good of the organisation and to stop the problem from aggravating, even if it requires to confront the person directly.

Establish parameters and hire "right": One of the most important and effective solution is to frame and practice the recruitment policies and procedures to judge the attitude of the person at the time of the interview and hire only the right people.

CONCLUSION:
Dealing with difficult people is a challenge. However firing them or separating them from the organisation should be the last resort, as it is always possible to help them be more productive and effective in doing their job.

Monday, December 8, 2008

Benefits Of Employee Empowerment

"An empowered organization is one in which individuals have the knowledge, skill, desire, and opportunity to personally succeed in a way that leads to collective organizational success." - Stephen Covey

An organization’s human resource is its most valuable asset. The employees are the repository of knowledge, skills and abilities that can’t be imitated by the competitors. Technologies, products and processes are easily imitated by the competitors; however, at the end of the day, employees are the most strategic resource of the company.

Generally, people are a firm’s most underutilized resource. And that is why management tries to empower the employees. But employees often are afraid of taking this responsibility. They fear the additional work pressure that they will have to bear as a part of being empowered. Besides, they also fear being held accountable for the decisions they make.

But, what does employee empowerment actually mean? Does it mean absolute authority or absolute power? The answer is certainly NO. Empowerment refers to enlargement of an employee’s job responsibility by giving him the authority of decision making about his own job without approval of his immediate supervisor. Empowerment is the degree of responsibility and authority given to an employee. By empowerment, the employees are supported and encouraged to utilize their skills, abilities and creativity by accepting accountability for their work. Empowerment occurs when employees are adequately trained, provided with all the relevant information and the best possible tools, fully involved in key decisions, and are fairly rewarded.

Employee empowerment entails identifying how much responsibility and authority an individual can effectively handle without becoming over-burdened or distressed. Empowerment includes supervisors and employees working together to establish clear goals and expectations within agreed-upon boundaries.

Wednesday, December 3, 2008

Why Employee Empowerment Fails?




Employee empowerment means that an employee has the power to take some decisions without consulting his boss or reporting manager. Employee empowerment is an essential part of employee retention. But due to many known or unknown reasons, it fails. Some of the reasons may be:
• Managers don’t take employee empowerment seriously in the first place. It becomes more of a prestige issue to give control to others.
• Even if managers take it seriously, they are unable to lay down proper boundaries for the empowerment.
• Managers sometimes fail to provide a strategic framework.

• Managers sometimes don’t provide the information, and growth & learning opportunities that are needed by the employ to empower himself and take good decisions.

• On the other hand, managers sometimes hand over all responsibilities to the employee. This may lead to misuse of powers given to the employee.

• Some managers act like a barrier and hamper the decision making practice of the empowered employee out of jealousy.