Posted by gireesh on January 18th, 2011
Financial Planning for Employees
One of my friend consulted me on switching his job. I was aware that his employment was quite good. I wondered why he wanted to switch his job. He said he was not happy with his compensation. I asked his compensation and found that he was compensated above par the industry standard. An in-depth discussion with him revealed that his problem was not in his salary but in his surmounting expenses due to his ‘Beyond his means’ lifestyle.
He and I had a debate on if there can be any SATISFACTORY salary at all. My past researches have shown that employees with all grades of salaries lament for more. A large number of employees are victim of “Consumerism” and “Poor Personal Financial Planning” and try to live beyond their means. They are always complaining about the low salaries, are less productive at job and more likely to swicth jobs frequently.
On other hand, financially stable employees are more productive, more satisfied with their jobs. Such employees are stable in their jobs and often an asset to the organization.
Our discussion ended with both of us agreeing that, salaries can never be satiusfactory if the financial planning is poor. The key to satisfaction lies in better financial planning. Employees who are good financial planner make more out of the same salary.
There is a saying in finance, “expenses will expand to cover the income“. So what ever be the salary, employees with poor financial planning skills always live under monetary pressures. They survive paycheck to paycheck and switch jobs to increase the cash flow. Adding to their woes is the ever- rising cost of living, increasing credit card dues, and impulsive buying behaviors.
Role of HR in Employee’s Personal Financial Plannings: What and Why?
While financial planning is an employee’s personal responsibility, however, this aspect impacts the productivity of the employee which is a concern for the organization. HR can have a proactive positive role in this, thus helping employees as well as organization.
Posted by gireesh on January 1st, 2011
Welcome Year 2011 and I have two reasons to pat on my own back. Beginning year 2010 I made two promises to myself – to get rid of two things – Smoking and Debts and by the end of 2011 I have been to keep both of them to large extent.
Resolution for 2011
I quit smoking in November 2009 and kept it for whole 2010 and I am sure the ‘Butt’ is not going to hit me back. By the later half of 2011 I tried controlling my personal finances, whipped the attractive “Consumer OFFERS”, skipped many “Buying Impulses” and used the savings to get rid of my debts especially Home Loan – large part paid off now.
Now when I think of the stressful life of continued chain smoking and hassles of paying the agonizing monthly installments – I think I am out of hell. By end of the year I experience both these factors significantly improved my professional as well as personal life.
My personal Resolution for 2011 – Focus of health, financial stability, freedom from stress, better relations at work, more productivity at work and motivating others to meet their 2011 resolutions. Wish me luck!
How does this improved my life at work?
After I quit smoking the frequency of the breaks that I used to take has reduced by 80% which means more time at desk. Now I am more productive and less distracted at work. A debt free life gives one more confidence and less stress. Financial stress is the biggest reason that prompts employees to look out for another jobs – Financial stability = less attrition.
My suggestions to organizations in 2011
While HR will have many resolutions for 2011, I have two suggestions that they should include in their list to improve productivity and decrease attrition:
1. Motivate employees to Quit Smoking: Organizations should spend time and resources on motivating employees to quit smoking. This can be done by organizing No Smoking Days at least once a week where they should urge employees not to smoke at work and also off the work. Organizations can organize camps and workshops to aware employees about harms of smoking and also ways to quit smoking.
2. Educate Employees for better financial management: Organizations should educate employees on better financial management. Financially stable employees are less likely to quit jobs because they achieve higher satisfaction in the same salary. Camps and workshops should be organized to let employees avoid the trap of debts by controlling their spending habits.
Posted by gireesh on December 21st, 2010
How many times I do read in the “Careers” section of the corporate websites claiming that “We have a culture that fosters innovation”, although in real world we see only a handful of companies doing innovation in their domains. Rests are merely followers or at the most “Improvisers”.
Why is Innovation difficult?
Innovation and creativity is difficult – because its needs high degree of talent as well as high degree of risk-taking capability and a very supportive business culture. Only one practical and commercially viable innovation emerges out of hundreds of failed ideas. Beyond every successful innovation is a long trail of failures and frustrations accompanied by a huge loss of money and time.
Thousands of entrepreneurs, employees and independent professional strive hard to innovate and create a new products, services and solutions. However, only a few succeed. What about those whose attempt proved unsuccessful?
Unfortunately, in most of the companies – the winner have it all; and those who fail are often looked upon with frowned eyes – and even reprimanded. Once beaten twice shy – many employee start playing safe – merely saving there job and to hell with innovation.
Though innovation being an important ingredient for success, each organization has limited funds & resources and cannot afford too many failed attempts for innovations. However, the path to success (at least large scale success) cannot be achieved being “Immune to Innovations” and avoiding the risks associates with the innovation. Consequently, thousands of organizations are struggling to inculcate the culture of innovation and create something worth while.
Then how to maintain a favorable culture for innovation and also avoid too much risk. Here are some questions that HR (or the management) must answer:
Posted by gireesh on August 1st, 2010
The second most important reason why employees quit organizations is their deteriorating relationship with their managers. HR analysts often cite employee engagement more important for employee retention than salary or compensation.
Why So! – The answer is simple, as one of the call center executives in India told me “You can always go to work with a few buck less in your pocket; but how about facing that devilish manager who always nag without ever uttering a word of praise”
Yesterday, I and one of my uncle discussed un-employment versus employee retention issues in India. This uncle ‘Joe’ owes a small chain of retail outlets in a small town with around 30 employees on payroll. I explained him how companies face trouble in hiring and retaining good employees.
An experienced businessman and a man of wits he told that whether employee stays with business or not lies in the hands of employer or business managers. Employees crave for respect and good behaviors at work much more than the money they need to maintain their lifestyle.
This interesting old Indian Shopkeeper revealed that he has around 70% of his employees working with him for last 12 years. Oh! My god! What a great retention rate in such a small business. I was curious to know what makes it work. His answer was very simple:
Kick Once Kiss Thrice.
Posted by gireesh on July 20th, 2010
Note: These three identified challenges are not result of any research or survey, this is based on my own experience.
Unattended HR Automation Software
It is very exciting for HR folks to know when management shows interest in automating the HR department. For an HR department working on papers and using Excel and other MS Office applications, it seems exciting. But beware there is always a messed up baby (and a lots of doctor visits) after a really good love!
While it is true that an HR software can ease down the work of HR, unfortunately it can’t do all the magic itself. Expecting an HR software to do a turn around in an organization is a total misconception.
While most HR software have the same features (except small usability and GUI differences), what make the difference are the efforts and the way HR and vendor handle the implementation process.
While HR Technology vendors will be happy to tell you countless benefits of HR automation software, I will discuss what are going to be an HR Managers’ top three challenges during the software implementation cycle. Be ready for these even before you select an HR automation software:
1. Getting the Data (read information) Right: There is a continual flow of employee information in HR, be it employee data or policies or leaves or appraisals or warning letters or etc. While an HR software provides a platform to enable systematic data entry of information and manages various processes, work-flows, etc.; by no means an HR software can ease out the amount of efforts required to enter data into the software and then someone verifying its integrity. Unfortunately without the correct and appropriate data, the software can’t be effective. HR software too follow GIGO principle Garbage In Garbage Out! You must have one dedicated resource that takes care of your HR data!
Posted by gireesh on July 10th, 2010
While I was browsing through my twitter, a unique punch line by Impel CRM founder @nmadhyam caught my immediate attention:
“Depth without Complexity”
A Review of Simple Software in Complex SaaS Sea
What a contradiction does the phrase express? How can something be deep and still not complex? Can there be a simple deep sea, where I can dive deeper & deeper and then quickly come out without loosing the track.
Kishore, as he is popularly known in Indian software industry, said this in context of his software Impel CRM. This raised a curiosity in me to have a look at Impel CRM. So I explored it for a while. [Just before it struck my mind that why I not to add it to the blog – may be it becomes India Inc.’s desi SalesFocrce.com! So I decided to publish this experience as a review on my blog.
While it is always difficult to review software and then give unbiased feedback, for readers’ convenience, I would divide my experience in four categories: simple, deep, complex and strange and then calculate a score based on it – so at the end we get a fruitful result.
This quantification will also help me come to a digital analysis than just saying: good or bad. I will give 1 score for simplicity, 1 score for depth and 0 score for complexity. For strange, I would give no scores [if it is unusual for me doesn’t mean it is unusual for all].
