Recommendations on how to shift your HR department from a reactive to a proactive HR Function in 2017

As we settle into 2017, many businesses will be gearing up for new opportunities and challenges. Be it growth, diversification or consolidation, whatever your business strategy, take time to ask yourself this: Is my HR function ready and able to deliver what the business needs?

Even in 2017, many HR functions will continue to do what they have done historically for many years and focus on activities that are centred around day to day employee administration such as payroll, policy administration, leave and attendance and so on; they will respond to new requests, such as recruitment, only as and when the need arises rather than take a proactive approach in anticipation of what the business needs. This is what I would describe as a ‘reactive HR’ function that is likely to be process driven as opposed to driving policy and culture or supporting delivery of the business strategy. It is unlikely that HR professionals performing in this way will think about, or even question, how they are doing things, or even ask if what they are doing really adds value to the business. They are unlikely to take a lead in finding more efficient or cost effective ways of doing things. In today’s business environment, isn’t this the expectation of every business?

So what do HR professionals need to think about to gear up for 2017?

To really ‘earn’ a seat around the leadership table, which many HR professionals believe they should have anyway, we need to think about what value we will add by having a place at the leadership table. What value will this bring for everyone else around the table i.e. the rest of the business? Let’s ask ourselves what are we doing? Are we driving change? Are we identifying new ways of working to reduce costs or introducing new policies or initiatives that will help to engage and motivate employees and ultimately improve performance and productivity? Or, are we merely saying yes when we are asked to do something as and when it is needed? And finally, we must ask ourselves, are we measuring how well we are doing whatever it is we are doing?

I recall an experience a few years ago when I was acting as the HR Director of an organisation with 3,500 employees. The attendance policy was not effective but when I talked about changing the policy there was no appetite for any change from the rest of the business. I therefore I took it upon myself to carry out a detailed review of attendance and punctuality across the organisation. I gathered data for two consecutive months to see how many ‘man days’ had been lost due to unauthorised absences and lateness. The results were staggering. When I presented these facts to the leadership team they certainly sat up and wanted to listen to what I had to say. This resulted in implementing a new attendance policy which was very quickly signed off by all stakeholders around the table who previously didn’t see the need for change.

This is a simple example of how the HR function influenced the business to drive change by using data that was readily available. By translating the impact of this issue into financial terms, a language of numbers which the business clearly understood, and which could be measured, I was able to create the support and appetite for change.

In today’s VUCA environment there is an increase in pressure on all businesses to reduce and operate more effectively and thus there has never been a greater need for HR to be more proactive in looking at how to bring value to the business. Be it by reducing costs or increasing productivity, 2017 in my opinion, is a year in which HR professionals across the region need to review what they are doing and ask ‘what can we do better or what can we differently to improve the way we work and make a bigger contribution to the business?’
As HR professionals, we should ask ourselves, have we understood the business strategy and do we know what our role is in delivering that strategy? Or will we be reactive and wait to be told what to do?

My recommendation for 2017 is for HR professionals to be proactive in reviewing their HR policies and practices in order to streamline processes to drive efficiencies and improve the way of working. A good example of this is the recent shift we have seen in how some companies are now managing the annual performance management processes. Some organisations have replaced the traditional annual performance management process with more regular informal reviews that focus on an employee’s strength and potential rather than the development areas being the main focus of the discussion. The traditional annual review process was seen as time consuming with little or no value addition so this is now being replaced by a different approach. The new approach is still being tried and tested but what is important to note, is that the companies that made the change, replaced the traditional method because it wasn’t working for them.

Looking at efficiencies internally within the HR function is a good place to start. In 2017, it will be important to collate data and use HR analytics to drive prudent business decisions. We should start by measuring costs of key HR activities such as recruitment, attrition, absenteeism and ROI of training and development as an example. Let’s consider a scenario in which a company is reducing budgets or cutting costs. Quite often the training and development budgets are usually the first to be cut but in doing this what is the longer term business impact of such a decision? Are these decisions purely based on short term cost savings without considering the impact on employee retention, engagement, motivation and capability development? Are the long term costs to the business greater than the short term saving? This is where HR needs to provide inputs and insights to the business so that decisions are taken in an informed manner with a view on the bigger picture. HR has a role to play in influencing such key business decisions not just in implementing the decisions once they are made. It is HR’s ability to assess these scenarios that will give us a voice at the Leadership table and allow us to influence using a language that carries weight through the rest of the business.

The difference between reactive and proactive HR essentially comes down to two things – foresight and timing. Proactive HR practices involves the planning and implementation of programmes based on analysis of data and trends that help drive the business agenda or at the very least strategically support it. Ensuring compliance with policies and procedures, timely payroll runs, and administering daily attendance for example, are all necessary activities however these are reactive HR practices that form part of the operational running costs without adding any strategic value or impact.

Is your HR department proactive or reactive? The following questions should help you to assess your current situation and steer you into a proactive direction giving HR professionals something to think about in 2017?

Ask yourself:

• When was the last review of the company’s HR policies? Are HR policies up to date with legal requirements and market/HR best practices?
• Does my organization have a succession plan in place for all critical jobs / top levels jobs in the organisation?
• Has the 2016 performance cycle been completed?
• Has the organisation set and cascaded the business objectives for 2017? Are all employees working towards the business strategy?
• Which function/department has the highest productivity return?
• Which function/department had the highest increase in productivity return over the past 24 months?
• Are the 2017 pay increases and bonus payments linked to 2016 performance?
• What was the company employee engagement score in 2016? What is the ‘mood’ in the business?
• What is the HR budget for 2017 (training budget, salary budget, restructuring budget etc…)
• Is there a link between the current organisation structure and business objectives?

If you have questions or need help with transforming your HR department from a reactive to proactive function that is aligned to your business needs, contact us:

T: +971 4 4475210
www.peoplefirstme.com
info@peoplefirstme.com

There are many drivers that can trigger an organisation review or restructure however the biggest driver of late, seems to be the drive to reduce costs. 2016 was no doubt a difficult year for many organisations and in particular some specific industry sectors.  The impact of lower oil prices and fast paced technology developments has driven many organisations to rethink the way things have traditionally been done and prompted a review on how the organisation is structured and ultimately operates i.e. the organisation design. This is an important issue that many organisations do not place enough emphasis on when times are good. More often than not, this becomes the first area of focus when times are tough and therefore this approach in itself, is probably one of the main factors that contributes to a fear of job losses when the topic of restructuring is being discussed. It goes without saying, therefore, that organisation restructuring is a very sensitive issue for everyone concerned.

The pressure to protect margins especially in a difficult economic climate can force organisations to rationalise costs through headcount reductions and explore more efficient ways of working. Organisation restructuring is still very often, something that is managed from within closed doors and without the involvement of the broader management team yet we could argue that all managers should be responsible for optimising margins and managing costs regardless of external market conditions. In fact, once could argue that organisation restructuring / design should be reviewed as part of an organisations ongoing continuous improvement process. Regardless of the drivers, here are some things you should think about when reviewing or restructuring your organisation:

• How will the strategy be delivered through the organisation design/structure?
• How is value created and/or delivered to the customer?
• How is accountability delegated through the organisation structure?
• Are the required skills and competencies available to make the organisation effective?
• How is authority delegated through the organisation?
• What processes/mechanisms are needed to ensure all parts of the organisation structure work together?
• What is the cost impact of restructuring?

How an organisation is designed and structured can have a direct impact how it performs. An effective organisation design integrates the structure, its people, the processes, the systems and interdepartmental linkages whilst taking into consideration the external environment in which it operates. Whether an organisation is preparing for growth or rightsizing it is important not to lose sight of the overall organisational design and structure of the organisation to ensure it operates effectively.

How we can help you?

At PeopleFirst we have a proven track record of developing organisational design solutions that are aligned to specific operating environments and best practices. We have extensive experience in this area having designed and restructured large and small organisations across a wide range of industries within the government, semi government and the private sector as well as start- up companies.

If you have questions about organisation design or restructuring, contact us:
T: +971 4 4475210
www.peoplefirstme.com
info@peoplefirstme.com

This article looks at pay trends across the UAE in 2016 and makes recommendations on what employers should be thinking about for 2017.

While 2016 may not have been the best year in terms of pay trends, it was also not all doom and gloom for employees working in the UAE in 2016. The GDP growth was slow yet stable in 2016 and inflation rose from 3.0% to 3.4%. There may have been some cause for caution and uncertainty, but the good news is that the economy is not headed towards a recession.

Basic Salary

The trends in salary increases in 2015-2016 are summarized in the figure on the right. While 65% of the employees, did in fact, receive a pay increase, most of these salary increases were based on merit which resulted in pay increases averaging around 3.0% in those companies that implemented a pay review, with individual employees typically receiving between 0% and 6% linked to performance.  Combining the 35% “no review” with the 65% “yes review”, means that in 2016, the overall trend for increases in basic salary was about 2.0% which brings us to the question; were the pay trends stable at all job levels, grades and across all industry sectors?

The tables below summarizes the growing differences in pay trends during 2016 at different job levels and across industry sectors. While senior management and management level employees enjoyed pay rises between 2.0% to 2.7%, increases for clerical roles were as low as 0.8%. Moreover, significant discrepancies were seen in the pay trends across industries, where on the one hand healthcare, FMCG, technology and automotive industries enjoyed an increase of up to 7.0%, the oil and gas industry experienced a decrease in salary of up to -2.0%

Table 1

Table 2

Similarly, the gap between salaries of Nationals and Expatriates also grew, with Nationals being paid 40% to 60% higher on guaranteed cash.  The minimum gap of around AED 2,500 per month was seen at lower level roles and a maximum of about AED 9,000 per month at higher levels of management.

Allowances

While the trends for basic salary indicated an overall 2.0% increase, guaranteed fixed cash was also at 2.0%.  In the UAE, allowances remained at the 60:40 split, and housing allowances were as good as being frozen as housing rental costs dropped by 8.0% in the period 2015-2016.

Bonus Payment

Actual bonus payments in early-2016 were at about 90% of On-Target which was down from 95% of On-Target from the previous year. The overall impact of this, puts the increase of total cash earnings at about 1.9% compared to basic salary and guaranteed cash which were at 2.0%.

Benefits

The overall total remuneration packages rose by about 2.2% as a result of an increase in benefits which rose by 5.0% to 7.0%.  Average school fees went up by 3.0% to 5.0% and average medical insurance costs increased by 6.0% to 9.0%. This resulted in the cost of healthcare and education benefits becoming a cause for major concern as the limits were not in line with the actual expenditure.  This means that education allowances are now sitting at an average reimbursement of 70% to 75% of the actual costs and is often now referred to as a subsidy.

In conclusion, after studying the pay trends from 2012 to 2016, and analyzing the forecasts for 2017, we believe that we might see pay trends increase slightly from 2.0% in 2016 to 3.0% in 2017.  However, if we look at this in terms of real increases (after the impact of inflation), we think that pay increases will not keep pace with inflation in 2017, just like 2016, as caution continues to prevail in 2017.

What Should You Be Doing in 2017?

Market pay movements might continue to be lower than usual in 2017 again, but we think things will pick up in 2018 as Expo approaches.  Companies now should be reviewing their HR policies, especially their Compensation & Benefits practices, and ensuring that they will be ready to react if and when the market picks up and the war for talent resumes.  So what should you be doing?

• You should be reviewing your organization structure / design (OD) to make sure you have designed your organization optimally, and ensure that jobs are described properly and that KRAs and KPIs can be established for all jobs, to build and enhance your performance culture.
• You should be reviewing your grade structure to ensure that jobs are correctly graded and that you have the right number of grades to implement future talent management programmes to attract and retain key talent, and manage your career progression curves for top-performing employees. Whilst the 1990s-2000s saw a trend to reduce the number of grades, the trend now is back in the other direction, as many companies now are realizing that fewer grades means it is harder to control costs and harder to offer employees reasonably fast career progression.  So getting your grade structure right is a crucial step for future success.
• You should be reviewing your pay strategy and reviewing your salary payscales and allowances to ensure that you are competitive with the market on guaranteed cash.
• You should be reviewing your bonus and incentive arrangements, both the core company-wide (excluding sales) annual bonus plan that should be linked to company results and employee performance, and the specific SIPs (sales incentive plans) for your sales force that should be geared to gross-margin (or revenue if gross margin cannot be measured) to ensure you are focusing your employees on results and ensure you are getting optimal motivation and performance from your variable pay practices.
• You should be reviewing the costs of your benefits plans, especially focusing on education allowances and medical insurance premium costs, and transitioning these from full-coverage to subsidies as you grapple with rising costs.

We at People First believe we are in a great position to help you with your journey in 2017, so if you want to discuss anything in this article, or if you want assistance and support with any of the recommendation above that you should be doing in 2017, then we would love to hear from you.

Definitions:
Guaranteed Cash refers to basic salary plus allowances such as housing and transport
Total Cash refers to Guaranteed Cash plus bonuses and incentives
Total Remuneration refers to Total Cash plus the costs of benefits provided by the employer

Earlier this month PeopleFirst HR Consultancy attended a forum hosted by the DBWC, University of Wollongong and the UNDP addressing the gender gap in the workplace.

HE Dr Raja Al Gurg, President, DWBC, gave the opening remarks:
“The UAE is a nation committed to providing equal opportunities to enable women to play a lead role in contributing to the country’s development. It is only when the contributions of both men and women valued equally that we can achieve a brighter future, full of ideas with input from across society,”

The panellists spoke about how women can be more proactive in creating their own opportunities and encouraged women not to wait for others to set the path for their leadership.

The forum shed light on the UAE’s proven success in inclusive organisational cultures, but it also pointed to severe inequality and a pay gap within the international labour market. The World Economic Forum estimates it will take 117 years to close the gender gap, and globally women are paid 24% less than men.

Frode Mauring, United Nations (UN) Resident Coordinator & UNDP Resident Representative said:
“Gender equality is a human right and the world cannot afford not to get talent from 50 per cent of its population,”

From focusing on the cultural values that empower women, to advocating gender parity, and highlighting the importance of women’s empowerment in national progress, the forum called on business and society to challenge gender distinctions in every-day life.

At the end of last year, HH Sheikh Khalifa bin Zayed Al Nahyan announced that 2017 would be The Year of Giving with three main themes, Strengthening social responsibility in the private sector, Promoting a spirit of volunteering and Strengthening the concept of serving the nation in new generations of Emiratis and expatriates.

In support of the second theme – promoting a spirit of volunteering – PeopleFirst has decided to reach out to universities in the UAE to deliver a series of guest lectures which will be delivered by our Managing Director Asma Bajawa. The intention is to give back to students by providing them with real life case studies and an understanding of how the theory they are studying in the classroom is implemented in real life. These presentations will be delivered to undergraduate and graduate students highlighting how effective HR functions can uplift and unlock the value of human capital.

If you want to find out more, contact us at marketing@peoplefirstme.com

The Learning and Development (L&D) function in today’s business world is emerging as an integral part of an organisation’s strategy. A greater number of businesses are recognizing the need to invest in building the capabilities of its people. L&D is a key function that requires the same rigour and attention as any other strand of corporate strategy. Well managed L&D interventions can ensure that people have the right skills at the right time to meet and exceed business needs.

L&D initiatives are generally structured as per the standard training cycle illustrated in the figure below. Various models and variations of the training cycle are used within organisations depending on the corporate intentions and business needs such as the ‘ADDIE’ model and the ‘SAT’ model but the underlying principles remain the same.

Organisations are becoming increasingly aware of the principles and processes that govern the training cycle, however, the challenge lies within the application of such programmes in the day to day work environment.

We will examine each stage of the training cycle individually to understand the key considerations for an integrated and holistic approach, and identify ways to address the challenges within the L&D domain. In the coming months, we will explore the four (4) stages of the training cycle from a strategic planning perspective through our monthly newsletters starting with “Needs Assessment and Analysis”.

Stage 1: Needs Assessment and Analysis

Training Needs Assessment (TNA) is the first stage of the training cycle. An accurate analysis of training needs plays a pivotal role in planning for and investing in tailored L&D interventions. The dilemma with a TNA is that it is based on the organisation’s perception of what its people need rather than undertaking a due diligence exercise (TNA) to identify the knowledge and skills gap that exists, limiting the efficiency and effectiveness of its people. The following guidelines summarise the key considerations that should be taken into account when carrying out a TNA exercise:

• What output does the business expect from its employees?
• Does the business strategy require specific standards of performance from its employees?
• What type of behaviours, knowledge (technical or of a commercial nature) and competencies are employees expected to demonstrate in their professional roles?
• At which proficiency level are the employees expected to perform?
• What are the expected outcomes?
• Is there a requirement to obtain a professional certification or accreditation?
• When are the employees expected to attain the required level of knowledge, skill and competency?

The strategic role of the L&D function demands that a structured process is put in place and communicated to all the managers and employees. Line managers and leadership teams are responsible for ensuring that they provide input and feedback on the individual development needs of employees, which can also be captured through annual performance reviews.

It is important that the medium used for carrying out a TNA is selected carefully keeping in mind ease of use, collation, consolidation, retrieval and analysis of data. Use of systems is recommended where companies have an HRMS or an alternative automated system in place; however, a simple spreadsheet can be equally useful for this purpose. Once information is collected, reviewed and analysed, planning for L&D initiatives can be activated keeping in mind the following:

• Who needs to be trained and on what topic?
• The target groups, levels & number
• Specialization & certification
• How will training be delivered?
• What types of training interventions can be used? e.g. outsourced, in-house, OJT (on the job training), online, seminars / webinars and / or blended learning options
• Available working days
• Expectations of outcomes
• Methods to measure & evaluate
• Cost & budget

Consolidation and analysis of the information listed above can result in the successful articulation of the training calendar detailing the types of trainings, programmes, dates and locations.

The result of incorporating a structured TNA process is the development of a training plan with interventions that are specific to the individual’s development needs and organizational requirements. Systematic planning of the TNA process provides clarity and transparency in identifying who needs to be trained and on which subject, enabling organizations to calculate the associated costs and the return on their investment.

Be a Mentor and give back to ‘strengthen social responsibility in the private sector’.
‘Leaders for Tomorrow’ facilitated by PeopleFirst HR Consultancy

2017 has been announced as ‘The Year of Giving’ by HH Sheikh Khalifa bin Zayed Al Nahyan and in support of the theme; strengthening social responsibility in the private sector, PeopleFirst is launching a mentoring programme to support young individuals who are embarking on their careers and entering the world of work.

‘Leaders for Tomorrow’, is a ‘not for profit’ scheme which aims to provide young graduates, who are just embarking on their careers, support and guidance from a network of Mentors that is made up of successful and experienced working professionals from a diverse range of industries / businesses.

The vision of the ‘Leaders for Tomorrow’ programme is to support the development of young individuals in their journey to become future business / industry leaders that will create rewarding and challenging work environments in which people and communities can thrive.

Our mission is to give all young graduates across the GCC an opportunity to benefit from a strong mentoring relationships that will help them grow and develop their skills and potential, and support them in their journey to become thriving, productive and engaged professionals.

“Mentoring and coaching is an area of leadership that I am very passionate about and when I heard about the UAE making 2017 ‘The Year of Giving’, I felt this was a fantastic opportunity to launch the ‘Leaders for Tomorrow’ programme. I see the ‘Leaders for Tomorrow’ programme as a vehicle to connect experienced, professional people from different industries with young individuals who are embarking on their careers and thus, collectively, contribute to the development of our future workforce. Over the years, I have had the pleasure of working with, and learning from, so many talented and experienced people which has helped me tremendously, and I believe that creating similar opportunities through a network of Mentors will have a huge impact on young people starting their careers,” says the Founder and Managing Director of PeopleFirst HR Consultancy, Asma Bajawa.

Mentoring has many benefits for both the Mentee and Mentor. For the Mentee, this can give a young individual access to knowledge, skills, relationships and contacts that they would not otherwise have, but most importantly it provides a safe, trusted environment for them to discuss or share issues that may affect their professional and personal development. Likewise, for the Mentor, knowing they are able to shape and influence an individual’s growth and contribute to their development by giving them the support, guidance and advice needed is in itself the most rewarding result.

The ‘Leaders for Tomorrow’ programme will be managed end to end by PeopleFirst and provide a structured framework, with clear guidelines that will include but not be limited to the following:

• Establishing a network of Mentors
• Identifying a pool of Mentees
• Defining roles and responsibilities of the Mentor and the Mentee
• Setting expectations and objectives of the Monitoring relationship
• Linking the right Mentor to the right Mentee
• Follow up and support
• Monitoring & reporting on the programme
• Free training workshops

If you are interested and willing to become a Mentor and support the development of a young graduate as part of HH Sheikh Khalifa bin Zayed Al Nahyan ‘Year of Giving’ and Strengthening Social Responsibility in The Private Sector, we would love to hear from you. There is no cost involved and all you need to do is dedicate one (1) hour of your time each month to Mentor and help build a ‘Leader for Tomorrow’.

Attributes of a Mentor

• Leads by example
• Motivates and inspires others
• Gives advice based on experience
• Gives open and honest feedback
• Has a good network of people to tap into
• Is a seasoned professional and is able teach what can’t be learnt in the classroom
• Has time and energy and the desire to help others achieve and succeed

If you’re interested in being a Mentor and being a part of Leaders for Tomorrow contact:

Mohsin Bajawa
Operations Director │ T: +971 4 447 5210│ M: +97150 509 2366│ mohsin@peoplefirstme.com

In last month’s newsletter we started to examine each specific stage of the training cycle to understand the key considerations for an integrated and holistic approach to L&D. Following on from the March edition of the newsletter which focused on Stage 1 – ‘Needs Assessment & Analysis’, we will now discuss Stage 2 – ‘Design & Development’

As a reminder, the four stages of the training cycle are illustrated below:

Stage 2: Design and Development
Whether an organisation has the in-house capability to design and develop Learning & Development (L&D) interventions, or decides to outsource to a third party provider, the principles of design and development in the L&D context remain the same. During stage 2, it is important to focus on and ensure, that any L&D interventions are aligned with the outcomes of the TNA.
Designing L&D interventions can be compared to planning for a trip. Just as it is important to map out the best possible route to reach the final destination, it is important to map out the best methodology to design L&D interventions that will meet the objectives. Design can be seen as an outline of all the “what, where, who, when and how” details of a training intervention.

Here are some tips that should be considered when designing and developing L&D interventions:
Training evaluation – Before initiating the design and development of an L&D intervention, it is important to consider how this will be evaluated and what tools and techniques will be used to measure the effectiveness of the intervention.

Participant profile – The size of the target audience and their specific skills/ability level should be considered in the design and development phase to ensure that the learning tools and resources used are fit for purpose and the content is differentiated to suit the participants’ needs
Instructional strategies – Prior selection of instructional strategies adds substantial value to the effectiveness of the design. In making these selections, it is important to ensure that that the chosen instructional strategies meet the needs of the target audience. In recent years we have seen significant changes in L&D trends and in particular in delivery styles, where face to face lecture style training has now been replaced with more interactive, experiential learning and hands-on digitally driven tools.

Training logistics – Training logistics is an important aspect of the design and development phase which is often forgotten or left to the last minute. Early consideration to this aspect of the design and development of an L&D intervention can have a significant impact on the overall participant experience. Logistics need to be carefully planned to ensure the training environment is compatible with the training design, which contributes to maximizing engagement and the overall participant experience. Logistical considerations can include but are not limited to the following:

• Scheduling (courses & participants)
• Communication with participants (invites)
• Training structure & duration
• Days of the week/time of the day
• Duration of each session
• Location
• Training materials
• Resources & collaterals
• Cost/participant expenses

After considering the aspects listed above, the next step would be to develop a detailed session plan to organise the design in a structured manner. This helps to shape the design by planning out specific step by step actions of the training content and how this training will be delivered. A well written session plan can contribute significantly to ensuring that the training methodology and resources are aligned to the learning outcomes.

Designing the structure and content of an L&D intervention is a very detailed activity which can be very time consuming. In fact the design and development phase tends to be the most time consuming phase of the training cycle.

Design and development requires critical thinking and creativity. In today’s digitally connected world, content is readily available at a click of a button, and often free of charge so time spent in researching and using available content to create viable course designs can often be more worthwhile creating something from scratch. However it is important to remember to take consent prior to using content properly and referencing material/content where necessary.

What is an HR Health-Check and how can this benefit my organisation?

What is an HR Health-Check?
An HR Health-Check is a diagnostic exercise that is used to get a detailed understanding of how an HR department is functioning and how effective it is in achieving its overall purpose and departmental objectives. Ideally, an HR Health-Check should investigate all aspects of the HR function which includes but may not be limited to:

• HR strategy
• HR organisation structure
• Roles and responsibilities of the HR function
• HR capability assessment (individual & team)
• HR policies and policy implementation
• HR processes and procedures
• HR service delivery
• Employee records and data integrity
• Compensation and benefits
• Recruitment and selection
• Training and development
• Career development
• Performance management
• HR systems
• HR metrics
• HR work environment

A well-executed Health-Check will not only provide a detailed view on the ‘current state’ but will also identify specific gaps that need to be addressed to drive optimal performance of the HR function. An HR Health-Check should ideally result in prioritized recommendations that address the specific gaps identified through the audit process.

What are the benefits of an HR Health-Check?
Unlike an ‘internal audit’ that focuses primarily on auditing HR processes, an HR Health-Check takes a broader and more strategic perspective investigating all aspects of the HR function and benchmarking the ‘current state’ against the following aspects:
• Legal and regulatory compliance
• Alignment to company policies and procedures
• Alignment to business strategy / strategic objectives
• Alignment to HR best practices
• Industry standards

The key benefits of an HR Health-Check include:
• Getting an accurate, unbiased perspective of the ‘current state’ giving a factual evidence based perspective of the HR function highlighting what works well and the areas of improvement
• Assessment of the potential risks for a business in terms of legal and regulatory compliance
• Provides a formal feedback mechanism to embed continuous improvement activities
• Benchmarking against best practices
• Driving process efficiency and identification of non-value added activities

Who should carry out an HR Health-Check?
An HR Health-Check should be carried out by someone that is independent from the HR department and is experienced in all aspects of HR. Maintaining objectivity is critical and and will go a long way in ensuring credibility of the process

What triggers the need for an HR Health-Check?
An HR Health-Check can be carried out at any time and may be initiated by either internal or external factors. Whilst there is no statutory obligation to conduct this type of audit, external factors such as changes in labour regulations may trigger the need for an audit.

Triggers may include:
• Merger or acquisition takes place – the Heath-Check forms part of the due diligence process and provides critical information that helps in the integration and streamlining of the HR function when two companies come together in this way.
• Certifications or accreditations – e.g. ISO, JCI etc., can drive the need to review HR practices and align these to specific standards.
• Growth – organisations that are experiencing or planning for growth, often conduct an HR Health-Check when they realise that the HR function may not be fully equipped to support the growth strategy.
• Cost reductions – equally in times of business uncertainty and economic instability, many organisations conduct Health-Checks in search for opportunities to reduce costs and drive efficiency.
• Assessment of the HR function – reviewing the adequacy of the HR strategies, policies, processes, procedures and systems will help organisations to remain abreast of what is working well and where improvements are needed.

Whatever the reason, an HR Health-Check provides a strong basis for driving change and making improvements in this key support function. Establishing and measuring performance against key HR metrics e.g. attrition rates, engagement levels etc., can help organisations to instill a mindset of continuous improvement which can reduce the need for in depth Health-Checks or audit as this serves as a regular temperature gauge.

What is involved in conducting an HR Health-Check?
The first step of conducting an HR Health-Check is the review and data collection phase. This can involve qualitative and quantitative data which often requires a lot of interaction with people within the HR team. This can prove to be challenging at times, therefore it is important to communicate and engage people in the process in an open and transparent manner. The Health-Check can in some instances be dependent on people providing accurate information so it is important to explain why the process is being carried out, how the results will be used and how this benefits not only the HR department but the wider organisation. Remember a disengaged respondent, who is suspicious of the motives of the Health-Check is unlikely to support the process in an open manner, therefore transparency and tact is key to addressing this potential issue.
Once the data has been reviewed this should result in a gap analysis exercise and supporting recommendations which are prioritized based on the impact to the business.

What happens after the Health-Check?
The value of conducting an HR Health-Check is really derived from implementing the recommendations resulting from the process. This can take time and of course will depend on various things such as strategic priorities, budgets, available skills and resources etc., therefore the planning and prioritization is a decision that should be made with the business and not in isolation.

How can we help you?
PeopleFirst has extensive experience in successfully conducting HR Health-Checks for large, small and medium sized organisations and across a diverse range of industry sectors. We adopt a consultative style and work with our clients to conduct detailed audits and take a hands on approach support the implementation of recommendations.

If you have questions, please do not hesitate to contact us:
T: +971 4 4475210
www.peoplefirstme.com
info@peoplefirstme.com

It is no secret that the holy month of Ramadan has a huge significance in the UAE. With Ramadan right around the corner, here’s what you need to know about the holy month so that your workplace is aligned with the law as well as the norms and expectations of the country and the UAE culture.

First things first: What is Ramadan?

Ramadan is the holy month of the Islamic calendar, during which Muslims fast for 30 days from sunrise till sunset. It is the month of charity, worship and self-restraint.

This year, Ramadan will begin on Saturday, 27^th May, bringing with it considerable changes in our normal work routines. This article explores the impact of Ramadan in the workplace.

What is Suhoor?

Suhoor is an Islamic term used for the early morning meal that Muslims consume before fasting. This meal is consumed right before sunrise and is meant to keep fasting Muslims energized until it is time for Iftar.

What is Iftar?

Muslims break their fast at the end of the day i.e. at sunset. The Islamic term for the meal consumed to break the fast is Iftar.

How is the working day affected by Ramadan?

As per Article 65 of the UAE labour law, all employees, Muslim and non-Muslim, are entitled to a 2 hour reduction in the daily working hours. The daily hours can be reduced by either starting work later or finishing earlier at the end of the day however this will depend on the timings set by the employer.

In instances where overtime is required during Ramandan, this cannot be imposed by the employer and the employee must agree to take on any extra hours. In this instance, overtime is payable as per the overtime rules for any hours worked over and above the reduced working day.

How are nursing breaks affected by Ramadan hours?

A female employee who has returned from maternity leave and is nursing her child will be entitled to a nursing break of up to 1 hour a day. This will be in addition to the 2 hour reduction which applies to all employees.

What impact does Ramadan have on the work environment?

• Eating, drinking and smoking are prohibited in public places, therefore the employer should designate a specific area which is out of sight, where employees who are not fasting can eat or drink during working hours
• Fasting can be physically and mentally tiring and therefore may affect concentration and energy levels during the day
• All employees are encouraged to pay particular attention to how they dress in Ramadan and are encouraged to dress modestly to show respect to the country’s culture

Many organisations plan a get together for Iftar with their employees and celebrate the joy of breaking the day’s fast. This makes for a great way to bond with the team and enjoy the Ramadan festivities.