Growth is slow, change is fast; employees do not start and retire in a company anymore; there is considerable erosion of trust and authority in companies for many reasons.

All this presents an intellectual challenge for HR (Human Resources) teams in companies.

HR departments have evolved over the last few decades. In the 70s and 80s, the HR department ran everything in a company, from canteen to travel services to cars to managing drivers.

This era was full of forms and the HR department was the original bureaucracy.

Over years, HR transformed itself into a business partner, focusing on values, culture, training, and development. In this transformation, almost all HR processes have been outsourced.

This is cost-effective, but employees in India have not taken to it fully; they still want the emotional comfort of face-to-face interactions in people matters. HR has specialised into compensation, hiring, training, and so on. The holistic HR person is a rare entity.

This decade, a company is challenged both on performance and people. A company’s growth depends on its ability to innovate and separate itself from commoditisation.

There is no answer except to innovate to stay ahead. To innovate, one needs a different type of employee and a different type of culture.

Companies chase ideas to be innovative. Ideas are one part of the innovation challenge. Ideas are like seeds that you plant, the soil is the culture, if the culture is arid and dry, no idea will ever grow.

HR teams can help in building a fertile soil base. The company, through the HR team, needs to attract the right type of talent, manage attrition and ensure productivity of employees.

This is no easy task and there are no easy answers. HR teams with their army of consultants have many studies, many indices for every important activity — such as scores for engagement, belongingness, enthusiasm, staying and leadership.

HR departments with their consultants measure a lot of irrelevant stuff and seek solace in a few numbers. HR departments have also starting throwing a lot of jargon which neither they nor the employee understand.

A sense of belonging

The challenge is that HR needs to go back to its roots; the roots are in bringing meaning to the workplace, not numbers and jargon.

In a way get the DIL back — Diversity, Inclusion and Loyalty. When we discuss diversity, one tends to see a narrow definition of ratio of men to women.

That is not diversity; diversity in a future world will be about diversity with nationality, culture, age, educational background and industry experience.

Why is diversity important? Innovation happens at the intersection of cross-functional activities and blossoms in teams with diversity. Diversity enables Innovation.

The next is inclusion. The average employee does not feel engaged. Inclusion is about making employees feel a part of the company and its purpose.

Articulating the purpose and energising employees around it is the starting point of an inclusive company.

Inclusion happens when employees connect with the values of the company. Inclusion happens when employees feel that the company and its systems are fair.

Fairness is an innate value and cannot be taught in a training course.

Inclusion happens when there is genuine communication and respectful interaction with employees.

In India, more than 95 per cent of leaders do not reply to emails or SMSs they receive from their employees. In such a situation, how can an employee feel included? Leaders should use technology to build inclusiveness and not give lame excuses such as “I am busy and tied up”

Leaders have lost the art of acknowledging and thanking people. HR should hire responsive leaders.

Both loyal and talented

Loyalty in India is more to individuals and less to institutions. The challenge for HR and the CEO is to build institutional loyalty.

Loyalty is a two-way street, and we should actually start by asking if the organisation is loyal to its employees! Especially employees, who live, breathe and go beyond the call of duty for the company.

In many Indian companies, owners value blind loyalty ahead of talent. Somehow the concept of a talented loyal employee is not understood or desired. Here is a new path for HR to take in developing talented and loyal employees.

First, do not become a prisoner of policy. Many times, HR itself drafts the policy.

Second, culture is the collective personality of the organisation and not just the leadership team or HR team. Focus on building that.

Third, look for signs of dis-engagement and intervene quickly. Focus on staying interviews and not exit interviews. In doing staying interviews, tell the employee why he/she is special and why the company values her. If you are not doing staying interviews with at least half your employees, you will have a problem of attrition.

Fourth, if an employee leaves you, treat him with respect and part as friends and let the departing employee be an ambassador for your company.

Talent has to be attracted to join your company, but more important, it needs to be motivated to stay. So, how does one get DIL at work?

(The author is former head of emerging markets for Nokia.)

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