While the idea that culture is integral to the success of an organisation is becoming more widely accepted, how HR translates this concept into day-to-day reality is a critical issue for the HR function, according to a global HR consulting firm.
For example, some lower performing companies claim to compete on customer service as a market proposition. However, many of the internal HR practices of such companies are oriented towards sales incentives rather than customer service, said Adam Hall, director of talent and reward for Towers Watson.
“There is no relationship between the service that person receives and the interests of the person selling the product,” he said.
“You’re rewarding someone for doing something that’s not achieving the strategy, and then you’re penalising somebody who is dealing with the consequences of that person’s behaviour in another part of the organisation, and you’re creating unhappy customers in the middle.
“The challenge for HR is to understand how this picture comes together. Having an understanding of the way the organisation interacts with people enhances its competitiveness.”
“Recruiting, promoting and retaining the best people, and providing training and long-term opportunities, will improve your organisation’s growth”
A hallmark of high performing companies is clear alignment between their business strategy and how this is executed within the organisation, and Hall said a strategic approach to recruitment is critical in this process.
“What high performing companies do is take a much broader view and say they are not just recruiting a graduate for their graduate role, for example, because they’re looking to develop a person to become a leader in that organisation,” he said.
“They need to be confident that that person is going to be the right person.”
A 2009-2013 Towers Watson study found that employees in high performance companies are increasingly satisfied with the emphasis placed on valuing and fostering talent within such firms.
Employees in such companies also feel that their employers have a great appreciation for their contributions, the report said.
“Recruiting, promoting and retaining the best people, and providing training and long-term opportunities, will improve your organisation’s growth,” said Hall.
By Chadielle Fayad
