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According to several independent, in-depth studies that have been done by the Center for Creative Leadership (CCL), businesses perform better when they invest in the development of their leaders.

Findings from work by The Conference Board, Bersin & Associates and HR analytics expert McBassi & Company, among others, point to the fact that leadership development is one of the most pressing issues facing organisations globally today, and represents a great chance for HR to set up leadership development programs that are key to helping companies seize competitive advantage in their industries.

More precisely, investments in leadership development allow companies do four following things that drive sustained success:

1.     Improve bottom-line financial performance. Companies that rate highly for their investments in human capital deliver stock market returns five times higher than those of companies with less emphasis on human capital. Leadership development builds capacity to reduce costs, drive new lines of revenue, and improve customer satisfaction.

Global pharmaceutical company, Boehringer Ingelheim, has successfully bolstered their bottom line because they have developed their leaders to come up with ways to reduce costs (nearly USD$2 million saved) and drive new lines of revenues.

2.     Attract and retain talent. Leadership development boosts employee engagement, increases the organisation’s ability to deal with gaps in the talent pipeline, and reduces headaches and costs associated with turnover.

After implementing leadership development, KONE, a global leader in the elevator and escalator industry, has transformed its organisational culture into one that’s powered by strategy, collaboration and overall excellence – helping the company to retain valued employees.

3.     Create organisational alignment. Effective leadership development isn’t development for its own sake. Organisations need a leadership hierarchy that closely connects with the business strategies and equip employees with the necessary leadership skills to implement these strategies. Leadership development allows organisations to shape the culture and strategy of business.

Financial services provider, Barclaycard, found itself facing regulatory changes and competitive pressures in a volatile global economy. It turned to CCL for the development of Barclaycard Academy which is a consistent leadership model for all business leaders that bolstered overall strategy and execution for Barclaycard.

4.     Increase organisational agility. Leadership development increases people’s ability to respond rapidly in unpredictable business environments. When organisations look beyond developing senior executives and high potentials to unlock the full potential of their talent pools, agility is magnified.

Insurance company, Aviva, partnered with CCL to help develop leadership development programs (LDP) that will include a bigger portion of the employees. Such LDP approach allowed Aviva to widen their pool of leaders and forge a more nimble organisation. Ultimately, it helped them to weather the global recession.

The sooner organisations fully embrace these four reasons, the sooner they will reap the rewards.

Source:

http://www.hrmasia.com/resources/leadership/four-reasons-to-invest-in-leadership-development/142485/

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COMPENSATION PROCESSES

Global ? Organisations that constantly evaluate and improve their total compensation processes are more efficient at achieving their strategic workforce performance goals.

Research from Ventana Research has shown that 72% of companies indicated that deploying a total compensation management system was a top priority. A quarter of 145 executives surveyed across various industries found that their companies still have inconsistencies in executing compensation processes across the business departments and divisions. More than half lack confidence in their existing processes.

Respondents added that managing merit pay and base pay were still at the forefront of their issues. Alignment of pay and performance were listed second and third as areas for improvement.

Ventana offers five recommendations to improve compensation management processes.

Focus on outcomes for improving workforce performance.
Before an organisation can take action to realise the benefits of investment in total compensation management, HR and finance must ensure they agree on the direction. The benefit companies desire most is the ability to align their workforce to the business strategy and goals (52%), followed by efficiency of process (50%). Companies also want visibility into employee compensation, performance and succession related information (40%) and establish pay for documented performance (39%).

Replace outmoded technology to increase efficiency.
Although companies are looking to improve their processes, more than half of respondents are still using spreadsheets for compensation activities. Organisations should assess available applications to determine what may meet their needs cost effectively. Those that don't are likely to fall behind in the race to acquire and retain talent.

Work to integrate appropriate sources and systems.
To drive improvement, it is necessary to integrate existing information sources with compensation and workforce performance or talent management systems. Integration will require the organisation focus not just on the usability and functionality of the applications but also the architecture needed to support integration to other internal systems, including the Human Management Resource System and spreadsheets, as well as external hosted or on-demand systems.

HR should explore ways to find a compensation system that can become the repository of the single view of compensation at every level, from individual to organisation. If separate dedicated compensation systems are needed, they should be designed to support integration into the system that provides the integrated view.

Understand what you really need.
Make sure you fully understand what your managers want and need from the compensation management so you can determine the type of application to use and the sources of data to draw upon. Individual compensation management software systems have relative strengths and weaknesses. Some are better at managing variable pay components while others have better capabilities for making critical decisions about workforce planning and strategy.

By clearly defining your business, user, information and technology requirements, you will be better equipped to evaluate how well providers of total compensation management applications will satisfy your particular needs.

Bear in mind it is possible that no single dedicated application will meet all of your needs. Perhaps bringing together specific capabilities from different systems will be required. If the latter, integration capability is essential.

Seek top management support.
Enlist sponsors from finance and senior executive management who will support the required investments and provide organisational leadership for the programme and its goals. With improved processes that work together efficiently, you can reduce friction in the workforce and focus on driving performance improvement.

Source: http://www.careerwise.com.my/Newsletter.php?id=6

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Over the past decade, HR has evolved to become a strategic partner in many organisations. The ability to outsource basic HR functions to third party businesses has been a key enabler in this process.

Some of the functions that are commonly outsourced include recruitment, payroll processing, benefits administration, and employee database management. According to research by IDC, the HR outsourcing market has grown by close to 70% over the past six years, with employers spending some US$103.3 billion on services in 2007 alone.

The recent recession saw an increase in demand for HR outsourcing services as companies sought to improve efficiencies, reduce employment costs and eliminate risks.

Even as the economy recovers, companies are still seeking to maintain cost efficiencies.
An outsourcing service provider manages sometimes thousands of transactions across many clients and normally enjoys greater economies of scale. This can lead to increased value and lower costs, Caleb Baker, General Manager, HR Outsourcing, Talent 2, says.

He says the typical HR outsourcing contract can lead to savings of up to 25%. However, there is more than just cost savings in its favour – quality is also an important factor to consider. Sometimes HR just does not have the expertise or headcount to execute certain functions, Baker says.

Dollars and sense
Payroll processing is a time-consuming and administratively routine task that was once the sole concern of HR - this makes it a good starting point for organisations looking to outsource. Farming this out to a service provider can help in-house HR to focus on more value-added services or strategic decisions.
Outsourcing payroll functions is often cheaper than hiring your own specialist staff, particularly for companies with smaller overall headcounts. According to Andrew McArthur, Managing Director, Pay Asia, a full-time in-house solution requires the procurement of software and hardware as well as maintenance. “This will result in a significant cost which makes less it financially viable for a small and medium enterprise,” he says.
Service providers can often provide greater accuracy from their “outsider” position. For example, they will ensure that employees are paid on time and that your tax payments are in. Many leading providers have avenues for compensation in the event of a mistake – something that is impossible under an internal administration regime. Outsourcing also lowers the risk of corporate fraud.
MacArthur says that companies with a payroll service provider are also freed of the need to be constantly abreast of changes to professional and statutory requirements. Instead, the service provider will check on the regulations and implement them as needed, he says.

Talent search
For many organisations, recruiting new employees is a labour intensive process that is subject to market fluctuations and company performance. A hiring blitz would call for more staff specialising in recruitment. The same employees might become redundant during a hiring freeze. Outsourcing this function to a third party can alleviate these problems.

In recruitment process outsourcing (RPO), an employer moves all or a part of the organisation’s recruitment efforts to a third-party. Service providers in this area cover the whole gamut of recruitment functions from hiring and onboarding, to performance assessment and succession planning. These are handled by hiring specialists who typically have access to a large database of potential candidates.

According to Simon Bell, Regional Director, Managed Solutions and Talent Management- Asia, Hudson, an RPO service provider can offer better control and visibility over the recruitment process. This can lead to improvements in candidate quality with better-defined job descriptions and selection methodologies.

“The power of your resourcing function is only as strong as the people manning it and the tools that enable them. In a rapidly recovering economy, they can be the difference between success and failure,” he says.

Getting started
Organisations need to establish their most pressing HR needs and prioritise them accordingly. Many outsourcing service providers offer diagnostic tools that can guide HR through the various strengths and weaknesses before settling on an appropriate solution. The outsourcing process brings along a period of changes and HR must effectively sell these to management and employees in order to get their involvement and buy-in.

An outsourcing arrangement also requires HR to work alongside service providers. Both parties need to plan and communicate their needs and expectations, to ensure that service level agreements are adequately fulfilled. A structure of governance that includes transparent reporting on key metrics is essential to cut down on unnecessary time spent on outsourcing issues.

Organisations must also understand that outsourcing HR does not lead to immediate profit. It often takes time for the outsourcing service provider to fully understand and deliver a client’s requirements.

Source: http://www.hrmasia.com/resources/outsourcing/sharing-the-load/49850/

Four Reasons to Invest in Leadership Development

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