HR Practices of IBM

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IBM HR practices
Recruitment
Thus, IBM recruits employees who are daring, hard-working and have an
urge to learn and excel. They look forward to employees who can add
value to themselves as well to the organization at large.
Annual intakeIt varies according to the business needs. The approximate figures are
around 67 freshers recruited every year and 7-8 laterals. As far as the
recruitment for consulting position is concerned, IBM has a list about 20 BSchools which suit the company requirements and are contacted for
recruitment. IBM also has its recruitment Process Outsourcing (RPO)
service which provides outsourcing solutions to identify the best talent
available. They help to improve the workforce productivity, make the
internal processes visibly clearer and streamline recruitment services
delivery.
Selection
The selection process for consulting jobs is carried out by partners and not
the HR department. They test for the subject matter, assess behaviour
and check the basic technical skills of candidates. Only if all the required
criteria are met, the job will be offered to the candidate. Selection process
generally remains same over the years.

Job Level
Lateral hires
Campus placements

Methods
Interview and Interaction Session
Group discussions and interview

Talent Management
Talent engagement and transformation are top priorities for C-suite
leaders. The practice gives clients access to organizational change
management methods, tools and expertise gained from our external
clients and IBM’s own transformation initiatives.
Key areas:
Change

Management:

It

is

responsible

for

every

client's

transformation and enables them to prepare for and successfully
implement change. It is a core component of all IBM's solutions, helping
to accelerate results and drive sustained business impact.
Talent Analytics: Talent is one the top three CEO priorities. As
organizations shift from buying new talent to building existing talent,
CHROs depend on real-time insight and immediate access to the right
resources at the right time. Our solutions integrate leading analytics with
talent management expertise to provide a holistic view.
Employee Experience: Engaged employees drive business results. The
C-Suite understands that the ability to engage, develop, recognize and
support employees will be critical in the battle for customer loyalty The
focus is on employee engagement and collaboration, and improve
workforce productivity and retention through a blended approach of
behavioural sciences, technology and organizational consulting.
HR Transformation (Cloud): They support organizations as they
consider moving their HR systems to the cloud. They provide strategy
support, vendor selection, and implementation of HR Cloud systems. Their
solution also supports the culture and organizational changes that stems
as a result of moving to cloud.
IBM Kenexa Predictive Retention helps organizations boost
employee retention and employee satisfaction rates by providing the
ability to identify and act upon the specific factors that can contribute
to talent attrition and turnover. This includes profiling employees who
are more likely to leave voluntarily, as well as the specific risk factors
that can be used to prevent future attrition.





It helps organizations in:
Increase employee retention rates by identifying and acting upon key
attrition factors.
Leverage employee feedback to optimize your work environment in
near real-time and boost employee satisfaction.
Improve productivity and decrease costs associated with attrition by
proactively addressing attrition risk factors
IBM is one organization as a whole. It does not differentiate between its
business divisions. The selection depends on position which is to be
filled. The particular position is first tried to be filled internally.
Applications are invited for the position from interested candidates
which are then interviewed for it. If the position still remains vacant, it

is filled by inviting applications from outside the organization.
Employer branding- IBM is lagging in this feature and it is working
upon it.
Employee Engagement


No proper on-boarding process is there, only orientation program to
know about company which does not include the wider aspects



No proper networking within the company



Does not take care of employers aspirations



Freshers are paid lower than their peers at the time of joining but
given a hike within a year



New joiners do not immediately get great projects



Very good organization for top management



Work from home facility is provided and work pressure is low

As it is shown the efforts for employee engagement is low, this has
resulted in low level of employee retention. People are leaving frequently.
They leave in 3-4 years majorly. As a result it has led to a gap in middle
management.

Training and Development
Think 40 program: It is an IBM exclusive program where every
employee is required to complete 40 hours of training within a week. This
program can be undertaken any time within a year of joining. It affects the
rating of an employee if missed.
The essence of this training program is “Restlessly Reinvent Yourself”.
The program aims at upgrading and diversifying the employee skills as
per the market conditions and to stay ahead of competition. It is mutually
beneficial for both the employee as well as the organization. THINK-40
adds on to the CV of an employee and helps the organization to stay

competitive.

Career planning:


Self-goal setting•

Employees visit the portal and see what is required to reach to
the next level



He updates the manager of his aspirations and expectations and
the manager in turn ensures he stretch himself to achieve his
targets



An optional webinar and conference is held three days a week



Internal restrictions are there on classroom training

Diversity
IBM conducts all its activities without discrimination based on race, colour,
genetics,

religion,

gender,

gender

identity

or

expression,

sexual

orientation, national origin, disability, age or status. Its inclination to
promote diversity can be seen in its past practices as well. IBM hired its
1st disabled employee in 1914 and its 1st black employee in 1946. The
company is regularly listed as best places to work for employees,
employees of colour, and women to work. Currently, IBM is one of the top
10 companies in 2014 NAFE top 50 companies for Executive Women.
Differently Abled- IBM has special offices for differently abled
employees.
Gender- There is no active gender bias although there are more than
50% women.

Work Life Balance
IBM is an organization well known for its employee friendly practices. The
work life balance at IBM is paid a lot of importance.

IBM – GBS puts trust in its employees and gives them the liberty to work
from where ever possible and doesn’t push them to be available in office
for specific number of hours as long as the employees keep high
productivity and perform better. But to keep a track of their employee’s
time and on what project he/she has carried out their work so it can be
charge to the client. IBM expects its employees to log the number of hours
worked on each project in their Time Management System ILC –
Intranet Labor Claiming.
In case you miss to clock in the required hours for a week, escalation goes
too your manager which is not a favourable case.
Employees are required to complete 40 hours of service in a week with no
fixed number of hours for a day.
In IBM, there are two sets of managers. One is the personal manager who
is responsible for your leaves, ratings and related things. The other is a
project manager whose roles are very different from the personal
manager. He allows leave only if it is possible from the project point of
view. In case the project requirements do not allow, the project manager
will not grant a leave.
The number of leaves as per the policies is listed below.
Privilege leave


22 days in a year



12 days can be carried forward to next year

Sick leave


Maximum 14 days of consecutive sick / casual leave

Paternity leave


Maximum 5 days within 120 days of birth / adoption

Maternity leave


90 days with pay



Post maternity – Leave of absence



Additional leave of maximum 6 months without pay

Compensation and benefits
Pay• A major part of the salary is fixed(90-92%) with very less variable
which is also
dependent on company’s performance


No concept of retention bonus



IBM stock option is very rare, only for top level management

Promotion- No fixed promotion cycle
Performance Appraisal System


It is done yearly and is target driven



An excel is floated with weighted parameters called the ‘Career
Framework’ which is first filled by the employee himself, then
reviewed by the supervisor followed by the project manager



Employees at same career level in the organization are compared
against each other at the project level and then the business unit
level and the performance of each employee is then plotted on a
Bell curve



Then the employees are segregated into different rating scale based
on the competencies they have developed since the last evaluation.



Performance Rating Scale
Among the Top
Contributors
Above Average
2+
:
Contributors
2 : Solid Contributors
3 : Need to improve
4 : Unsatisfactory
1

:

Work Culture
Values followed at IBM:
The value system that IBM follows is broadly divided in three categories.

1. Dedication to every client’s success


Put the client first



Listen for need, Envision the future



Share expertise

2. Innovation that matters, for our company and for the world


Restlessly reinvent our company and ourselves



Dare to create original ideas



Treasure wild ducks

3. Trust and personal responsibilities in all our relationships


Think, prepare, rehearse



Unite to get it done now



Show personal interest

Working hours:
Working hours are not that stringent as in consulting job employee has to
work according to the need of client.
Peer Interaction:
As the consulting job requires employees to work on client sites, most of
the interaction with immediate superior is through formal channel of emails.
Same is true for the interaction with colleagues. Employees tend to
maintain informal and friendly relations with juniors
Health and safety policy of IBM:
“Advancing the health, safety and well-being of our global workforce is an
absolute priority; it's a commitment that encompasses the environments
in which employees work and the communities in which they live."—

Martín J. Sepúlveda, M.D. FACP, IBM Fellow, Vice
President Integrated Health Services
IBM's proud heritage of excellence and long history of leadership and
commitment to employee health, well-being and workplace safety date
back to the very beginnings of the company.
IBM is known for its best healthcare policies for employees, which are
listed below
 Regular health checks
 Quarterly psychiatrist sessions
 Awareness drives
 Ergonomic chair design
Induction program for newly joined employees:
Every new IBMer would be a part of the Royal Blue Ambassador Program
(RBA). This is a 30 days program which connects every new IBMer to an
experienced employee who acts as an advisor or buddy helping new
joiners adapt quickly within IBM. This includes everything from finding
accommodation to getting help in understand the work culture of IBM.

Benchmarking with competitors

Ernst & Young
The major HR strategies and structure at EY are as described below:Structure of the People Department:


EY has a dedicated and a very active HR department. The company
lists the HR department as Human
organizational structure diagram.



Capital

Services

in

its

Broadly the human resource department is divided into three
categories: The people strategy department, the performance and
reward department, and the HR consulting department.



The people strategy department looks into HR strategy articulation,
organization design, and job evaluation and grading.



The performance and reward department looks into compensation
and reward, performance management and appraisal, competency
and assessment centers, training development plans, and HR
policies and procedures.



The HR consulting department gives consultancy services to the
clients regarding people issues.



The People department lays a lot of emphasis on changes going on
in the contemporary business environment and actively gets
involved to become the champion of change to achieve all targets
which help the firm realize its vision and mission.



The average age of the workforce is 26-27 years making the
workforce fairly young.
There are 65% women in the organization which makes EY
extremely gender diverse.

People policies:


The leaves policy of the firm is just as any other company in the
industry but the HR department is particularly concerned about the
work-life balance of the employees.



The usual working schedule of the company is from 9:30 am to 7 pm
but almost all the employees have to stretch an hour or two extra
every day.



There is restricted provision to work from home as the work at EY is
usually team oriented wherein the dependency of the team mates
on each other is quite high so it becomes difficult to co-ordinate with
a co-worker who is sitting at home.



The People department sponsors team parties to rejuvenate the
employees and also
organizes team outings.

Performance Management:


The performance management system of EY is quite mature and all
employees have 2 discussions with their line managers in one year.

This gives the employees ample time and opportunities to reflect
upon their scope of improvement.


The HR department conducts regular employee satisfaction surveys
to keep track of any bubbling grievances.



The firm uses 360 degree evaluation and balanced score card
approach to do performance appraisal.



The firm values its human capital a lot and takes every step to
retain it and tries to reduce early employee turnover.

Hiring and Talent Management:


The department tries to keep the process as simple and transparent
as possible. The firm uses an Enterprise Resource Planning enabled
hiring system.



The firm hires both freshers and laterals.



The freshers are usually hired from campus and the number of
freshers hired depends on the attrition rate of the current
employees.



While the freshers are hired on a regular basis the laterals are hired
on a need basis only, that is, when there are vacancies.



The average life cycle of an EY employee is two to two-and-a-half
years.



As of now the firm has an approximate composition of 70% freshers
and 30% laterals.



The training program of the freshers lasts for five days after which
the employees are expected to continue learning on-the-job. For
laterals it is 1.5 days.
The HR department also has a provision to provide career
development and counselling to employees of all positions. This is
done only to maintain harmony in teams and increase team
cohesion. Such sessions also reduce interpersonal differences and
motivate the employees to work with enthusiasm.

Compensation Policies:


The compensation system at EY is also structured in such a way that
it facilitates innovation and motivates the employees to that extra
mile to prove themselves and do something extra, something which

is out-of-the-box. For example the HR consulting department has a
starting annual salary of about 11-12 lacs INR, which is the fixed
component

of

the

salary.

The

variable

component

forms

approximately 30% of the fixed component and varies as per the
performance of the employee.


The firm also gives recruiting incentive to the employees who refer
valuable workforce to the firm if that workforce gets selected.

Recent HR Practices:

Rank harmonization:
1. EY has 5 career ranks for client service employees and these
ranks are primary career milestones.
2. There are subdivisions of ranks that represent the way the
skills and experience of the employees is measured.
3. This provides a greater clarity on the employee career path
and the employees get a fair and equitable basis to be
promoted. Employees get to know what is required of them to
get promoted.
4. EY also encourages employees to take advantage of the
learning and development programs in the firm.
5. Promotion is a movement from one rank to another. A change
in rank means a change in responsibility, competency level,
and authority.
6. There is a “grow or go” principle at each rank. This practice
ensures that the right people are present at the right time and
in the right role which better defines the core business
services of the firm.
7. Greater clarity around career models helps to retain talent for
a longer time.
8. The benefits of rank harmonization are:
a. Provides seamless, consistent, high quality client service,
worldwide
b. Mobilizes employees globally
c. Meets increasingly regulatory demands



Competency :
1. In EY, Competency comprises skill, behaviour and knowledge.
2. Skills: includes the consulting and technical skills that are needed
to effectively deliver the Business Advisory Services (BAS) value
proposition to clients and to sustain the BAS business.
3. Behaviours: the way EY delivers to clients and the employees of
EY work together. It is the way clients immediately recognize, and
EY demonstrates that it provides the best BAS consultants.



Accelerated Leadership Plan:
1. The ALP is a firm wide 3 year exclusive program for the
development of leadership.
2. It aims at increasing the diversity and power of the
leadership strength.
3. It is a sum total of aspiration, ability, and engagement of the
employees

4. It has 2 parts – skills workshops which form a part of formal
learning and on-the-job-experiences which form a part of
informal learning

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