A company is facing declining revenue due to inflation and market volatility. The board immediately proposes a 20% workforce reduction to cut costs.

Question: Is this a strategic response or a reflex action?

This outcome largely depends on the rigour of the board’s underlying analysis. Globally, evidence indicates that organisations undertaking large-scale layoffs may achieve short-term stock price stabilisation. However, many subsequently face challenges related to long-term productivity and declining morale. Research by Harvard Business School suggests that layoffs can reduce the productivity of remaining employees by up to 20%, primarily due to fear, uncertainty, and disengagement.

Accordingly, the key strategic considerations should include:

1. Has the organisation conducted a thorough assessment of productivity gaps to determine whether workforce reduction is necessary?
2. Have reskilling or redeployment options been fully explored?
3. Have inefficiencies in other areas been addressed before prioritising workforce cuts as a cost-reduction measure?

If people are the primary drivers of organisational value, workforce reduction should be treated as a last resort rather than an immediate financial response during periods of difficulty.

Case Study/Scenario 2: A tech-driven organisation invests heavily in automation and AI tools, reducing its need for certain roles.

Question: Should efficiency automatically override employment considerations?

Technology should augment human capability rather than replace it because it is an enabler that should be effectively integrated with human effort. According to the World Economic Forum, while automation may displace certain roles, it is also expected to generate millions of new opportunities globally, particularly in digital, analytical, and human-centric fields.

The core challenge, therefore, is not automation itself but the management of workforce transition. A responsible approach to adopting AI and technology should include:

1. Strategic workforce planning
2. Structured reskilling programmes
3. Clear internal mobility pathways

When these measures are implemented, the risk of technology displacing employees is significantly reduced. Employees can be redeployed across functions as roles evolve, provided there are structured reskilling initiatives that prepare them for new responsibilities.

Organisations that replace employees without investing in upskilling risk losing institutional knowledge and trust capital, both of which are difficult to rebuild.

How organisations can totally avoid dealing with redundant employees

While automation may displace certain roles, it also has the potential to generate new ones within the organisation, spanning digital, analytical, and human-centric functions.

As roles are impacted by AI and technology, employees can be redeployed into customer-facing or other human-centric positions, ensuring they remain within the organisation rather than being exited.

Consequently, the impact of redundancy can be minimised through effective workforce planning, structured reskilling programmes, and the establishment of strong internal mobility pathways. These measures enable employees to transition into the new roles created by AI.

In Nigeria, there is increasing brain drain. Some argue that employees are leaving because organisations treat them as disposable.

Is there data that supports this perception?

Research by Gallup consistently shows that employees who feel undervalued, particularly high-value employees (HVEs), are significantly more likely to disengage or seek opportunities elsewhere. In emerging economies such as Nigeria, disengagement rates are often estimated to exceed 60%. When professionals perceive themselves as cost variables rather than growth partners, the likelihood of mobility increases, both internally and across borders, contributing to the “japa” phenomenon.

In today’s workplace, retention is largely driven by:

1. Development opportunities: Employees who see clear pathways for growth are more likely to remain with the organisation.
2. Fair compensation: Employees expect equitable rewards that reflect their contributions and value.
3. Psychological and physical safety: A lack of safety, both mental and physical, can prompt employees to exit.
4. Leadership trust: Employees must have confidence in leadership and hold leaders accountable for their commitments.

Organisations that neglect these factors often incur significantly higher replacement costs, typically ranging from 50% to 200% of an employee’s annual salary, depending on the role. Consequently, treating employees primarily as expenses can ultimately result in greater organisational costs.

What people-as-assets model looks like in measurable terms

A people-as-assets approach incorporates measurable indicators such as:

1. Employee engagement scores.
2. Revenue per employee (and employee cost as a percentage of total revenue).
3. Internal promotion rates.
4. Return on training investment.
5. Voluntary turnover rates.
6. Absenteeism metrics.

These metrics enable organisations to assess whether they are operating a people-as-assets model rather than a people-as-expenses approach. They provide a structured basis for evaluating how human capital is managed and valued.

Evidence shows that organisations with high engagement levels can achieve up to 21% higher profitability compared to those with low engagement. Accordingly, just as returns on financial capital are measured, returns on human capital should also be systematically evaluated.

Case Study/Scenario 3

Consider a company that prioritises aggressive productivity targets. Employees consistently work extended hours, burnout increases, but revenue rises.

Question: How sustainable is this model?

Short-term productivity gains can obscure long-term organisational risks. Research by the World Health Organization (WHO) has consistently linked prolonged work-related stress to increased health risks and reduced cognitive performance. Workplace burnout often results in higher error rates, elevated healthcare costs, diminished creativity, and increased employee turnover.

Sustainable productivity requires balancing performance with employee well-being. Organisations that prioritise output at the expense of their workforce risk undermining their long-term stability and foundation.

Responsibility of HR professionals in preventing the ‘expense mindset’

HR professionals are responsible for providing the following evidence to the board:

1. Present workforce analytics.
2. Quantify the costs of employee turnover for leadership.
3. Link employee engagement to profitability.
4. Propose alternatives to restructuring strategies.

Advice for Nigerian business leaders: Balancing financial performance with human value

Financial capital sustains a business, but it is human capital that drives it. While people can invest resources into a struggling organisation, recovery will be slow without trust, competence, and commitment from its workforce.

The most resilient organisations are those that consistently prioritise skills development, leadership capability, organisational culture, and ethical governance. Treating employees merely as costs undermines competitiveness, whereas recognising them as assets strengthens long-term sustainability.

Conclusion

It is important to recognise that, while a balance sheet may record expenses, history records how organisations treat their people. Accordingly, employees should be regarded as assets, not merely as expenses.

This thought leadership piece was adapted from the March 2026 (Season 3, Episode 1) edition of the ‘CIPM Radio Show’ and represents the opinions of the speaker during the session.

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Positioning organisations for success involves identifying the essence and purpose of their existence, as well as the strategic goals they have set for themselves, particularly for the year 2025. HR professionals play a crucial role in this process. They must understand these objectives and craft HR strategies and processes that align with the organisation’s goals.

By doing so, HR professionals can help drive productivity and enable the organisation to achieve its desired outcomes. Ultimately, positioning an organisation for success means defining its unique vision of success and implementing effective people management strategies to turn that vision into reality.

Discussions to brainstorm on what could be termed as success for the year and mapping out strategies

Before the start of a new year, organisations typically come together for a strategic planning session. Depending on the organisation’s structure and culture, this session may be referred to as a strategy review or a strategy retreat. In some cases, the top management team isolates themselves from distractions in a focused environment to reflect, brainstorm, and strategise.

During these sessions, they review the organisation’s performance over the current year, assessing how well they achieved their objectives. They also analyse the industry ecosystem, market environment, and any external factors influencing their operations. By leveraging data, insights, and analysis, they forecast future trends and identify opportunities or challenges for the coming year.

The goal is to align the organisation’s processes, procedures, and plans with the predicted business environment to maintain or improve performance. These discussions involve sharing ideas, drawing insights from data, and collaboratively creating actionable plans to achieve the organisation’s objectives and sustain a competitive edge in the industry.

HR professionals’ response to the increasing adoption of AI, automation, and digital tools in the workplace

Artificial Intelligence (AI) has become a game-changer, revolutionising how businesses make data-driven decisions with precision and improved insights. For HR professionals, it’s essential to recognise that AI is here to stay and will only enhance HR processes and procedures, ultimately driving efficiency and effectiveness across all approaches.

From talent acquisition and analysis to talent development, capacity building, succession planning, performance management, and every aspect of the HR value chain, automation and data-driven strategies become even more powerful with the adoption of AI.

AI essentially involves understanding natural language programming and leveraging data to extract information from multiple sources, delivering actionable insights for effective business decision-making. For HR professionals, embracing AI is critical to improving recruitment, talent management, and global workforce management processes.

AI also streamlines onboarding, allowing HR teams to engage with talent from identification to integration seamlessly. For example, AI can sift through thousands of applications in seconds using keyword-based searches, identifying candidates with the right competencies and skills for specific job roles. This transformative capability ensures more efficient hiring processes and improved outcomes.

Skills and competencies for HR professionals to stay relevant and impactful in 2025

1. Business Acumen & Commercial Awareness: HR professionals must possess strong business acumen and commercial awareness. It’s essential to understand how the business generates revenue, the factors that could lead to financial loss, and what drives profitability for stakeholders, including investors, employees, employers, regulatory agencies, and the government. Commercial awareness is, therefore, critical competency for HR professionals.
2. Effective Communication: Both written and oral, is another key skill, with an emphasis on active listening. Active listening is a vital aspect of communication that HR professionals must master to foster meaningful engagement.
3. Data Analytics: Data analytics is also a fundamental competency. HR professionals must be skilled in understanding, analyzing, and interpreting data to drive informed decision-making. The era of relying on instincts, trial and error, or sentiment-based approaches is outdated. HR must rely on data and financial insights to speak the language of business effectively.
4. Adaptability & Flexibility: These are non-negotiable in today’s volatile, uncertain, complex, and ambiguous (VUCA) world. To navigate this environment successfully, HR professionals need agility to respond to rapid changes and complexities with confidence.
5.  Problem-Solving & Critical Thinking: These lie at the core of HR’s role. HR professionals are employed to address challenges by gathering and analysing facts, thinking critically, and providing actionable solutions. Additionally, HR serves as a coach to business leaders, guiding them on effective people management. As a result, coaching is now a highly valued skill for HR practitioners.
6.   Leadership & Employee Well-Being Advocacy: Leadership, critical thinking, and advocacy for employee well-being are equally essential. In modern workplaces, employees are encouraged to bring their whole selves to work. HR professionals must, therefore, become well-being evangelists, championing the physical, mental, and emotional health of employees.
7.   Technology Proficiency: HR professionals must embrace technology, becoming tech-savvy to stay relevant and effective in a world increasingly driven by digital tools and solutions.

The need for HR professionals to dive into data analytics

for HR professionals, data is the new oil. And when we say data, every unit of measure is data. HR is responsible for creating the right people experience in the experience in the organization. This then suffices that we must understand the critical attributes of every human element that are being brought into the workplace to ensure that productivity is driven. So, data must be leveraged from age to sex to nationality to skills level to competency levels to race. All of these are data points that HR must be able to pull together to gain actionable insights that are required for decision making. How do you determine the skills that are required for you to be able to deliver on the objective of the organisation. How do you determine the number of employees that are required to be in the finance department or the production or procurement line or sales team. How do you determine the required skills and competencies for those that you want to put on your marketing team. How do you determine the number of products that your organisation must put out there to be profitable. How do you determine the needs of the consumers out there. All of these are data points and that is why for HR professionals, you must gain knowledge and understanding in mining data. How do you generate the data? How do you mine the data? and how do you process that data to be able to generate information that is required for adequate manpower planning for the organization. Therefore, it is very important that HR professionals must have a very strong understanding of data and there are a whole lot of opportunities for learning data analytics online. Data analytics skills are very critical for any HR professional to be successful going into the future.

For HR professionals, data is the new oil, and every unit of measurement represents valuable data. HR is responsible for creating optimal people experience within the organisation. To achieve this, it’s essential to understand the critical attributes of every individual brought into the workplace to drive productivity.

Data must be leveraged across various dimensions, including age, gender, nationality, skills, competencies, and even race. These data points collectively provide actionable insights necessary for informed decision-making.

Determining Organisational Needs

• How do you identify the skills required to achieve organisational objectives?
• How do you decide the optimal number of employees for departments like finance, production, procurement, or sales?
• How do you define the skills and competencies needed for your marketing team?
• How do you estimate the number of products your organisation must deliver to remain profitable?
• How do you assess the needs of your customers?

All of these are data points. This underscores the need for HR professionals to gain expertise in data management. The process involves:

• Generating data: Identifying and collecting relevant information.
• Mining data: extracting meaningful patterns and insights.
• Processing data: transforming raw data into actionable information for effective workforce planning.

Given its importance, HR professionals must develop a strong understanding of data analytics. There are numerous opportunities to learn these skills online, and data analytics will be a critical competency for any HR professional looking to succeed in the future.

“This thought leadership piece is culled from the CIPM radio programme, ‘The Office.’ The opinions expressed in this article are solely those of the Guests and do not represent the views of CIPM.”

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When discussing HR budgets, planning is just as crucial as budgeting for any other operational area in an organisation. It forms the foundation of why organisations succeed.

An HR budget outlines the financial resources allocated to human resources activities within a year. This includes salaries, benefits, training, and other expenses associated with developing and retaining employees. Preparing an HR budget involves systematically collecting company-wide HR data to project the financial support needed for the organisation’s operations.

In today’s challenging economic environment, where many companies face significant obstacles, running a business without clear financial planning is unsustainable. Organisations must streamline, prioritise, and develop a concise HR budget that aligns with their capacity. This ensures they can effectively manage their most valuable asset, the people, while minimising financial losses.

Budgeting for HR requires a comprehensive collection of data, including the number of employees, benefit costs, projected turnover rates, current year expenses, and new benefit program plans.

HR budgeting can generally be categorised into three main approaches:

1. Incremental Budgeting: This method involves making minor adjustments to the previous year’s budget, suitable for organisations with existing HR budgets.
2. Zero-Based Budgeting: In this approach, the budget is built from scratch for the upcoming year, with each expense requiring detailed justification.
3. Flexible Budgeting: Though more time-intensive, this method enables optimal resource allocation and helps identify inefficiencies or opportunities for improvement.

Effective HR budgeting is critical for any organisation aiming to remain sustainable, attract top talent, and ensure long-term business viability.

Impact of economic conditions and global trends on HR budgeting strategies

The Nigerian economy, like many others, is deeply influenced by global downturns and broader global trends.

Best Practices for HR Budgeting in Challenging Times

1. Strategic Alignment with Organisational Goals: HR cannot function in isolation; its projects and budgets must align with the organisation’s overall strategic objectives. Start by understanding the company’s priorities for the upcoming year and ensure that the HR budget supports these goals. Viewing HR from a business perspective ensures that its initiatives contribute directly to the organisation’s success.
2. Leverage Historical Data and Strategic Analysis: Analyse historical HR budgets and expenditures, identify any variances, and understand their causes. Use this data to inform future planning. For example, in a struggling economy, it’s crucial to have open communication and collaboration with HR stakeholders, including managers, departmental heads, and other decision-makers. Identify the most pressing HR needs, prioritise them, and involve all relevant parties to create a cohesive plan.
3. Categorise Expenses Effectively: Group HR expenses into clearly defined categories, such as personnel costs, payroll, taxes, equipment, and training. Determine which categories require immediate attention and prioritise accordingly.
4. Focus on Value Addition: Invest in strategic hires who can deliver immediate and measurable value to the organisation. The goal isn’t merely to fill positions but to ensure that new hires align with the organisation’s overall objectives. Consider how each hire can contribute meaningfully to the company’s success.
5. See Economic Downturns as Opportunities: Economic challenges can also present opportunities. As the Chinese proverb suggests, “In every problem lies an opportunity.” Redirect resources and efforts toward areas that can be productive, ensuring employees contribute meaningfully to organisational goals. Proper budget management in such times allows you to focus on initiatives that bring tangible results and long-term benefits.

By aligning HR strategies with organisational goals, leveraging data for informed decision-making, and prioritising value-driven initiatives, organisations can navigate economic challenges effectively and emerge stronger.

Key components of an HR budget and how budgeting affects recruitment, especially when it comes to payment of prospective salaries.

HR budgeting encompasses several critical components that work together to ensure effective resource management and alignment with organisational goals. Understanding these key elements is vital for creating a comprehensive HR budget that aligns with strategic priorities and delivers tangible value to the organisation.

Key Components of HR Budgeting

1. Personnel Costs: Personnel costs are the largest component of the HR budget, covering salaries, wages, bonuses, and employee benefits. These costs are fundamental and must be budgeted appropriately, regardless of whether the organisation adopts an incremental or zero-based budgeting approach. Proper consideration of personnel costs is essential to ensure that resources are allocated effectively.
2. Recruitment and Onboarding Expenses: These expenses include costs related to sourcing, hiring, and integrating new employees into the organisation. They cover advertising fees, recruitment agency charges, background checks, training, and onboarding. However, recruitment should not be undertaken just for the sake of it or as an annual routine. Each hire must fulfill a specific need and add measurable value to the organisation. Where possible, internal talent should be leveraged, emphasising talent management to optimise the existing workforce rather than seeking external candidates unnecessarily.
3. Prioritising Talent Retention: Retaining top talent is critical to maintaining a strong, resilient workforce. Organisations should prioritise initiatives that enhance employee satisfaction, engagement, and loyalty, ensuring that their workforce remains motivated and aligned with business objectives.
4. Integration of Business Technology: Organisations should explore opportunities to integrate IT solutions into HR processes. Automating repetitive tasks and outsourcing non-core activities can enhance efficiency and reduce costs. A holistic approach to HR ensures that staff remain engaged, motivated, and supported while minimising operational losses and maintaining business profitability.

By focusing on these components, organisations can craft an HR budget that not only supports operational needs but also contributes to long-term sustainability and growth.

Top of Form

Bottom of Form

Common mistakes organisations make when planning HR budgets.

1. Lack of Alignment with Overall Business Strategy: A clear understanding of what budgeting entails is essential for effective HR budgeting. If HR budgets are not aligned with the organisation’s overall objectives, it can lead to conflicts with management and hinder the achievement of strategic goals.
2. Failure to Document Appropriately: Accurate and reliable data is the cornerstone of effective budgeting. One major challenge in HR budgeting is ensuring the quality and availability of data used for analysis and projections. Factors such as outdated systems, manual data entry, data silos, lack of integration, and human errors can compromise data accuracy and reliability.
3. Excluding Stakeholders from the Process: Stakeholder engagement and collaboration are critical for successful HR budgeting. HR must work closely with stakeholders across the organisation to gather insights and align the budget with specific departmental needs. For instance, budgeting for training programs without consulting the head of engineering might overlook critical needs, such as safety or mental health training. Engaging stakeholders ensures that budgets are relevant and impactful.
4. Budgeting Without Factual Basis: Relying on assumptions or guesswork instead of data-driven insights can undermine the budgeting process. Effective budgeting requires a thorough understanding of projected revenues, associated costs, and personnel expenses. Conversations with key departments, such as finance and revenue teams, are essential to ensure that budgets are realistic and aligned with organisational goals.
5. Neglecting Emergency Savings and Flexibility: Rigid budgeting practices, such as simply applying incremental adjustments to previous budgets (e.g., adding 5% or 25%), fail to account for unforeseen changes. Effective budgeting requires flexibility and the ability to adapt to emergencies or shifts in strategic priorities. Aligning budgets with organisational objectives and incorporating contingency plans is essential to maintain agility and sustainability.

By addressing these common pitfalls, HR teams can create budgets that are accurate, aligned, and responsive to organisational needs.

Major drivers in HR, and how they can be managed effectively

Today, numerous factors influence HR practices, driving the need for adaptability and innovation. Key drivers include alignment, efficiency, scalability, productivity, governance, and sustainability.

1. Redefinition of work itself: Work is no longer confined to a specific place, employees don’t necessarily go to work; instead, they perform their tasks from anywhere. This shift has led to changes in workforce dynamics, the adoption of new technologies, and the rise of the Gig economy. Consequently, HR transformation now involves equipping managers with real-time tools to engage employees and address the demands of a flexible and remote workforce.
2. Hybrid Talent Management: The objective of organisational development remains to acquire the right talent with the right skills. However, talent management must now embrace hybrid approaches, accommodating diverse working styles and preferences rather than relying on rigid, traditional models.
3. Predictive Analytics and Dynamic Engagement: Predictive analytics has become essential in employee experience and talent management. Similarly, employee engagement must evolve to reflect the diversity of today’s workforce. For instance, the engagement needs of employees in their 50s or 60s differ significantly from those in their 20s. HR must adopt tailored strategies to engage these groups effectively.
4. Global Perspective, Local Execution: In a world that has become a global village, organisations frequently operate across borders. HR must think globally while acting locally, harmonising global strategies with local practices to align with current trends and ensure relevance.

By addressing these drivers, HR can stay ahead of the curve, creating systems that are agile, inclusive, and aligned with the demands of a rapidly changing workforce.

How organisations can balance investments in employee welfare with cost optimisation.

Differentiating between cost and investment in HR is crucial. Human Resource should not be seen as a cost center but as a strategic investment in employees. Costs are expenses aimed at maintaining current operations, while investments are expenditures focused on improving future revenue or reducing costs. Striking a balance between these two approaches is essential for sustainable growth.

When organisations invest in employee welfare, it is not merely for the benefit of the employees but for the overall success of the business. Employees who are engaged, motivated, and focused contribute their best, leading to higher productivity. For instance, wellness programs like meditation sessions, fitness challenges, and skill-enhancing training can reduce stress, improve efficiency, and lower operational costs. These are not just expenses; they are investments that yield tangible returns over time.

How to Balance Investments with Costs

1. Conduct Cost Analysis: Before committing to any expense or investment, it is essential to perform a thorough cost analysis. This helps in evaluating whether the expenditure will add value or unnecessarily strain resources.
2. Evaluate Employee Value: Consider the contributions of employees to the organisation. Are they pivotal to driving the company forward? If certain employees are not aligned with the organisation’s needs, it may be better for them to explore opportunities elsewhere where their talents are better utilised. This ensures that the workforce remains productive and aligned with business goals.
3. Strategic Investments in Talent: Identify high-potential employees and invest in their development. Focus on initiatives that enhance efficiency and engagement while maintaining a balanced approach. Strategic investments in employee growth will ultimately be reflected in improved organisational performance.

By viewing HR as an investment and making informed, strategic decisions, organisations can foster a productive workforce while achieving long-term sustainability and success.

Innovative trends and approaches to HR cost management.

The lifeblood of any organisation is its people, making them both its greatest asset and its most significant expense. To justify these expenses daily, organisations can adopt strategic approaches to optimise costs while maintaining quality and efficiency. Here are some strategies:

1. Strategic Hiring: Prioritise candidates’ skills over their previous job titles or degrees. This approach can uncover untapped potential, enabling the organisation to meet its needs effectively while potentially lowering recruitment costs.
2. Employee Referral Programs: Encourage current employees to refer qualified candidates. This not only reduces recruitment expenses but also ensures a higher likelihood of cultural fit and productivity.
3. Flexible Work Arrangements: Reevaluate traditional work schedules. For instance, why require employees to work from 8 a.m. to 4 p.m. if their tasks can be completed earlier? Flexible hours orreduced workdays, such as a four-day workweek, can improve efficiency and work-life balance while reducing overhead costs.
4. Outsourcing Non-Core Functions: Outsource tasks like cleaning, driving, or certain IT operations that do not require stringent in-house control. This can significantly reduce recurring expenses, as these services can be paid for on a one-off or contract basis. Additionally, leveraging technology-driven solutions to automate routine tasks can streamline operations and cut logistics costs.

By implementing these strategies, organisations can effectively manage their workforce-related expenses while fostering a productive and engaged team.

Advice to HR professionals or business leaders struggling with budget constraints.

Enhancing budget accuracy requires a multifaceted approach that ensures clarity, strategic focus, and alignment with organisational goals. Here are key steps to achieve this:

1. Clear Communication and Team Involvement: Foster open communication within your team, clearly define your goals, and involve team members throughout the budgeting process. For instance, if your goal is to allocate and spend one billion this year, begin by analysing past trends, where you started, where you stopped, and what changes are needed.
2. Set Priorities: Clearly outline what you aim to achieve and the purpose behind it. For example, instead of merely planning training programs, determine how the training aligns with your organisational goals. Define the “why” before deciding on the “how” and “what.”
3. Strategic Alignment: Approach budgeting with a purpose. Just like planning a major life decision, such as marriage, ensures there is a clear reason and outcome. Without a defined purpose, the process risks falling apart.
4. Practical Planning: Adjust your plans based on available resources rather than aspirations. As the saying goes, “cut your coat according to your cloth.” Focus on achievable objectives without overextending resources or compromising the organisation’s stability.
5. Balance Short-Term and Long-Term Investments: While long-term investments are important, they must not jeopardise immediate operations or the organisation’s ability to generate small but necessary profits.
6. Evaluate whether long-term investments could disrupt current cash flow or operational stability.
7. Prioritise investments that maintain a balance between operational continuity and strategic growth.

By prioritising clear goals, fostering team collaboration, and balancing immediate needs with long-term strategies, organisations can create accurate budgets that support sustainable growth and operational efficiency.

“This thought leadership piece is culled from the CIPM radio programme, ‘The Office.’ The opinions expressed in this article are solely those of the Guests and do not represent the views of CIPM.”

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Workplace culture and sustainability are key factors that define an organisation. Every organisation invests in sustainability to ensure that its resources, especially human resources, are aligned with its vision and mission, enabling continuity in business operations.

When discussing Diversity, Equity and Inclusion(DEI), diversity refers to the variety of human resources brought into the workplace, encompassing differences in gender, ethnicity, disability, and more.

• Equity focuses on ensuring that every individual, regardless of these differences, has access to the resources and opportunities needed to contribute meaningfully to the organisation.
• Inclusion takes this further by fostering a supportive and conducive workplace environment where individuals from diverse backgrounds, regardless of gender, disability, or ethnicity can thrive, maximise their potential, and work effectively.
• Belonging is the natural result of an inclusive workplace. It is something only employees can truly affirm, as it reflects their sense of acceptance, connection, and value within the organisation. Employees who feel they belong are confident that their contributions matter and are appreciated.

In the context of disability and inclusion, fostering belonging involves removing barriers to employment for people with disabilities and providing reasonable accommodations. This empowers them to function effectively, contribute meaningfully, and uphold the organisation’s culture, values, and sustainability objectives.

Beyond the trend, DEIB, becoming a crucial topic in today’s business landscape

Extensive research has highlighted the significant losses organisations incur when they fail to be inclusive, particularly of people with disabilities. It has been observed that such exclusion leads to missed opportunities for harnessing valuable talent and contributions. This realisation has prompted a shift in approach, with greater emphasis on inclusivity. Organisations that embrace diversity and inclusion are shown to outperform their peers in innovation, foster higher employee engagement, and, ultimately, enhance workplace sustainability. By eliminating barriers and creating an environment where everyone can function productively, these organisations secure long-term success.

In Nigeria, the government recognises the importance of inclusive workplaces for persons with disabilities. The Nigerian Disability Prohibition Act of 2018 mandates organisations to ensure accessibility, prevent discrimination, and provide equal opportunities for persons with disabilities to thrive in the workplace.

The collective responsibility of society in creating a seamless and inclusive experience for people with disabilities

People with disabilities are a part of every community, not just the workplace, and government policies extend to public spaces as well. The government has taken proactive measures to ensure accessibility is prioritised not only in the private sector but also in public spaces such as markets, schools, banks, and places of worship. This commitment has prompted widespread compliance across various sectors.

The National Commission for Persons with Disabilities, an arm of the government focused on disability inclusion, has collaborated with Sight savers to develop an Accessibility Standard. This initiative, led by engineers in Nigeria and supported by the Nigerian Society of Engineers and building professionals, outlines clear guidelines for constructing accessible buildings to accommodate persons with disabilities.

In Abuja, Nigeria, there is a focused effort to ensure that housing estates are designed to be fully accessible. This initiative reflects the understanding that disabilities can affect anyone at any time, emphasising the importance of preparing society to be inclusive. These efforts aim to raise awareness and ensure that public spaces, communities, workplaces, and offices are accessible to all, fostering a truly inclusive environment for people with disabilities.

How organisations can measure the impact of DEIB initiatives on their bottom line.

Organisations can assess the impact of their DEIB initiatives on their bottom line through various methods:

• Tracking employee retention rates to evaluate the effectiveness of inclusion efforts.
• Measuring employee engagement scores, which can provide insights into the workplace environment.
• Conducting employee satisfaction surveys to assess how inclusive and effective organisational policies are.
• Carrying out customer satisfaction surveys, especially for profit-driven organisations, to gauge how inclusive their policies and practices are perceived externally.

Inclusive organisations typically experience higher retention rates, reduced recruitment and training costs, and overall benefits to their bottom line. Advocating for workplace inclusion isn’t solely about charity or human rights, it is also a strategic business decision. Organizations that prioritise and effectively implement inclusion are unlikely to experience negative impacts on their bottom line.

How organisations can overcome unconscious bias to ensure fair practices.

Organisations can address unconscious bias to promote fair practices by:

1. Implementing regular unconscious bias training: Training is essential to help employees recognise and understand their biases. This fosters self-awareness and equips staff with the tools needed to make objective decisions in hiring diverse candidates, promoting inclusivity, and engaging in fair interactions with individuals with disabilities.
2. Standardising and ensuring transparency in recruitment processes: Organisations should establish clear, consistent recruitment procedures and openly communicate them to ensure fairness and eliminate biases.

Role of leadership in driving DEIB initiatives.

Inclusion begins and ends with leadership. To foster inclusion in the workplace, it starts with leaders, and board membership should include individuals with disabilities. After all, those who experience challenges firsthand are best positioned to understand and address them. People with disabilities should advocate for themselves, rather than relying on others to speak on their behalf. Having them in decision-making roles provides an invaluable opportunity to hear their perspectives and gather insights on how to make the workplace more inclusive. A board composition that prioritises diversity is a great starting point.

The future of DEIB in a rapidly evolving workplace, especially with trends like remote work and AI integration.

For disability inclusion advocates like Sight Savers, the future looks promising, as significant awareness has been raised, and there is increasing support for organisations and individuals committed to advancing this cause. The workplace is rapidly evolving, with greater adaptability, the growing acceptance of remote work, and the integration of Artificial Intelligence (AI), all of which are reshaping how we work and how organisations prioritise inclusion. These advancements are breaking down barriers that go beyond physical spaces, allowing individuals with disabilities to work remotely and leverage AI to perform tasks that enhance their contributions. For instance, screen reader software enables people with visual impairments to create and present PowerPoint presentations independently, without needing assistance.

In conclusion, we must evolve alongside these trends by prioritising flexibility, fairness, and human-centered approaches. Organisations that integrate inclusion into these changes will not only future proof their culture but also lead the way in creating workplaces where everyone, regardless of disability or background, can thrive.

“This thought leadership piece is culled from the CIPM radio programme, ‘The Office.’ The opinions expressed in this article are solely those of the Guests and do not represent the views of CIPM.”

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Human Resource (HR) metrics are the measures we use to assess the performance and impact of the HR department, highlighting the value it brings to the organisation. These metrics serve as a framework connecting HR’s functions to the organisation’s overall optimisation. For any department within the organisation, it’s essential to consider how much value it truly adds. In HR’s case, these specific metrics allow us to evaluate the relevance and significance of its functions.

HR metrics differ from standard Key Performance Indicators (KPIs), which typically focus on setting organisational targets and measuring specific outputs based on predefined metrics within a given timeline. While KPIs track various aspects of organisational performance, HR metrics are designed specifically to evaluate the HR function’s contribution to the organisation. These metrics are integral to assessing overall performance, but they are uniquely tailored to reflect the effectiveness and impact of HR activities. This is the core purpose of HR metrics.

How would you describe the concept of ‘Value Creation’ in HR, and why is it crucial in today’s business landscape?

Value is often relative to the context in which it’s measured. In essence, value should be tangible, it must be measurable, observable, appreciated, and clearly defined, not merely an abstract concept. This concept parallels economic examples, such as nominal and real income: nominal income is the amount you earn, while real income reflects what that money can buy.

In HR, value isn’t about the number of people in your department or the quantity of initiatives you launch. Instead, it’s about the extent to which these efforts make a meaningful impact on the organisation. For instance, it’s not just about having highly qualified individuals but about how effectively their skills and experiences translate into tangible results. Value is results-driven, it’s something we can observe and feel. It’s not simply having people on staff, but having individuals who deliver significant, lasting contributions to the organisation.

Value creation in HR metrics asks: how does HR align its functions with the value we experience within the organisation? How does it contribute to impact, foster a sense of belonging, and ensure that employees feel valued in their roles? These are essential values. HR plays a fundamental role in affirming human worth, fostering a supportive environment where people feel appreciated, needed, engaged, and optimised within the organisational framework. Through value propositions, HR defines what makes employees feel proud to be part of the organisation. Without a sense of worth, belonging, and appreciation, employees may struggle to find reasons to stay connected and committed.

How do you use data analytics to improve talent acquisition processes?

Data analytics is one of HR’s most valuable contributions to the organisation. During the hiring process, a role is advertised, and candidates respond, presenting two main things: their accumulated experience and their qualifications. However, these alone don’t guarantee that a candidate can effectively perform the job. There’s a third, often invisible element, the behavioral traits and innate abilities that define an individual. While qualifications might help someone secure a job, their behavior and innate qualities help them succeed and thrive in it. HR employs tools that gather data on these behavioral traits and hidden abilities, allowing for a deeper understanding of each candidate’s potential to deliver effectively on the job.

Therefore, data is crucial in HR. For instance, metrics can reveal how well an individual manages complexity or performs under pressure, traits they may claim to possess but which can be objectively evaluated through specific tools. While a candidate might describe themselves as sociable, certain tools can accurately assess this quality. These tools, free from human sentiment or emotion, provide impartial insights. By inputting specific information about an individual, these tools generate data that can guide hiring, promotion, and retention decisions with clarity and objectivity. A person’s stated achievements and experience aren’t enough on their own. What truly matters is the behaviour they bring to the job. Some individuals may be capable of performing well initially but aren’t built for the long haul, they may excel in short bursts but quickly experience burnout and struggle to stay with the organisation. These individuals often leave prematurely because something prevents them from sustaining their commitment over time.

HR has evolved to become scientific and data-driven, with decisions guided by tools, software, and systems that reveal traits and capabilities often hidden from a Curriculum Vitae (CV), qualities essential for successful hiring. Relying solely on a CV can lead to hiring mistakes, whereas focusing on inherent traits and capabilities tends to result in better hiring outcomes. These tools also help identify individuals suited for leadership roles. While tenure in an organisation has its advantages, it doesn’t necessarily indicate leadership potential. Effective leadership goes beyond years of service, it requires qualities like team motivation, performance delivery, and the ability to meet organisational goals. Longevity may reflect loyalty, but it doesn’t always equate to exceptional performance or the ability to inspire a team.

What are some of the biggest challenges HR departments face when integrating analytics into their operations?

First and foremost, it’s essential to ensure that the solution you plan to implement aligns with the needs you aim to address. Don’t simply adopt a solution because someone recommended it; instead, ask yourself whether it truly meets your requirements. Mismatching solutions with your needs can lead to significant challenges. For instance, if you bring in a solution that helps attract talent but doesn’t track leadership potential, yet you expect it to serve that purpose, you’re setting yourself up for failure. The primary issue here is the misalignment between your needs and the capabilities of the solution.

The second challenge is a lack of competence. Sometimes, you may be able to access certain tools or data, but without the necessary skills to analyse them, they become ineffective. To truly understand and interpret these resources, you need to undergo specific training. It’s not enough to assume that simply reading the text means you fully comprehend it. Often, the charts provide a far more detailed and sophisticated insight than the narrative alone. While the storyline may just present the written information, mastering the solution enables you to interpret the deeper meaning behind the charts.

Ensure that the solution you choose is a natural fit for the problem you’re trying to solve. Also, make sure you fully understand the solution itself. Be aware that not all solutions are optimised for every sector. For example, the needs of the service industry differ from those of the manufacturing industry, so the solution must address the specific challenges within your industry. Some solutions are more universal and can work across both sectors, but it’s important to ensure that the solution aligns with your specific needs. You should have the capacity to interpret the solution correctly and align it with your objectives.

Another issue is when HR’s recommendations go unheard. Even after providing guidance on what should be done, people may still choose to act based on their own preferences. This can create problems, especially when personal, family, or other human interests come into play. For an organisation to effectively use this tool, it must be committed to operating with objectivity. The tool may reveal information that is uncomfortable or contrary to what you want to hear, so it’s essential to be open to its insights and adhere to the conclusions it provides.

What metrics do you believe are most effective for assessing employee performance and engagement?

Firstly, what metrics indicate that an employee has a natural alignment with the role? This is the key measure, as it helps assess how well an employee contributes to the organisation’s bottom line, profit margins, and overall performance. These are measurable metrics. It is crucial to first ensure that the employee is naturally suited for the position, as this can prevent future complications.

Next, within the HR space, we look at metrics like turnover rate, specifically, how many people are staying versus leaving the organisation. However, it’s important to distinguish the types of turnover. Is it the departure of critical talent, or is it the exit of underperforming employees? Losing talent, you don’t need is not problematic, it could be beneficial. The real issue arises when valuable employees leave. Therefore, understanding both turnover rate (those leaving) and retention rate (ability to keep employees) is essential.

We also use metrics related to timeliness, such as absenteeism rates, to gain insights into employee behavior. When employees consistently arrive late, it raises a red flag, what’s going on? Is the issue external, like traffic, or is it internal, such as a lack of connection to the job or disengagement? This could signal a deeper problem with their interest or motivation to work. The frequency of employee illness is another important metric. Is it related to the chemical composition or toxicity of the workplace environment? Could workplace bullying be a factor? Or are there health concerns that were not addressed during the hiring process? All these factors are vital, as none is more important than the others; each provides valuable data that HR should carefully consider. Ultimately, retaining critical talent and high performers is crucial. If your best employees leave, your business is at risk of losing valuable expertise and momentum.

How do you address concerns related to data privacy and security in HR analytics?

The creative index, along with others in this category, are already aligned with global data protection laws, which impose strict regulations on data handling. To administer these solutions, one must be certified and interpreting them also requires certification and proper training. Nigeria is making significant strides with its new national data protection laws, which emphasise the need to keep employee data as secure as possible. This is critical because employee data is private and should not be commodified. When it comes to HR metrics, there are sensitive details involved, including assessments, profiles, and reports, all of which must be treated with the utmost confidentiality. HR as a profession is inherently based on maintaining the confidentiality of data. If you are unable to manage confidentiality, you are not suited for an HR role, as this would pose risks to both you and the organisation.

How do you see the role of HR metrics and analytics evolving over the next 5 to 10 years?

Metrics have become a core component of the curriculum for the Chartered Institute of Personnel Management (CIPM), now a key area for examination. The importance of metrics has grown significantly, as they represent both the present and the future. Today, it’s all about using data to gain insights, moving away from traditional practices like manually carrying files. The use of data has also enhanced the relevance of HR in organisations, allowing HR professionals to analyse current trends and make predictions about the future. With the right tools, we can forecast what an employee may achieve in their role. Over the next five to ten years, we expect to see further improvements as compliance increases and more qualified individuals, CIPM certified professionals who are adept at understanding metrics, step into HR positions. These professionals will be equipped with the expertise gained through rigorous certification and training.

Are there any emerging technologies or tools in HR analytics that you’re particularly excited about?

The predictive index is truly remarkable, it provides insights about an employee that cannot be found on a CV or during an interview. It offers a deeper understanding of what the person can really do, almost like an inside scoop. It’s a powerful tool, and we’ve reached a point where practicing HR without mastering these tools is simply not an option. To remain relevant, you must understand and leverage these solutions. Just like in the medical field, where professionals understand the power of AI, HR now benefits AI tools.  With AI, you can walk into a system and have everything about an individual, including their profile, LinkedIn references, and more, laid out for you. AI has made HR practices much more dynamic and engaging, it’s no longer a tedious task, as everything you need is at your fingertips. The future of HR is incredibly exciting, and CIPM’s efforts in embracing AI are commendable. By tapping into the power of AI, we are moving away from artificial ignorance and towards Artificial Intelligence, which enables us to make data-driven decisions and accurately predict outcomes within organisations.

Conclusion

When you integrate HR metrics into your system, ensure it is accessible wherever you are, 24/7, and on the go. This is one of the key advantages of using technology to support HR metrics. With everything at your fingertips, all the information you need is displayed right on your screen. When someone approaches you, you can simply click their name and instantly view all relevant data performance details from the previous year, achievements within the organisation, and more. By utilizing metrics and dashboards, you can stay informed and operate as a true professional.

“This thought leadership piece is culled from the CIPM radio programme, ‘The Office.’ The opinions expressed in this article are solely those of the Guests and do not represent the views of CIPM.”

The post EPISODE 132: TOPIC: HR METRICS AND ANALYTICS FOR VALUE CREATION appeared first on CIPM Nigeria.

This concept is highly intriguing, and if entrepreneurs fully focus on it, it could significantly accelerate the growth of their organisations.

An intrapreneur is an employee who takes full ownership of their work and is self-driven. They drive innovation, seek ways to enhance the company from within, and are often described as employees who go above and beyond. These individuals consistently look for ways to improve the organisation by asking questions like, “How can we do better? How can we improve what’s already in place? How can we go the extra mile?” They actively pursue new opportunities and engage in projects that help propel the organisation forward.

The key difference between entrepreneurship and intrapreneurship is that an entrepreneur is the owner and originator of the business, they develop the idea, start the business, and nurture its growth. In contrast, intrapreneurs help the entrepreneurs enhance and refine these ideas. They help entrepreneurs grow the business by finding innovative and creative ways to improve and expand the organisation.

Benefits for organisations whose executives or workforce operate with an intrapreneurial mindset

There are numerous benefits to having intrapreneurs as employees, as they drive continuous innovation within the organisation. These companies are constantly doing things differently, which not only attracts returning customers but also generates referrals and talking to other people about them, fueling business growth. Additionally, intrapreneurs enhance efficiency by constantly seeking ways to improve processes, particularly if they hold leadership or middle management positions. They are committed to the organisation’s success and are willing to go the extra mile. They focus on streamlining processes, identifying time and product waste, and finding faster, more efficient ways to get work done. With intrapreneurs in your organisation, productivity increases, processes improve, and things are accomplished more swiftly.

Members of staff in the lower cadre who have an intrapreneurial mindset

These qualities can be identified during interviews without the need for formal personality tests. You can spot them by observing how candidates respond to questions and how they engage in the conversation. These individuals are often described as having a “fire in their belly.” Even at the interview stage, they will have researched your organisation and may offer insights into areas that need improvement and suggest better approaches. Intrapreneurs can be found at every cadre, across all levels of the organisation.

Specific strategies or environments that an intrapreneurial mindset thrives in

First, it’s important to cultivate an organisational culture that fosters an intrapreneurial mindset. This involves providing the right opportunities, tools, information, exposure, and training necessary for employees to thrive. When your organisation promotes a culture where individuals often seen as overly involved or eager to engage in various aspects of the business are encouraged and rewarded, it helps nurture and reinforce an intrapreneurial mindset. By creating this environment, you build and promote a culture of intrapreneurial mindset.

Additionally, it’s important to encourage and involve them in relevant discussions, especially after identifying their potential. Ensure they are present in meetings or forums where developmental ideas are being discussed. For instance, if there are discussions around new products or innovations, bring them into a poll, sometimes referred to as “innovation meetings.” Create environments that nurture their ideas, celebrate their contributions, and recognise the success they bring to the organisation. Provide them with the freedom to explore their ideas, but also back them up with the necessary support and guidance. Some individuals may need help refining their concepts to avoid going overboard and overbearing. Leveraging the experience of senior leaders can help in providing constructive feedback and guidance, allowing them to fine-tune their ideas.

Key qualities and skills of a successful intrapreneur and how employees can develop these traits

The entrepreneur is the one who originates the idea, takes the risk to establish the business, and provides the necessary funding, connections, and resources. They are the owners of the business, bearing all the risks and managing the infrastructure and everything else involved in the business.

An intrapreneur is an employee who works in an organisation, believes in the organisation and is willing to go the extra mile to help the entrepreneur improve and grow the business. While entrepreneurs are the primary risk-takers, intrapreneurs can be entrusted with decision-making, though the entrepreneur ultimately bears the risk. Things may go wrong, but such ideas may bring good profit to the organisation. Allowing intrapreneurs to take initiative gives them the opportunity to learn from mistakes. When their ideas succeed, they can generate significant profits for the organisation. Over time, they will refine their approach, learning from past errors to make better decisions in the future.

An entrepreneur is the risk bearer and risk taker, while an intrapreneur is someone who ventures into the risks. However, it is the entrepreneur who faces the consequences if the risks do not pay off. In this dynamic, the entrepreneur serves as the investor, while the intrapreneur works for the investor.

How an intrapreneurial mindset drives innovation within a company

From the customer’s perspective, individuals with an intrapreneurial mindset are proactive problem solvers. This means that when issues arise, you can expect them to generate innovative ideas and creative solutions to address the challenges and find effective ways to get things done.

They are skilled in conducting research, understanding the outcomes, and identifying ways to enhance those findings. Typically, they are very proactive in addressing issues and are willing to take risks by proposing innovative ideas. They might say, “Why don’t we give this a try?” and provide numerous compelling reasons for pursuing it, along with various methods for implementation. Their confidence stems from having thoroughly tested their ideas beforehand, often conducting preliminary assessments or litmus tests. This preparation makes them persuasive, leaving you inclined to give their suggestions a chance.

Also, they believe in themselves and view themselves as the owners of the organisation.  They take accountability for their actions, often stating that you can trust them and hold them responsible if things don’t go as planned. As an employer, you may feel inclined to give their suggestions a chance, especially if they have successfully implemented ideas in the past. They excel at gaining buy-in from others and are effective marketers, persuading stakeholders on why their ideas are worth pursuing. Their collaborative approach allows them to delineate tasks “You handle this, and I’ll take care of that” to identify effective solutions. They do not stop even when they fail, they persist and continuously improve their strategies on how to get things done.

Key indicators when measuring the success of implementing an intrapreneurial mindset

People aren’t necessarily born with an intrapreneurial mindset; rather, it is shaped by their upbringing and environment. In today’s generation, children are often not timid, and schools provide opportunities to explore and experiment in diverse ways. These experiences contribute significantly to developing individuals’ mindsets and approaches to how things are done. Therefore, the intrapreneurial mindset is developed over time. Some may possess this mindset without even realising it, but when they are placed in an environment that fosters such qualities, their skills and confidence can flourish.

When an employee joins your organisation, their performance and approach to getting the job done can indicate whether they possess an entrepreneurial mindset. Even during the interview process, as previously mentioned, you can often discern their willingness to go the extra mile to enhance their contributions and focus on the organisation’s growth.

Once they join the organisation, these individuals are often the ones who ask questions and demonstrate curiosity about how things work. They go the extra mile to understand processes and adapt quickly. Their output leads to increased innovation, and they are engaged employees who are enthusiastic about their roles, looking forward to coming to work and getting things done without wasting time.

You can identify them by their inquisitiveness; they ask about how the business operates, how revenue is generated, and where the money goes. They invest their best efforts and are eager to learn seeking knowledge through questions, conversations with colleagues, and understanding how their work and that of others impact the organisation. Additionally, they are willing to take risks and embrace new challenges, serving as the organisation’s risk-takers. All these qualities are key indicators when assessing the effectiveness of implementing an intrapreneurial mindset.

Advice to companies that want to explore intrapreneurship as a strategic tool

Foster a culture that encourages high achievers within the organisation, particularly those with an intrapreneurial mindset, as they are often the high performers. Promote open communication, allowing them to share what they learn, their insights, and how they can apply this knowledge for improvement. As the business owner, leading by example is crucial. When failures occur, avoid using a “sledgehammer to kill a fly” instead, emphasise that setbacks are part of the learning process and express your willingness to let them try again. By doing so, you will develop more people within your organisation.

“This thought leadership piece is culled from the CIPM radio programme, ‘The Office.’ The opinions expressed in this article are solely those of the Guests and do not represent the views of CIPM.”

The post EPISODE 126: AN INTRAPRENEURAL MINDSET- THE ORGANISATIONAL GAME CHANGER appeared first on CIPM Nigeria.

A decent work agenda describes an agenda for the development of people who come together for a purpose and work towards achieving a common goal. For example, when people gather to “bake bread”, providing services in a studio or engaging an audience as a guest speaker. All these must be done with decency and decorum. People must be treated with integrity; and communication must be carried out respectfully.

Among all the varieties of resources available in organisations such as human resources (employees) materials (input), money (capital), machinery (equipment), methods (strategies) and time (minutes), the human element is the most critical. The importance of human resources demands that we ensure decency in the workplace, which leads to the question of what decent work means.

Decent work according to ILO definition is an employment that is productive, provides fair income, ensures workplace safety and offers social protection for families. It also encompasses opportunities for personal development and social inclusion. Beyond this, it emphasises the importance of allowing individuals the freedom to voice their concerns, organise and participate in decisions that affect their lives and well-being within an organisation. In essence, decent work consists of several key elements. One of the most important is fair income. What does this mean? It’s about earning a living wage, one that enables workers to support themselves and their families and allows them to afford a decent standard of living with security, where protection from any type of harm or risk is assured.

In a decent workplace, employees should be given the opportunity to express themselves and participate actively in decision-making processes and be given the opportunity to advance in their career. Additionally, work-life balance is essential, allowing time for rest, leisure, and personal activities.

Incorporating the principles of decent work and how it will impact employees’ morale and productivity

Integrating the principles of decent work can greatly enhance employee morale and productivity. Organisations do not exist solely to compensate or reward effort; they are focused on achieving results. To attain those results, the principles of decent work must be embraced. But what are those impacts, and how can they boost an individual’s morale to drive productivity?

First and foremost, a well-treated employee is a productive one. Several factors contribute to this positive impact. Ensuring job security and adhering to decent work principles, such as fair treatment and protection reduces anxiety, stress, and hopelessness among workers. Morale is also significantly boosted through fair compensation, such as paying a living wage and offering deserved benefits, which enhances employee satisfaction and motivation.

A safe work environment is another critical factor; for it to positively impact morale, safety must be guaranteed and maintained. Moreover, work-life balance is essential. Encouraging flexibility, providing reasonable workloads, and supporting personal and family needs help employees maintain balance, preventing burnout and further enhancing productivity. It boosts employee morale and engagement leading to increased productivity and efficiency. It also enhances job satisfaction and retention, strengthens the organisation’s reputation, and makes it easier to attract top talent. Additionally, it has a positive impact on society, employees, the organisation, and the environment. Employers must recognise that promoting decent work is a win-win for employees, employers, and society.

Some common challenges organisations face when implementing a decent work agenda

Implementation of a decent work agenda can present certain challenges which includes but not limited to the following:

1. Limited Resources: Implementing a decent work agenda often requires significant investment in time, money and personnel. Small and medium-scale enterprises (SMEs) or organisations with limited budgets may struggle to allocate the necessary resources to ensure that workers are treated fairly and with dignity.

1. Resistance to change: Altering existing policies, practices and workplace culture can be difficult, particularly if there is pushback from management, employees or both. It takes cooperation from all parties and resistance can pose a significant obstacle.

1. Lack of data and metrics: This can be problematic, especially where organisations find it difficult to gather and track the necessary data to effectively measure progress in implementing a decent work agenda.

1. Competing priorities: This may also be a challenge as organisations may face multiple demands, making it difficult to prioritise the implementation of a decent work agenda in the workplace.

• Awareness and understanding: Some organisations may not fully grasp a decent work agenda or its benefits, which can make implementation more difficult.

• Other challenges: These include – cultural and language barriers, regulatory frameworks and limited stakeholder engagement. All these also contribute to the challenges organisations may face in adopting and promoting decent work principles.

Conclusion:

Organisations should imbibe a decent work agenda as a policy and a lasting culture, and not just a temporary initiative. Leadership must set the tone by implementing strong policy statements to ensure the implementation of a decent work agenda in the workplace. While focusing on results, it is essential to treat employees with dignity. Key performance indicators (KPIs) should extend beyond tasks completion to focus on keeping people informed, involved, inspired and engaged. In fact, a well-treated employee is a productive one, which ultimately enhances the sustainability of the organisation. All these efforts contribute to building sustainable organisations where decent people work in decent environments, producing quality outcomes and results.

“This thought leadership piece is culled from the CIPM radio programme, ‘The Office.’ The opinions expressed in this article are solely those of the Guests and do not represent the views of CIPM.”

The post EPISODE 125: INCORPORATING A DECENT WORK AGENDA TO ENABLE SUSTAINABLITY IN ORGANISATIONS appeared first on CIPM Nigeria.

Key components of an effective performance management system

One thing that gets overlooked in the design process is the underlying philosophy. This philosophy is crucial because it forms the foundational principles that guide your approach to managing performance. It dictates how performance will be managed, how you will evaluate the business and employees, and how you will reward people. Ultimately, it shapes the entire design and implementation of the performance management process.

In a performance management system, it is crucial to clearly define what needs to be done. This means setting clear objectives aligned with your organisation’s strategy, identifying how you will measure the success of the strategy, and determining who will be responsible for each task, when it will be completed, and what outcomes or impacts you expect. Everything must be clearly outlined, including the specific metrics you will use to gauge success. Given the fast-paced nature of today’s world, where change happens rapidly, it is important to recognise that your current strategy may not necessarily thrive in the next six months.

Instead of focusing on a single, rigid goal, we should consider setting range goals. The advantage of range goals is that they provide flexibility, allowing you to define both minimum and maximum outcomes. If you fall within this range, you’re not at a loss. Relying solely on black-and-white goals can lead to frequent recalibrations. While the SMART (specific, measurable, achievable, relevant, and time-bound) framework is a useful approach, the key is ensuring that all parties agree on the goals. Additionally, continuous feedback from the onset is crucial, with ongoing conversations to keep the process consistent and clear, ensuring that everyone understands the required actions. This involves regular communication between individuals and their superiors.

Continuous feedback is important in performance management for development opportunities which involves considering how individuals can grow and enhance their skills and capabilities. If someone has limitations in certain areas and is not given the proper training, it will be unfair to hold them accountable for not meeting expectations. Therefore, providing development opportunities is crucial. Additionally, having a robust appraisal system is key—it must be objective, balanced, and transparent so that individuals clearly understand the criteria by which they are being evaluated.

Range goals and how important they are in ensuring sustainability in a business and the workplace

Range goals emphasises flexibility and adaptability in goal setting. Instead of setting a single, rigid target like achieving one hundred million naira, consider defining a range, such as eighty to one hundred and twenty million naira. This approach allows for variation within a specified range, thus the one hundred million naira you are looking for sits within the range. It provides the organisation with the flexibility for adjustments, as needed. Consider how budgets are handled today compared to the disruptions caused by COVID-19 and the subsequent development of new strategies. If you base your budget on your current strategy, significant market shifts within six months might require you to revisit and revise it.

Could you establish a range for the percentage of the workforce needed, rather than setting fixed numbers? Thinking in percentages can shape the conversation and provide more flexibility than rigid targets. This approach allows for adjustments as circumstances change. Some might argue that this encourages complacency, but it is about acknowledging the evolving nature of the world. Fixed goals can lead to constant revisits and revisions. Range goals, on the other hand, allow for adjustments before reaching a critical point, enabling a quicker pivot rather than a more challenging recovery from failure.

How performance management aligns with organisational goals and objectives

One area where issues often arise is in ensuring that individuals align with the organisation’s strategy. If not handled correctly, this misalignment can lead to people operating at cross-purposes. The organisation typically has a strategic plan, for example a five-year plan with room for adjustments to accommodate changing conditions. This strategy forms the basis for everyone’s performance contributions.

The company’s goals for the year are communicated to all employees. Different models exist for this process: some use a bottom-up approach, while others, more commonly, use a top-down approach. In the top-down model, the strategy is defined at the top levels and then cascaded down through the organisation. This ensures that every department understands and aligns its contributions with the broader strategic goals of the organisation. For example, in finance, does the company have the necessary funds to execute the strategy? In sales, are you meeting your targets? This approach highlights the importance of aligning individual performance goals with the organisation’s overall strategy. It ensures that individual and team objectives are directly connected to the strategic goals of the organisation. By doing so, you align efforts with the organisation’s overarching goals, promoting coherence and collaborative success. Without linking everyone’s KPIs to these ultimate goals, you risk creating a disconnect within the organisation.

Now, think of your role as a seat on a bus, whether it is in finance, HR, sales, or marketing, you cannot be on the bus heading to Ikeja and be working towards a destination like Lekki. If your goals are misaligned, it is crucial to adjust and ensure your efforts contribute to the broader organisational strategy.

Why performance management is considered a strategic lever for sustainability

As mentioned earlier, “what gets measured gets done.” Without measuring your performance or assessing how well you are doing as an organisation, you risk failure. Performance measurement is crucial for every aspect of an organisation.

If you do not monitor financial performance, you could face bankruptcy. Without managing risk performance, you might encounter issues like fraud or legal troubles. Poor management of employee performance could lead to chaotic organisation. Therefore, it is essential to have a system in place that measures performance across all areas.

Measuring performance is key to driving progress toward long-term goals. Embedding performance measurement into every aspect of your operations helps ensure that you are meeting your organisational objectives. It also fosters a culture of accountability, continuous improvement, and resilience in the face of market changes and external pressures. Without a performance management system, you cannot accurately gauge how you are performing compared to your peers. Performance management is an active process that requires careful attention in any organisation.

How organisations can ensure that performance management is integrated into their overall strategy

First and foremost, ensure that there is strategic alignment. Your performance management system, its philosophy, principles, and goals must align with the organisation’s overall goals and strategic objectives. Additionally, securing executive sponsorship is crucial. Leaders need to be committed to championing the performance management initiatives.

Performance management can be a lengthy process, and success often depends on leaders actively participating and owning the process. If executives regularly review team and organisational performance and treat it as an integral part of their role rather than a checkbox activity, it will greatly benefit the organisation. Furthermore, performance management should be integrated into all aspects of the organisation’s processes, including planning, budgeting, decision-making, and hiring. It needs to be embedded in everyday operations to be effective.

The role of leadership in the successful implementation of performance management as a strategic tool

Leadership plays the role of ownership and accountability for the performance management process. They need to champion the initiative, advocate for it, and actively engage in activities related to performance management. This involves more than just appraisals; it requires managing the entire performance system.

Leaders are responsible for setting clear goals, communicating their importance, and providing the necessary resources. They should ensure that employees understand and have access to the tools required for effective performance management. For example, if using a balanced scorecard to evaluate performance, leaders should train employees on its use, offer support, and provide the feedback needed for improvement. They should also role model the performance standards they expect from their teams. By delivering on these standards themselves, they set an example and reinforce the importance of meeting performance expectations.

Performance management can be quite subjective, but a well-designed system aims to reduce this subjectivity by implementing various controls. It is important to recognise that performance management is not about seeking fault or discrediting individuals or the organisation; rather, it is a process that organisations should embrace with pride, as it is intended to foster growth and drive organisational success.

How organisations can adapt their performance management strategies to respond to evolving business environments

The fashion industry exemplifies the art of reinvention. Each season, whether winter, spring, summer or autumn brings new designs, with preparations for the next season already underway before the current one ends. This ongoing cycle of innovation demonstrates the flexibility and agility that range goals also emphasises.

We should adopt similar practices in our processes, ensuring they are adaptable and can be easily modified as needed. The system should not be rigid but should effectively measure the performance we aim to track. Embracing “range goals” is crucial, especially in a world where change occurs rapidly. It is important to recognise that these goals are not set in stone but should be continuously reviewed and adjusted in line with current practices.

Conclusion

In conclusion, it is crucial to foster a culture of reinvention, promoting adaptability and responsiveness across different age groups within the workforce. Continuous improvement is not a one-size-fits-all approach; it requires targeted enhancements where necessary. Additionally, investing in leadership and employee development is essential to help individuals effectively navigate performance management within the organisation.

“This thought leadership piece is culled from the CIPM radio programme, ‘The Office.’ The opinions expressed in this article are solely those of the Guests and do not represent the views of CIPM.”

The post EPISODE 124: PERFORMANCE MANAGEMENT AS A STRATEGIC LEVER FOR ORGANISATIONAL SUSTAINABILITY appeared first on CIPM Nigeria.

Global Disruption is quite the mantra on everybody’s lip in recent times, what does ‘Global Disruption’ mean for a business entity or an individual?

When we talk about global disruption, we relate to the significance and impacts that innovation, technology and business products can have on existing industries. This impact may result in displacement of established players in different industries. Sometimes, you notice new players show up while existing players are running out of town.

Today, every business is affected by global impact irrespective of the size of the business.

What is the driver of rapid and exponential change in the global market?

The pace at which technology is rapidly developing and switching from one thing to another, and people changing rapidly, business models will follow suit. Business, revenue, strategy models will change in line with what is disrupting the global industry.

Innovation, technology and business models keep shifting. Thus, businesses must align their processes and business models to move with the trend. Businesses should look at what is going on in the global space in terms of innovation, technology, processes, strategies and align their strategies to what is going on right now while looking out for ways to remain relevant, else they find themselves in the rear of everything that is happening.

How can organisations proactively anticipate and respond to disruptive trends rather than reactively?

Businesses responding to global disruptions shouldn’t be reactive and taken unawares, they need to look at the global market and emergence of new business products and innovations introduced even if the disruptions are not in play already and ask questions like; what will happen if these business models become valid on global levels?

They should anticipate and pre-empt those things and their effects. This now gets them ready for what is coming. Businesses shouldn’t wait to feel the effect before acting. They should prepare themselves for what can happen. If they don’t ask those questions, they will be caught unaware, as the innovations and transformations have rapid impacts which are stiff. Businesses should keep their eyes open, looking far into the horizon to see the kind of things they should prepare for.

How do you combine proactivity with running on a budget amidst having limited resources and making the best decision?

Innovation comes to play when you have a lot of things that you know you should do but cannot do because you are not able to do it.  If you cannot afford the technology that you should have at this point, then you must find other ways/means outside of the technology you cannot afford, even though not having the right technology can limit your processes to some extent.

Therefore, you must think about what else to do and how to do it to remain relevant in business.

How do you ensure that the workforce is aligned with the evolving goals of the organisation during disruptive times?

Organisations must establish what they want the employees to align themselves to. They must identify that all individuals have their different interests and give them reasons enough to stay so that they can fulfil whatever it is they are looking for in the place they are in right now. Meeting the employee interest is meeting the interest of the organisation. If organisations help employees to achieve that thing they want to achieve, they will find no reason to not want to align.

Leadership must understand the goal, the kind of people needed to achieve the goals, how they need them to think and respond, what perspectives they need them to have when it comes to real world situations and business.

When organisations identify such people and meet their expectations, they do not have the problem of getting them to align with the goals, expectations and standards of the organisation, because employees want to do what you want them to do if it aligns with what they want to do.

What is the role of Ai and how can it be leveraged in maintaining sustainable business operations and rapid changes, Is AI here to stay? Should people learn to use the tool?

The way business models are structured has made technology indispensable. Artificial Intelligence (AI) will do what it can do and will do better than regular people sitting down. Therefore, we must identify and understand that routine things can be done using technology without wasting time and resources. Meanwhile, there are things that require the human face and human thinking to get those things done well.

Technology should be adopted in some areas of business where efficiency, speed and technology are needed.  For example, the HR recruitment processes can be done using technology.

There are people who use technology and those who develop technology, whereby most people use technology while few are developers of technology. The people who use technology are more critical, because if technology isn’t doing something as well as you want it to do, you will move to other options immediately.

Emerging business owners must ask the question; what is the thing that creates sustainability and keeps their businesses relevant in whatever industry they are in and answer the questions, as businesses can no longer be run in the traditional ways any longer. They must Identify the tools required and the people required, as business models have changed.

“This thought leadership piece is culled from the CIPM radio programme, ‘The Office.’ The opinions expressed in this article are solely those of the Guests and do not represent the views of CIPM.”

The post EPISODE 122: GLOBAL DISRUPTION: REMAINING RELEVANT AND SUSTAINABLE IN AN ERA OF RAPID AND EXPONENTIAL CHANGE appeared first on CIPM Nigeria.

Talent is defined as the innate abilities and dexterities within a human or institutional set up. It encompasses the totality of skills, abilities, and capabilities of an individual within the framework of an organisation. Therefore, it is essential for organizations to have human talents who would function in enabling organisations to organise, deploy, execute, formulate, and carry out duties.

Appropriate, useful and relevant talent is required to facilitate the execution of processes within the organisation to achieve its goals and vision.

How has talent management strategies in Nigeria evolved over the past decade, particularly after COVID-19?

Covid was a global phenomenon whereby Nigeria was less affected, as compared to many other countries in the world. Thus, COVID brought a lot of innovations and shifts in the way businesses are conducted. It also brought about the deployment of relevant technologies to enable hybrid work to happen.

The deployment of these relevant technologies following COVID-19 has facilitated the transition to hybrid work. The availability of these tools has impacted and enabled the organisation’s processes and empowered today’s work environment in small, medium and large organisations.

Examples of companies that have implemented innovative talent management strategies

Large and small organisations, including those in Information and Communications Technology (ICT) and Financial Technology (FINTECH), have adopted talent management practices.

Innovation abounds and thrives across the spectrum, giving each organization a unique approach that provides a competitive edge within the business landscape.

Organisations are now putting on their thinking caps and trying to review the way they’ve done things in the past by bringing up new ideas to fill in the gaps and bring about alignment to ensure processes and standards are raised and business expectations are met in a rapidly changing business environment.

What is the impact of continuous learning and development on employee performance and organisational growth?

Organisations must identify their talent needs and integrate them into the company. Then the talents should be trained, developed, polished, standardised and upgraded to align with the organisation’s framework.

Learning and development are essential beyond natural talent, especially with technological advancements, to remain competitive and relevant in business.  No matter how talented an individual is, they are required to be trained amidst the rapidly changing environment in business, brought on by technology and global shifts, to stay relevant and upgraded. This then highlights the need to continuously train and develop talent so that they can consistently deliver consistent business results.

What future trends do you foresee in talent management and how can businesses prepare for them?

Some futuristic literature suggests that the ICT revolution will soon be at a peak and will eventually be succeeded by advancements in biotechnology in the global space.

Even though predicting the future might be quite difficult, Artificial Intelligence (AI) is the mimicking of human attributes and capabilities by machines, applied to the world of work. If this represents an early wave of the future that is to come, businesses will not be able to rely solely on ICT, as ICT may no longer be as competitive as it has been to this point because the new work environment will evolve due to new drivers in response to and because of all these changes playing out in the business environment.

The world of work is constantly evolving, as evidenced by AI that emulates human characteristics. Therefore, Organisations need to adapt in response to these changes in the work environment, to thrive in business.

“This thought leadership piece is culled from the CIPM radio programme, ‘The Office.’ The opinions expressed in this article are solely those of the Guests and do not represent the views of CIPM.”

The post EPISODE 121: TALENT MANAGEMENT STRATEGIES TO ENHANCE BUSINESS GROWTH AND SUSTAINABILITY appeared first on CIPM Nigeria.