BT ANNIVERSARY ISSUE: HR Next

Here are two companies whose people policies could well be a harbinger of HR-next. The systems at aditi-Talisma and Wartsila NSD india may not be perfect, but as the CEO of one of the firms puts it, the heart is in the right place.

There is some sort of electric charge in the air at the office of this Bangalore- based software company. The mood is upbeat; it truly sings; and every body looks incredibly happy. the number of smiling faces makes one wonder whether these guys are for real. Try telling them that Aditi-Talisma is just another software company and pat comes the reply: ''Yeah, and Clapton is just another guitar player''.

Not very far from Bangalore, in India's financial capital, a low-profile Finnish company is slowly making waves. This energy-and-engineering-company believes its critical resource is its knowledge workers. In an industry where people are not really a focus area, Wartsila nsd, with its strong employee orientation, stands out.

The hr practices at Aditi-Talisma and Wartsila are an eye-opener. They break commonly held misconceptions and make you realise that it does not take very much to be a great employer. Nor do you need to spend a whole lot of money. All it requires is a focus on what's important-empathy, belief in employees, and a supportive culture.

The people practices of these companies stick out a mile. Their alignment with employee-needs is remarkable. In many cases the practices may not be perfect; many are still evolving. But their potential is tremendous. They also point the direction for the future of hr.

Both companies are fundamentally different. Aditi-Talisma is a homegrown, sunrise technology firm, having been in existence for a little over five years. More than 50 per cent of its employee population is in the 26-34 age group. The demographics support the company's youthful, informal, and ''bouncy'' culture. Revenues have soared to over Rs 11.8 crore in India.

Wartsila is a 13-year-old, 445-manager strong, Rs 327.9 crore engineering company. With its mix of blue-collar and white-collar employees and multiple plant locations, maintaining consistent people practices and a uniform organisation culture is quite a task. It's not as cool as Aditi-Talisma; it's a lot more formal; and the organisation has more grey hair. Being part of a global organisation means Wartsila India's hr policies have to conform to global guidelines and procedures. Nevertheless, the Indian management has been able to teach its global counterparts several lessons in hr. And these lessons are now being used all over the Wartsila world.

A diti-Talisma hires on the basis of smarts or anything that normally constitutes high intelligence-analytical, logical ability, or innovativeness. Each 'smart' is asked ''how much further will you take us?'' Care is taken to promote diversity in hiring and get a good mix from all parts of the country. Employee referrals-the company goes out of its way to reward successful referrals-are key in maintaining the Aditi-Talisma culture-fit and ensuring retention.

New hires are a special lot. There are referred to as ''we've got the gold''. They are often parceled off to off-site training programmes to imbibe company values and bond as a team. They also see past company events during induction programmes.

Aditi-Talisma emphasises that no 'smart' of the company will be laid off. When projects close, employees are immediately transferred to another team, often of their choice. A few months after the company started, it lost a huge client contract resulting in a hundred people being rendered redundant. The company gave them some days to come up with ideas for the projects that they would like to work on. Talisma grew out of one such idea and today is a full-fledged company.

Fun is serious business at Aditi-Talisma. TGIF parties, quiz competitions, Funky Hat contests, Baby-Face identifications, Management Team Grills, designated Fun Weeks and the usual regular parties are part of the bargain. Do these people ever work? Events are an integral KRA (that's Key Result Area) for the hr (or the People) department and the Recreation Club.

C E O B Y T E S

On what makes the company tick:
When we started Wartsila NSD India in 1989 with a four-member team, the thought of building something new was exciting. That spirit still prevails because we were clear about our basics. We were keen on building a transparent organisation, with no hierarchy. Today, there are three advantages that Wartsila enjoys. It is young. The average age of employees is 35 years. It is lean. Our total strength is 565. And there are only three layers of management. Together, they ensure a high level of acceptance to anything new.
On how, with the growth in the size of the company, the core spirit is being reinforced:
Take the training module we have put in place called ECT- Enjoying Challenges Together. ECT is a four-day programme designed for a small group of 25 people, cutting across ranks and functions. Coordinated by the HRD chief and facilitated by an external consultant, the programme runs all through the year. One of the main points of discussion at ECT is conflict resolution. Participants are encouraged to articulate problems in their professional and personal lives. This has helped bridge the gaps between personal and organisational goals and values. Participants also take part in an exercise called ''Create Your Dream Organisation'', which gives feedback to the management.
On building business leaders from within:
Wartsila lays emphasis on technical and behavioural training. Each employee has to undergo a minimum of seven man-days of training every year. Since 1998, a team of 25 executives are being sent for a 15-month course in corporate management. Funded by the company, the course has been customised by S.P. Jain Institute of Management Studies in Mumbai. This is one way of ensuring that the company can build a pool of business leaders. However, the employees are under no compulsion to stay on with the company after the course.
On work practices that provide a unique character to the company:
There is a great deal of job rotation. People move from services to projects; from manufacturing to marketing; and so on. This ensures that everyone acquires a well rounded perspective. There are other unique work practices. Engineers at the shopfloor wear overalls like the workmen, share the same utilities. All vacancies are first advertised through the intranet. Every employee is entitled to only 10 days annual leave, which can be rolled over. Overtime is not encouraged. The company has also been conducting Employee Satisfaction Survey and Customer Satisfaction Surveys for the last two years.
On the challenges of the future:
The challenge is to provide growth opportunities to every individual. Of course, we need to grow as an organisation. Growth is the biggest motivator. It is also the biggest challenge.

Despite fun and games, performance is an integral part of culture. High performers may earn as much as three times average performers. Every achievement is also a reason to celebrate. Awards such as the 'Big Dipper' or 'Grey Hair' are given to encourage desired behaviour.

Building ownership through stock options buoys performance. Annual paid holidays keep up the tempo. The Manager, Money and Goodies, ensures that employees get regular investment advice. All employees have global exposure and an option to relocate (in the US or in India).

Soliciting feedback consistently is stressed as critical to learning. And this applies to giving inputs to the boss too. Leadership is highly admired. Pradeep Singh, the founder CEO, may not be based in India, but he knows most employees by name. The company operates around the tenet of belief: ''we believe in our people and would go any lengths to ensure that they believe in us''. His actions and beliefs clearly make Pradeep Singh an icon. Recruitment for the company started with an ad which said: ''Before you send me your resume, let me send you mine'', and there was Pradeep Singh's resume.

Company values are a lodestone for employee behaviour, actions, and objectives. As Rekha Menon, the company's hr Head says: ''You add value as much by your ethical standards as by the products you create, or the services you provide.'' Respect for the individual is highly stressed and any kind of violation is not tolerated.

Aditians also believe in giving back to society what they receive from it. HelpNet, an employee initiative to assist the needy was recently registered as a charitable trust and works in the area of children's education. Aditi-Talisma believes in being proactive in taking care of employee needs. A cr�che was created even before the demand came up and massage services were offered to always-stressed customer service representatives. There are other reasons why employees consider this their home: great sports opportunities including horse-riding, and a rooftop caf�. The company also has a telecommuting option and flexitime.

All in all, the idea is to create a ''garage'' atmosphere-fun, no hierarchy, innovation and hard work.

HR at Wartsila is based on a careful, systematic approach, befitting the logic one would expect to find in an engineering company.

That doesn't mean the qualitative aspects of hr are ignored. S.M. Udupa, V-P (HR), is quick to add that people have emotional needs too: ''That's something we have been able to teach to our parent company-that we need to look at people holistically.''

Data on and the analysis of hr practices are critical. At Wartsila, every system and initiative, be it the 360-degree feedback process, training reports, employee satisfaction surveys, or recruitment processes, is assessed qualitatively and qualitatively. Information on each program is maintained and updated meticulously.

Learning and change is a key theme, which runs through all hr initiatives. The Executive MBA Program, which allows selected managers to attend MBA programs at premier institutes, is a primary lever for ushering in the latest concepts and ideas.

Employees are encouraged to recommend changes in existing systems and this is how several management concepts have been actively translated. Exhaustive skill inventories are maintained to assess knowledge gaps. Personal growth aspirations and 360-Degree Feedback ''Report Cards'' are used to ascertain development needs.

A measure of employee satisfaction is another technique used by the company to take steps in the right direction. Comprehensive healthcare schemes and loans and benefit programmes are all part of the company's people policies. As is caring for the larger Wartsila Family: well (Women Enjoying Learning and Living) for Wartsila-Wives and cool (Creating Our Own Lives) for Wartsila-Kids are meant to increase the commitment of not just the employee but the entire family. And Wartsila Day, parties, and get-togethers are all celebrated with families. Not the kind of people policies you'd expect to find in a company that has diesel as part of its name.