Deloitte India's latest People Cost Transformation report highlights the need for a comprehensive approach to people cost transformation, driven by evolving macroeconomic trends and technological advancements. Therefore, BW People exclusively spoke at length with Nitin Razdan Partner, Human Capital, Technology & Transformation, Deloitte India, where he emphasized upon how traditional cost-cutting methods often fail to address strategic needs, recommending instead a holistic strategy that balances short-term gains with long-term growth.
Let's deep-delve into the findings of the report to understand further.
How can companies effectively balance cost reduction with capability building?
Balancing cost reduction with capability building involves a thoughtful approach to optimising resources while investing in future growth. Organisations need to not only identify areas where costs can be reduced but also recognise where investments are necessary to build capabilities for future success. For instance, if technology is expected to drive productivity, companies might need to increase their IT function, even if it means reducing staff in other areas. A balanced approach includes creating a phased roadmap for adjustments, ensuring that cost reductions do not compromise the organisation’s ability to maintain critical functions and employee morale. It’s important to also mitigate risks such as losing valuable tribal knowledge during this process.
How do development opportunities influence employee engagement and retention?
Development opportunities play a crucial role in influencing employee engagement and retention. Research consistently shows that companies investing in a strong learning culture see significant benefits. Organisations with robust learning and development programs are more likely to innovate, be productive, and outperform their peers financially. For employees, continuous learning and growth opportunities are often top reasons for joining and staying with a company.
Hence, offering personalised development plans and fostering a culture of learning can lead to higher engagement and retention rates. Employees value opportunities that build both hard and soft skills, which contribute to their overall satisfaction and loyalty to the organisation.
With the rise of hybrid work models, are companies adopting new retention strategies to address this shift?
The rise of hybrid work models has led many companies to reevaluate and adapt their retention strategies. Initially, the shift to hybrid work was seen as a significant change, prompting companies to explore various strategies to maintain employee engagement and satisfaction. However, recent trends show that many organisations are moving back towards more traditional office settings, driven by client demands and a need to build trust and collaboration.
For example, some companies are enforcing return-to-office mandates and linking them to performance. Companies are also investing in strong middle management to monitor and support teams effectively. The key is to balance hybrid flexibility with the need for in-person interaction where it adds the most value.
What is the link between continuous learning opportunities and employee turnover?
Continuous learning opportunities are strongly linked to reduced employee turnover. Companies that invest in learning and development tend to see higher levels of engagement and retention. Personalised development plans contribute to this by addressing individual learning needs and career goals, which in turn increases job satisfaction and loyalty. Technology has enabled more tailored and convenient learning experiences, such as personalised content recommendations and learning in the flow of work. These approaches help employees stay engaged and prepared for future challenges, making them less likely to leave the organisation. Effective learning and development strategies can therefore be a key factor in reducing turnover and maintaining a committed workforce.
How can companies use data and technology to enhance learning and development programs?
Companies can leverage data and technology to enhance learning and development programs in several ways. First, by using data analytics to segment learning needs and personalize content, companies can deliver more relevant and engaging learning experiences. For example, AI can analyse an employee's learning preferences and recommend specific content tailored to their needs. Second, technology enables learning in the flow of work, providing bite-sized, accessible content that fits into an employee’s daily routine. This approach avoids the disruption of traditional classroom-based learning and improves engagement. C
ompanies can also track and analyze learning patterns to refine and improve their programs continually, ensuring that they meet evolving needs and preferences.
What does the 70-20-10 learning model entail, and how is it applied in organisations?
The 70-20-10 model is a framework for effective learning and development within organisations. It suggests that:
⦁ 70% of learning comes from experience: Employees gain the most knowledge and skills through hands-on experience and solving real-world problems. For instance, a company might assign high-potential employees to action learning projects where they tackle significant business challenges, like improving a factory’s operational margins or developing a new product category strategy. This experiential learning is grounded in direct involvement and problem-solving within their roles.
⦁ 20% of learning comes from exposure: This involves learning through interactions with others, such as mentors, coaches, and peers. Companies facilitate this by providing opportunities for employees to engage with senior leaders, participate in peer learning groups, and receive coaching.
⦁ 10% of learning comes from formal education: This includes structured learning environments like classroom training or workshops. While it's the smallest portion, it supplements the other two aspects by offering specific knowledge and skills that might be needed, such as understanding finance for non-financial managers or learning about new technologies.
By blending these elements, organizations align their learning and development strategies with business goals, fostering both individual and organisational growth.
