HRNV-May-2018

HR NEWS & VIEWS

MAY | 2018

HR STUDY
DEVELOP LEADER

TRUE PEOPLE LEADER
HR INTERNATIONAL
COMPANY UPDATES

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LEADERSHIP…
what is it?

Leadership is a buzz word and many people keep talking about it without
considering the true impact of it. A true LEADER creates an impact that

leaves it’s legacy for a long time.
A People Leader is defined by his/her FOLLOWERS…

!3

WHO IS A TRUE PEOPLE LEADER? WHAT
DEFINES THEM…

Leading people may sound easy but it is not so. It is not only the
managing factor that defines a leader but the way he influences, inspires
the conscience within his people. A true leader posses the capability to
develop and nurture future leaders.
A true leader is not afraid to give space and appreciate the skill or
strength pf his troops. They are not afraid to hire smarter people and
give them the space and liberty to deliver. They are not afraid of
experimenting ideas, thoughts and stand for their teams actions.
They are the first one’s to credit team for Success and are the first one’s
to stand up and own up a failure.
A weak Leader is an opposite who always find faults in teams for failures
and stand up for an award for success.

4

Differentiator Matrix…

A key differentiator that separates great leaders from a BOSS. Many times leaders
feel that being a BOSS categorises them into a leader as they operate on power and
authority, but unfortunately that’s not the case.

Key Traits…

It is important to understand the true traits of a people leader…

6

The Impact

A true people leader brings in a sense of achievement with the team and builds
teams for higher level of performance. The performance is not forced but drawn
from within. It creates:

• Inspiration to deliver
• Future Leaders
• Brings new thoughts and ideas to action
• A team that is ready to face all challenges
• A team that delivers under adverse situations as well

A TRUE PEOPLE LEADER IS NOT MEASURED BY
THE TEAMS PERFORMANCE INHIS PRESENCE,

BUT THE TEAMS PERFORMANCE IN HIS
ABSENCE…

HR STUDY - DEVELOP LEADERS





Key
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INNOVATION ONE

Paul Strange HR
HR Consultant
INTERNATIONAL

EUROPE HR

FRANCE: MACRON'S REFORM DEEMED CONSTITUTIONAL

President Macron's rewriting of the French labour code has passed a decisive phase: its inscription
into law. On March 21, France’s Conseil Constitutionnel - the highest constitutional authority in France
- approved nearly all the President’s requests (ordinances) to overhaul many labour and employment
rules.

Up to now, these ordinances only had a regulatory value, but they will now be upgraded to laws.

Five decrees have been issued, containing what ministers said were “concrete and major measures”
to overhaul and simplify the ‘Code du Travail’ France labour code, which covers every aspect of
working life in France.

Points that the unions are opposing include:

Industrial tribunals – Sanctions (for the employer) and resort periods (for the worker) after a lay-off
will be lowered and shortened. The number of working days paid after a lay-off will be cut down too.

Salary compensation for lay-offs – For all businesses, compensation will be a quarter of a monthly
salary per year of service (instead of a current fifth).

Topics of negotiation – Topics that were previously set by trades or the law, such as some salary
premiums and contracts terms, will now be negotiable within the company.

Collective breaking of agreement – The reform creates a device for a collectively-agreed breaking of
contract, which previously could only be agreed on by the employer and the worker. A company’s
administration will be able to define a common frame for voluntary redundancies.

Workers’ representation merging – The rulings create a new unit for workers’ representation, a
“social and economic committee”, which will be allowed to negotiate with the employer without the
presence of a union.

In April, strikes in the rail and air travel industries continued the protests against these measures.
France is still the country in Europe with the highest rate of annual strikes. Strikes are much less
common elsewhere in Europe, and are declining.

UK SET TO COMPEL COMPANIES TO DECLARE EXECUTIVE PAY RATIO

The UK is set to forcing companies to publish the ratio of the chief executive’s pay to employees’
median pay. The ‘executive pay ratio’ is widely reported at country level, but companies are not
compelled to publish their own figures.

In the UK, the national ratio is approximately 200 times the average worker’s pay in the organisation
according to the International Monetary Fund. In Europe, the ratio is usually lower, with Germany at
136; Spain at 143; and Switzerland at 152, as examples. India is high on the world index at 229.

CEO pay has rocketed in the late 20th century and beyond. In 1965, the HR guru Peter Drucker
viewed the then rate of 20 to 1 as reasonable, but executive pay shot up, particularly in the USA. In
2000, it peaked at 376 times the pay of the typical worker in that country, though has fallen back
since then.

There are several myths about high CEO pay which have been shot down in this century. INSEAD
Professor Manfred Kets de Vries has criticised two common myths. CEO’s need high pay to motivate
them. Also that CEO salaries reflect market demands for a CEO’s unique skills and contribution to
the bottom line.

Kets de Vries countered that high achieving CEOs will work hard whatever they are paid. There is
present day evidence to back up this fresh view. The other point is that market forces drives up
salaries for scarce skills and experience. Kets de Vries counters that CEOs are not that exceptional
and it's almost impossible to measure their singular contribution to the bottom line. Given the large
number of incumbent and aspiring CEO’s in all countries, this probably true, and does not explain
the exceptional level of CEO salaries.

To change the high levels of CEO pay, Professor Kets de Vries suggests governments set high corporate
tax rates for firms that have very high CEO-to-worker compensation ratios. Also high top rates of income
tax. In Europe, there is more sympathy for this approach, particularly from left-wing political parties.
Another approach, is public declaration of executive pay ratios. This is what is happening in the UK.

My take is that CEO or similar senior executive is a highly risky position. Though employees, they are
often in the firing line for the performance and corporate behaviour of their organisation. One of the truly
few exceptional CEOs of modern times – Mark Zuckerberg – had to stand up and explain mistakes that
were made well below him in the organisation. He will survive this month’s crisis of the misuse of
Facebook data, but many other CEOs would have crashed and been sent to CEO hell.

EUROPE: A COMPLEX PAYROLL REGION

A recent report has identified Europe as the most complex payroll regions in the world. In its index of 48
countries, 7 out of the top 10 most complex countries are in Europe - France, Italy & Belgium are most
complex. The number of data fields, payroll runs, and technical and legal updates required for compliance
is highest in Europe. 37% of respondents say that updates “keep them awake at night”.

Also, complexity has increased since 2014 where other regions have seen simplification.

In my own country, the UK, the legal need to report on working time, pay by gender, and employment vs
self-employment are recent challenges, and this year new regulations on data protection and apprentice
training are added to it.

The main areas of complexity are the following:

• All organisations must provide payroll related information to local government departments to
determine the social security and/or tax contribution of each citizen. This is measured by the
number of employee data items for a net salary to be correctly calculated. Germany, France, Italy
and Spain are most complex, requiring an average of 17 items.

• Benefits and attendance reporting have replaced tax and social security as the biggest contributors
to payroll complexity.

• On average, 16 data items per employee must be reported globally. In Europe the number is
notably higher at 35.

Payroll management is an unglamorous area of employment, and does not attract much investment. The
business case for a modern payroll system can be made on efficiency grounds, and on reliability grounds.
The above evidence shows that there are increasing challenges in compliance which can also support
more investment in payroll.

WHISTLEBLOWERS: NEW EU LAWS COMING

The story of Christopher Wylie, the man who ‘blew the whistle’ on the use of personal data taken from
Facebook accounts and misused by his company, has reminded me of the news that the European Union
will be introducing new regulations to protect whistleblowing employees.

The draft EU law proposed by the European Commission, gives employees who blow the whistle on
corporate malpractice a protected status, including legal aid and possible financial support. It assumes
that potential whistle-blowers do not feel safe enough to come forward and report corporate misconduct.

Under current EU law, whistle-blowers are protected from certain forms of retaliation if they expose
misconduct in a number of areas, such as audit and money laundering, and trade secrets. This would be
extended in the new proposals. Employers would be banned from dismissing or demoting whistle-blowers
and would face “dissuasive” penalties if they attempt to prevent employees from exposing wrongdoing.

The proposals come at the same time as the high profile case of Frenchman, Antoine Deltour goes through
the courts. The former Pricewaterhouse Coopers employee was given a six-month suspended sentence
last year for leaking files related to tax-evasion schemes. The sentence was overturned in January after he
was classified as a whistle-blower under current laws.

INNOVATION TWO

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UPDATES

Flipkart Deal to create 10 as well. He saw "no trouble" command. Mr. Chris Cox, a
million jobs over 10 Years: in getting regulatory longtime member of
Walmart CEO approval needed from the Zuckerberg’s inner circle,
Competition Commission of
India for the deal to buy 77 was put in charge of
World's largest retailer per cent stake in Flipkart. Facebook’s core application
Walmart Inc. tried to "It is pretty clear that this as well as smartphone
assuage concerns around its (deal) is good for customers services Instagram,
$16 billion takeover of and would create jobs and
Flipkart, saying the deal is help society," he said at a WhatsApp, and Messenger,
good for the country as it select media round table. the California-based
will help create millions of Source : Ndtv.com company confirmed.
jobs over time and help the Facebook reshaped its
economy through local Facebook makes major
sourcing of goods by the management rejig
product and engineering
company. Walmart chief Facebook has confirmed an teams into three units,
executive Mr. Doug McMillon unprecedented management including an emerging
played down not being able team shakeup in the technologies blockchain
to meet either Prime aftermath of a major data
Minister Mr. Narendra Modi privacy scandal that has technology used used for
or any senior minister after rocked the social network. cryptocurrencies. Mr. David
announcing the world's C o - f o u n d e r M r. M a r k Marcus said in a post on the
biggest e-commerce deal, Zuckerberg remained chief social network that, after
saying he has had meetings of Facebook, with chief
with officials in the past and operating officer Ms. Sheryl four years in charge of
would have them in future Sandberg his second-in- Messenger, he is “setting up
a small group to explore
how best to leverage

blockchain across
Facebook.”

He expressed confidence in his Messenger successor, whom he identified as Mr. Stan Chudnovsky.
Longtime Facebook executive Mr. Javier Olivan will be in charge of a “central product services”
division handling features such as security and ads that are common to various services run by
the social network. Source : Thehindubusinessline.com

IIT Kharagpur's VGSOM records 100 Per Cent placement

IIT Kharagpur's Vinod Gupta School of Management (VGSOM) has recorded 100 per cent
placement during the final placement process for the class of 2018. The batch comprising 111
students bagged 126 offers at the end of final placement session, an IIT KGP statement said. ITC
Ltd, Titan, Amazon, JP Morgan, CRISIL, HSBC were top recruiters among the 68 companies that
participated in the placement session, the statement said. Several companies such as Johnson &
Johnson, Novartis, Nomura and Trident Group also visited the VGSOM campus for the first time,
it said. Data analyst, product management, strategic analyst, financial analyst, operations
manager and marketing manager were some of the roles that were offered by the different
organizations. The IIT KGP statement also said that the summer placement for the batch of 2019
was over and recorded 100 per cent placement too. The 2019 batch comprising 123 students
received a total number of 141 offers from 66 companies, including Google, Accenture Digital
and Amazon. The Dean of VGSOM and the Co-Chairperson of Placements Committee Professor
Prabina Rajib said, "100 per cent placement was possible due to the calibre of the students, the
faculty and the reputation of the institute." Source : Ndtv.com

Swiggy to repurchase employee stocks worth $4 Mn, becomes youngest startup to make offer

For those who own employee stock ownership plans (ESOPs) of Swiggy, there is good news. The
food delivery company has received approval from the board to repurchase employee stocks
worth $4 million. This is the first time the company has received such approval in the past four
years of formation and has also become the youngest startup to make the offer. The buyback
programme will take place in June. The development comes at a time when the food delivery
company is planning to raise new investments and is in advanced talks with DST Global and other
investors. Swiggy has 3.4 per cent of the company’s stocks in the form of ESOPs and was worth
$23.9 million a few months back when it raised $100 million from Naspers and Meituan at a
valuation of $705 million in February. The report added that existing employees looking to
participate in the buyback offer will be able to tender up to 50 per cent of their vested options
by June 1 for a repurchase. In the past few months, the not-so valued ESOPs has suddenly gained
all the value as the companies are buying it back to gain more control over the company or
making secondary sale. Source : Entrackr.com





UK telecoms giant BT axes 13,000 jobs


British telecoms and television broadcasting company BT announced that it will axe 13,000
jobs in administration and management. BT said in a statement alongside its annual results
that it will shed the jobs over the next three years as it seeks to slice off an extra 1.5 billion
pound (USD 2.0 billion, 1.7 billion euros) in costs. The latest revamp will mainly affect back
office jobs, or support positions that tend to be based outside London, and middle
management roles. It will however seek to hire around 6,000 new employees for customer
services and network deployment. The London-listed giant also plans to exit its global
headquarters near St Paul’s Cathedral in London’s City finance district. BT, which possesses
Britain’s leading fixed-line and mobile access networks, has in recent years launched a costly
push into broadcasting live Premier League football matches. “Our integration and
restructuring activities remain on track,” said chief executive Mr. Gavin Patterson. “Our
strategy will drive sustainable growth in value by focusing on delivering differentiated
customer experiences, investing in integrated network leadership, and transforming our
operating model.” Source : India.com