Establishment of a human resources unit

Establishing a human resources department means identifying the units needed by the organization, designing these units quantitatively and qualitatively, providing the required infrastructure and resources, and implementing the design. Naturally, the measures taken are measured at specific intervals and corrective measures are taken if necessary.

This service will bring several benefits, including: systematic improvement of the human resources management structure as one of the main pillars of the organization, transparency and efficiency of human resources management processes, the ability to measure the maturity of the management system, increasing the rate of employee attachment to the organization, playing the role of the human resources department as a strategic partner of the organization, and ultimately increasing the productivity of the organization.

The final output in this path will be as follows: a report on the maturity of the processes and the organization’s diagnosis, identifying and documenting the implementation steps of the process in accordance with the conditions and level of organizational maturity, providing documentation related to the implementation of the desired process, developing control indicators for periodic assessments of human resources processes, operational consulting on process implementation, a periodic report on the maturity assessment of the system after deployment, and providing improvement solutions.

Iman Tek Human Resources Committee

Leadership and human capital strategies

Human Resource Strategy

A human resource strategy is a carefully designed and implemented plan that outlines an organization’s approach to managing its human capital to achieve broader business objectives. This strategy encompasses various aspects of human resources, including recruitment, training and development, performance management, compensation and benefits, and employee engagement. The primary goal of a human resource strategy is to align human resources with the organization’s mission and vision, maximize employee engagement, and create a competitive advantage.

The HR strategy document addresses fundamental elements of people management within an organization, including:

  • Workforce Demographics: Data related to employee demographics such as age, gender, nationality, ethnicity, and cultural characteristics, to assess diversity and plan for managing individual differences within the organization.
  • Recruitment Metrics: Information on the effectiveness of hiring channels, time to fill vacant positions, and cost per hire to optimize recruitment strategies.
  • Performance Metrics: Employee performance data, including key performance indicators (KPIs) and goals, to evaluate productivity and employee contribution to organizational objectives.
  • Employee Engagement Data: Surveys, feedback, and sentiment analysis to measure employee satisfaction, engagement levels, and areas for improvement.
  • Employee Retention Rates: Information on employee tenure and reasons for leaving to design and implement retention strategies.
  • Compensation and Benefits Data: Details of employee compensation and benefits compared to competitors and the current labor market to maintain and enhance the organization’s attractiveness.
  • Training and Development Metrics: Records of employee training and development programs, skill assessments, and competency gaps to support talent growth.
  • Employee Feedback: Regular feedback mechanisms, such as exit interviews and employee surveys, to capture employee opinions and concerns.

Innovation culture

The culture of innovation, on the other hand, describes a specific form of corporate culture primarily designed to promote the development of innovations within a company. Since innovation processes are generally cross-unit processes, an innovation culture—whose standards and values are accepted by all stakeholders—acts as a facilitator between different units. The culture of innovation creates incentives for employees to be creative and ultimately leads to an increase in the organization’s innovation capacity.

Establishing a culture of innovation can bring valuable results to an organization, including: strengthening employees’ sense of purpose, promoting self-management and specialization among employees, increasing risk-taking and learning, making innovation a priority, and turning the organization’s investments in innovative processes into tangible results.

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Coaching and Mentoring

Coaching and mentoring are developmental approaches based on one-on-one conversations aimed at enhancing an individual’s skills, knowledge, or work performance. Although the two terms are often used interchangeably, they can be distinguished from one another.

The goal of coaching is to optimize performance and improvement in the workplace. This method focuses on specific skills and objectives and may also influence personal attributes such as social interaction or self-confidence. Coaching typically takes place over a defined period or helps shape a particular management style.

Mentoring, on the other hand, refers to a relationship in which a more experienced colleague shares their knowledge with a less experienced colleague to support their development.

The objectives of coaching and mentoring programs include:

  • Assisting in performance management and improvement;
  • Preparing and supporting individuals in both small- and large-scale change projects;
  • Promoting learning and development through self-guided leadership.

Comprehensive Compensation System

The Compensation System, also known as the Total Rewards System, encompasses all components of a company’s employee compensation, including wages, salaries, benefits, insurance, and total employee payments. The employee compensation system also includes salary increase programs.

Compensation consulting at Saba Management Consulting can be designed and implemented independently or based on the job classification frameworks set by the Ministry of Labor and Social Affairs. One of the most important, yet often overlooked, aspects of this process is the reward and recognition system.

The reward and recognition process plays a key role in attracting, retaining, motivating, and appreciating employees. This process provides rewards based on employees’ contributions and the added value they bring to the company. These rewards can be financial or non-financial.

Objectives of the Reward Policy:

  • Performance-based compensation
  • Fully competitive wages and salaries
  • Establishing structured reward and recognition frameworks
  • Ensuring fairness in reward-related decisions

Rewards are generally considered in financial terms, while recognition primarily has a non-financial aspect.

Key Aspects of the Compensation System:

  • Salary and wage review process
  • Employee benefits
  • Promotions
  • Job evaluation and grading
  • Non-financial reward programs

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Individual, Group, and Organizational Performance Management

Performance management is a process that transforms business goals into individual and even group goals for specified periods ahead and evaluates the performance of individuals and teams in comparison with previous periods.

This process includes the following:

  • Evaluating contributions to achieving business goals
  • Assessing performance through defining KPIs or OKRs
  • Aligning personal goals with business objectives for the upcoming period
  • Evaluating behavioral competencies
  • Identifying opportunities for employee development

The results of the performance management process should be seen in the redefinition of key responsibility areas, individual goals, and development needs.

Key aspects considered in consulting and implementing the performance management process include:

  • Defining the methodology and framework for performance management
  • Setting and evaluating individual and group goals (behavioral and task-based)
  • Assessing competencies
  • Determining development needs
  • Aligning individuals with strategic plans
  • Monitoring the process and planning for improvements

Job and Occupant Analysis and Classification

Job Evaluation is a systematic process for assessing and determining the value of each job within an organization. The goal of job evaluation is to ensure that employees receive fair compensation for the work they perform. Job evaluation can be used to determine pay levels for positions, set starting salaries for new employees, decide on salary increases, and determine performance-related bonuses.

There are various methods for job evaluation. Some methods assign points to each of the job evaluation factors, such as skill level, responsibility, and working conditions. Others classify jobs based on their level of responsibility and pay, while some rank jobs according to their importance to the organization.

Some of the most common methods include:

  • Mercer Method (3P)
  • G20 Method
  • Point Method
  • Hay Group Method

It is important to note that the choice of job evaluation method should be based on the organization’s specific conditions and expected outcomes.

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Team Building and Empowerment

A key point about team empowerment is that it cannot be achieved without meeting certain prerequisites. Empowerment is more of a process for creating the right conditions in the workplace that allow team members to feel ownership and take responsibility and initiative. This process is generally associated with positive outcomes, such as job satisfaction, improved performance and productivity, and organizational commitment.

In summary, employees can be empowered both individually and as a team when:

  • Their feedback influences organizational mechanisms,
  • Their achievements are recognized,
  • Opportunities for their personal and professional development are provided,
  • Empowerment is part of the organization’s culture and vision.

Employee feedback surveys and organizational belonging metrics are the most reliable indicators that show employees feel empowered and have the necessary job satisfaction. Employee feedback provides a more qualitative approach to measuring the impact of team-building and empowerment processes. However, it can effectively reveal the level of success, challenges, and areas for improvement within the organization in this regard.

Training and Learning, and Knowledge Management

Employee Development includes learning, development planning, implementation of development programs, and improvement planning. This process must align individual development with the strategic path of the business. This alignment is achieved through the outputs of competency models and other human resource management processes. Furthermore, individual growth aims to bridge the gap between existing and required competencies, which can be done through the performance management process outputs.

For effective employee development, both management and employees must take ownership of the development process. Management’s sense of ownership is essential, as this process is seen as a crucial tool for shaping capabilities and implementing necessary changes. Employees’ sense of ownership is also important because it impacts their personal development.

The most common and comprehensive methodology for employee development is the use of the ISO 10015 standard (ISO 10015:2019 – Guidelines for competence management and people development). This standard provides guidelines for organizations to establish, implement, and maintain systems for competence management and employee development, while continuously improving them. The outcomes of this process positively influence the alignment of products and services with the needs and expectations of relevant stakeholders. This standard is applicable to all organizations, regardless of their type or size.

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Planning, Recruitment, Hiring, and Onboarding

In the staffing process, the first step is to define the strategic goals and staffing priorities. This is the result of the human resource strategy process and the development of organizational capabilities. The gap between the future strategic goals, priorities, and the current staffing plan is identified in more detail through a gap analysis.

Gap analysis involves a detailed forecast for the staffing needs that exceed current requirements, which is obtained by examining the job market both outside and within the organization. This analysis also defines the necessary activities to support internal mobility, employee retention, and/or adjustments.

Key aspects of the staffing process include:

  • Developing staffing policies and tools
  • Organizational chart/job descriptions and necessary competencies for job holders
  • Development of long-term staffing programs (planning for both quantitative and qualitative resources)
  • Development of detailed workforce plans (short-term, e.g., in a factory setting)
  • Establishing the onboarding process
  • Succession planning/career path planning/promotion planning
  • Employee retention and adjustment

Labor Relations

This process outlines how internal and external communications are managed within the Human Resources unit and other organizational units. External relations management can be related to labor unions, official employee representatives, or other industrial groups and employer associations. The key aspect of external relations is the proper and correct implementation of laws and regulations that must be adhered to by the employer. In this process, there are usually issues faced by both the employer and employee, which can be categorized into five subgroups:

  • Issues related to drafting and concluding contracts
  • Issues related to unemployment insurance
  • Issues related to the labor office’s arbitration and dispute resolution committee
  • Issues related to calculating and claiming work tenure, overtime, leave balances, and additional work hours
  • Issues related to signing new contracts

Internal communications are managed through channels such as employees, work associations, labor unions, and official employee representatives. Some of these internal relationships will be formalized through official agreements between the parties involved.

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Organizational Structure Architecture

Organizational structure architecture refers to the design of communications within an organization to implement strategic programs and achieve its goals. There is no one-size-fits-all method, nor is there a strictly right or wrong structural approach. In fact, the structure should serve the organization. As a result, the structure of an organization may be a combination of various organizational design methods. Over the past few decades, organizational design methods have evolved rapidly, primarily due to the accelerating pace of change. Changes that once took a decade or more now occur within months or weeks. As a result, only agile and forward-thinking organizations have been able to capitalize on the opportunities these changes create.

All organizational design methods have their advantages and drawbacks. None of them are exclusive, and an organization must continuously develop its structure to adapt to current and future challenges.

That being said, it should be noted that leading organizations are transforming their structures into dynamic and powerful networks, focusing on characteristics such as goal orientation, market focus, and agility. These organizations base their structural design on five key principles: the principle of specialization, the principle of coordination, the principle of knowledge and competence, the principle of control and commitment, and the principle of innovation and adaptability.

Talent Management and Succession Planning

The Talent Management and Succession Planning process is a specific form of employee development aimed at achieving a set of predefined goals. This process is critical for fulfilling the current and future objectives of the organization. It is key to recruitment, selection, retention, and development of talent for future leadership roles. The key aspects of the talent management and succession planning process that need to be considered during project execution are as follows:

  • Defining policies and tools for talent management and succession planning
  • Attracting talent and identifying potential successors
  • The talent and succession identification process, which includes:
    • Identifying talent and successors
    • Nominating candidates
    • Conducting assessment centers and development programs
    • Reviewing assessment center results
    • Creating a development calendar
    • Senior management approval
  • Implementing training schedules for talent development and succession planning
  • Planning career path scenarios.

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Competency Management and Development

The presence of individuals (personnel) in all organizations is essential. The performance of organizations depends on how well they utilize the competencies and capabilities of individuals in the workplace. Organizational success requires the management of competencies and the development of individuals at the organizational, team, group, and individual levels. It is evident that competency management and individual development are interconnected: individual development is a part of competency management, and capable individuals require development. These two structures have an intrinsic relationship with one another and, in many ways, are inseparable and interdependent.

The implementation of planned and structured processes for competency management and individual development significantly assists organizations in enhancing their abilities, following their strategic path, and achieving desired outcomes. Competency management is crucial in increasing an organization’s ability to create and deliver value.

Data-Driven Human Resources

Data-driven Human Resources is a mechanism for collecting, storing, processing, and analyzing human resources data to support HR processes and make informed decisions based on the insights gained from data analysis.

Electronic tools play a significant role in data-driven human resource processes. These tools are used to enhance the efficiency and effectiveness of HR processes, eliminate inefficiencies in managing human resources, and increase speed. Electronic solutions also support the training and development processes of the organization.

The data-driven HR process includes the following:

  • Collecting data related to employees
  • Processing data to acquire the necessary information and knowledge

Given the growing use of business intelligence, data-driven human resources management has become one of the key HR processes.

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Employee Experience

Employee Experience refers to the lived experiences that employees gain during their time with an organization. An organization can create engaging experiences for employees by designing memorable touchpoints that align with the organization’s values. An optimized experience design requires a human-centered design approach that focuses on understanding employees’ desires, needs, and preferences.

Employee experience originates from three very different schools of thought. The pioneers of this concept initially applied ideas from marketing, recognizing employees as consumers of organizational services, and focusing on their desires, needs, and motivations for working. Later, concepts from product and software design were adopted, aiming to optimize and enhance the end-user experience in using a product. Eventually, HR professionals began thinking beyond operational steps, adopting a human-centered approach to design an ideal collaboration journey, particularly in talent attraction and retention.

To remain competitive in the increasingly competitive talent market, organizations must effectively design strategies to improve the employee experience that attract, engage, and retain employees. Thoughtful employee experience design creates specific milestones for employees, leading to positive outcomes for the organization.