Month: July 2017

#HR Word:#Magnet #Employer

An employer or employer’s business which attracts the attention of huge amount of prospective employees for a job in their organization. 

The attracting factors for them may be any of the following:

• Cultural framework

• Sector of business

• Location of business  

• Growth of business

• Overall job satisfaction

• Work life balance

• Ethical policies

• Payment structure

• Reputation

• Career development opportunities it provide

• Encouraging entrepreneurship

• Promoting Innovation

Employees may be attracted towards any of these factors and this might make them to compromise on other factors, for one it may be an attractive pay structure and for other it may be the career growth. So all these factors and needs varies from employers to employers and employees to employees.

Magnet employers has the advantage of getting the best employees with minimal effort of hunting them or seeking for them in the market. They don’t have to market for their business and company to attract the employees and they don’t even require employment agencies to work for them of searching and getting the best employees.

They also have the better negotiation power compared to other companies as their system possess some special attracting factor for which the employee would compromise to get a job in there

#HR #Word:#Mad #Hatter

A Mad Hatter is a CEO or a person at a Managerial level whose ability to lead a company Or Unit is questionable.

 A mad hatter takes decisions that is of little sense and makes employees and other stakeholders puzzled and suspicious

They usually make unusual and impulsive decisions and do not think about the consequences of such decisions on the company.

Sometimes the decisions are taken for personal gains but at other times they are just bad decisions.

Mad Hatter was a character in Lewis Carroll’s book Alice’s Adventures in Wonderland.

#HR #Word:#Lump #Sum #Bonus

A lump-sum increase is something given instead of increase in salary. It is not added to the fixed base salary. It is given in the form of a single cash payment. This is the reason why it is also known as lump sum bonus.

While there are other uses but the best use of lump sum merit increase is as a substitute is salary increase for those employees whose fixed base salary has already reached a maximum for that particular position. The rationale for this is simple: the manager wishes to reward the employees for their good performance due to which the company benefited, so instead of increasing the salary, the manager offers a lump sum increase which is a one-time payment just for their good performance

The manager cannot increase the fixed base salary which has already reached its maximum for that job position so a lump sum increase is given.

In most of the cases, the amount given in the lump-sum increase is the same. It is calculated as a percentage of the fixed base salary. It varies from company to company as per their guidelines.

 For example, if the company guidelines suggests the employee should be given a 3% lump-sum increase then the employer will have to pay 3% of the current salary as lump-sum increase to the employee. Many a times the employer does not comply to the percentage as per the company rule. For example, if the company rule suggests the employee be given a 50% lump-sum increase then the employer can reduce the percentage.


#HR #Word:#Low #Road

Low Road is the adoption of short term, less effective human resource policies that results in poor business performance

Low road are the policies like improper training and development interventions, not able to provide job security as an employer, non-motivating reward & recognition policies etc.

Human resource function inside organization takes importance in areas of people management policies. The kind of policies adapted by HR has major impact on motivational level and performance of human resources. This finally impacts business performance of company.

As against this, bundle of policies with necessary level of interventions leads to higher corporate performance

Important thing to be understood in this context is right mix of policies to get higher corporate performance. Policies must be coherent i.e. single message should go to employees about employer.

Strategic perspective to low road:

Adoption of low cost strategy, lead to low road. As organizations tries to reduce the cost in each and every activity, it puts pressure on human resource practices to keep practices in alignment with low cost. Low road practise keeps cost under control by reducing quality of worker employed. This lead to short term focus which affects long term corporate performance.

As seen low road are practices which could be adapted owning to situational factor but for long term gain this could be misleading.

#HR #Word:#Long #Term #Incentive

Long term incentive is a process to reward the consistent & employees having a good amount of work experience in the organization.

 It also takes into account the work performance of the employee of long period of time. Long term incentives like cash bonuses, vacations, stock options etc are given to motivate and retain loyal employees.

Types of Long term Incentives

1. Long Sabbaticals: A sabbatical of a fairly long term works best for employees who feel that they can afford a break in their career without the fear of losing the job.

2. Employee Stock option benefits: Chances of getting stocks at lower rates which when matured to the fullest gives a good amount of return

3. Vacations Benefits for family & sponsored trips

4. Cash bonuses on completing certain vintage period in organization: Like extra amount on completing 5 years in an organization, 10 years, and so on. The monetary aspect would also encourage other employees to stay.

Metrics of Long term incentives

1. Total return on shareholder & stock performance increases

2. Return on Investments or good equity returns


1. It helps in keeping the morale & motivation of the employee consistent. Since he is working for such a long time, we expect there is no motivational issues

2. The company benefits from long term schemes like ESOP’s. The employee will invest in the hope of earning a good amount, thereby increasing the company’s finances.

3. Since the finances invested in ESOP are for a lengthy period of time, the company can expect good returns within these years

4. It also encourages low attrition, thereby saving on the direct/indirect costs involved with hiring of the new employees.


1. Some of the employees who are long term may become complacent. Complacency can cause severe implications among the junior employees of the organization

2. Sometimes Long term incentives may be flawed. It may be that the employees are getting tasks done by means of experience rather than by hard work.

3. Incentives differ from industry to industry & organization to organization. Thus in many industries having high attrition like insurance, sales, these plans may backfire, where the nature of the job is different.4. The LTI can work only when it is related to the employee aspirations & are mapped accordingly.

Thus it is important that we need to map the people who may be staying, and devise the incentive plans accordingly to make the most out of the person’s potential.

#HR #Word:#Lone #Worker

Lone worker is a person working alone without assistance and isolated from other workers without a supervisor

Such a person could be vulnerable to risk. 

Lone workers, since they are not directly supervised, faces more risk than other workers. The employers have to take necessary steps for the safety of the lone worker. The employers should maintain the written health and safety policy and give a clear understanding about that to the employee.

Lone worker includes many different kinds of workers such as:

 1. People who work in a fixed base and working alone on the premises, like employees working in petrol pumps and in shops.

 2. People working separately from others but in the same premises as other employees, like security staff or the people working outside the normal hours. 

3. People working away from the fixed base, like agriculture and forestry workers, electricians, healthcare workers, service or maintenance workers etc.

 4. People working from home, like freelancing, software code developers etc. 

 5. People working on mobile, like taxi drivers.


The employer should provide a safe system to work because in case of electricians and maintenance employees it would be very risky if the systems are not good. Employers have prove safe work environments to work, else it would be dangerous to the employees working in petrol pumps. And maintenance workers should not be asked to go to any place or any client for work, the employer has to make sure it is safe before asking the employee to go there. The employer has to give necessary training to the employees before assigning the work.

#HR #Word:#Learning #Organisation by #Senge

This theory was given by a well-known strategist Peter M. Senge. The theory defines what is called as a ‘Learning Organization

Quoting Mr. Senge here, he describes learning organizations as:

    ‘…organizations where people continually expand their capacity to create the results they truly desire, where new and expansive patterns of thinking are nurtured, where collective aspiration is set free, and where people are continually learning to see the whole together.’

The rationale behind such lines of thinking for any organization is response to the market. In today’s scenario where the competitive environment is changing rapidly, only the companies that are flexible, adaptive and productive will survive. Being a learning organization is just a way to do so.

The theory calls for companies to work on these on five dimensions:

  • Systems thinking
  • Personal mastery
  • Mental models
  • Building shared vision
  • Team learning

 Peter Senge

Click the Link for Detailed view on This theory 👇