HR Case Studies
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6/16/12 Maruti Suzuki Uses Stay Interviews to Keep Flock Together 1/2 epaper.timesofindia.com/Repository/getFiles.asp?Style=OliveXLib:LowLevelEntityToPrint_ETNEW&Typ… Publication: The Economic Times Mumbai;Date: Jun 15, 2012;Section: Career & Business;Page: 8 ET@Workplace Maruti Suzuki Uses Stay Interviews to Keep Flock Together SHREYA BISWAS NEW DELHI Exit interviews, when employees quit, are common practice in many companies. But automobile major Maruti Suzuki (MSIL) is using ‘stay interviews’ to cement a long-term tie with its employees. For the past three years, MSIL has regularly reached out to its employees to understand their aspirations, problems and expectations. It has subsequently come up with several changes in the performance ratings scale, career progression policy and employee referrals. “It makes sense to probe employee minds while they are still working in the company and take their feedback for changes rather than asking for it after losing them to competition. Then you have the time to implement these,” says SY Siddiqui, MSIL managing executive officer, administration (HR, finance, IT). Senior employees, from the post of DGM and above, are specially trained to conduct such interviews. The idea is to make candidates comfortable and draw their views in an informal conversation. Based on their feedback, the company has brought in several changes in its HR policies. For the first time this year, for instance, it altered its performance ratings scale. The previous four-grade rating scale, which was: excellent (top 10%), very good (next 30%), good (next 50%) and fair (last 10%), was revised to a five-grade scale: exceptional (top 10%), star performer (next 25%), high performer (next 25%), performer (next 15%) and average (5%). Employees perceived a ‘good’ rating as ‘not-so-good’, meaning, the rating’s connotation was not representative of performance. Also, adhering to the bell curve was becoming difficult with ratings primarily being distributed only in the first three categories. “Wording makes a lot of difference about how people feel. For instance, someone who gets the grade ‘exceptional’ will think he has contributed a lot towards the firm’s performance and will continue to perform well,” says Prateek Duhan, 28, manager, steering and suspension, supply chain division. “We made our employees happy by making an emotional connect and removing grades such as ‘good’,” adds Mr Siddiqui. Based on the feedback, the company has also changed its career progression policy last year. The company shortened career tracks by offering promotions at the junior management level if employees notched up the topmost grade for two, instead of three consecutive years. Rohan Chatwal (29), a beneficiary of the new policy, says, “I feel extremely motivated as I am the only one to have done this from among the batch of 20 management trainees who joined in 2008.” Since 2009, MSIL has also been encouraging its employees to refer deserving candidates, rewarding them for this. Last year, a total of 27 candidates joined MSIL through the referral scheme. MUL’s changes have received appreciation from other quarters too. “What is appreciable is that a company of Maruti’s scale and size has been able to implement this. Especially the idea of stay interviews, and the fact that these are conducted by trained people,” says Mohinish Sinha, leadership and talent head Africa, Asia Pacific, Hay Group.
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Transcript of HR Case Studies
6/16/12 Maruti Suzuki Uses Stay Interviews to Keep Flock Together
1/2epaper.timesofindia.com/Repository/getFiles.asp?Style=OliveXLib:LowLevelEntityToPrint_ETNEW&Typ…
Publication: The Economic Times Mumbai;Date: Jun 15, 2012;Section: Career & Business;Page: 8
ET@Workplace
Maruti Suzuki Uses Stay Interviews to Keep Flock Together
SHREYA BISWAS NEW DELHI
Exit interviews, when employees quit, are common practice in many companies. But automobile major Maruti Suzuki (MSIL) isusing ‘stay interviews’ to cement a long-term tie with its employees. For the past three years, MSIL has regularly reached out to itsemployees to understand their aspirations, problems and expectations. It has subsequently come up with several changes in theperformance ratings scale, career progression policy and employee referrals.
“It makes sense to probe employee minds while they are still working in the company and take their feedback for changes ratherthan asking for it after losing them to competition. Then you have the time to implement these,” says SY Siddiqui, MSIL managingexecutive officer, administration (HR, finance, IT). Senior employees, from the post of DGM and above, are specially trained toconduct such interviews. The idea is to make candidates comfortable and draw their views in an informal conversation. Based ontheir feedback, the company has brought in several changes in its HR policies. For the first time this year, for instance, it altered itsperformance ratings scale. The previous four-grade rating scale, which was: excellent (top 10%), very good (next 30%), good (next50%) and fair (last 10%), was revised to a five-grade scale: exceptional (top 10%), star performer (next 25%), high performer (next25%), performer (next 15%) and average (5%).
Employees perceived a ‘good’ rating as ‘not-so-good’, meaning, the rating’s connotation was not representative of performance.Also, adhering to the bell curve was becoming difficult with ratings primarily being distributed only in the first three categories.
“Wording makes a lot of difference about how people feel. For instance, someone who gets the grade ‘exceptional’ will think he hascontributed a lot towards the firm’s performance and will continue to perform well,” says Prateek Duhan, 28, manager, steering andsuspension, supply chain division. “We made our employees happy by making an emotional connect and removing grades such as‘good’,” adds Mr Siddiqui. Based on the feedback, the company has also changed its career progression policy last year. Thecompany shortened career tracks by offering promotions at the junior management level if employees notched up the topmostgrade for two, instead of three consecutive years.
Rohan Chatwal (29), a beneficiary of the new policy, says, “I feel extremely motivated as I am the only one to have done this fromamong the batch of 20 management trainees who joined in 2008.”
Since 2009, MSIL has also been encouraging its employees to refer deserving candidates, rewarding them for this. Last year, atotal of 27 candidates joined MSIL through the referral scheme.
MUL’s changes have received appreciation from other quarters too. “What is appreciable is that a company of Maruti’s scale andsize has been able to implement this. Especially the idea of stay interviews, and the fact that these are conducted by trainedpeople,” says Mohinish Sinha, leadership and talent head Africa, Asia Pacific, Hay Group.
6/16/12 Maruti Suzuki Uses Stay Interviews to Keep Flock Together
2/2epaper.timesofindia.com/Repository/getFiles.asp?Style=OliveXLib:LowLevelEntityToPrint_ETNEW&Typ…
