Scenario

A leading Global FMCG major with a diversified business, present in 120 locations in India, 48 manufacturing units and a 25000 strong workforce. The HR organization is spread across five locations. Every location has an independent HR structure for each business of the business vertical. In addition a Corporate HR structure for managing the HR requirements of the officer and above cadres. Each HR entity is an autonomous body managing all HR processes and policies in accordance to their local business requirement

Problem Statement

The client faced new HR challenges due to changing market dynamics. The business needed to realign its channel and sales team capability to include selling its product in large format store as opposed to only “kirana stores”. The growing competition in the retail industry competed to attract the workforce. Also, it created a pressure on the price margins, necessitating cost effectiveness. Changing work force attitudes compelled a relook at the people management practices.

The program objective was to define an integrated structure with common workforce management practices across all entities. Outsourcing the transactional part would free the HR capacity to focus on driving new HR initiatives and create a capacity to launch multiple strategies. The focus was also to make HR more transparent and accountable.

Careercruise Solution

Phase I – Careercruise took on the as is running process. A very brief study of the as is process was undertaken and a team of people was deployed to shadow the process and initiate the role out, basis locations. This resulted in the Freeing of client’s HR capacity for shifting their focus on the strategic initiatives. Aggressive workforce development programs were launched across the country with full backend support and bandwidth to execute the plan.

Phase II – Detailed process mapping was undertaken across verticals and locations. These were validated and implemented across the businesses. Metrics were defined to assess the health of the processes. Best practices were benchmarked to define one way of working across all of HR.

This helped standardize the workforce management system, integrating HR under one common platform. A transparent and measurable system was created to assess each HR process and the process outcome.

Phase III – Aimed at redefining and reengineering the HR operations structure to drive the client’s objective. Careercruise identified all those transactions that were common across all business and did not warrant front end interface with the employee. These processes were consolidated and centralized as back office operations and migrated to Careercruise delivery centre. These included

• Recruitment process management (80%)
• Background verification
• Training Calendar Management (80%)
• On-boarding & Documentation
• HR Administration / employee life cycle management.
• Reward & Recognition
• Exit management
• Employee Help desk

Another set of processes requiring client interface were consolidated at the regional level under one entity (Regional HR) managed by Careercruise teams deployed at the locations. These included

• Recruitment management (20%of the process) – Testing and assessments
• Training Calendar Management (20% of the process) – Program Delivery and venue management
• New Hire Orientation

A third set of processes that were considered high impact / critical and were decentralized earlier were brought under the corporate HR gambit. These were also managed by Careercruise team located at corporate office and backed by the back office team at our central delivery centre. These were

• Campus Hiring
• Referral Programs
• Leadership development programs
• Performance Management

Phase three ensured optimization of capacity and costs. It created a balanced focus on all aspects of HR management.

Impact

• The entire change was effected over a period of 30 months
• Careercruise became the single partner for outsourcing of HR
• The client has one single workforce management system across all its entities
• Significant improvement in process efficiencies and accountability delivered
• Cost of operational HR reduced by 35%. This is exclusive of HR program cost of hiring, training etc where on certain processes a reduction of 30 to 40% of the cost was delivered
• Cost of operations defined and gains through that passed on to the clients
• The processes run on well defined SLA’s in a hands free manner for the client

Outcome

Phase 1 – A 15% reduction in the HR workforce requirement

Phase 2 – Performance against clearly defined metrics – a 30% cost reduction in cost of sourcing, plus a 25% reduction of cost of training per employee

Phase 3 – Additional 20% HR work force reduction

« casestudies