Just when you felt that digital world has the answer to all questions, you realised that the most important asset for your organisation is not the technology but the creativity that drives it. Employees or teams, therefore gained the most prominent position. The shift towards a “People’s Policy” came as a need to emphasize HR’s role in fostering human-centric, inclusive, and equity-based relationships that align with the long-term company vision. It is not only essential to take a deeper dive into this new perspective of prioritizing people above profit, but also understand how this aligns the progress with the success of the organisation.
In the ever-evolving landscape of business and management, one profound shift has become increasingly evident: ‘People above Profit.’ This mantra encapsulates a fundamental transformation in the way organizations view their workforce. It highlights the shift from a focus on profitability as the sole metric of success to recognizing that a company’s real asset is its people. In this article, I explore the implications of this shift and its impact on various facets of organizational culture and management.
A critical aspect of this shift is the appreciation and productive utilization of diversity within a team. Expertise, once perceived in a narrower context, now needs to be tested productively in all directions for a perfect balance, and in the pursuit of long-term success, the value and prioritization of people within an organization cannot be overstated. To illustrate this point, consider the principle of ‘engagement’ as opposed to ‘motivation.’ Engagement entails providing context to young, enthusiastic minds. By sharing the bigger picture and purpose, a sense of ownership is instilled, fostering a more effective and enduring commitment than any extrinsic motivational factor can achieve.
It’s worth noting that the principles of people management remain quite consistent across various industries, from pharmaceuticals and FMCG to hospitality, consulting, and entertainment. The journey begins with recruiting the right people with the necessary skill sets. Continuous development, active engagement, and ensuring that employees share in the organization’s success, both in terms of career growth and financial growth, are essential components.
In recent years, the significant transformations in human resources (HR) practices are driven by a dual focus: extensive digitalization and a consolidation initiative. Digitalization efforts extend beyond remote meetings and aim to enhance connectivity with sustainability and fast paced progress. Simultaneously, organizations are transitioning from operating as separate legal entities to adopting a single cohesive group structure with shared services. This transformation, however, begins with the HR department and extends to finance and supply chain. A commitment to efficiency and technology aligns well with economic challenges.
Amidst these changes, it is crucial for teams to adapt to a changing environment. The emphasis on digitalization, automation, and eliminating repetitive tasks, should be geared towards efficiency and not mediocrity. This mindset is instilled from leadership down, underlining that upskilling presents an opportunity for thinking of new ideas while automation handles repetitive tasks. Being open to change and adaptable is also crucial, and closing oneself off to change can lead to diminishing relevance. In this context, attitude often supersedes aptitude.
The modern business landscape is witnessing a significant shift in career choices among recent graduates. The traditional top multinational corporations (MNCs) are no longer the top choices for this generation. Instead, they prefer start-ups, entrepreneurship, online work, or non-traditional paths. This shift necessitates that organizations adapt to their needs, as this generation is less inclined to conform to established norms. The recipe for success has evolved, and the new generation is actively redefining it. They need purpose and ownership and that is what the companies need to be ready for.
The adage “think globally, act locally” remains relevant in the globalized business environment. Customization is key, especially concerning legalities, policies, and local laws. Recruitment practices should reflect cultural differences. A recruitment team in Kenya found that employees exhibited a higher degree of contentment in their roles, even if they remained in the same position for an extended period. Their priorities centred on a positive work culture and the opportunity to represent reputable brands, which boosted their confidence when interacting with clients.
Mentoring and coaching play pivotal roles in nurturing the human element within an organization. Recognizing that people are the true competitive advantage, it’s about fostering the right environment and helping individuals believe in themselves. This shift to prioritizing people may require time and investment, but the results are undeniably worth it.
Technology may have redefined the geography of work, making it more global, but it is the strength of understanding local strengths and working collaboratively that propels growth. Prioritizing people and recognizing the importance of an engaged and empowered workforce are pivotal. When employees are happy, engaged, and empowered, they contribute more effectively to the organization’s success.
In conclusion, the shift to ‘People above Profit’ represents a profound transformation in the business world. It emphasizes that people are an asset and the principles of people management, encompassing diversity, expertise, and engagement, remain consistent across diverse industries. The ability to adapt to a changing environment and the openness to change are critical for individuals and organizations. As the new generation redefines success, organizations must be adaptable and think globally while acting locally. Ultimately, it is the nurturing of the human element and the belief in people as a competitive advantage that drives long-term success.
Shahrukh Masood, Chief People Officer, Martin Dow Group is a Human Resource Professional, Change Maker & Transformation Specialist with international experience