Question 1

New Human Resource (HR) Strategy Makes Lloyd’s a “Best Company”

Human Resource Managers play a number of important roles when it comes to meeting the new
challenges their firms face; they are called on for strategic advice and ethics counsel, various service
activities, policy formulation and implementation, and employee advocacy. To perform these roles
effectively, HR managers must have a deep understanding of their firm’s operational, financial and
personnel capabilities and work with line managers and executive managers. HR managers who are
creative and innovative can help shape a firm’s strategies so as to respond successfully to changes in
the marketplace.

A few years ago, the iconic global insurer Lloyd’s of London has set out to establish its first true HR
strategy, starting with the hiring of HR Director Suzy Black. “I was brought in to transform the HR
function from one modeled on an old-style personnel office to a function that is more cutting edge,
business focused, and value adding,” says Black.

Black’s first order of business was to evaluate the current state of affairs, particularly on how the
corporation’s senior managers perceived the HR role. With this information in hand, Black and her
team began to develop an overarching strategic agenda as well as specific tactics, addressing
everything from recruitment to performance management, from basic policies to rewards and
compensation.

Changing long-time employees’ perception of HR then took a bit of convincing, but employees
quickly began to recognise the value of Black’s actions. Gradually, they could see how the HR
strategies were effectively creating conditions in which they could develop in their careers, be
successful, and find meaning and value in their work. Today, Lloyd’s employees list the company’s
challenging work environment, healthy incentive programs, and meaningful community outreach
programmes among the key reasons they enjoy working for the insurance giant.

Black’s efforts gained her recognition outside of Lloyd’s and has enhanced its position as a desirable
place to work. The average tenure of employees at the company is, incredibly, 21 years. The insurer
has been named one of the “Top 100 Best Companies to Work For” by the Sunday Times and hailed
as one of the United Kingdom’s Top 40 Business Brands by an independent researcher.

Each year, new graduates scramble to get hired by Lloyd’s. These new hires rotate through three to
four different assignments within Lloyd’s so they get a perspective of the company and the insurance
market as well as better idea of the departments in which they would like to ultimately work. Besides
goods and benefits, the company also offers employees time to do charity and non-work-related
activities to further their personal growth, says Black. “Employees are very sophisticated people, and
they have more drivers than just wanting to earn money,” she notes.

Ironically, Black’s position was the first HR position she had ever held, having risen through the ranks
in other arenas in business. But her experience has given her a clear definition of the ideal
characteristics of the HR professionals. “They must understand change and transformation, excel at
operations, and balance tactical and strategic thinking and acting,” she says. “They will have to be
able to manage and navigate organisational complexity and ambiguities and not be afraid to say no
occasionally in order to establish appropriate boundaries with business.”

Source: Adapted from Snell, SA, Morris, SS, Bohlander, GW 2016, Managing human resources,
Cengage Learning, Singapore, pp34.

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 Question 1 (Continued)

Required:

(a) Examine the characteristics and skills of a Human Resource professional as stated in the case.
(10
marks)

(b) Explain the outcomes of the company’s new HR strategy. Provide relevant facts from the case to
support your answer. (15 marks)

(c) Discuss the new challenges faced by the global insurer, Lloyd’s of London. Relate to the contributions
made by the HR director, Suzy Black. (15 marks)
[Total: 40
marks]

(a) According to the case, the ideal characteristics and skills of a Human Resource
professional include:

Understanding change and transformation: HR professionals need to be able to anticipate and

respond to changes in the marketplace, industry, and workforce. They should have a clear
understanding of the current trends and issues and be able to develop strategies and tactics
that align with the organization's goals.

Business-focused: HR professionals should have a good understanding of the organization's

operational and financial capabilities, as well as its objectives and goals. They should be able
to align HR strategies with the overall business strategy and add value to the organization by
improving its performance and competitiveness.

Creativity and innovation: HR professionals should be able to think outside the box and
develop new ideas and approaches that can enhance the organization's HR practices and
policies. They should be able to adapt to changes and challenges and find ways to improve
the employee experience and engagement.

Tactical and strategic thinking and acting: HR professionals should be able to balance short-
term and long-term goals and develop both tactical and strategic HR plans. They should be
able to translate HR strategies into specific tactics, policies, and programs, and evaluate their
effectiveness and impact.

Managing organizational complexity and ambiguities: HR professionals should be able to

navigate the organization's structure and culture, and deal with complex and ambiguous
situations. They should be able to communicate effectively with different stakeholders and
manage conflicts and challenges.

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 (b) The outcomes of Lloyd's new HR strategy are:

Improved employee engagement and satisfaction: The new HR strategies have helped create
a work environment that enables employees to develop their careers, be successful, and find
meaning and value in their work. As a result, Lloyd's employees list the company's
challenging work environment, healthy incentive programs, and meaningful community
outreach programs among the key reasons they enjoy working for the company.

Recognition and awards: Lloyd's has been named one of the "Top 100 Best Companies to
Work For" by the Sunday Times and hailed as one of the United Kingdom's Top 40 Business
Brands by an independent researcher. This recognition has enhanced the company's position
as a desirable place to work and attracted new graduates and talented professionals.

Improved talent management: The new HR strategies have enabled Lloyd's to attract and
retain talented employees and develop their skills and capabilities. The company offers new
hires the opportunity to rotate through different assignments so they can gain a better
perspective of the company and the insurance market and choose the departments in which
they would like to ultimately work. Besides goods and benefits, the company also offers
employees time to do charity and non-work-related activities to further their personal growth.

(c) The new challenges faced by Lloyd's of London include:

Rapidly changing market conditions: The insurance industry is undergoing significant

changes due to technological advancements, shifting customer preferences, and global
economic trends. Lloyd's needs to be able to respond to these changes and adapt its products
and services to meet the evolving needs of its customers.

Increasing competition: Lloyd's faces intense competition from other global insurers, as well
as new players entering the market. The company needs to differentiate itself by offering
innovative and high-quality products and services, and by creating a strong brand image.

Talent management and retention: As a global company, Lloyd's needs to attract and retain
talented professionals who can contribute to its success. The company needs to offer
competitive compensation and benefits, as well as a work environment that fosters personal
growth and development. HR Director Suzy Black has contributed to this challenge by
implementing HR strategies that attract and retain talent, and by creating a work environment
that enables employees to develop their careers and find meaning and value in their work.

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