Scaling up Employee Engagement

HRM C- G13
SANDEEP TIWARI - H23168
SHREYA DAS H23171
TUHINA HALDAR H23182
YUGANK ARYA H23185
 Situation analysis
Strategy Structure System

• Flat, fluid organization • Unconventional

• Focus on non-financial
with emphasis on recruitment methods
incentives and culture for
individuality. and focus on leadership
employee engagement.
• Transition from founder- development.
• Industry poised for
led to distributed • Flexible total
growth, emphasizing the
leadership. compensation with non-
need for talent retention.
• Customized monetary benefits.
• Challenge in balancing
compensation based on • Open and transparent
growth with unique
individual needs and communication fosters
culture.
value. authenticity and trust.
 Data Analysis
On having a closer look on the financials given, we have identified that the net margins of our Orix is on a decline from 2014,
although the number of clients, employees and revenues have increased. This means that the costs of Orix have increased by a
higher rate as compared to revenue. This even lead to a decrease in total profits of the firm in 2016 as shown below

Year Revenue Net Margins Net Profits

2014 1696897 19.5% 3.3L

2015 2547338 14.5% 3.69L

2016 3144646 8.2% 2.57L

Now, as this is a consulting firm we are assuming that these increases have been due to employee costs only.

With the non monetary compensation philosophy followed by the company, this cost is mostly due to a mismatch in the
potential employees needed to do the work as compared to what are currently employed.

The current employees seem to be higher in number and thus Orix should focus on better employee productivity (which we
have recommended in the next slide)
 Problems
01 02 03 04
How can Orix How can Orix How can Orix How should Orix
effectively align its maintain its distinct ensure a smooth balance the need for
compensation and organizational transition of customized
benefits strategy culture and non- leadership and compensation and
with industry norms financial incentives identify and benefits packages
to remain as it grows and develop future with the requirement
competitive in competes for talent leaders who can for standardized
attracting and in the mining preserve the systems and equity
retaining talent? industry? company's culture among employees in
and compensation a growing
philosophy? organization?
 Recommendations & Solutions
Why?
As the industry is becoming more
Differentiated pay competitive and is expected to show
structures growth, employee retention is going to get
more and more difficult
As Orix values its non monetary
Clear career path compensation philosophy and wants to
definition retain its values, showing a career path of
growth will help retaining key positions
To increase profit margins of the business
the cost of the business cant be reduced
Have a Better Revenue
much as the market is highly competitive,
per Employee Ratio
gives rise to the need for increasing
revenues
What?
Need for a Clear and substantial pay range which
differentiates on the same level for different employees.
That is the employees who are more important and the
departments which are key will be benchmarked on a
higher level in the market while others would be at lower
levels (near average)
Budgetary constraints mean that monetary incentive can’t
be increased drastically. Clear career path will act as an
alternative bait to keep high performers on ship.
• Introduction of performance based pay to be
introduced to increase employee efficiency
• Focus on training and Skill development to improve
employee productivity
• Work mapping : Allocate projects in accordance with
their key competencies
 Recommendations & Solutions

Why? What?

Retain the culture of open communication and peer

Keep organizational Makes the workplace attractive for the
review, flexibility in managing workloads and room for
flexibility intact employees
having compensation related talks with the management

The mining industry is cyclical nature with Retain key employees from key departments on payroll as
Maintain a good alternating phases of growth and full time permanent employees and less crucial roles on
employee mix slowdown which make it difficult to have short term contracts, which will to maintain a healthy mix
long term employee contracts. of the same