Human Resource Management Excellence Award: SCG
Human Resource Management Excellence Award: SCG
The COVID-19 incident has forced upon us the need to work from home and to digitize the work environment, causing a prompt innovation and adoption of digitalized telecommunication. A shift to remote work has become a new norm while coming to office has become optional. Changing work protocols and business models require adjustment to the organizational culture and behavior. Changing nature of work and expectation of the workforce has become a new set of human resource management (HRM) rules. Therefore, transformation in HRM is not just implementing modern information technology. It is fundamentally the adoption of digital mindset which requires not only digital literacy but also engagement and agility.
Businesses should look for applications that will help make remote work successful. They must find the solutions to simplify remote work with digital collaboration tools to communicate effectively. The HRM Excellence award goes to the Siam Cement Public Company Limited (SCG) for rapidly embracing a digital transformation strategy, preparing itself for a post-pandemic sustainable performance. The company exhibits the following strategy and practices to achieve excellence in HRM.
HRM Strategy for Digital Transformation
SCG responds to a rapidly changing working condition by constantly streamlining its HRM system that aligns with the business strategies. SCG emphasizes a strategic remote workforce to support a new normal by refreshing the hiring criteria to focus on competencies and redesigning the jobs and employment schemes to accommodate flexible working hours and locations. SCG transforms its HRM practices to be more digital-driven by constantly improving on the robotic process automation (RPA) and standardized digital operations with world-class consultants.
The company equips its people with digital literacy through upskilling and reskilling. Additional digitalization and virtual classroom facilities (e.g., studios and bandwidth) are in place to support a virtual development program. The company
redesigns its performance management system (PMS) to focus more on outcomes and performance dialogue to accommodate remote work, virtual collaboration and empowerment – allowing its workforce to do less but generate outputs faster.
SCG revises its leadership and talent management procedures to allow the company to identify future leaders with the right competencies for the new normal. Also, the company accelerates local successors to fill in the expatriate’s shoes under overseas remote work policy.
A digitally-oriented redesigned workplace provides necessary supports and tools for remote work while allowing interactions to maintain engagement. SCG utilizes the Employee Connect application to organize personal data, leave and OT request, welfare and benefits, communication channel, COVID daily health check, office seat booking, and checking in and out, among others.
The use of RPA in HR operations helps reduce time in repetitive works such as transaction reporting and recording. The customized application “PowerApp” is used to track operation results and the PowerBI dashboard is used to track
progresses of action plans in corporate functions. For the PMS process, SuccessFactors are used for KPI registration, performance tracking, and digitally-recorded dialogue. For recruitment, online assessment tools and online interviewing
and onboarding are leveraged for better candidate experience. The company also partners with LinkedIn to optimize its HR sourcing processes. For talent management and succession planning, the company utilizes e-platform to creat talent
portfolio for future career management.
HRM Sustainable Development
SCG adheres to its corporate governance and code of conduct for sustainable HRM practices. The company revises its human rights policy and its diversity and inclusion policy for socialcommitment, improves the human rights due diligence throughout its domestic and overseas supply chain, and participates in the human right models organization project by the Ministry of Justice.
For talent development, management development program and management acceleration program blend together action learning and project assignment, digitization, and virtual classes at a 70:20:10 ratio. The new digital and agile training
programs include RPA, digital marketing, big data, artificial intelligence, and scrum team, among others. and the PowerBI dashboard is used to track progresses of action plans in corporate functions. For the PMS process, SuccessFactors are used for KPI registration, performance tracking, and digitally-recorded dialogue. For recruitment, online assessment tools and online interviewing and onboarding are leveraged for better candidate experience. The company also partners with LinkedIn to optimize its HR sourcing processes. For talent management and succession planning, the company utilizes e-platform to creat talent portfolio for future career management.
Welfare and Benefits
SCG has employee benefits management policy and guidelines in place. The company regularly reviews its benefits to align with the changing HR context. To respond to the hybrid workplace, for example, flexible personalized benefits are initiated for Chemicals business to drive higher engagement while keeping the cost efficient. Welfare and benefits have also been redesigned to match a new hiring condition and emerging new jobs in the fields of digital and technology.
For long-term incentives, SCG offers new equity-like scheme for the digital commerce platform unit and initiates a new compensation scheme for the internal startups team. The traditional long-term programs such as provident fund, health care, retirement preparation program, and ex-employee club, etc. are also in effect.
Awards and Recognition
SCG receives various awards and recognitions in 2019. They are, for example, Human Resources Management Excellence for the 17th consecutive year from Thailand Management Association, the “Excellent” status in the Corporate Governance Report of Thai Listed Companies by the Thai Institute of Directors, new generation’s 2nd preferred employer (out of Top 15) as surveyed by JobsDB, and the membership in Dow Jones Sustainability Indices (DJSI) for 16th consecutive year in the construction material industry.
Other nominated companies also implement a work-from-anywhere program with flexible work schedules and locations to accommodate social distancing policy during COVID-19 outbreak. They encourag their employee to resort to using technology and, at the sam time, boosting morale. They emphasize sustainable HR development
in line with a new normal and promote e-learning and knowledge sharing. Many companies develop mobile applications to manage HR activities and monitor HR data on the dashboard.
Specifically, one nominated company aims to enhance digital capabilities of its workforce and retain people with specialized skills. This company integrates its HRM process and pays particular attention to talent management and succession planning. The company digitalizes its HRM using mobile application, promotes learning on digital platform, sets up an analytic team to analyze HR data and provide insights to implement the HRM strategy.
Another nominated company makes sure that its executives and employees are ready for the digital era by coming up with digital and technology competency. This nominated company organizes tech savvy activities to enhance digital
initiatives among employees, develops human capital index (HCI) to foster wokforce productivity, and monitor employee information on the HR data dashboard.
HRM practices of another nominated company are also worth mentioned. This company highlights that digitalization is the heart of its organizational agile culture thus sets up an academy to promote life-long learning and offers performance bonus tied to annual KPIs.