S c h o o l o f B u s i n e s sM a n a g e m e n t C e n t e r

H u m a n R e s o u r c e P r o f e s s i o n a l P o s t - g r a d u a t eD i p l o m a

Graduation Project

“Next”Presented by•Islam Ali Adel

•Shaimaa Yehia•Hesham Samy

•Mohab Hany•Abo bakr Mohamed

Supervised byDr. Mohamed Aly A.Fattah

Next HR Consultancy aims at being the first choice for any organization targeting cost effective HR solutions that would guarantee performance enhancement via best HR practices and implementation.

•To become the leading provider for the highest quality professional services that address our customers’ business issues through HR consultancy services in Egypt.

•Becoming partners of success for the leading internationally certified HR bodies.

•Increasing the awareness about the importance of HR through college students (future employees) and business owners.

Collaboration – work as a team

Respect – value everyone

Credibility – walk the talk

Integrity – do what is right

Excellence – be your best

Accountability – own your actions

Leading the market.

Acquiring exclusive partnerships with internationally certified HR bodies

Building a very strong community of HR professionals

Increasing the awareness about the importance of HR

Becoming widely renowned for our full and comprehensive HR integration into our corporate customers

POLITICAL FACTOR:-

Tax PolicyLabor lawPolitical Stability

ECONOMICAL FACTOR:-

Exchange rates Inflation rate Economic Growth: is very low

SOCIAL FACTOR:-

Cultural aspects the HR field is not very important

TECHNOLOGICAL FACTOR:-

The usage of mobile internet has increased The Egyptian nation don’t trust paying money over the internet

PEST Analysis

STRENGTHS:

“Creativity”The linkage between theory and applicationOngoing research and development sector

WEAKNESSES:

No market presence Building a good reputation takes time, and that will lead to slow market growth

OPPORTUNITIES:

•Our business sector is expanding with many future opportunities for success•Our competitors may be slow to adopt new technologies

THREATS:

•Companies setting up their own knowledge centers•Stiff Competition from existing industry players•A small change in focus of a large competitors might wipe out any market position we achieve.

SWOT Analysis

GROWTH STRATEGY: “CONCENTRIC DIVERSIFICATION “: Diversification in a related industry, which means combining all the functions of HR consultancy & Services “Recruiting & Training &HR Consultancy& in addition to introducing the HR Community in Egypt” in one place

Corporate Strategy:

Business Strategy:

BUSINESS STRATEGY: DIFFERENTIATION

Building the largest and first specialized HR community online. Offering HR consultancy services .

Building awareness about HR best practices .

Leading change management and integration throughout Egyptian organizations.

Following up with success achieved inside the companies we offer services

NEXT BEHAVIOR : “COLLEGIAL”

According to our values, we can see that the collegial model as the most appropriate behavior model for NEXT, only that model can offer the satisfaction of our first generation of employees need for self-actualization…

NEXT CULTURE:

Leadership Enriched Culture

Organizational Mechanism:

NEXT Structure:

The Human Resources Division supports the company mission through a set of key strategies:

•Providing the HR Services

•Employee Relations and Management Services

•Organizational and Staff Development Services

•Safety and Health Services

•Equity and Diversity Services

•Policy and Planning

Human Resources Strategy

•Strategic human resource management recognizes the economic, social and political factors that create the external context in which the company operates.

•There are significant challenges in maintaining high level productivity workforce and ensuring that the company is successful in recruiting and retaining high quality staff at a time of significant competition.

•For all staff the issue of work-life balance has become a high priority that is essential to address.

•The company operates within a complex legal framework. A number of items of legislation are directly relevant to day to day human resource management.

The External Environment

•Human Resources is a centralized function that operates within a complex and dynamic framework where a range of external challenges intersect with our unique company culture.

•Organizational structure impacts human resources planning. Functional or matrix structures require different staffing.

The Internal Environment

•A high quality company is dependent upon the quality, reputation and productivity of its staff.

•Recruiting and Retaining High Quality Staff

•Accounting for performance – a high performance culture:

•Continual learning.

•Creating an equitable and diverse workplace.

•Creating a safe and supportive workplace culture

HR Strategy Challenges:

Talent Acquisition Process:

business goals

Recruitment & Selection Strategy

The key to the success of any business is building the right team at the right time.

1.NEXT looks for someone who's good for the role and good for NEXT...

2.Identify the various jobs and roles needed within the organization to meet current and future goals related to production and growth

Recruitment & Selection Strategy:

3. Selecting the right candidate requires identifying the necessary specific skills, knowledge and qualities and check to ensure the potential employee meets the basic qualifications.

4. Facilitate various ways to reduce costs.

5. Ensuring enough staff is in place to complete all necessary job duties and responsibilities and working with the hiring managers to planning ahead for the loss of essential employees.

Our implementation plan will be concentrating on:-

1.Developing Job Descriptions & Specification.

2.External Recruiting

3.Internal Recruitment

4.Personnel Planning

Strategy Implementation

Plan:

The recruitment department, developing a comprehensive and accurate job description & job specification for all positions is going to be essential for the recruitment, training, compensation and benefits division to initiate a job evaluation process for all company position considering compensable factors for each job.

Job Description:

EXTERNAL RECRUITING:-

1.Executive Recruiters (headhunters)

2.Advertising

3.Online Recruitment

4.Employment fairs

External Recruitment:

Internal Recruitment:

INTERNAL RECRUITING :-

1.Job posting

2.Succession planning

PERSONNEL FORECASTING AND PLANNING

SUPPLY ANALYSIS

1.Where are we now? What do we have?

2.Right personnel mix?

3.Where are the gaps?

4.Gaps can be addressed by training

DEMAND ANALYSIS

1.Where do we want to be? What do we need?

2.Growing ? How fast?

3.Current staff have the needed KSA for future move?

4.Re-define job descriptions to achieve long-term goals?

Personnel Planning:

PERSONNEL FORECASTING AND PLANNING

BUDGET ANALYSIS

1.How to achieve cost effective staffing?

2.How policies will be developed to manage costs?

STRATEGIC ANALYSIS

1.How will we get what we need?

2.Will we look internally or externally to fill vacancies?

3.Should we have ongoing recruitment programs or wait tillvacancies appear?

Personnel Planning:

SUCCESS KPI’S (RECRUITMENT):

1.Time periods during which major positions in the company are vacant.

2.Performance score of new hires

3.Manager satisfaction degree you with new hires (comparison to last year’s results)

4.Turnover rate of new hires during first 12 months

Recruitment Strategy Evaluation:


Metric KPI Weight Score TotalTime periods during which major positions in the company are vacant.

30 days for non managerial levels & 60 days for managerial levels.

25%

Performance score of new hires

70% of total new hires are high performers, 20% average performers, 10% below average.

25%

Manager satisfaction degree you with new hires (comparison to last year’s results)

1st year, 70% satisfaction confirmed by formal survey results.

20%

Turnover rate of new hires during first 12 months 15% of total new hires 30%


business goals

Training & Development Strategy

• Continuous workforce improvement through structured training updating and improving skills and the development of leadership capacity

should be a priority for a dynamic and agile organization.

• The Learning and Development offering will continue to improve business outcomes.

• The strategic Learning and Development provision will ensure employees with most up-to-date and relevant skills working to the best of their ability in order to achieve company goals and objectives.

Training & Development

Strategy

1. Service Quality enhancement.

2. Team Culture Building :

2.1 Leaders’ skills in the ways of leading teams.

2.2 Team interaction and collaboration.

2.3 Improve everyone’s ability to communicate openly.

2.4 Improve solve problems and improve performance.

2.5 Build an effective coaching environment

3. Inclusion of competency-based appraisal in the

performance management system

Training & Development

Strategy

TRAINING OBJECTIVES:

1.Learn new systems, procedures, or technologies.

2.Acquire job-related knowledge, skills, and abilities after selection.

3.Develop knowledge, skills, and abilities as part of a succession planning system.

Training Objectives:

Training Strategy Implementation:

1.Training Needs Assessment (TNA):

Organization Training Needs

Direct Training Request.

2. Training Request

3. Training Plan.

4. Training Monitoring

5. Evaluation

Training Action Plan:

1.Goal Setting 2. Coaching& Support 3. Performance Appraisal

4. Continuous Improvement

5. Rewarding

Performance Management System:

Performance Management System:

1. Number of employees who are satisfied with learning and growth opportunities offered by the company.

2. Number of employees who say their satisfied with project assignments for development and growth as well as job rotations.

3. Percentage of employees who regularly undergo training sessions and participate in coaching programs.

4. Consistency of performance management processes across the organization .

5. Enhanced knowledge transfer, integration and creation of a welcoming environment for diverse groups.

Training and Development Strategy

Evaluation:


Metric KPI Weight Score TotalNumber of employees who are satisfied with learning and growth opportunities offered by the company.

80% of total NEXT full time employment

25%

Number of employees who say they are satisfied with project assignments for development and growth as well as job rotations.

70% of total NEXT full time employment

15%

Percentage of employees who regularly undergo training sessions and participate in coaching programs.

100% of new hires shall undergo training, 60% of the existing, and 40 % of mangers as coaches

25%

Consistency of performance management processes across the organization .

80% of the development plans are implemented.

20%

Enhanced knowledge transfer, integration and creation of a welcoming environment for diverse groups.

Performance improvement increased by 70%

15%


business goals

Compensation & Benefits Strategy

1. Strategic reward is based on the design and implementation of long-term& short-term reward policies and practices to closely support and advance business or organizational objectives as well as employee aspirations.

2. For the company this encompasses designing pay structures and pay progression arrangements that ensure that we are able to recruit, retain and engage the staff we need to achieve our goals.

3. The Rewards and Benefits strategy will continue to align employee recognition with company achievements.

Compensation & Benefits Strategy:

• NEXT management shall adopt a comprehensive total rewards compensation plan and use it as a very effective tool to reinforce and articulate NEXT organizational values, which will not only reward individual performance, but will also, reward teamwork as well as financial performance.

• NEXT compensation plan will lay grounds for rewarding high performing employees for bringing in new customers and clients, while preserving the balance between growth and profit. Accordingly, our compensation plan should equally reward activities that generate growth and profit.

• Compensation is visible and important to employees, so according to our differentiation strategy, it's critical to consistently communicate a clear message regarding how pay decision are made.


• NEXT strongly embraces equity as a solid ground to achieve a healthy corporate culture while strictly guided by three main standards of Internal, External, Individual and Procedural equity.

• Designing a Benefits & Incentives system should be easy for employees to understand, and attainable enough at its lower levels to encourage employees to work harder to reach higher goals.

• Using the compensation and benefits system as an efficient tool to attract, develop and retain our skilled employees.


1.NEXT management shall adopt a comprehensive total rewards compensation plan, which will not only reward individual performance, but will also, reward teamwork as well as financial performance.

NEXT management is deeply concerned about “walking the talk” and is very determined to use its unique pay programs to reinforce its values. In this sense the compensation program adopted by next shall combine the following features:

Through:

1.Individual Performance Rewards: Base pay, commission schemes and performance based annual increase, and merit increases.

2.Team & Collaborative Work Performance: Annual and Quarter bonus schemes.

Compensation & Benefits Implementation

Strategy:

2. "NEXT compensation plan will lay grounds for rewarding high performing employees for bringing in new customers and clients, while preserving the balance between growth and profit. Accordingly, our compensation plan should equally reward activities that generate growth and profit.“

Through:

1.The performance management system adopted by the Training & Development division will focus on driving our employees for results during the first year with the main focus being on the growth and market penetration mainly through bringing on new customers.

2.Starting from year two the goals will focus on enhancing the overall employee mentality and performance towards aligning growth with profit to raise the bar for NEXT employees to always cross the extra mile for their next financial recognition based on the new standards reflected in the second phase of performance appraisal specifically in the goal setting phase based on the new performance standards.


Strategy:

3. Compensation is visible and important to employees, so according to our differentiation strategy, it's critical to consistently communicate a clear message regarding how pay decision are made."

Through:

1.The talent management division will work on setting an effective recruitment process with special focus on competency based structured interviews, skill tests and assessments that will help a more accurate selection of the needed caliber; which will represent solid basis for flexible and fair pay decisions.

2.In cooperation with the preset development plans for each individual in our organization based on their closely monitored behavior and performance; clear processes such as succession planning should be always sending our employees a clear message of appreciation through performance and skill based recognition that will eventually entail financial rewarding.

3.Generating a clear and easy to understand policy to explain and communicate the company’s philosophy and intentions of embracing equity standards both internally and externally will facilitate the employee relations division’s tough task of communicating NEXT compensations programs and pay decisions while reflecting its core values and alignment of these programs to employee needs and company goals on equal footing.



Strategy:

4. NEXT strongly embraces equity as a solid ground to achieve a healthy corporate culture while strictly guided by three main standards of Internal, External, Individual and Procedural equity. Through:

A) External Equity:

This will be addressed by conducting a salary survey; which will help us build an up-to-date salary structure that isn't separated from the labor market. This step is very critical to see how others are paying for our benchmark jobs in the market, and it’s equally important to know the benefits offered by our competitors to guarantee attracting and retaining the “Hot Skills” needed for NEXT targeted growth and differentiation plans.



Strategy:

B) Internal Equity:

1.In cooperation with the recruitment department, developing a comprehensive and accurate job description & job specification for all positions is going to be essential for the compensation and benefits division to initiate a job evaluation process for all company position considering compensable factors for each job.

2.The compensations and benefits division will adopt the point’s method to rank all positions based on their scores relative to their compensable factors.

3.The previously mentioned process will lead to grouping similar jobs into pay grades which will represent guidelines for pay ranges and the benefits that will be part of each grades annual package.

4.Now in light of the clear job analysis and evaluation processes, we are ready to price our job into the market relative to our position in the market and what’s offered by our competitors ; which NEXT is determined to exceed as part of our its overall corporate strategy.

5.Deciding a pay range for each job grade will provide more flexibility for our recruiters to attract the right calibers, while maintaining a sense of equity between similar jobs.



Strategy:

B) Internal Equity:



Strategy:

Individual Equity:

1.This is another top priority on the HR strategy agenda which is best achieved via communicating the picture that "the better you perform, the better you got paid" , accordingly ; effective and clear performance appraisals will be our main tool , to take some of our pay decisions based on individual performance to reward individual performance.

Procedural Equity:

1.Continuous and effective communication, in addition to developing clear and easy to understand policies of (complaints) and employees’ participation will help achieving the procedural equity for NEXT employees.



Strategy:

5. Designing a Benefits & Incentives system should be easy for employees to understand, and attainable enough at its lower levels to encourage employees to work harder to reach higher goals that will be generally categorized according to the broad segmentation below:



Strategy:

Sales Non Sales Leaders & Managers1. Base 75% / 80%2. Commission

25% / 20%3. Achievement

Incentives4. Transportation

Allowance

1. Skill Based compensation

2. Bonus 35% to 40% of Total compensation.

Long –term incentives: • Stock Options for top

management positionsShort- term Incentives: 1. Annual Incentive 25%

>70%2. Car Allowance3. Mobile Allowance4. IT Benefits (Laptop, USB,

Blackberry, I pad, Tablet, …etc)

7. Using the compensation and benefits system as an efficient tool to attract, develop and retain our skilled employees through:



Strategy:

Attract Develop Retain1. Selective Benefits

covering family members e.g. Insurance, Medical coverage, etc.

2. High performance related incentives

3. Profit Sharing4. Merit Increase5. Performance based

incentives6. Bonuses and

commissions

1. Structured training & development

2. Opportunity income (education, professional development programs, etc.).

3. External Certification through earned in-house training credit points from internationally recognized bodies such universities and learning institutions.

1. Performance Loyalty Bonus

2. Clear career development plans for key personnel

3. Workplace improvements linked to engagement surveys feedback

4. Strong Performance Management system

5. Employee Wellness Programs &Flexible work arrangements

1. Number of employees satisfied with their current compensation.

2. Number of employees showing above average performance and getting above average compensation.

3. Number of employees who have shown top performance but resigned for salary related reasons.

4. Number of employee satisfied with company benefits, including the medical insurance services indicating.

5. Number of managers’ satisfaction in relation to benefits such as: Flexible hours



Evaluation:


Evaluation:

Metric KPI Weight Score Total

Number of employees satisfied with their current compensation.

85% of total employment 25%

Number of employees showing above average performance and getting above average compensation.

30% of total full time employment; and 75 % of the positions entitled for bonuses, commissions, etc..

20%

Number of employees who have shown top performance but resigned for salary related reasons.

Should not exceed 20% of the total resigned employees.

30%

Number of employee satisfied with company benefits, including the medical insurance , flexible hours, etc..

75% of total full time employment.

11%

Number of managers’ satisfaction in relation to benefits impacting work performance such as: Flexible hours

70% of full time employees in managerial levels.

14%

NEXT HR Consultancy is planned to build its reputation on the delivery of a highly professional HR services to a large number of leading businesses.

We are committed to a number of simple beliefs. We want to stand out through the quality of our personal service, and the power of our results.

These are the foundations upon which we are set to embrace as grounds for success of our business. We can boast a high success rate at placing people and meeting requirements quickly, something that comes from listening and investing time all the way through the process.

Conclusion

Next

Documents

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