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3 Things HR Can Learn From Stock Market

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Writtten by: Rajesh Rajak

Increasing shareholder’s equity is the most important aspect of any organization’s strategy. Sustainable and profitable growth is what every CEO strives to achieve. As businesses grow profitable, they generate more cash which contributes to the shareholder’s equity; hence creating the value for the organization.

Stock market is a platform which provides quick reflection of shareholder’s sentiments. One good or bad news can swing the stock prices. Both internal and external environment contribute to the stock prices movement and it’s valuation each day. While organizations already use stock market driven measurements to pay for various achievements to its employees, perhaps there is more which can be learnt from this volatile platform.

Here are three key strategies which our shareholders use and can be explored by HR to improve it’s workforce, talent and compensation management.

1. Don’t speculate, Invest!

A speculator in a stock market is one who often tries to maximize from the quick or short-term movements in the market. They buy stocks as soon as they get a favorable news and sell it as soon as an unfavorable news crosses their eyes. To some, it might look as a good proposition to act according to the market movement. However, in reality, such positioning often reduces their capital by substantial amount. When you try to buy, and sell too often, you definitely lose on en-cashing the true earning potential of the stock. Interestingly, that was the prime purpose of buying the stock at the first place!

It’s not only about losing on the opportunity on profits; speculators also lose on their current capital in the form of various fees and taxes they pay while buying and selling the stocks. If accounted for correctly, a good portion of an investor’s capital goes in paying the brokerage, taxes and other duties leave apart the time invested to identify, value and buying the stock at right price. Whereas a value investor, one who invests for long-term, would never buy or sell a stock based on it’s temporary movement. They would rather invest in a different tool as against buying a stock if they don’t see a long-term gains out of it. Similarly, they would never sell any of their stocks as long as it promises to deliver on its perceived value hence saving both time and money invested earlier.

Many organizations, just like speculators, hire & fire too quickly as well!

Just like buying a stock, organizations do invest a lot of time and money in identifying, selecting and on-boarding the right talent. This entire process consumes many cost items; like cost of resources involved in hiring, channel fees, candidate travel cost, notice pay, joining bonuses etc. If such resources are fired in short-term, it further pushes organizations to pay for any severance cost and other accumulated benefits cost apart from loss of investment on their training and skill improvement during that short-period.

It’s not only the tangible loss, organizations also lose on their brand value. Candidates often refrain from applying for opportunities in such organizations. This further impacts the organization as its vacancies remain open for longer period and hence increase its opportunity cost.

Organizations must evaluate their resource needs in details and hire only when it’s part of their long-term strategy. To manage temporary flux in the business demand, organizations should plan to hire contingent workers instead. If the demand persists, they can be moved to rolls. If not, they do leave as the contract expires. This could help manage the cost efficiently and improve organization’s brand value. On experimental basis, a task-based assignment with fair reward can be rolled within organization to manage the flux. There is high possibility of other employees picking additional task when they are paid fairly for it.

2. The Recession Whirlwind

We all hate recession, don’t we? It all comes surrounded with uncertainty and fear. Lay-offs become the key word of each business meetings. Saving cost by reducing the number of employees, has been one the quick fixes to organizations financials. Many lose their jobs; for some it’s like end of their professional career!

When the recession hits, stock markets react quicker than organizations do. Stocks fall to lower values day-by-day and are sold off at very cheap price. Many stockholders start selling their stocks to minimize their risk exposure. However, this is the time when a value investor becomes hyper-active. While the markets continue to sell, the value investor starts to buy good stocks. Since, the stock prices are already down, a value investor enjoys getting the best of the stocks at almost risk-free rate!

In such times, like stock markets even job market offers many quality candidates ready to be hired at reasonable salary!

This gives the organizations an opportunity to not only improve on the cost of resources but on quality too. A perfect timing to “replace” your high cost and poor performing employees! The workforce strategy should be made flexible enough to accommodate the pool strength of the organization at such time. Employers can lower the risk and cost of these new hires by modifying the employment contracts and having a longer probation for these new hires. They can be made eligible for certain high-cost benefits only post successful completion of their probationary period.

3. Sell when it’s mature

In a stock market, it is equally or rather more important to know when to sell a share. A value investor will always have fair expectation as to how much a share should perform and regularly estimate when it’s price starts to get overvalued. An overvalued share would soon start to fall and continue to fall until its price gets corrected. It is always a wise step to sell a share when it has reached its maturity and book profits!

Like shares, even employees mature in their profile and soon they start becoming overpriced or in other terms falling outside their pay-range as an outlier. Such situations do need correction!

An ideal solution could be to prepare to move such employees up in their career ladder. However, such is not a possibility in many situations as the employee may already have reached that stage or may not have required competency for next level job.

In all such cases, first and foremost, organization must ensure to communicate the employee about the scope of the role and organization’s affordability for such roles. Being transparent will not only help set long-term expectation of the employee, but could also motivate employee to put more efforts on improving its competencies. It is always advised to freeze the base-pay of the employee. This will help control the total compensation cost and maintain the price vs value balance of the resource. Please note, even when the employee continues to perform, increasing its base pay will only create more and solve less of a problem.

Employers should leverage tools like Lump-sum, task-based incentive or retention bonus to ensure the employee continues to perform and feels valued. As soon as market salaries improve and employee is closer to median of the role; start following the regular pay practice. Waiting for employee’s salary to be corrected at market level is the key to manage such resources.

It is always better to take corrective action in-time than retrenching the employee later due to high-cost!

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Magazine

Stevie Awards Winners’ Articles Series – Eng. Abeer Mahmoud Ramadna

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“Continuous Learning, adopting innovation & creativity and teamwork are among the guiding principles of success and excellence in the government sector” Eng. Abeer Mahmoud Ramadna

Winner Name: Eng.  Abeer Mahmoud Ramadna

Winner Title: Director Assistance for Control & Inspection for Economic Activities at Ministry of Industry & Trade in Jordan

Winning categories:

  1. The Gold Stevie Winner in the category “the most innovative Communications Professional of the year “
  2. The Silver Stevie Winner in the category “Innovation in Community Relations or public Services Communications”
  3. The Bronze Stevie Winner in the category “Innovative Management in Government – Organizations with 100 or more employees”
Brief Biography about the Winner:

Abeer Ramadna is the Director assistant of control and inspection unit at the Ministry of Industry, Trade, and Supply (MIT) in Jordan, she has a Master Degree in Industrial Engineering- Engineering Administration / University of Jordan with “excellent degree”. Abeer has 20 years of experience in private and public sectors, and is a focal point for UNIDO at MIT in Jordan. Abeer is a certified Management development Expert from ITC/ Vienna in 2005, a certified Export Consultant to EU from CBI/Netherland in 2007, certified Lead Auditor for Quality Management ISO 9001:2015, a certified Engineer Expert in Quality and Environmental Management systems in 2018 and a certified EFQM Assessor from EFQM in 2019. Eng. Abeer has a wide professional expertise in many fields that allow her to provide consultations to the organizations in various fields including Quality Management, Environmental Management, preparing industrial polices, strategies and plans, Inspection polices, Monitoring & Evaluation systems, implementing the ISO9001, ISO14001 ISO14040s standards, and conducting technical industrial sectors studies.

Eng. Abeer won three Stevie Awards from three different categories after participation in Middle East Stevie Awards in 2020, these are:

  1. Gold Stevie Winner in a category:” The Most Innovative Communications Professional of the Year”. These categories honor the most innovation in communications practice, management, and use of technology.
  2. Silver Stevie Winner in a category: “Award for Innovation in Community Relations or Public Service Communications”. These categories honor innovation in communications practice, management, and use of technology in the public sector.
  3. Bronze Stevie Winner in a category: “Award for Innovative Management in Government “. These categories honor innovation in executive management including the Award for Innovative Management in a number of industry sectors.

Abeer has been published scientific papers in one of the world accredited journals in E-government. Titled “Barriers to E-Government Adoption in Jordanian Organizations from Users’ and Employees’ Perspectives” in 2017, the link is:

https://www.igi-global.com/article/barriers-to-e-government-adoption-in-jordanian-organizations-from-users-and-employees-perspectives/181280

and published another scientific paper titled: “SEM approach to determine factors affecting e-government success in Jordan”,  the link is:

https://www.researchgate.net/publication/333488499_SEM_approach _to_determine_factors_affecting_e-government_success_in_Jordan

She was selected as a Judge at the Best Jordanian chemical product Award in all three cycles of it during 2015 to 2020, Judge in the 2019 management & entrepreneur Awards categories judging committee Stevie Awards, and Judge at the best industrial engineering project for the Jordanian universities in 2019. She participated in several national and International conferences, meetings and presented papers, as a representative of the MIT / Jordan.

https://www.facebook.com/abeer.ramadna

http://linkedin.com/in/abeer-ramadna-msc-ie-pe-cbi-em-itc-mde-66928170

https://stevieawards.com/ar/mena/eng-abeer-ramadna-2

http://jordanembassyus.org/news/jordanian-engineer-wins-three-middle-east-stevie-awards?fbclid=IwAR2iBj4P8uHERE_Q2Yf-hatk2yJ-bGeq1g8MaYPIz_HJ42HqUyA6UCPehdM

Stevie Award winning Case Study:

  • Developing action plans of inspection development to governmental institutions (Inspectorates) work in fields of health, Environment, labor, safety for economic sectors in Jordan.
  • Supervision of developing Electronic Inspection System for governmental inspectorates.
  •  Conduct many awareness workshops for governmental inspectorates and for private sector institutions.
  • Conduct many workshops and training sessions as A National trainer of trainers in the shaping of future studies.
  • Secretariat of higher committee for Inspection development of Economic Activates that consists from high level management in governmental inspectorates.
  • Abeer is trusted as a competent team leader and confident expert in Quality management & Inspection systems
  • Abeer conducted in 2018 a study titled the Industrial engineering in the government sector in Jordan, current situation and future opportunities and present it in the 2nd International Conference on Industrial Systems & Manufacturing Engineering (ISME’19) Nov, 11-12, 2019 in Amman.
  • Abeer was chosen after a series of selection process as one of the National participants in the Civil Service Development Program in Jordan and attended all phases including the leadership and developing high performance teams at the Royal Military Academy Sandhurst UK during 2019.

Eng. Abeer Mahmoud Ramadna “Continuing to contribute achievements and make positive impacts are goals that are achievable with the presence of strong & positive attitude, self-motivated character & determination.”

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Articles

Stevie Awards Winners’ Articles Series – Asiacell

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“Winning such an award requires hard work and we encourage other companies to focus on their customers and local communities in order to excel”

Winning Organization: Asiacell

Nomination: Award for Excellence in Innovation in Technology Industries (including Telecom)

Brief about the Organization:

Asiacell is a leading provider of telecommunications and data services in Iraq. As part of international telecommunications company Ooredoo Group, Asiacell was Iraq’s first mobile telecommunications provider to achieve nationwide coverage. Asiacell is also a leading internet provider with its 3.9G data services, offering the best network coverage in all of Iraq since January 2015.

Stevie Award Winning Case Study:

As part of its commitment to expand network coverage in Iraq, Asiacell has continued to support the redevelopment of the country’s infrastructure and economy and the provision of high-quality connectivity solutions. It has enhanced its “Hot Zone” restoration strategy by putting 200 sites on air and connecting over 500 sites to 3G.

Focused on improving the quality of life for communities, Asiacell’s CSR initiatives are focused on key areas, such as health, education and culture. Asiacell has equipped several higher education institutions with computer labs and supported the renovation of schools, with the aim of providing quality education infrastructure. It also partnered with the Chibayish Environmental Tourism Organization to build the first Iraqi Marshlands heritage museum in Ahwar as part of its efforts to revive Iraq’s Marshland, while generating a positive effect on tourism and jobs creation. 

Recognising that its people are its key asset, Asiacell continues to roll out initiatives focused on engaging and empowering employees. It has invested heavily in digital transformation, including digital upskilling for employees, and streamlining of various internal processes in order to nurture a digital-first culture that embraces innovation.

We are so glad to be recognized as a successful and innovative telecommunication company in Iraq with a Stevie Award for “Excellence in Innovation in Technology Industries”. Recognition from the Stevie Awards means a lot to us and motivates Asiacell to continue to serve the community with professionalism. Winning such an award requires hard work and we encourage other companies to focus on their customers and local communities in order to excel.

THANK YOU

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Articles

Qisaty Project & Developing Talent in Children with Special Needs in Egypt

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Edited By: Mahmoud Mansi

Qisaty Project – founded by Mona Lamloum – was launched on 26th December 2019 to support children talents through a series of storytelling, writing and drawing workshops.

The total number of children who participated in the storytelling workshop is 60 including the most talented 20 who were selected to the story writing sessions, 16 children ranging from 6 to 14 years old got their stories selected to be drawn by 19 children with special needs.

The drawing workshops were held in 3 cities in Egypt with cooperation with 2 special needs associations; Nida Society Rehabilitation with both branches in Cairo and Luxor. 14 children, and Ashab El-Erada Association in Alexandria. 5 children.

The children have different disabilities, hearing loss, partial blindness, movement disability, learning difficulty disability, mental disability and increased electricity in the brain.

Of course such an interesting project needs proper preparation and an intellectual plan. Mona Lamloum shared some of the challenges that she and her team have faced during the project:

1-The global pandemic and the sudden lockdown.

2- The fact that most of the children with special needs suffer from many chronic diseases which lowers their immunity, in addition to the huge responsibility that lies on the team while holding the workshop during the pandemic.

3-The fear of the parents of the children with special needs participation at the drawing workshops due to the pandemic and the lack of their immunity. Which was managed to concur with the help of the project partners in drawing workshops. 

Eventually, Qisaty Project was held at exceptional circumstances and according to deadlines set up before the global Corona pandemic. However, the team did their best to get the project done within the lockdown with a quality that is aspired from the beginning, and that was done simply by teamwork, sharing a unified vision, and collaborating to find new solutions.

The result is 16 short stories in addition to 64 drawings by hands of talented children with special needs and with variable disabilities from three cities: Cairo, Alexandria and Luxor. Each drawing tells a different scene from a short story inspired from the children themselves to be published as a grand book that gathers the short stories and the drawings of all the talented young participants.

Acknowledgements:

Qisaty Sponsors:

– Amideast: Hosted the story telling, story writing workshops and the day that gathered the writers and children with special needs mixed day.

– Nahdet Misr Publishing House.

Media Sponsors:

– Marj3 Platform

– HR Revolution Middle East

– EBBY

– Arablit Quarterly

Children with special needs Associations:

– Nida Society Rehabilitation with both branches in Cairo and Luxor.

– Ashab El-Erada Association in Alexandria.

Qisaty Trainers:

– Hanan El-Taher.

– Mona Lamloum.

– Zeinab Mobark.

Designing Storytelling and writing workshop:

-Mona Lamloum

Writing workshops:

– Mona Lamloum

– Yaqoub El-Sharouni

Drawing workshop:

– Under the supervision of Shoikar Khalifa,

 – With the help of respectful team at Nida Association at Cairo and Luxor.

 – Ashab El-Erada Association at Alexandria by Sahar Zaiton with the help of Aliaa Abd-Elsalam.

Team Members:

– Rawan Said

– Ahmed Ismail

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