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Mulla Nasrudin and his Donkey

Mulla Nasrudin had a good-for-nothing donkey. The donkey was wild, unruly, lazy, and obstinate and would not obey Mulla Nasrudin and all efforts to train the donkey failed. Soon the donkey became such a nuisance that Nasrudin and his wife were fed up of the donkey and wanted to get rid of it, so they decided to sell off their useless donkey and purchase a good one.

So Mulla Nasrudin took his good-for-nothing donkey to the weekly fair where animals were bought and sold by auction.

“I want to sell this good-for-nothing, lazy, useless, disobedient donkey,” Mulla Nasrudin shouted.

A man offered five hundred rupees and Nasrudin was delighted to get this unexpected prize for his useless donkey.

Mulla Nasrudin roamed around the fair and suddenly he saw a huge crowd around an auctioneer who was auctioning a handsomely decked-up donkey wearing a crown.

The auctioneer talked about the donkey’s strong muscles, “look how strong and supple this donkey is – it is so hardy that it can wok tirelessly for hours carrying heavy loads. An excellent beast of burden.”

Someone bid one thousand rupees.

“What? Only a thousand rupees for such an intelligent donkey? You can train him to anything you want and he will learn in a minute. This is a most gentle donkey. Just look at his eyes. You know he’s a wonderful donkey. You can let him carry your children home with full knowledge of the fact that this kind animal will protect them from any harm. For he is a strong loyal friend…” the auctioneer said.

Someone bid three thousand rupees.

The auctioneer continued talking about the donkey’s value and and as he laid it thick and praised the donkey’s qualities the bids started going higher and higher.

The auctioneer went on and on extolling the donkey’s virtues which so impressed Mulla Nasrudin that he suddenly bid ten thousand rupees, won the bid and bought the donkey.

He triumphantly led his prize donkey home and told his wife that he had sold their good-for-nothing useless donkey for rupees five hundred and bought this wonderful new donkey for ten thousand rupees.

Nasrudin’s wife had a close look, realized that the decked-up donkey Nasrudin had bought was their own lazy good-for-nothing donkey and was furious with Mulla Nasrudin and shouted at him, “are you crazy Nasrudin. This is our own useless donkey – you sold it for five hundred rupees and bought it back for ten thousand rupees?”

A stunned, bewildered and baffled Mulla Nasrudin looked closely at the donkey for some time, then recovered his wits, and said, “Maybe I did not appreciate the true worth of my donkey until the auctioneer explained it…”

It’s true, isn’t it?
Sometimes we don’t realize the value of what we have or the worth of those close to us, till someone else appreciates it.

There is a saying in hindi: “Ghar ki Murgi Dal barabar…”
It’s high time to introspect and realise the worth of our near and dear loved ones and friends and value the things that we already possess.

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Don’t let the Elephant Rope limit you

As a man was passing  the elephants, he suddenly stopped, confused by the fact that these huge creatures were being held by only a small rope tied to their front leg.

No chains, no cages. It was obvious that the elephants could, at anytime, break away from their bonds but for some reason, they did not.

He saw a trainer nearby and asked why these animals just stood there and made no attempt to get away.

“Well,” trainer said, “when they are very young and much smaller we use the same size rope to tie them and, at that age, it’s enough to hold them. As they grow up, they are conditioned to believe they cannot break away. They believe the rope can still hold them, so they never try to break free.”

The man was amazed.

These animals could at any time break free from their bonds but because they believed they couldn’t, they were stuck right where they were.

Like the elephants, how many of us go through life hanging onto a belief that we cannot do something, simply because we failed at it once before?

Failure is part of learning; we should never give up the struggle in life.

Job cuts in IT sector – What Went Wrong

The layoffs in India’s IT majors, among the largest private employers providing jobs, is bit worrisome. Added to it the backlash the IT industry is facing in the US on the H1-B visa front, and in countries such as Australia, Singapore, the future of the industry as a beacon of hope for young professionals is dimming, feel many.

The Mc-Kinsey report mentioning that 50% of the workforce will become redundant soon only points to the growth curve moving towards south.

Is projected slow growth in the IT industry a result of policy changes across the globe or is it an after effect of our own demonetization. To my knowledge the above mentioned factors have a negligible impact on the growth rate of the industry. Then, what are the significant factors that are the cause of this sudden down-slide and the unexpected job cuts.

Automation: Every business is going through huge transformation with the rampant use of technology that is making several traditional jobs obsolete. Industries like Automotive and Banking sectors have already experienced this. IT sector is new to this with automation making some of the low end jobs redundant.

The issue has become more pronounced with the job losses striking the IT industry. The problem is more for the homegrown majors who have made an international mark and seen as a good paymaster.

Capacity building : One of the unique nature of the IT industry as against the other industry is that the growth of an organisation is not restricted to production capacity as seen in manufacturing and other industries. An IT organisation’s growth is directly proportional to its ability to ramp up its delivery capabilities and this doesn’t require large lead times. Innovative methods like Work from home, onshore, offshore model etc really helped in the rapid growth. With the overall growth slowing down organisations feel the heat of excess manpower and are forced to trim their size.

Skill Development : With the growth rate being so high all these years organisations and individuals seldom focused on “Sharpening the Axe”. Training and technological development was given a miss unless it was absolutely necessary. With the growth rate slowing down the less skilled are the ones sure to face the heat.

It’s the First who get noticed.

We all know Neil Armstrong, the 1st person to set his foot in moon.

But, do you know who was supposed to be the 1st person? Many don’t know…

His name is Edwin C Aldarin…

He was the pilot for the Apollo mission. He was working for the American Airforce. Moreover he had experience of space walking, hence selected as the pilot.

Neil Armstrong worked for the American Navy. He was selected for his courage as co-pilot.

When the Apollo mission landed on moon, they received a command from NASA, “pilot first”.

But Aldarin was hesitant, “what will happen”, “will I get sucked in or will I burn out”, etc. The hesitation was not for hours, but few seconds.

In the meantime, NASA sent the next command, “co-pilot next”.

Within next second, Neil Armstrong put his foot on the moon & became part of world history.

World history was changed in 1 second… Though Aldarin had the qualification and talent, because of hesitation, he is not recognised by many people.

The world remembers only person who comes first…

This is a good example of how people lose out because of hesitation & fear. Whenever you see the moon, remember this, a moments hesitation can stop us from our greatest victory.

We all have great potential in us, the only thing that stops us from achieving what we are supposed to achieve is our hesitation, fear and shyness.

Many people are shy to ask, shy to appreciate others, & some are shy to share. If we fail to do the right things, we will most likely do the wrong things.

Avoid hesitation…..

The Circle of Good Deed

Once upon a time Shree Krishna and Arjun went for a short stroll around the city. They saw a poor looking priest begging. Arjun felt pity at him and he gave him a bag full of 100 gold coins. The priest became very happy and thanked Arjun. He left for his home. On way, he saw another person who needed help. The priest could have spared a coin or two to help that person. however, he chose to ignore it. But on way to his home, one thief robbed him of his bag of coins and ran away.

The priest became dejected and went back again for begging. Next day again when Arjun saw the same priest begging and he was surprised that after getting a bag full of coins which can last a lifetime, the priest was still begging! He called the priest and asked him the reason for this. The priest told him about the whole incident and Arjun again felt pity at him. So, this time he gave him a diamond.

The priest became very happy and left for home and he again saw someone who needed help but he chose to ignore again. Upon reaching home, he safely put the diamond in an empty pot of water with a plan to cash it out later and live a wealthy life. His wife was not at home. He was very tired so he decided to take a nap. In between, his wife came home and picked up that empty pot of water, walked towards the river close by to fill up the water. She had not noticed the diamond in the pot. Upon arriving at the river, she put the whole pot into the running river water to fill it up. She filled up the pot but the diamond was gone with the water flow!

When the priest woke up, he went to see the pot and asked his wife about the diamond. She told him, she had not noticed it and it must have been lost in the river. The priest couldn’t believe his bad luck and again started begging. Again Arjun and Shree Krishna saw him begging and Arjun inquired about it. Arjun felt bad and started thinking if this priest will ever have a happy life.

Shree Krishna who is an incarnation of God smiled. Shree Krishna gave that priest one coin which was not even enough for buying a lunch or dinner for one person. Arjun asked Shree Krishna, “Lord, I gave him gold coins and diamond, which could have given him a wealthy life, yet it didn’t help him. How will just one coin help this poor guy?” Shree Krishna smiled and told Arjun to follow that priest and find out.

On the way, the priest was thinking that one coin Shree Krishna gave him, he can’t even buy a lunch for one person. Why would he give so little? He saw a fisherman who was getting a fish out of his net. Fish was struggling. The priest felt pity at fish. He thought that this one coin won’t solve my problem, why not I save that fish. So the priest paid the fisherman and took the fish. He put the fish in his small pot of water which he always carried with him.

The fish was struggling in a small pot of water, ended up throwing out a diamond from the mouth! The priest screamed with a joy, “I got it, I got it”. At that same point, the thief who had robbed the priest’s bag of 100 gold coins, was passing through there. He thought that the priest recognized him and may get him punished. He got nervous and ran to the priest. He apologized to the priest and returned his bag full of 100 gold coins. The priest couldn’t believe what just happened.

Arjun saw all this and said, “Oh Lord, Now I understand your play”.

Big John doesn’t pay….

One fine day, a bus driver went to the bus garage, started his bus, and drove off along the route. No problems for the first few stops – a few people got on, a few got off, and things went generally well.

At the next stop, however, a big hulk of a guy got on. Six feet eight,built like a wrestler, arms hanging down to the ground. He glared at the driver and said, “Big John doesn’t pay!” and sat down at the back.

The driver was five feet three, thin, and basically meek and hence, he didn’t argue with Big John, but he wasn’t happy about it either. The next day the same thing happened – Big John got on again, made a show of refusing to pay, and sat down. And the next day, and the next and continued for few weeks.

This grated on the bus driver, who started losing sleep over the way Big John was taking advantage of him. Finally he could stand it no longer. He signed up for body building courses, karate, judo, and all that good stuff.

By the end of the summer, he had become quite strong; what’s more, he felt really good about himself. So on the next Monday, when Big John once again got on the bus and said, “Big John doesn’t pay!”

The driver stood up, glared back at the passenger, and screamed, “And why not?”

With a surprised look on his face, Big John replied, “Big John has a bus pass.”

Many a times we spend a lot of time worrying and trying to find solutions for problems that doesn’t exist. “Be sure there is a problem in the first place before working hard to solve one.”

The Obstacle in our Path

In ancient times, a king had a boulder placed on a roadway. Then he hid himself and watched to see if anyone would remove the huge rock. Some of the king’s wealthiest merchants and courtiers came by and simply walked around it.

Many loudly blamed the king for not keeping the roads clear, but none did anything about getting the big stone out of the way. Then a peasant came along carrying a load of vegetables. On approaching the boulder, the peasant laid down his burden and tried to move the stone to the side of the road. After much pushing and straining, he finally succeeded. As the peasant picked up his load of vegetables, he noticed a purse lying in the road where the boulder had been. The purse contained many gold coins and a note from the king indicating that the gold was for the person who removed the boulder from the roadway. The peasant learned what many others never understand.

Every obstacle presents an opportunity to improve one’s condition. 

Leave entitlement for Private Sector Employees as per UAE Labour Laws

  1. Dear Reader,

    I am trying to provide the understand of the UAE labor law as it applies to Private Sector Employees. I would quote the exact transcript of the law and try and explain where ever necessary the details in length. I am not a law student hence don’t look at it as final you may check with a legal expert if you so desire.

    Leave Entitlements :

    ARTICLE (74)

    Each employee is entitled to an official leave with full pay on the following occasions:

    – Hijra New Year. One day
    – Christian New Year. One day
    – Eid Al Fitr Two days
    – Eid Al Adha and Waqfa day Three days
    – Birthday of the Prophet One day
    – Ascension Day One day
    – National Day One day

    ARTICLE (75)

    The employee must be granted an annual leave during each year of service which may not be less than:
    1. Two days per month in respect of any employee with more than six months and less than one year of service.
    2. Thirty days per annum in respect of any employee whose period of service exceeds on year. In the event of termination of an employee’s service he shall be entitled to an annual leave for the fractions of the last year of service.

    ARTICLE (76)

    The employer may at his discretion determine the date for commencement of annual leaves and, when necessary, he may decide to divide the leave in two parts at the most, except in cases of juveniles where vacation may not be divided in parts.

    ARTICLE (77) *

    The annual leave period is deemed to include such holidays as prescribed by law or as agreed to, and any other periods of sickness, occurred during this leave and is considered as part thereof.

    ARTICLE (78)*

    The employee shall receive his basic pay in addition to housing allowance, if any for the annual leave days. However if the exigencies of work necessitate that the employee works during his annual leave in whole or in part, and the period of leave during which he has worked, has not been carried forward to the next year, the
    employer ought to pay him his wage in addition to cash in lieu of leave for his working days based on his basic pay.
    * Amended by Federal Law No. (12) of 1986.

    ARTICLE (79)

    The employee is entitled to receive cash in lieu of annual leave days not availed by him, if he was dismissed or if he left the service, after the period of notice stipulated by law. Cash in lieu of leave is calculated on the bases of pay received by the employee at the time of maturity of such leave.

    ARTICLE (80)

    Remuneration due to an employee plus that of the approved leave under this law shall be paid in full by the employer to the employee before the latter’s departure on annual leave.

    ARTICLE (81)

    If exigencies of work necessitate that the employee work on holidays or rest days against which he receives full or partial pay he shall be compensated in lieu thereof with increase in pay by 50% of his wage, but if he has not been compensated for the same with a leave, the employer shall pay him an increase to his basic wage equivalent to 150% of the days of work.

    ARTICLE (82)

    If the employee falls sick for reasons other than labour injury he must report his illness within a period of two days at most and the employer must take necessary measures having him medically checked up to ascertain illness.

    ARTICLE (83)*

    1. During the probationary period, the employee is not entitled to any paid sick leave. 2. If the employee spends over three months after completion of the probationary period, in the continuous service of employer, and falls sick during this period, he becomes entitled to a sick leave not more than 90 days either continuous or intermittent per each year or service, computed as follows:-
    A. The first fifteen days with full pay.
    B. The next thirty days, with half pay.
    C. The subsequent period, without pay.
    * Amended by Federal Law No. (12) of 1986.

    ARTICLE (84)

    Pay during sick leave shall not be made if sickness resulted from misbehavior of the employee such as consumption of alcohol or narcotics.

    ARTICLE (85)

    The employer may terminate the services of an employee who fails to resume his duties at the end of such leave as stipulated in Article (82), (83) and (84) hereof, and in such case the employee shall be entitled to his gratuity in accordance with the provisions of this Law.

    ARTICLE (86)

    If an employee resigns from service because of illness before the lapse of the first 45 days of the sick leave and the Government Medical Officer or the physician appointed by the employer justifies the causes of resignation, the employer must pay to the employee his remuneration due for the period remaining from the first 45 days referred to above.

    ARTICLE (87)

    A special leave without pay may be granted for the performance of pilgrimage to the employee once through-out his service and shall not be counted among other leaves and may not exceed 30 days.

    ARTICLE (88)*

    During the annual leave or sick leave provided for hereunder, the employee may not work for another Employer; however, if the employer has established that the employee has done this, he shall have the right to terminate the service of employee without notice, and to deprive him of the leave pay due to him.

    ARTICLE (89)

    Subject to the provisions herein contained, every employee who does not report to duty immediately after expiry of his vacation, he shall be deprived of his pay for the period of absence commencing from the day following to the date on which the leave has expired.

    * Amended by Federal Law No. (12) of 1986.

    ARTICLE (90)

    Without prejudice to cases where the employer has the right to dismiss the employee without notice or gratuity as prescribed herein, the employer may not dismiss an employee or serve him with a notice of dismissal during his leave as is provided for in this Section.

    ARTICLE (30)

    A working woman is entitled to maternity leave with full pay for a period of forty five days including the time before and after delivery, provided that her continuous period of service with the employer should not be less than a year, but if a working woman has not completed the said period, the maternity leave shall be with half pay. A working woman, on the expiry of the maternity leave, may discontinue work without pay for a maximum period of one hundred consecutive or intermittent days if such absence is due to illness which does not enable her to resume work. Such illness shall be evidenced by a medical certificate issued by a medical authority attested by the competent health authority or endorsed by such authorities to the effect that the illness resulted from pregnancy or delivery. Leave provided for in the preceding two paragraphs shall not be computed as part of other leaves.

    ARTICLE (31)

    In addition to any prescribed rest period, a working woman nursing her child shall, during the eighteen months following the date of delivery, be entitled to two additional breaks each day for this purpose, neither of which shall exceed half an hour.

  2. These two additional periods shall be considered as working hours and shall not cause
    any reduction of remuneration.

    Explanation of the above

    Generally the leaves are categorized in to the following categories

                     a)  Annual Leave
    b)  Official Holidays
    c)  Sick Leave
    d)  Maternity Leave
    Annual Leave

    What are an employee’s annual leave entitlements?

    For every year of service, an employee is entitled to annual leave of not less than the following:
    1. Two days leave for every month if his service is more than six months and less than one year.
    2. A minimum of thirty days annually, if his service exceeds one year. At the end of his service the employee       is entitled to annual leave for the fraction of the last year he spent in service.
    Annual leave is usually calculated on the basis of a calendar month rather than by working days. If an employee however fails to report back to work after the expiry of his leave period, his remuneration will automatically be forfeited for the days he is absent.

    What would be payable to the employee during his annual leave?

    An employee is paid his basic wage plus the housing allowance, if applicable, and any other allowances which he receives in the normal working month exclusive of any bonuses received.

    Who determines when the annual leave commences and its duration?

    The employer has the right to determine when an employee is allowed to take his annual leave and whether   (if required) he is entitled to divide the leave into two parts.

  3. If however, work circumstances require keeping the employee at work during the whole or part of his annual leave and the leave has not been carried over for the following year, the employer should pay the employee his wage in addition to a leave allowance for the days he worked equal to his basic wage.

  4. In all cases, no employee should be required to work during his annual leave more than once during two consecutive years.

  5. In other words, the employer may only defer the annual leave once in two consecutive years and at the same time pay the employee the annual leave wages.

    When should annual leave wages be paid?

    The employee should be paid his full wage before taking his annual leave, plus the wage of the leave days he has accrued.

    Is the employee entitled to payment in lieu of leave if his services are terminated?

    The employee is entitled to payment of his wages for the annual leave period not taken if his employment is terminated, or he resigns after serving the period of notice determined by law. Such payment is calculated on the basic wage received at the time the leave was due including any housing or accommodation allowance where applicable. Some employers also include transportation allowance in the calculation, although this is discretionary rather than compulsory.

  6. Nevertheless, according to judgments delivered on the matter, an employee may only claim remuneration for the annual leave not taken for the last two years of employment at the rate of the wages paid during that   time. Any leave days not taken prior to that period are therefore time barred and the employee is precluded   from claiming remuneration against them (providing the employer relies on this time bar provision in the event of a claim).

    Is going to Haj for pilgrimage considered part of the annual leave?

      The employer must give the employee once during his employment a special leave without pay to go for Haj   (pilgrimage) which should not exceed 30 days. This period is not part of the employee’s annual leave or any   other leave which he is entitled to.

    Official Holidays

    Which official holidays are an employee entitled to take?

      An employee is entitled to an official holiday with full wage on the following occasions:
    Occasion Time Off
    1. Hijri New Year’s Day one day
    2. Gregorian New Year’s Day one day
    3. Eid Al Fitr (end of Ramadan) two days
    4. Eid Al Adha and Waqf three days
    5. Prophet Mohammed’s Birthday one day
    6. Isra and Al Miraj one day
    7. National Day one day

  7. The holidays listed above are applicable to all employees whether they are working in the public or private sectors. However, public sector employees may be granted additional days off to those specified on the above occasions, which are announced from time to time.

  8. It is therefore open to private sector employees to grant their employees a holiday on the above occasions or to pay them instead. The date(s) on which the above official holidays fall depend on the Ministry’s announcements, which are published in the local newspapers shortly before they occur.

    Are official holidays excluded from the calculation of leave?

    The calculation of the duration of annual leave includes holidays specified by law or by agreement, or any day taken for example due to sickness, if they fall within the leave period and are deemed to be part  thereof.

    Sick Leave

    Is the employee entitled to sick leave?

    The employee must report to the employer any injuries or illnesses preventing him from working within a maximum period of two days.

  9. The employee is not entitled to any paid sick leave during the probation period. However, after a period of   three months continuous service following the probation period, the employee is entitled to sick leave  (continuous or intermittent) wages as follows:
    (1) Full wage for the first 15 days.
    (2) Half wage for the next 30 days.
    (3) Any following period will be without wage.

  10. However, if the employee’s illness is directly caused by his misconduct (for example by excessive drinking),   he is not entitled to any wages during the sick leave.

  11. It should be noted that the employee should provide evidence of his illness warranting sick leave by an official medical certificate.

    Can the employee resign from employment during the sick leave period?

    The employee may resign from employment during the sick leave period and before the completion of 45 days specified by law, provided the reason of resignation is approved by a physician. In this situation, the employer must pay the employee all the wages he is entitled to, until the end of the 45 days referred to above.

    Can the employer dismiss an employee from service during his sick or annual leave?

    The employer may not dismiss an employee from service during his sick leave or annual leave. During this     period any notice for termination will be considered null and void.

  12. However, the employer is entitled to terminate the employment contract if the employee has exhausted his full sick leave and is not fit to return to work. In such cases, the employee will be entitled to his full gratuity and end of service entitlement in accordance with the Law.

  13. Furthermore, the employee will not be entitled to wages for the days that he has not reported to work after the end of his leave (whether sick leave or annual leave). This will not prejudice the rights of the employer to terminate the employee’s contract if the employee fails to report back to work within seven consecutive  days from the date he was due back.

    Maternity Leave

    What maternity leave is a female employee entitled to?

    A working woman is entitled to 45 days maternity leave with full pay which includes the period before and  after the delivery, provided she has served continuously for not less than one year. The maternity leave is  granted with half pay if the woman has not completed one year of service.

  14. At the end of the maternity leave, a working woman has the right to extend her maternity leave for a maximum period of 100 days without pay. This unpaid leave can be continuous or interrupted, if the interruption is caused by illness which prevents her from coming to work. The illness must be confirmed by a certified government physician licensed by the competent health authority.

  15. Maternity leave in either of the above cases is not deducted from any other leave that a female employee is   entitled to.

  16. During the 18 months following delivery, a female employee who nurses her child has the right to have two     daily intervals which do not exceed half an hour each for the purpose of nursing her child. These additional     intervals are considered part of her working hours and no deduction in wages can be made.

  17. Paternity leave is not provided for under the Law.

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We are beautiful with our flaws.

A water bearer in India had two large pots, each hung on the end of a pole which he carried across his neck. One of the pots was perfectly made and never leaked. The other pot had a crack in it and by the time the water bearer reached his master’s house it had leaked much of its water and was only half full.

For a full two years this went on daily, with the bearer delivering only one and a half pots full of water to his master’s house. Of course, the perfect pot was proud of its accomplishments. But the poor cracked pot was ashamed of its own imperfection, and miserable that it was able to accomplish only half of what it had been made to do.

After two years of what it perceived to be a bitter failure, it spoke to the water bearer one day by the stream. “I am ashamed of myself, and I want to apologize to you.”

“Why?” asked the bearer. “What are you ashamed of?” “I have been able, for these past two years, to deliver only half my load because this crack in my side causes water to leak out all the way back to your master’s house. Because of my flaws, you have to do all of this work, and you don’t get full value from your efforts,” the pot said.

The water bearer felt sorry for the old cracked pot, and in his compassion he said, “As we return to the master’s house, I want you to notice the beautiful flowers along the path.”

Indeed, as they went up the hill, the old cracked pot took notice of the sun warming the beautiful wild flowers on the side of the path, and this cheered it some. But at the end of the trail, it still felt bad because it had leaked out half its load, and so again the pot apologized to the bearer for its failure.

The bearer said to the pot, “Did you notice that there were flowers only on your side of your path, but not on the other pot’s side? That’s because I have always known about your flaw, and I took advantage of it. I planted flower seeds on your side of the path, and every day while we walk back from the stream, you’ve watered them. For two years I have been able to pick these beautiful flowers to decorate my master’s table. Without you being just the way you are, he would not have this beauty to grace his house.”

Each of us has our own unique flaws. We’re all cracked pots. But if we will allow it,God will use our flaws to grace his table. In God’s great economy, nothing goes to waste. Don’t be afraid of your flaws. Acknowledge them, and you too can be the cause of beauty.

Innovative HR Practices a look at Netflix

Popular internet streaming company, Netflix, is known for its innovative HR strategies that are amazingly humane to its employees. The measure of success of an HR strategy is directly proportional to the success of the organization.

Netflix’s iterative experiments with ground-breaking policies to see what helps with employee satisfaction and performance. The refreshing approach of treating employees as opposed to the old draconian rules has helped the organization create a new benchmark in corporate culture. 

Some of the Innovative HR strategies of Netflix are:

Spectacular Severance Package

Employees especially ex-employees are good brand Ambassadors. Netflix’s spectacular severance package, it is not a compensation for loss of earning but a reward for the exemplary service that the employee has rendered to the organisation. Such exit package offer an opportunity to the person to invest a part on them for the future. Needless to say they bring in a lot of loyalty to the organisation and erase all ill feeling of being let go.

Hire, Reward, and Tolerate Only Fully Formed Adults

While every company plans and focuses on hiring right, Netflix was different in that, they believed that one not only need to hire the top performers but also one who will put the company’s interests first, and who understand and support the desire for a high performance workplace. The belief that 97% of the employees do the right thing and hence never believed in enforcing HR policies to deal with problems the other 3% might cause. The organisation felt that it is better not to hire such people or let them go even if you happened to hire them.

Treating employees as fully formed Adult is an approach many an organisation want but are afraid of; Netflix’s approach to their leave and holiday policy where employees are told  to take whatever time they felt was right as ‘off’ is an example of how the organisation really believed in treating its employees as matured Adults. However there were guiding frame-work within which the employees are expected to work but these were not rules that work against the policy.

Performance Management System

Netflix believed that formal Performance didn’t make sense and that they were too ritualistic and too infrequent. Hence discussion between Employee and Manager on performance are made as an organic part of their work. Further PIP’s were a no no. They believed if a person didn’t fit the bill it is better to have a straight talk and offer the best severance package.

Managers Own the Job of Creating Great Teams

At Netflix its “The team is as good as the Captain” and hence own the job of creating great teams. Managers have the option of picking the team member and developing them to produce the best output.

Managers are brand leaders and engineers of work culture

The ideal managers at company are the real ones. The ones who encourage growth of an employee as an individual as much as they care about the organization. Netflix’s HR policies encourages managers to set an example of how to create a work-life balance for their team-mates. Be it taking a long paid leave or playing games at work. The managers promote it all in well balance for their team by doing it themselves.

Netflix truly brings to table how innovative HR practices can take the organisation to great heights.