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Introduction
What is Etisalat?
With a customer base of 135 million, the Emirates Telecommunications Corporation based in the U.A.E, better known as Etisalat, has grown to become one of largest telecommunications companies in the world spanning several continents with an assortment of products and services ranging from mobile networks to internet service provision (Etisalat’s new frontier, 2009). The success of the company is in part due to its expansion into various global markets such as those in the Middle East, Africa, and various parts of the Asian continent. As indicated by Quisenberry & Griffith (2010,) frontier markets, especially those with few multinational corporations, are ideal locations for the creation of new business ventures due to the potential of becoming a market pioneer which is an enviable position for any company given that a well-entrenched corporation within a particular market can in effect control a majority of the local market’s consumer base for many years (Quisenberry & Griffith, 2010).
What sort of Business Excellence Practices does it utilize?
Based on an examination of current business practices utilized by Etisalat, the most obvious business excellence practice the company currently utilizes is a focus on talent management. The reason behind this is related to the company’s constant expansion into new territories as well as its use of the Investors in People approach when it comes to developing its pool of employees into talented workers that can “take the company to the next level” so to speak (Watts, 2013). Talent management can be described as the process by which a company develops an employee’s skills throughout their time within the company to take on a variety of job roles, as well as to manage their progress up the corporate ladder through a variety of leadership roles. This process also necessitates a reduction in employee “churn rates” which requires the retention of talent within the company to reduce costs associated with training new employees and ensuring that talented individuals do not go to potential rivals within the same industry.
Studies such as those by Vaiman, Scullion & Collings (2012) have indicated that improving and retaining talent within any company is crucial for the success of a business due to way in which talented individuals are drivers for high performance and improved operational processes within a company (Vaiman, Scullion & Collings, 2012). Oldroyd & Morris (2012) point out that it is not the quantity but rather the quality of a company’s workers that drives success no matter the type of business model or the popularity of a product (Oldroyd & Morris, 2012). It is based on this that various business development specialists, such as Oldroyd & Morris (2012), indicate that it is crucial for any company that wishes to expand into different markets (as seen in the case of Etisalat) that their hiring and talent management processes are in line with long term views about retaining employee rather than short term goals of merely keeping a position filled. By allowing a company’s hiring practices and talent management processes to be complacent this can lead to serious detrimental effects on operational performance as well as result in increased costs related to having to fill positions over and over again as well as retrain the necessary individuals to fill them.
With the expansion of Etisalat into new markets comes the potential for various problems to crop up in reducing employee churn rates and ensuring standardization of performance across all levels of the company throughout its various locations (Etisalat heading to buy Maroc Telecom, 2013).
It is based on these factors involving improving a company’s talent pool of employees and retaining talented workers that this paper will examine the current effectiveness of Etisalat’s business excellence model by utilizing the EFQM excellence model as the basis for comparison. This will be done through an examination of talent management from a corporate point of view within the context of the case of a large multinational company such as Etisalat and, as such, will encompass practices that are being implemented within Egypt, the U.A.E or in Etisalat’s other locations around the world. The researcher expects that through an evaluation of the current practices implemented by Etisalat involving talent management, more effective procedures can be implemented which would result in improved performance and a far better competitive advantage for the company.
Methodology
Research Design
The study will utilize a descriptive correlational approach because the participant will be measured once. Furthermore, it is imperative to note that the study will employ a questionnaire technique to collect participant data from Etisalat employees. Also, after giving the questionnaire a short interview will be conducted to gather more information from the employee. According to Sekaran, a questionnaire technique is used when the researcher is principally interested in descriptive, explanatory or exploratory appraisal, as is the case in this study. The justification for choosing a questionnaire approach for this particular study is grounded on the fact that the participant will have the ability to respond to the researcher’s questions more directly.
Research Subjects
Research subjects for this study will consist of various employees/ managers that come from the Etisalat offices in Abu Dhabi. Recruitment for the study will consist of the researcher contacting the necessary HR personnel to schedule a short meeting with some employees to conduct the study. This method of recruitment is being utilized to ensure that proper permission is given resulting in a smoother data collection process for the researcher.
Data Collection
The purpose of a questionnaire is to obtain subjective data, such as attitudes, which are not observable. The interview will provide an opportunity for the research participants to share their knowledge about talent management in Etisalat and their attitude about the use of skill training, job satisfaction and developing job interest in their programs. The researcher will utilize the views garnered through the data collection process to develop a sufficient platform from which effective and above all accurate conclusions can be created. The questions that will be utilized within the study will primarily be guided by the case study objectives established by the researcher.
Data Analysis
The primary method of data analysis in the case of this study involves an individual review. The individual review will primarily be the researcher examining the collected response data from the employees that were given the questionnaires and comparing it to the data obtained from various academic sources. By doing so, this should create a better understanding of how effective Etisalat’s talent management practices are in terms of business excellence. The researcher will then review these main themes and use this information to assist in establishing the key findings of the study. This method of data analysis is appropriate for a qualitative design.
Study Concerns
One potential concern that should be taken into consideration is the potential that the responses given by the study participant are inaccurate or outright false. While the researcher is giving the employees of Etisalat the benefit of the doubt, the fact remains that there is still the potential that the information being given has been crafted in such a way that it was made to ensure that other companies will not be able to determine how the internal operations of Etisalat function. Unfortunately, there is no way for the researcher to verify the information since only research subjects from a single company are being utilized in the study. This methodology exposes the participants to an assortment of risks that need to be taken into consideration during the research process. The main risk the participants will encounter is if any of the answers that criticize or indicate dissatisfaction with talent management leaks. This may have consequences on the attitude and opinion of company officials towards them and can result in victimization. To eliminate this risk, the responses will be kept in an anonymous location. This way, the only way to access the information will be through a procedure that involves the researcher. The project thus observes research ethics in sampling as well as during the data collection process.
Survey Results
Total number of respondents: 15 – Mix of managers and employees
Radar Analysis Examining Talent Management Practices at Etisalat
Addressing the Issue of Employee Motivation
The questionnaire and subsequent interview with the employees revealed that Etisalat acknowledges the fact that developing internal practices and policies is an important facet in talent management since, in the employee’s words, “motivation is a key success factor in any organization since it helps employees to perform more and be more responsible and cooperative to serve the company and enables them to participate in achieving the company’s vision and mission”.
Based on the results, it was shown that the process by which the company goes about doing this is through increasing job motivation in the form of an employee excellence program, a wellness program, a performance dialogue with employees and employing methods of flexible scheduling. The Etisalat excellence program is a reward-based incentive for employees that display a considerable level of performance in meeting the metrics established by the company. As a result, employees who can do so receive a cash incentive in the form of 1,000 AED being added to their salary. Various employee motivation studies note that cash-based incentives are nothing new when it comes to increasing job satisfaction since it encourages employees to work harder since their hard work is rewarded.
The second method of increasing motivation that was noted was through an employee wellness program involving subsidized sporting activities by the company to encourage physical activity. Various studies on employee health and wellness clearly show that physically fit employees have a greater tendency to be more positive and perform well and, as such, the implementation of such a program is well in line with current corporate standards in increasing employee performance (Dewhurst, 2012).
The third positive reinforcement, namely establishing performance dialogue training for managers, has been shown by various studies as increasing employee motivation since it creates a nurturing environment that encourages people to share ideas and to be more relaxed at work. As a result, people become motivated to work hard since their efforts are being recognized and acknowledged by those above them. This is in stark contrast to work environments where no positive reinforcement is present and workers are treated as nothing more than numbers rather than people (James & Mathew, 2012). In such environments, it is often the case that the motivation of workers is quite low and employee churn rates are high. The last method of increasing employee motivation by Etisalat has been through the implementation of a flexible schedule for their employees.
Studies such as those by Ratna & Chawla (2012) reveal that one quality that increased the interest of individuals from the current generation of workers (Gen Y) for particular types of jobs is the inherent flexibilities found within a given position. The concept of flexibility can range from the scheduling and time-off policies that are in place within the company to how a job allows its employees to be creative with what they do instead of following rigid corporate policies.
Compared to previous generations, Gen Y places a higher level of importance on the concept of the work-life balance wherein each aspect complements the other (Ratna & Chawla, 2012). By presenting potential employees with the opportunity to personally adjust their schedules within a reasonable level as well as allow them an appropriate level of freedom in taking time off due to various obligations involving their personal life, this results in a greater level of employee motivation as compared to setting a rigid corporate policy (Ratna & Chawla, 2012).
Implementing Ethical Management Practices
The employees who were interviewed and filled out the questionnaire for the study stated: “ethics is an essential part of the organization’s practice with customers as well as with employees to maintain trust, respect, and loyalty”. As such, Etisalat programs related to employee “empowerment” through positive reinforcement as well as significant internal policies that focus on Corporate Social Responsibility as well as ethical treatment of workers have been implemented.
Other manifestations of ethical management practices within the company take the form of various healthcare and internal methods of investigation and evaluation meant to determine whether employees are being treated properly by their employees. It is through such practices that the study has determined that Etisalat conforms to the methods of ethical management that are related to increased job satisfaction.
Methods of Continuous Development and Leadership Training
Further investigation into the questionnaire results and interviews reveals that Etisalat has implemented three distinct methods of skills development, this takes the form of their internal training program meant to increase the knowledge and ability of employees regarding their current job, the future leader’s program which focuses on developing the up and coming heads of the company and lastly comes the company’s talent pool program.
As described by the research subjects, any staff that participates in overseas projects and succeeds in their respective role will be slated for inclusion into the company’s talent pool. This means that in those who willingly participate in self-improvement programs, training sessions and a variety of other such internal endeavors will be slated for future forms of costly training and promotion. The Etisalat talent pool is a database that contains the names of talented staff from different sections so that when there are any vacancies for senior positions the HR employees will check the talent pool and look for the needed skills and they will nominate a particular individual identified as having the necessary qualities for this new position. It is based on this that it can be seen that Etisalat rewards workers who show a willingness to improve themselves and show consistent levels of high performance. This also similarly conforms to the various facts mentioned within various literary texts related to skills development and the implementation of continuous development programs to encourage employees to stay within a company by helping them improve and as a result become more viable for promotion to higher positions within the company.
Perceived Limitations to the Etisalat Talent Management Program
When asked about the perceived limitations of the Etisalat talent management program the employees that were interviewed stated that the budget, selection process, and performance system (i.e. the system of metrics utilized to examine employee performance) needed to be changed since it was old. Not only that, but the employees also mentioned that additional training programs needed to be included to better prepare the company’s workforce. The employees stated that if given the opportunity they would improve the employee selection method by establishing an assessment center that will be available for newly joined employees or individuals who are slated for promotion. The idea behind this center is that it would allow the employee to attempt exams, case studies, comprehensive assignments, and projects. After completing these tests, the employee will get a report about his/her status and areas that need improvement before being eligible for promotion to a new position.
Conclusion
Talent management and retaining employees is inherently connected to job satisfaction as well as the degree of development and the number of new tasks associated with a job that makes it interesting thus resulting in a far greater degree of interest. Within the context of Etisalat’s talent management business model for excellence, it has resulted in considerable gains for the company as seen in its capacity to both holds onto and attracts talented employees.
Based on the results of the analysis conducted, it has been determined that while talent management itself has been shown as being an effective means of gaining a competitive advantage, it is often necessary to supplement it with methods aimed at creating and increasing job satisfaction to ensure that the effort the company placed in developing a particular employee is not wasted should that employee leave the company due to a lack of sufficient satisfaction with how they are treated in the company.
Such views, when compared to the information gained by the research through the questionnaire and interview with employees at Etisalat, have been proven to be correct given the same level of importance the employees placed on combining methods of talent management with job satisfaction. This study has shown that Etisalat has implemented methods of developing motivation, job interest as well as continuous development as aspects of both talent management and job satisfaction. It is based on this that the researcher has developed the following comparison between the practices of Fortune 100 companies and Etisalat to create effective recommendations for developing better methods of talent management in line with the concept of job satisfaction which will be tackled in the next section.
Recommendation
An examination of current practices by Accenture in their business process outsourcing division within the U.S., India and the Philippines reveals the use of performance-based advancement opportunities as a means of attracting and retaining employees (Caravalho, 2008). This process works by setting a series of metrics that each employee is measured by an evaluation period coming once every 4 to 6 months. Should that particular employee meet the metrics set by the company, they are immediately promoted to the next tier resulting in the possibility of reaching the position of an operations employee within one of the company’s many departments within 2 years (Caravalho, 2008).
Such a method presents itself as a quick opportunity for advancement and, as such, creates a certain degree of appeal for members of the current generation of employees that look towards quick advancement and opportunities rather than developing long term relationships within particular teams (Beyersdorfer, 2012). This method of performance-based advancement is in line with the opinion of various studies regarding the propensity of members of Gen Y to view performance as a method of displaying loyalty and as such further reinforces the applicability of this particular strategy in the case of various global enterprises (Beyersdorfer, 2012). Other top benefits usually offered by companies within the Fortune 100 for the current generation of workers come in the form of the following:
- 100% employer-paid healthcare premiums as seen in the case of Wholefoods
- Compressed Workweek and Telecommuting
- Finally, other benefits that focus on the work-life balance, which is important to employees, come n the form of onsite childcare centers, subsidized gym membership as well as fully paid sabbaticals.
Going back to the correlation between creativity and flexibility, it must be noted that individuals from Gen Y are far more technologically sophisticated as compared to their counterparts from previous generations. Not only that, but they have also been taught to be more independent when it comes to accomplishing certain tasks and solving problems (Edwards, 2012). As such, it is recommended by various experts that to retain Gen Y employees and keep them happy it would be necessary to create an internal business culture that fosters creative thinking (Ananthan & Sudheendra Rao, 2011). Lastly, another standard benefit that is often given to members of Gen Y comes in the form of fully paid advanced training for their particular positions (Ananthan & Sudheendra Rao, 2011). This can come in the form of management classes, technical courses and an assortment of other educational opportunities that are fully paid for by the company. By providing this particular benefit, companies are not only able to improve the quality of their workers but can provide their desired opportunity for advancement.
A comparison of the processes utilized by Fortune 100 companies and those utilized by Etisalat reveal a distinct level of similarity but also a considerable degree of divergence. While it was seen that both parties emphasized the necessity of talent management to create talented employees it was noted that they went about it in distinctly different ways. For Etisalat, promotion, and training go hand in hand and are done over a long period. It was seen that performance initiatives were important (in the form of key performance indicators) but the company places a greater degree of importance on preparing individuals for particular roles and establishing such people as having the necessary qualifications before they are placed into such positions. Fortune 100 companies on the other hand, such as Accenture, seemingly focus more on performance-based initiatives rather than training based methods of promotion wherein individuals that have proven themselves to have a high degree of competence in meeting the metrics of the company are promoted to positions within a short period with training being implemented after such individuals have been slated for placement into such positions with training periods usually lasting a month or less (Kim, 2012).
This is indicative of a distinct divergence in practice that Etisalat should take into consideration given that it has proven to be an effective strategy in getting the right people into the right positions within a short amount of time. Not only that, but it also creates a sense of internal competitiveness within the company that encourages people to work harder and perform better to become more successful. It was seen from the questionnaire and interview data that such a method was not even considered by the talent employees wherein the method of improving the current process of talent management within the company proposed by managers focused on limiting the number of candidates that are promoted to ensure that only the best are placed. The opinion of the researcher in this particular instance is that such a method is inherently redundant given that it would be more effective to place a series of metrics in so that only those who reach them can be promoted rather than waiting for the training to “pay off” so to speak to make sure the right candidate is placed into a particular position (Mohlala, Goldman, & Goosen, 2012).
With the method described by the talented employees, this would result in considerable delays for placing talented people and would, as a result, delay the expansion of the company. It should also be noted that Etisalat used to have an executive mentoring program however it was removed for some reason. This was not a good move on the part of the company since a mentoring program helps to ensure a smoother and above all faster transition rather than letting an employee transition into a particular position through time and experience alone. It is based on this that by reestablishing the mentoring program within the company as well as implementing the various strategies recommended by the researcher in the previous sections when comparing Etisalat to present-day Fortune 100 companies, it can be expected that the company would be able to establish better methods of talent management resulting in more efficient and effective methods of operation for the company.
Appendix
Questionnaire
Reference List
Ananthan, B, & Sudheendra Rao, L 2011, ‘Dynamics of Retention: Practices and Strategies’, SCMS Journal Of Indian Management, vol. 8, no. 4, pp. 120-125
Beyersdorfer, D, Dessain, V, Ton, Z, Hollanders, N, & Barberán, M 2012, ‘Bonuses in Bad Times’, Harvard Business Review, vol. 90, no. 7, pp. 153-157
Caravalho, G 2008, ‘On hiring generation Y’, Public Management, vol. 36, no. 11, p. 7
Dewhurst, M, Pettigrew, M, Srinivasan, R, & Choudhary, V 2012, ‘How multinationals can attract the talent they need’, Mckinsey Quarterly, vol. 3, no. 1, pp. 92-99
Edwards, S 2012, ‘Maintaining the delicate balance when developing high-potential programs’, Public Management, vol. 66, no. 4, p. 60
‘Etisalat’s new frontier’ 2009, Business Middle East, vol. 17, no. 3, p. 4
‘Etisalat heading to buy Maroc Telecom’ 2013, Global Telecoms Business, vol. 147, no.8, p. 17
James, L, & Mathew, L 2012, ‘Employee Retention Strategies: IT Industry’, SCMS Journal Of Indian Management, vol. 9, no. 3, pp. 79-87
Kim, S 2012, ‘The Impact of Human Resource Management on State Government IT Employee Turnover Intentions’, Public Personnel Management, vol. 41, no. 2, p. 257
Mohlala, J, Goldman, G, & Goosen, X 2012, ‘Employee retention within the Information Technology Division of a South African Bank’, South African Journal Of Human Resource Management, vol. 10, no. 2, pp. 1-11
Oldroyd, J, & Morris, S 2012, ‘Catching Falling Stars: A Human Resource Response to Social Capital’s Detrimental Effect of Information Overload on Star Employees’, Academy Of Management Review, vol. 37, no. 3, pp. 396-418
Quisenberry JR., C, & Griffith, B 2010, ‘Frontier Equity Markets: A Primer on the Next Generation of Emerging Markets’, Journal Of Wealth Management, vol. 13, no. 3, pp. 50-58
Ratna, R, & Chawla, S 2012, ‘Key factors of retention and retention strategies in telecom sector’, Global Management Review, vol. 6, no.3, pp. 35-46
Vaiman, V, Scullion, H, & Collings, D 2012, ‘Talent management decision making’, Management Decision, vol. 50, no. 5, pp. 925-941
Watts, M 2013, ‘Etihad Etisalat Company (Mobily)’, MEED: Middle East Economic Digest, vol. 57, no. 19, pp. 24-25
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