1.
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Entrepreneurial HR
Management
The HR of Tomorrow

2.
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Who are we?
EY’s People
Advisory Services (PAS)
Analytics & Insight
Talent
Systems
Reward
Performance
Mobility
NewServices
Dr. Katharina Luh-
Senior Manager- EY
PAS Germany based
Joelle Hobeica- Senior
Manager- MENA Lead
for the PAS Financial
Sector- Qatar based
https://www.zeetings.com/EYentrepreneurialHR

3.
Page 3
Why are we here and What we are discussing today?
Our
Discussion
Agenda
Frequently Asked Questions and
Entrepreneurial Challenges
The “ONE” Employee Organization: Moving
Part of Today’s HR world
HR Strategies for SMEs and Start-ups
Let’s Connect
1
2
3
4

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Source, Attract, Recruit, Assess, Develop, Retain…
Are inflated
salaries
the answer?
Is social media the
answer?
Talent pool size?
Talent sourcing?
Talent attraction?
Talent management?
Talent development?
Is flexibility
and culture
the answer?
f

5.
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Entrepreneurial concerns and challenges (Please answer using Zeetings)
What is THE BEST talent source?
A- Channels: universities,
recruitment campaigns, job
fairs, people events
B- References, social media
and short assignments
C- Depends on my industry
How shall I pay/market position?
A- Highest in the market to
reflect: aggressiveness and
competition
B- Lowest in the market;
“it’s justified I’m an SME”
C- Market value for the
position based on its weight
How can I be an employer of choice?
A- Make employees happy
through continuously
incentivizing them
B- Give them a lot of benefits
that do not cost much
C- Create the “act as an
entrepreneur” culture
What should my structure look like?
A- Comprise all capabilities
needed to deliver the strategy;
even if bureaucratic
B- Lean structure to reduce
cost
C- Full fledged structure but
set in a staged out model
What should my operating model be?
A- Do everything in-house; why
pay outsourcing services?
B- Do nothing in-house;
reduces fixed cost
C- Keep some and outsource
others
What do I outsource?
A- All tasks that are hard and I
feel I cannot do and do not have
the internal capability to do
B- All tasks that are easy
but time consuming
C- No tasks that have
financial risks and
implications

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Moving part of
today’s
HR world.
The “One” Employee Organization…
1. One Employee
▶ Be your own boss
▶ Face variety of tasks
▶ Simple (statutory) requirements
What does it mean when everything
is centred around me?
2. Make or Buy
▶ Find support
▶ Invest in manpower
▶ Structure human resources
When the time comes
where do I get
support?
What do I need to do
if I decide to build a
team?
3. Employing
▶ Build a team
▶ Find personal fit and DNA factor
▶ Empower employees
4. Team Culture
▶ Live open communication
▶ Create healthy
environment
▶ Give incentives
How do I
manage my
employees?
5. Leadership
▶ Evolve your role
▶ Transfer decision-making
How does my roles
evolves over time?

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Disruptive forces are challenging SMEs and organizations to reassess and
consider new transformation plays
Geo-political
chaos:
East vs. West,
Rising tensions
with Middle East
1
Dollar/oil
turbulence:
Financial turmoil
2
Increasing
globalisation:
Borderless and
boundless
3
Demographic
shift:
Diversity,
inclusiveness,
Gen Y
4
Digital:
Innovation, digital,
‘rise of robots’
5
These forces generate challenges for leaders, creating the imperative to be agile,
innovative, and transform in differentiated ways

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VUCA: Volatility, Uncertainty, Complexity, Ambiguity
https://www.youtube.com/watch?v=OE_RajcThlw

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Putting ‘tangibility’ to the intangible… Flexible SME
HR Strategy
Purpose-Led HR Strategy and a
Lean Organization Design
The HR Value Proposition
Learning through fun and
performing through wellbeing and
happiness

10.
Page 10
Breakout Sessions: 5 minutes
‘
A group of 4 started a Customer Relationship Management (CRM) Software whose aim is to support
organizations; mostly in the insurance and financial sector; in managing their customer
relationships, portfolio, and experiences.
Upon broadening their service offerings across organizations of several sectors; and, due to market
volatility, complexity, and difficulty in growing their portfolio; they started developing several
software which lead them to losing track of their initial mission.
To respond to the diversified portfolio, they started recruiting talents of different backgrounds which
lead to a high payroll and a confused HR strategy resulting from a confused organizational strategy
with no clear goal and objective. They needed a solution fast to efficiently react to VUCA…
They heard of “Purpose Led Transformation/ HR”…
What could be the purpose statement at the organizational level and a Purpose Led HR Strategy?

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“Inspire and nurture
the human spirit – one
person, one cup and
one neighborhood at a
time”
B2C companies
“We believe in
challenging the status
quo. We believe in
thinking differently”
“Changing the Way We
Work, Live, Play, and
Learn”
“Deliver a better future” “Imagination at work”
B2B companies
“Better power for a
changing world”
“Promote and spread
happiness”
“Creating possibilities
for riders, drivers, and
cities”
Define your purpose!
Purpose-led companies have a clear reason for being: we know what they and their HR
strategies stand for

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Organisations that embody purpose see significant, measurable results
‘
1.4 times more engaged and
1.7 times more satisfied1
3 times more
likely to stay1
$
Purpose-led companies outperformed the S&P
500 by 10 times between 1996 and 20113
Get (and keep) the best
employees
Attract, retain and engage
customers
Increase returns for
shareholders
of clients believe a
purpose-driven
company will
deliver the highest quality
products/services
of global consumers
would recommend a
company with a purpose, a 39% increase
from 20082
of emerging market
consumers make
cause related
purchases at least annually2 ‘Meaningful brands’ connected to
human well-being outperformed the
stock market by 120% in 20134
$
1.4x
3x
84%
72%
89% 10x
120%
Source: 1. The Energy Project, What Is Your Quality of Life at Work, 2013. 2. Edelman, The goodpurpose study, 2013.
3. Raj Sisodia, Firms of Endearment, 2007. 4. Havas, Meaningful Brands Index, 2013

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Breakout Session: 5 minutes
With the purpose statement in mind; define the gaps of this structure?
(Please use the hand-outs on your tables)

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To analyse it better, think of the following…
What is core and what is support?
What are the design principles and philosophy behind the structure?
What are they trying to achieve?
What is their definition of organizational continuity: teaming and culture?
Is the organization bound by geography?
What is the structure’s biggest driver: service, product, customer?

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The SME world is shaping the HR of tomorrow!! The SME of today might
be the EY of tomorrow!
Globally
distributed-
small teams
Intrapreneurial
More women
Adapts to change
fast
Connected teams
Innovation
Tells stories
Focuses on
“want”
instead of
“need”
Organization
Tomorrow
Flat
Shift profit to
prosperity
Source: Jacob Morgan
Case Study:

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A few tips to memorize on developing structures…
Organization design is Organization design is not
 Organization structure (includes spans of control and layering);
with minimal bureaucracy
 Performance management
 Leadership development
 Inclusion and diversity
 Talent management
 Culture
 Information systems and technology
design
 Process design
Roles
Resources
Structure
Capability
Organization design
 Span of Control is limited to 6-7 reportees
 Job/role design (includes role accountabilities,
responsibilities and indicative metrics) need to
align to structure and not be redundant
 SMEs seek LEAN structures
 Lean structures doesn’t mean to limit
capabilities; rather regroup those
 Empires are not required
 Bureaucracy is out and teaming is in
 A box; does not mean a person
 Stage out and transitioning structures can be
created to attend to different maturity stages

17.
Page 17
Putting ‘tangibility’ to the intangible… Flexible SME
HR Strategy
Purpose-Led HR Strategy and a
Lean Organization Design
The HR Value Proposition
Learning through fun and
perfoming through wellbeing and
happiness

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Page 18
Talent Sourcing Channels…
Ease of recruitment via the
sourcing channel has been
measured using the below factors:
 Availability of candidates
through the channel
 Cost of recruitment via that
channel
 Time required to conduct
recruitment using that channel
Campus recruitment
drives, Internships
Career Fairs
Social & Professional
networking sites
Head Hunters, Career
Websites
Employee Referrals
Company Websites
M EJ
High Low
Analysis on different sourcing channels for recruitment
EMJ
JE M
J
E J
J EM
M
E M JExecutive Management Middle Management Junior Management
E M
Ease of recruitment

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…and it does get more complex!
Social Recruiting
What is Social Recruiting?
Using Social Media for attracting or hiring candidates
The attraction of using Social Media as a recruiting tool lies
in its ability to reach out to quality passive talent
It can be:
Facebook to engage with potential
employees
Twitter to take jobs to a larger pool of
candidates
LinkedIn to search and contact talent at
very low cost
Career Website designed to deliver a
great experience
YouTube to build Employer Brand
‘

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Once you found them; attract them!
Build the
“WOW” effect
Contingent
employment
versus FTE
Instill flexible/
remote working
hours
Empower/instill
Entrepreneurial
Culture
Flexible Employment(industry-based)
Challenges
Cost
Managing
people
expectations
Maintaining
employer
brand
Competition
Cost and process
optimization
Performance
based culture
Outsource least
valuable
operations
Deliver
innovatively
Culture and Operating Model
Design Compensation Structure
Payment
against
milestones
Small benefits
matter
Offer
flexibility:
Buckets
Offer ESOPs;
Provident
Funds

21.
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Breakout Sessions: 10 minutes
‘
Organization Y is trying to penetrate the market and build a success story in a different market.
Please find the market data on salaries and common market practices on your tables. Based on the
provided, give organization Y recommendations on the below:
What is the organization’s attraction strategy for employment?
What compensation elements to focus on?
Where are they supposed to position themselves in the market?
Do you recommend payment to be based on positions?
Are they supposed to be lenient with their strategy or not?

22.
Page 22
Putting ‘tangibility’ to the intangible… Flexible SME
HR Strategy
Purpose-Led HR Strategy and a
Lean Organization Design
The HR Value Proposition
Learning through fun and
perfoming through wellbeing and
happiness

23.
Page 23
Talent Management is a full integrated approach that cannot be diluted…
RETAIN THEM through proper talent and performance management
Talent
ATTRACT
DEVELOP
RETAIN
The EY Talent Management Framework
Right Person—Right Skills—Right Job—Right Time
Hiring & Selection Talent Assessment Training focused on Skill Gaps Career & Succession Planning
Employee Value Proposition for key
Talent: “What can I offer my best
talent?”

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All along while maintaining our wellbeing!
£5mAnnual productivitygain
assuming that 1in 5
employees improve
productivity
200%A reduction in sick leave by
1 day per employee
delivering a 200% ROI on
this benefitalone
75%
Average response rate of
employeesactively
monitoring and engagingin
their own wellbeing
management
Results from organizations with wellbeing solutions with 35,000
employees were:
Health
Physical and
mental
health
Work
Physical & psycho-social
work environment
Content & structure
of work
Career management
Development
Leadership
Finance
Managing finances
Savings &spending
Investment
Life after work
Protection for
the unexpected
Values
Motivation &
enthusiasm to work
Alignment of
personal&
organisational
values
Family &
Community
Family support
& demands
Community
connectedness
Influence of
family & friends
Wellbeing at work

25.
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joelle.hobeica@qa.ey.com
katharina.luh@de.ey.com
It’s your SME to enhance!
Let’s stay
connected