On this International HR Day, People Matters interacted with Santosh Kher, Managing Director and People Advisor for various organisations in the United Arab Emirates. Santosh is a result focussed people-oriented leader with 20 years of international HR experience. He has played a pivotal role in leading global HR teams and supporting business transformation by integrating people and cultures with technology for innovative practices. In this exclusive interaction, we explored the evolution of HR practices in the UAE amidst rapid workplace transformations, how talent leaders are shaping the workforce, and also identified the core focus areas that HR should prioritise to shape the future of work.

Here are the edited excerpts:

In recent years, how has the role of HR evolved in the region, particularly regarding their alignment with business goals?

I've observed significant advancements in HR policies and practices at the country level, which align with global trends. The role of HR has evolved from a purely administrative function to a support function, and now to a value-added strategic partner for businesses. This transformation is evident in the integration of technology and AI in HR practices, talent management, and other strategic HR elements. While not all companies have reached a maturity level where HR is viewed as a strategic function, many have made this shift. I hope to see more companies recognising the value of investing in people, which is crucial because they are the ones managing the business. Unless a company is almost entirely run by machines and robotics, people are the backbone of most businesses. Investing in people doesn’t always mean a financial investment; it’s about changing the approach and recognising the strategic importance of human resources. If businesses fail to see people as strategic assets, they risk negatively impacting their operations. 

The UAE government has been supportive of this shift, implementing policies that encourage technological advancement and align with new business requirements. This progressive approach acknowledges the essential role people play in economic development alongside technological advancements. The transformation of HR from an administrative department to a strategic one has been rapid over the past five years, with significant changes occurring over the last decade. Overall, these changes have been positive, leading to a more strategic and value-driven approach in HR, which is crucial for the continued growth and development of businesses in the UAE.

What strategies have proven most effective in building a more sustainable and human-centric approach in your organisation? and how do you measure success in this context? 

Many organisations are adapting to the shift where employee upskilling aligns with new-age technology transforming workplaces. This shift starts with the organisation's leadership recognising the importance of learning and development. When the top leadership values learning, it sets the tone for the entire organisation. Focusing on continuous learning helps employees develop, which in turn benefits the organisation. For example, when employees take advantage of learning opportunities related to new technology, it can prevent the organisation from falling behind. Organisations that fail to evolve and develop their workforce often struggle to cope with changes. Thus, learning should be a core value for every organisation. This doesn't mean everyone has to learn everything. 

Learning has diversified beyond traditional classroom training to include bite-sized modules, gamified learning, and various other methods. The quicker an organisation embraces diverse learning opportunities, the more value it will see in terms of business growth. Offering various learning opportunities enables employees to grow and contributes to the organisation's overall success.

Not every organisation or sector needs to adopt every type of learning opportunity. For instance, AI may not be applicable in every industry. The retail sector's learning needs differ from those of a tech company or a logistics company. Each organisation must recognise its specific requirements and adapt to new learning styles and opportunities accordingly. Agility in learning is crucial. Organisations need to be agile in how they approach learning and development to keep pace with the rapid changes in the external environment, including political, economic, and technological shifts. This agility is a key element of organisational transformation. I've observed multiple organisations implementing excellent initiatives in learning and engagement. However, the key part is measuring the impact of these initiatives. For example, having a learning and development calendar with regular training sessions is good, but it's essential to assess whether these sessions bring any ROI and align with the strategic objectives.

Often, during budget cuts, HR is the first to see reductions because the business doesn't perceive value in HR initiatives. Therefore, regular assessment of ROI is crucial. This involves evaluating how learning initiatives contribute to business performance and making necessary adjustments to stay relevant. Training is just a small part of the overall learning model. The 70-20-10 model, where 70 per cent is on-the-job learning, 20 per cent is coaching and mentoring, and 10 per cent is classroom training or reading, illustrates that the majority of learning happens through practical experience and interaction. The value of informal learning and mentoring is often underestimated. 

In addition to this, reflecting on these learnings is important, which we often miss out on recognising the learning that occurs through day-to-day work. Measuring performance should also include assessing the learning and development of employees over time. This helps in understanding the impact of learning investments on performance.

Furthermore, effective mentoring and coaching can significantly enhance learning without requiring extensive programmes. Leaders who act as mentors can help employees learn and grow through their daily deliverables or projects. Regular coaching sessions and discussions about project experiences can highlight the skills developed and improvements made, providing valuable insights into employee growth.

These are fundamental aspects that employees experience while working on projects or initiatives. Reflecting on these experiences can serve as a success metric, demonstrating the real impact of learning and development initiatives.

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Can you share your journey as a people and talent leader, and how your experiences in the UAE have shaped your approach to HR and the talent landscape?

When we talk about HR practices globally, the core principles of HR remain the same across different countries. However, there are distinct elements within HR, such as people management and organisational practices, that can vary. Some aspects, like labour laws and diversity and inclusion, are unique to each region. In the UAE, HR practices are unique due to the significant diversity in the workforce. My previous organisation, for instance, had employees from over 60 nationalities. This diversity provides a rich experience, allowing HR professionals to work with people from varied backgrounds and cultures.

The core HR principles remain constant, but understanding and navigating the cultural sensitivities and nuances of different nationalities is crucial. Working with diverse nationalities involves appreciating their unique cultural nuances and fostering an inclusive environment offers a great learning experience for HR professionals, enhancing their ability to handle inclusion and diversity effectively.

In the Middle East, labour laws differ for each country, adding another layer of complexity. For example, labour laws in Oman are different from those in Bahrain, Saudi Arabia, or the UAE. This contrasts with countries like India, where, despite state-level variations, the basic legal framework remains the same nationwide.

Could you discuss any challenges you have faced in nurturing talent and how you've overcome them to foster a supportive work environment? What are some of the key concerns of HR professionals in the Middle East region. 

One of the biggest challenge is stability due to the transient nature of the population. Even if HR and employees remain constant, there are frequent changes at the leadership level. For example, in a five-year project, leadership might change every alternate year, which disrupts continuity and stability. This is often due to leaders being on short-term assignments or expats with limited contracts. Stability is a significant challenge, especially with high mobility among senior leadership. HR faces the difficulty of maintaining continuity, growth, and stability amidst these changes. Ensuring support from top leadership becomes crucial.

Another challenge is keeping pace with the rapid changes happening both internally and externally. Political, economic, and technological changes impact the region swiftly, especially in the UAE, where a significant portion of the population comprises expats. The fast-paced changes in the external environment, including global political and economic shifts, pose a challenge for maintaining stability and relevance. Technological changes also add to this challenge. Keeping current with advancements and integrating new technologies effectively is essential. However, these challenges also present opportunities. How you perceive and address these challenges can turn them into opportunities for growth and improvement.

Leadership changes, stability issues, and external influences are significant challenges that impact organisations internally. These unspoken realities of HR are crucial to address. In the UAE and the Middle East, these challenges may not be openly discussed but are recognised internally. Government policies in the UAE are attempting to address these stability issues. Initiatives like the golden visa and multiple-entry tourist visas aim to create a more stable environment for expats. By introducing different visa types with longer durations, the government seeks to attract and retain skilled talent, providing more stability for individuals and organisations. These efforts indicate a move towards addressing the stability challenge and creating a more supportive environment for expats and businesses.

What key trends do you foresee in the future of HR in the Middle East, especially in response to tech advancements and AI in HR processes? 

In my view, the basics of employee engagement will remain essential for the current and future talent and HR landscape. Especially for expatriates, it's crucial to have plenty of engagement activities and social connect opportunities. With the shift to hybrid work and working from home, the challenge is how we can keep connecting and engaging people in this changing environment. 

COVID-19 has shown us a lot of engagement happening via Zoom, with people coming up with innovative games and activities. Looking forward, there should be a stronger focus on well-being. When I say well-being, I don't just mean physical and mental health, but also social and financial well-being. Holistic well-being needs more attention, and not many companies are doing this yet. Fun activities are often linked to well-being, but they are not the same. Having fun is a small part of well-being. There are many aspects of mental well-being that remain taboo or uncomfortable to discuss. 

In recent years, we've seen improvements in coaching and psychological support. Yet, managing finances is still a topic many feel uneasy discussing, despite the availability of resources like Employee Assistance Programs (EAP). Unfortunately, usage of EAPs is low, typically only 1-3 per cent in organisations. This underutilisation is often due to discomfort or stigma around discussing personal issues. We need to focus more on these impactful elements. Typical fun activities are fine, but programs addressing well-being have a more significant impact on productivity and health, which in turn affects health insurance costs. The ROI on well-being initiatives is substantial.

Besides well-being, we must continue with enhancing employee engagement, learning and development, and other initiatives. It's also important to stay updated with the latest trends, especially in technology, which should be viewed as an enabler, not an enemy. AI and tech can handle transactional tasks, allowing us to focus more on tactical and strategic activities, which involve deeper connections with employees. Educating employees about new skills and helping them adapt to changes is also a form of engagement.

True engagement involves caring for employees' development, well-being, and growth. This is more impactful and valuable than just organising fun events. Both can coexist, but well-being and development initiatives should see increased focus in the future.

What advice would you give to new HR leaders aiming to implement a sustainable and talent-nurturing HR strategy in their own organisations?

As HR leaders nurturing talent and building a sustainable work environment, it’s crucial to manage both talent and business goals without necessarily requiring huge investments. The best approach balances these aspects through innovative and value-driven practices.

For new HR leaders who are still exploring the region, understanding the talent landscape, and adapting to its unique challenges, here’s my advice: While we stick to the basics of people development and care, focus on how we can innovate and add value to the business. Remember, at the core of HR are people, and our role is to develop, grow, and support them. By continuously finding ways to enhance the employee experience and align it with business objectives, we can contribute significantly to both individual and organisational success.

Stick to the basics of people development, but always strive to innovate and add value to the business.”

Wishing all HR professionals a Happy International HR Day 2024! Keep empowering your teams with the skills that drive success and foster a thriving workplace culture.