Project Details
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Background
Our Client is one of India’s biggest operators in the BFSI sector, in the housing finance space for affordable and mass affluent housing. Established in the year 1984 as Dewan Housing finance development corporation in Mumbai, Piramal housing finance is a profitable organization with an annual revenue of more than 1000CR ₹.
Challenge
Our Client was performing well year on year, but the company wanted to know whether there were some blind spots in performance analytics. Given the nature of the industry, the attrition was high, and the company wanted to understand the monetary value of underperformance and infant attrition. Piramal also wanted to understand the top 5 most important tasks that had a direct correlation on productivity and outcome.of various stores. The company only calculated the “Achievement % per month” (ratio of revenue generated in the month to the target set for that month). However, this metric does not account for various factors such as store size, store vintage, store location and employee mix in the store. Also, there were issues in the target setting practice-the targets set for the stores were not scientific and aspirational. When the achievement % was reviewed for all stores, it was identified that the achievement % was greater than 120% in a few months and was less than 70% in other months. Aspirational target setting would allow for achievement % to be between 90% and 110%. Any achievement beyond this band suggests that the target is either easy or brutal.
Solution
During the 3 years of extensive research, Quanta People (QP) developed various frameworks and metrices such as residency framework, CAP 12, Performance multiple, infant attrition and CATPO. These metrics help compare individuals and unravel the degree of performance dispersion among frontline roles. QP also has analytics with respect to infant attrition, value of underperformance, and cost of one backfill, which Piramal was not measuring.
Outcome
QP identified startling statistics which greatly helped review the HR policies
within the company. Some of the findings are:
1) Performance variation (on CAP 12) between the top 10% and bottom 10% was 13x
2) The value of underperformance was ~40 Crores (38% of HR budget)
3) The infant attrition was >90% (number of employees who resigned within first 6
months as compared to number of people who resigned in an 18-month study period)
4) The TMI plot (patented graph that compares employee performance and
residency) indicated that more than 10% of the employees were nightmare
employees (high vintage but poor performers).
5) The incentive structure among the employees was extremely skewed. More than
70% of employees did not receive any incentive.
Impact
The client changed the way of looking at frontline performance analytics and implemented many of TMI’s developed metrics such as CAP and CATPO. The number of employees in the nightmare segment reduced to <1% and the incentive design was modified to be fair and to inspire medium performers to contribute higher.