Focus on core business demands rethinking
For Kuoni Group, with all the major changes that have taken place, 2015 was a milestone year. Kuoni focused its activities on its global businesses, each with leading positions. For Human Resources Management, supporting these organisational changes has been one of the greatest challenges of 2015.
Efficiency improvements in corporate functions
Following the completion of the sale of its traditional tour operating activities, Kuoni Groupʼs Board of Directors has given intensive consideration to the future of the Group. It is now focused on services for the global travel industry and governments. Since Kuoni Group is now significantly smaller, support and corporate functions are being rightsized to optimise operational costs without compromising expected service delivery. Supporting this initiative on efficiency improvements, for support and corporate functions, will continue to remain in focus for HR in 2016.
Restructuring of the Global Travel Services (GTS) Division
Supporting the ongoing restructuring of Kuoniʼs Global Travel Services (GTS) Division, with the aim of rapidly adjusting it to changed market conditions has been another important topic on Kuoni Groupʼs 2015 Human Resources agenda.
Organisational design principles and guidelines which were aligned to the business strategy and vision in the current and future context were designed and applied. Structure complexities were reduced by reviewing of spans of control, grade levels, roles, interdependency of functions. Outsourcing and relocating of activities, focusing on key and profitable market segments all formed integral part of the process.
The communicated goal of reducing 350 full-time equivalents at the Global Travel Services Division is being achieved through natural attrition and redundancies. All reductions are being made in a socially and statutorily responsible and compliant manner and in close consultation with the relevant employee representatives.
Over all the aim is to deliver a focused and accountable organisation that delivers cost-saving targets without losing crucial knowledge and skills.
Further development of the Global HR Shared Services function
While there is a strong demand for Human Resources to support restructuring activities in the divisions, as well as in the remaining corporate support functions, the Human Resources function itself continued to work on improving its own efficiency.
Cross-divisional synergies are leveraged by migrating administrative support for employees of additional units into the Global HR Shared Service Centre organisation.
In 2015 HR employee services for KDM Middle East, VFS Australasia, VFS Africa and VFS Europe have been successfully migrated to the HR Shared Service Centre organisation in India. By the end of 2015, 18 employees in the HR Shared Service Centre organisation India were supporting a total of 5,790 employees across different divisions worldwide.
Talent management remains the abiding focus
2014 Empower Survey:
2014 Empower Survey: Kuoni Group is always interested in learning employeesʼ thoughts and opinions regarding further development of the company, its corporate culture and employeesʼ working environment. The global employee survey conducted regularly for this purpose had a response rate of 85% in 2014 (2012: 78%, 2010: 71%).In order to increase employee satisfaction and consequently also the competitiveness of Kuoni Group, department-specific measures based on the 2014 survey results were developed in conjunction with employees and implemented in 2015.
Talent management as a component of strategic management becomes increasingly important in order to ensure a companyʼs long-term success. At Kuoni Group, the yearly process where talent reviews are performed and risks assessed, is the Individual Potential Discussion (IPD) process. In general it offers a good visibility of talent and risk within the Organisation, Division and Function. 2014ʼs EMPOWER Survey results suggested that while we may have a good process, there is not sufficient follow-through in terms of talent development. As a result Kuoni has decided to implement talent reviews covering both Organisational Talent Risk reviews (OTR), and talent discussions, “Talking Talents.”
The purpose of the OTR is to enable the organisation to reach its strategic objectives and to mitigate operational risks by ensuring a ready, credible and high-quality internal talent pipeline. This will fill both expected and unexpected vacancies. In the OTR reviews the focus is on positions where we do not have sufficient succession plans in place. The divisions/functions pro-actively drive their succession plans together with HR through individual career development of identified successors.
Effective talent discussions and assessments enable us to identify the talents and their potential. This ensures a clear fit between skills, capabilities, aspirations and roles. Effective and efficient development of employee talent keeps the organisationʼs employee base engaged and ensures long-term retention.