In 1990, a state-owned post office known as Deutsche Post was going under. In the next seven years, Deutsche Post was turned around through the implementation of advanced technology that enabled process automation and effective cost management. Business was growing so much so that in the next three years to 2000, Deutsche Post went international.
The scope of business widened to include the DHL “suite” comprising DHL Express, DHL Global Forwarding and DHL Exel Supply Chain. Moreover, head count increased, and the number of locations also saw tremendous growth. By 2005, Deutsche Post had become the number one integrated logistics company chiefly through the value creation programme, STAR. From 2006 onwards, Deutsche Post and DHL has been seeing strong organic growth taking them from biggest to best. Serene Wong, VP Human Resources, DHL Express Greater China, elaborates that in order to grow their current employee population from 26,000 full-time employees in Asia Pacific to 60,000 full-time employees by 2015 so that business aspirations can be met, they need to become an employer of choice.
What is an employer of choice?
An employer of choice is one in which employees are highly engaged. Engagement, according to Wong, results when three core elements being think, feel and act, align. When the employee believes in and supports the goals and values of the organisation, the ‘think’ element is engaged. When the employee has a sense of belonging, pride and attachment to the organisation, the ‘feel’ element is engaged.
And finally when the employee is willing to go the extra mile and intend to stay with the organisation, the 'act' element is engaged. And when all three f those elements are in place, you really have an engaged employee.
What drives engagement?
There are six key drivers of employee engagement, identified as follows by Hewitt Associates:
- People—senior leaders, managers, co-workers
- Work—intrinsic motivation, influence, work tasks, resources
- Opportunities—career opportunities, recognition
- Compensation—pay, benefits
- Procedures—policies, HR
- Quality of life—work/life balance, physical work environment, safety
DHL’s approach to moving towards becoming an employer of choice is split into two phases that address each of the above six drivers. Phase one addresses issues of leadership, rewards and remuneration and growing talent. In phase two, DHL works on learning and development, corporate social responsibility, work/life balance, work environment, OH&S, employer branding and diversity. Throughout phase one and two, key concepts that enable these projects to develop are change management and employee communication.
Change management
In leading change within the organisation, DHL utilise a seven step process:
- Create a shared need
- Develop a vision
- Mobilise commitment
- Plan & execute change
- Communicate change
- Align the infrastructure
- Sustain momentum
- Employee communication
Keeping regular contact with employees is a critical step in engaging them and ultimately retaining them. Communication is far from one dimensional however, and can include many media, such as:
- Team briefings
- Newsletters
- Notice boards
- Kick-off meetings—annual meeting with all managers regarding key achievements, strategic plans, potential challenges
- Emails
- Quarterly meetings with country managers—especially important for global organisations
- Growing talent
DHL grow their talent with a simple four step process:
Talent acquisition—selection is based on corporate values and leadership competencies
Pipeline management—built on a rigorous performance management system, ‘Motiv8’
Talent development—consisting of DHLLogistics Management University, a graduate trainee programme, deputy country manager program and DHL supply chain management scholarship
Talent recognition—comprising well defined career roadmaps, competitive rewards and renumeration and the potential for a global career
A talent management practice as clear and well-executed as what DHL now have in place has certainly laid the foundation for the global logistics giant to become an employer of choice.