ETISALAT Human Resource Case Study
ETISALAT is a leading corporation offering telecommunication services to its customers in Abu Dhabi, and other nations in the United Arab Emirates (UAE) as well as in some countries in Africa. The company was formed in 1982 by the Emirates Telecommunication Corporation, which had been established earlier in 1976. Its headquarters are in Abu Dhabi but it provides mobile and internet solutions to clients in the Middle East and Africa, a region with over 2 billion people. The group serves around 140 million subscribers of their landline and mobile services. The organization provides an array of services including SIM card manufacturing, clearing house bills, payment solutions, technical and managerial training, land and sub marine cable services, data and voice transit, and peering (Kolachi & Akan, 2014).
The company owes its success to its diverse human resource base of around 50000 employees, serving their customers in the 15 countries throughout the globe where ETISALAT offers its services. The company aims to provide uninterrupted services to their customers through their diversified workforce. Etisalat has the best hiring strategy, which takes some weeks in order to get the best. Their human capital has kept them on top of the corporate ladder. They are selected from the best and in a variety of fields related to telecommunications. The company strives to put the right people in the suitable positions to ensure success. The employees are deployed into their various departments including human resource, IT, finance and accounting, customer care and others. The departments work intricately together, making the company one of the most successful mobile, landline, and internet solution company (Etisalat, 2010a).
Human Resource Issues Faced by the Company
Etisalat’s is among the leading employers in the UAE region. It is also known for having one of the most diversified pools of employees. Its staff is drawn from across the globe since the main objective is to attain the best talent in telecommunications industry. However, they emphasize mostly on the UAE nationals. Even with the best strategies of recruiting, training, rewarding and retaining human capital the company faces some human resource challenges (Kolachi & Akan, 2014).
The company faces common problems including retention of the highly competent employees, cost of remuneration, and training. Besides, ETISALAT finds it hard to secure local talents and is forced to recruit more of foreign employees against their policy. However, the continual development of their existing and new talents is necessary since the telecommunication industry is ever growing (Kolachi & Akan, 2014).
The success of the multinational corporation depends on a number of factors, such as the rewarding program but most importantly, their training and career development. The company chooses the best and makes them competent to carry out their mission of providing mobile, internet, and landline solutions to their wide range of subscribers and clients. The company trains the staff on all features of the business. The employees are trained based on the operations of the organization. For the customer care department and the sales and marketing department, they learn the skills of communication, such as assertiveness, monitoring, and customer care. Other skills provided to the employees in the leadership realm and executives include leadership, management, stress management, team building, and interpersonal skills (Kanz, 2010).
However, their main human resource problem, which they faced in the past, was lack of sound strategies for managing their human resource data. For 15 years, ETISALAT has been using a built in Ingres platform. The earlier framework posed challenges to the human resource staff. With about 50000 employees to manage, training, remuneration, planning, and rewarding proved to be difficult with the old system (Etisalat, 2010b).
There were reports of delayed payments, and lost employees database complaints. The system did not make finding solutions for the problems easier. This led to the dissatisfaction of the staff, which affected their productivity. Hence, some employees who could not stand the problems sought work in other competitor companies. In return, the telecommunication company kept losing some of the most competent employees (Etisalat, 2010b).
Besides disappointing the employees, there was also the problem of redundancy in the department. The Ingres was slow, which made working in the human resource department difficult. Furthermore, the older system only allowed the human resource department to work on it. It did not give room for self-service, which could have eased the burden on the human resource department employees. The system also placed more pressure on the operational budget of the company (Kanz, 2010).
The management of the human capital was not at its worst but it derailed the company, which had already created a niche in the telecommunication industry. It did not make it easy for the company to compete with other companies providing similar services. It was also a bad omen for their great choice of employees. As new companies entered the market, the problem became clearer and a solution had to be provided. It was the only way to gain competitive advantage in the business environment, which had become more competitive (Konlachi & Akan, 2014).
When Etisalat management affirmed that there were problems in the way they managed their human resource, they decided to search for solutions. There were a number of solutions, which were put forward. It was proposed that the Ingres system be improved to handle the needs and the dynamics of the human resource. This was a good solution, since it did not need many funds. Besides, it could only have taken short time. However, improving the old system could not have dealt with its deficiencies, especially when it comes to expansion and integration of other systems (Konlachi & Akan, 2014).
Another proposed solution was to outsource human resource management. However, with the large number of employees, it could have been expensive to outsource. This is because there are monthly charges and entrusting their human resource data to a third party could not have been a good idea. That is why selecting the Human Resource Management System (HRMS) from Oracle was a perfect solution. It was used to replace the Ingres. Lower administrative overheads, low labor cost, self-service function and local language backing, are some of the capabilities of the new system. Today, Etisalat has the best human resource management systems and strategies in the region, all thanks to the Oracle human resource management system. It has put labor costs to a minimum, made processing of employees information fast, and increased the accessibility of the human resource database to employees and the staff (Konlachi & Akan, 2014).
Etisalat is a great telecommunication organization, which is set to go grow in future. It has already made significant success. By using human resource management system, the company is able to conduct human resource operations including planning, recruiting, training, payroll processing and monitoring among others. However, some improvements in the future could place the leading telecommunication industry in Asia and Africa at a global pedestal (Cacioppe, 2010). Below are some recommendations:
- Big data trend, which is sweeping over the market and for a company as Etisalat. The big data analytics may ease the process of monitoring the salaries, absenteeism, sale figures, and overall performance (Cacioppe, 2010).
- Secondly, managing employees from one department can be a challenge. The human resource department can seek assistance from other departments on various aspects of the human capital.
- Using an integrative approach (Cacioppe, 2010), which involves the employees in the management, could help improve productivity.
Cacioppe, R. (2010). Trends in Human Resource Development and Training. Journal of Human Resources, 28(2) , 55-72.
Etisalat. (2010). Etisalat Academy. Available on: www.eacademy.ae
Etisalat. (2010). Etisalat. Available on: http://www.etisalat.ae/
Kanz, M. (2010). Etisalat. AL Fajer Securities .
Kolachi, N., & Akan, O. (2014). HRD role in organizational development: A case of corporate thinking at Etisalat UAE. Vol. 7(8). Available on: http://dx.doi.org/10.5539/ibr.v7n8p160