Human Resource Management of Salesforce Inc

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Purpose: Salesforce is listed as the best place to work. The paper explores their HR practices, and why they are the best. The problem at hand: to research on Salesforce Inc. human resource management and why it has consistently been ranked as the best company to work in the world, and compare their strategies with those of other companies. Research method: a review of company policies, employee opinions and views, what experts say about the company and why it is ranked as the best. Result: Salesforce did not start as the best, however when they realized they were failing, the company implemented radical management changes in its human resource management across the entire organization, thus resulting in great success. Conclusion:

the paper will give insights on best HR practices that shape the future companies. Following such practices can become a game changer in any company.

Keywords: Salesforce Inc., best workplace, Radical Management, Human Resource management.

Human Resource Management the Case of Salesforce Inc.

Introduction

The success of any company or organization depends on its workforce. The human resource department is tasked with the management of every employee in the company, to see to it that they are used optimally and that their full potential is realized. While doing this, the employee satisfaction is paramount and their rights ought to be respected at all times. Different organizations have been doing business for years yet they have not been progressing despite their huge potential and current resources and capital. However, new companies emerge with only ideas, yet they are able to surpass the large organizations with a very short period of time. One of such companies is Salesforce Inc. the article will focus on why the company has been so successful in managing its workforce. Salesforce Inc. was ranked number one by fortunes as the 100 Best Companies to Work for 2018. Other experts and researchers have also praised it for creating a good working environment for its employees. The research is aimed at finding the Salesforce secrets to success and how other companies can implement the same practices to succeed.

Company Overview

Salesforce Inc. is the global leader in Customer relationship management (CRM) and the third largest software and computing Services Company. The company has over 100 million transactions a day boasting of over 2,100,000 subscribers. The company currently serves over 150,000 companies in CRM services (Sharum, 2018). The current number of employees is in excess of 30,000 spread across the globe. The headquarter of the company is in San Francisco, with many other regional headquarters spread across the world with the major ones being in Morges, Switzerland which covers Europe, Middle East, Africa and Singapore. The second regional headquarter is in India, covering the Asia Pacific. The last regional headquarters is in Tokyo covering Japan.

The company began in 1999 to offer clouding CRM services, which were focused on using the internet to offer services. Such services revolutionized how companies related to the customers (Nachiketh, 2017). The aim is to provide the necessary current and potential customer’s data to individual companies which in turn increases their customer retention and expansion of the customer base (Nachiketh, 2017). The success of the company was as a result of the very innovative workforce that was able to create technological breakthroughs which aided companies in customer retention. Among their products includes cloud services, computer software, mobile applications among others. With these services, the company has enabled other companies’ employees to work from any place, only with a working internet and a mobile phone or a computer (Nachiketh, 2017).

Distinctive HR Policies and Practice

Introduction

The success of Salesforce Inc. has been its employees. With over 30000 employees serving over 15000 companies, the company has unique and distinctive HR policies and practices that enable it to achieve its objectives. In this section, some of their major policies and practices will be discussed. Such policies enabled the company to have the best employee retention rates with more people, experts and professionals seeking an opportunity to work with the company (Sharum, 2018).

Radical Management Change

It was in the year 2007 after 8 years of operation when the company realized it was failing. The first policy that revolutionized the company, was the implementation of the radical management system (Denning, 2011). Contrary to other organizations which implement such changes partially, Salesforce implements its policy radically across all the organization (Konrad, 2016). Such idea came to avoid tension among different departments in case of partial implementation whereby one department is left using the old system.

To come up with the new system of management, the top management came up with the idea on what needed to be changed especially after realizing serious management challenges. All the managers were then gathered together to give their inputs to the proposed changes (Denning, 2011). The final policy was then arrived at. Before the actual implementation, the managers ensured that they trained all the company employees on the new changes and how they would work (Konrad, 2016). Such strategy was unique and worked to the advantage of all the employees and the company in general.

Radical Changes Implemented. The actual changes involved Delighting the client as much as possible, maximizing the shareholder value, and for the leaders in the company, instead of controlling those under that leader, they would become enablers of success within the company (Denning, 2011). Another part of the change was a crop of leaders who instead of commanding would be conversing with other employees, instead of emphasizing value, they would emphasize values (Konrad, 2016). The company focus henceforth would be on high productivity and employee satisfaction and continued innovation which would involve Focus on team output and not that of the individuals, Total openness and transparency and Executive support in the implementation process of the entire plan (Denning, 2011).

Employee Success Platform

Another policy propelling success to the company in terms of HR management policies is its success platform. The platform is built of five pillars which include employee journeys, use of HR analytics, employee communities, online HR help desk and engagement applications (Babcock, 2015).

The aim of this success platform was to improve on personalized experiences to empower employees. The second objective is to Provide the data and insights organizations need to attract, manage and retain the best and brightest talent within the organization (Babcock, 2015).

Employee Journeys. Under employee journeys, the employees are guided on all the process that is undertaken by the company which includes onboarding, ongoing processes and projects among others. Such steps are aimed at monitoring the entire employee lifecycle and resolve any challenges one might be facing (Foster, 2017).

Use of HR Analytics. This involves Automation of every employee task and tracking all the data and information they are dealing with. In case of new employees, they can be assisted when they face new unique challenges by engaging other employees through group social media (Gerhart, Minkoff and Olsen, 1995). The team leaders help uncover every employee data and challenges and use this data to help other employees.

Employee Communities. An employee community Links all the employees in the company through the formation of social media groups or other working groups (Chakkarapani, 2014). Here they can share their knowledge and expertise in the challenge which is facing the company. Every idea and thought is taken seriously, and the final decision is arrived at through the analysis of each idea. Makes them proactive not reactive.

Online HR Help Desk. The help desk is powered by Service Cloud. The help desk is run and managed by the HR department aimed at personalizing the employee experiences with the company. Employees can update their information, challenges or anything they feel about the company, including new ideas (Foster, 2017). Can be assessed from phone or desktop allowing each employee to self-help. Such desk provides the HR with all the information they need about each employee and thus use them effectively for maximum output.

Engagement Apps. Engagement apps are mobile application created by the company which are aimed at helping company’s employees to be successful. The apps can be used in recruiting, onboarding and informing employees about the company’s progress (Chakkarapani, 2014).

Motivating Employees So As To Retain Them

Retaining the current employees is a great part of the company’s priorities. Training new employees are expensive and it takes time before they catch up with others (Scott, 2018). The company has therefore created ways of satisfying the current employees so as to retain them. Among these strategies include, Open communication, Employee reward programs, Career development program, Performance-based bonus, Recreation facilities within the company, Gifts on some occasion (Scott, 2018). Creation of an Environment of trust, Professional training of current employees, creation of Recreation and fun places at work, (Sandhya and Kumar, 2011) Compensations of employees in case of injury or losses in the line of work, Performance appraisal, Safety at work, among others (Scott, 2018).

Good Knowledge of Each Employee

Part of the unique strategies used Salesforce includes knowing each employee well. Knowing them and having their data includes their history, past interactions, interests, potential, skills, all at a personalized level (Gerhart, Minkoff and Olsen, 1995). Such information is used in mentorship and realization of each employee full potential.

Standardized Services

All employees at Salesforce are treated the same. Services offered to all employees are the same and are standardized.

Sharing Information among All Employees

Openness in the company is the key to the success of its employee services. All the company information is shared with all employees and it is no longer a top secret circulating among top leadership, something that happens in other companies (Chakkarapani, 2014). Every employee, therefore, has a clear knowledge of what is going on in the company, and they are always requested to give their suggestions on the ongoing projects.

Handling Allegations Fast and Effectively

The company has developed robust mechanisms for handling employee allegations about the company. Recently two employees sued the company on allegations of being discriminated upon and being underpaid based on their race and gender (Council, 2016). The company responded by not commenting on the undecided case, later, the company implemented a plan of equalizing all its employees without considering their gender or race (Council, 2016).

Radical Transparency.

Transparency is a top priority of the company. Every leader, employees and managers are expected to be open at all times. Everything they do must be made open to every employee so that no feels like they are left behind (Kumari, Usmani and Husain, 2013). Such openness leads to Continuous self-improvement of each employee as they measure their performance against other employees. In their terms, communication is a key priority in being transparent, and the company encourages its employees to communicate interactively (Kumari, Usmani and Husain, 2013).

Proper Recruitment

Recruitment process of new employees is vigorous. The aim is to get the best person for the job. Recruitment is done openly and with set objectives which are aimed at identifying the required talent for the specified vacancy (Gerhart, Minkoff and Olsen, 1995). Failing in recruitment process creates huge losses for the company, that why the company, unlike other companies takes this process seriously (Kumari, Usmani and Husain, 2013).

Employees’ Continuous Learning

The company works hard to keep its workforce updated with current and emerging technology. Therefore they engage them with regular study programs aimed at improving their skills in their line of specialization (Sandhya and Kumar, 2011). The onboarding process for new employees is also done efficiently and quickly through the involvement of other employees. Therefore the company encourages everyone to Work as a team which leads to Effective management of human resource.

Visionary CEO Aimed At the Future

The company CEO is also a source of great motivation to the employees. He is visionary and leads the company by setting examples. Reaching him is easier and down to earth leader, always consulting with employees when he wants to make a serious decision affecting his company. A casing point was the launch of Salesforce Einstein an AI program that would revolutionize how the company and its employees operate (Foster, 2017).

Working Code of Conducts

The company’s code of conducts are well written and availed to each employee. Therefore each employee is aware of what is required of them. Among them includes Proper channel for questions complains and responses, Managers leading by example, conflicts of interest recognition, Regulation in giving gifts and entertainment to other employees or customers, Use of technology for the benefit of the company and increase in efficiency, competing fairly with other companies offering similar services, No discrimination at work, Controlled communication especially on social media and public among others.

Workplace Equality to Maintain Employee Satisfaction

The company ensures that all employees are treated equally and those with special performance rewarded accordingly (Kumari, Usmani and Husain, 2013). Some of the ways of rewarding and incentives used include Monetary Incentives, Non-Monetary Opportunities, and Employee Recognition which helps in Improving employee Morale and Employee Assistance which helps in adding Balance (Trailhead, 2018).

On equating all employees, it involves Equal Pay, Equal Education, Equal Rights and Equal Opportunities for all (Trailhead, 2018).

Implications for HR Practices in Other Companies

The above policies are used in Salesforce Inc. the company has been very successful in managing its employees. The retention rates of employees are very high. For all other companies out there, this model is great for them. The old backdated management systems of hierarchical bureaucracy are inefficient and it’s a matter of time before they collapse. The modern employees need radical management systems where they are fully satisfied with the line of their work (Kumari, Usmani and Husain, 2013). Therefore, the advice is to adopt these tested human resource management systems used in Salesforce and use them to realize high production rates from highly motivated employees. Failure to which growth of the company will not be guaranteed and the full potential of employees will never be realized.

Conclusion

In conclusion, the article was focused on researching why Salesforce Inc. CRM Company has been successful in managing its human resource. It was found that the company implemented a radical management system across the entire organization. The company has also a working Employee success platform. Other policies and practices discussed included, Workplace equality to maintain employee satisfaction, working code of conducts, employee retention initiatives, handling allegations fast and effectively, openness and data sharing, and proper record and data keeping for each employee. The paper concludes with Implications for Salesforce HR Practices in Other Companies.

References

Babcock, C. (2015, April 24). Salesforce Adds HR To its Online Suite. InformationWeek. Retrieved from http://www.informationweek.com/cloud/software-as-a-service/salesforce-adds-hr-to-its-online-suite/d/d-id/1320151?

Salesforce launched Salesforce for HR, or their "employee success platform." Salesforce took what they’ve learned about automating and improving external customer relationships and applied it to a system for internal engagement. This is a factor that will be explored in how Salesforce is successful.

Chakkarapani, K. (2014, July 30). Employee Communities: The Exciting Future of HR. Salesforce, 12. Retrieved from http://www.salesforce.com/blog/2014/07/employee-communities-the-exciting-future-of-hr.html

Employees of Salesforce give tips on how to be an effective HR team in the modern world.

Council, J. (2016, April 8). Women allege gender, race discrimination at Salesforce. Indiana Lawyer, 1. Retrieved from http://www.theindianalawyer.com/articles/39997-women-allege-gender-race-discrimination-at-salesforce

Allegations of race and gender discrimination in Salesforce show that even the best companies fall short of being free of discrimination, but how they handle the allegations will provide insight on why they are still the number one company.

Denning, S. (2011). Successfully implementing radical management at Salesforce. com. Strategy & Leadership, 39(6), 4-10.

Salesforce.com is one of the most successful companies who transitioned from traditional management to radical management. This article explores the factors that made the implementation of radical management successful at Salesforce.com, as well as pitfalls that were avoided.

Foster, J. (2017, November 30). How Thrive in HR in the Age of Digital Disruption. Saleforce. Retrieved from http://www.salesforce.com/blog/2017/11/thrive-human-resources-hr-digital-disruption.html

Employees of Salesforce give tips on how to thrive in the age of digital disruption, including employee recruitment and managing a 21st-century workforce.

Gerhart, B. A., Minkoff, H. B., & Olsen, R. N. (1995). Employee compensation: Theory, practice, and evidence. CAHRS Working Paper Series, 194.

To accomplish more with fewer employees calls for effective management of human resources.

Konrad, A. (2016, August 24). Nonstop Benioff: Inside The Master Networker's Audacious Plan To Disrupt Salesforce -- And The World. Retrieved from https://www.forbes.com/sites/alexkonrad/2016/08/24/nonstop-benioff-inside-the-audacious-plan-to-disrupt-salesforce-and-the-world/#26ea50a311d6

Provides an insight into Salesforce’s CEO’s biggest ideas for the company that will expand their company.

Kumari, K., Usmani, S., & Husain, J. (2013). HR management practices and customer satisfaction: The mediating effect of effective supply chain management practices. Global Business and Management Research, 5(2), 137-160. Retrieved from http://search.proquest.com.ezproxylocal.library.nova.edu/docview/1460232405?accountid=6579

Nachiketh. (2017) What Is Salesforce? A Beginner’s Guide to Understanding Salesforce https://www.edureka.co/blog/what-is-salesforce/

This article provides important elements of Human Resource Management (HRM) practices, and explains their association that leads to satisfaction of customers, which is ultimate goal of every organization.

Sandhya, K., & Kumar, D. P. (2011). Employee retention by motivation. Indian Journal of science and technology, 4(12), 1778-1782.

Since salesforce is known for using motivation to retain employees, to finding more information about this topic might be helpful how other companies can use these practices.

salesforce.com. (2015). Salesforce for HR Transforming Employees Engagement with the Platform for employees Success. Salesforce.com. Retrieved from http://www.prnewswire.com/news-releases/salesforce-introduces-salesforce-for-hrtransforming-employee-engagement-with-the-platform-for-employee-success-300070820.html

Salesforce released a system on how to have effective employee engagement for other companies to incorporate into their HR teams.

Salesforce.com. (2018a, 04 05). The Code of Conduct. Salesforce. Retrieved from http://s1.q4cdn.com/454432842/files/doc_downloads/Salesforce-Code-of-Conduct_FINAL_CURRENT.pdf

Important to understand the code of conduct that Salesforce abides by.

Salesforce.com. (2018b). Increase value for citizens through digital services. Government CRM Solutions. Retrieved from http://www.salesforce.com/solutions/industries/government/overview/

Scott, S. (2018, January 31). Rewards and Incentives in the Workplace. Chron.

Retrieved from http://smallbusiness.chron.com/rewards-incentives-workplace-11236.html

This article explores how rewards and incentives leads to employees having increased morale, job satisfaction and involvement in organizational functions.

Sharum, K. (2018, May 08). Salesforce Named #1 CRM Provider for Fifth Consecutive Year. Wall Street Journal. Retrieved from https://www.wsj.com/articles/PR-CO-20180508-910039

Explains how salesforce has managed to be the #1 CRM Provider for 5 years.

Trailhead. (2018). Explore the Salesforce Strategy for Promoting Workplace Equality. Trailhead, 1. Retrieved from http://trailhead.salesforce.com/en/modules/workplace_equality_diversity_and_inclusion/units/we_diversity_and_inclusion_salesforce_efforts

Indicates how Salesforce one tries to promote workplace equality to maintain employee satisfaction.

January 19, 2024
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