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Sreenivasa Kutam
President of Global Product & Innovation, Automatic Data Processing

MBA Executive Speaker Series - Sreeni Kutam

🎥 Feb 26, 2023 📺 Feliciano School of Business ⏱ 59m 👁 468 views
Learn how's it going so i'm your marketing major but um i actually do have an interview with adp next wednesday. Awesome you ...
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About Sreenivasa Kutam

In a February 2023 appearance at Montclair State University’s MBA Executive Speaker Series, Sreenivasa Kutam, then serving as chief human resources officer at Automatic Data Processing (ADP), discussed career advancement and workforce trends. He advised that success depends on being skilled at one’s work, ensuring influential people recognize that skill, and helping others along the way. Kutam described his own approach as an introvert as focusing on asking questions and offering assistance to colleagues, building relationships that lead to reciprocal support. Kutam also addressed concerns about the gig economy, stating that as an HR practitioner he worried about the societal impact of gig workers lacking the health and retirement benefits provided to full-time employees. He noted that ADP, as a public company, faces pressure to maintain margins and stock price, which can influence decisions about retaining staff during business downturns. Additionally, he commented on immigration’s role in national GDP, arguing that countries must either increase birth rates or attract immigrants to sustain economic growth.

Source: AI-verified profile updated from Sreenivasa Kutam's recent appearances. Browse all interviews →

Transcript (60 segments)
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Betsy Rossini0:00
Good evening everyone, welcome to our final executive speaker event of this academic year featuring Srini Kutam, who is the Chief Human Resources Officer from ADP, who will be interviewed this evening by our own Professor Michelle Rigolizzo, who will be right back. My name is Betsy Rossini and I'm Associate Dean at the School of Business. We're honored to have with us this evening President Jonathan Coppell and several members of the ADP leadership team including SVP Barrett Dickman who sits on the Business School's advisory board and Montclair State University's VP of Human Resources David Vernon. Before we're joined by Dean Hollister who will introduce Srini, a couple of housekeeping items: Srini's chat with Michelle will end at approximately 6:45, at which time we'll pause to allow students who need to go to 7:00 classes to exit. We'll then have about 15 minutes or so for Srini to take questions from the audience. So it's now my pleasure to turn this over to Kimberly Hollister, Dean of the Feliciano School of Business.
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Kimberly Hollister1:25
Thank you Betsy. Good evening, so I'm Kimberly Hollister, Dean of the School of Business, and I have the great pleasure tonight to introduce our executive speaker, Srini Kutam. In addition to his role as Chief Human Resources Officer of ADP, Srini sits on the company's executive committee and since 2021 has been a member of our own university Board of Trustees. So during this evening we've asked Srini to describe his career and personal journey. So just to highlight a few things leading up to where he is right now: he earned his bachelor's degree in computer science from Andhra University in India and an MBA from Purdue. He's held senior HR systems and technology positions at Medco Health Solutions, Express Scripts, and before joining the human resources management software and services company ADP in 2014. So with ADP, he started in global HR strategy and planning and was elevated to Division Vice President for the Major Account Services. And in 2018 he assumed responsibility for all of ADP's HR operations which include over 50,000 employees, although I think I heard at dinner it's 60,000. ADP is on Fortune's list of the World's Most Admired Companies and has famously built its business around the belief that all individuals can unlock their fullest potential if given the tools, environment, and opportunity to do so. So tonight, with the help of Management Professor Michelle Rigolizzo, we hope to get Srini's view on how HR management contributes directly to the tremendous success and recognitions that ADP has earned in creating an environment where employees can thrive and excel. So on behalf of the School of Business, I thank Michelle and welcome Srini as this evening's guest.
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Michelle Rigolizzo3:30
Are you on? Okay, this is on, correct? Excellent. Hi everybody, welcome. Very happy to be here with students today. Welcome, thank you. So we heard your sort of list of accomplishments, but what I'd really love to hear is your story of how you got where you are. I think so students here can sometimes seem like a really far away thing to think of being the Chief Human Resources Officer. So how did you get to where you are today?
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Sreenivasa Kutam3:57
First of all, thank you for having me. It's a pleasure. If I can make it, anybody else can make it. Trust me. So my story: undergraduate computer science, surprise, I'm from India with an undergrad degree in computer science, so there you go. Then I ended up in HR. The story was I started teaching right after I graduated from computer science in India, teaching computer science. I used to teach digital architecture, compiler design, software programming, all those crazy stuff. And then I got a real job. I was paid really less teaching job, so I'm like, all right, that won't work, so I got to find a better paying job. And I did. I was hired by a steel plant in India to do software programming. And then I was contacted by a recruiter from Hammond, Indiana to come to the US to do computer programming at a foreign steel plant. So I landed Chicago here August 1st, 1994. No return ticket, 50 bucks in the pack, actually 46 dollars, the guy spent four dollars in Switzerland buying a chocolate. So 46 dollar one-way ticket, I don't know where I'm going. I landed, the person that's supposed to pick me up did not show up. So I waited two hours and the person showed up and said, 'Ah, the traffic on I-94 was so bad today.' I'm like, I have no idea what you're talking about, but I understand. So that's how my life began in the US. And I was living in Hammond, Indiana, and Purdue has a campus in Hammond, Indiana, literally two miles away from where I was living. And I didn't have a social life. I'm like, oh, I might just go get myself a master's degree. So I joined part-time MBA Purdue Hammond campus. And I graduated luckily in a couple of years or so. And then a consulting company hired me. And my first project was in a Giant Eagle grocery chain in Pittsburgh. So they're kind of like a ShopRite, their corporate office, and they told me, 'Help HR figure out how to digitize their stuff.' That's how I got into HR through my technology and management channel. And I started helping HR. I understood what 401k was then, how beneficial healthcare looks, and all of that, and union contracts, how to automate union contracts. So that's how I came from behind the scenes of HR operations and then tried to understand the HR function. I worked in Europe for a couple of years as an HR consultant. And I moved to New Jersey 2005 working for Medco Health Solutions to run their HR operations which includes payroll, benefits, all other systems. Then I joined ADP as an HR strategy person and after a few years I became CHRO. So going back to my opening statement, if I can make it, anybody else can make it. I was hardly speaking English when I moved to US, not that I actually speak any better now. But my team helps write my communications, they're about fixing my grammatical mistakes and spelling errors even today. But the example is, you know, it's with some right people backing you and with some energy you put towards the universe, things could happen to you. We'll talk more about that. I'm not an outlier. Statistically speaking, there is ample evidence that with the right environment, right skill set, with some luck, everybody can make it.
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Michelle Rigolizzo8:00
Thank you. You know, it strikes me in hearing it that your journey with HR sort of parallels HR itself, going from very transactional to what we do is much more strategic, as we can see it's now really exploding with recent events. I'm wondering, is what drew you to HR originally the same thing that's drawing you now, or has that evolved over the years as well?
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Sreenivasa Kutam8:23
You know, I'm one of those people, I believe in destiny. It's so old-style Eastern philosophy. And I also remember Steve Jobs talking about his 2005 Stanford convocation speech. And he says that when he went to Reed College back in the day and he took calligraphy classes because he got bored out of studying his regular curriculum. And when he started Apple Computer, he used the calligraphy lessons he learned in the Reed College to build the first Macintosh fonts. So the point there is, when you look back in your life, the dots are always connected. No surprise in my life when I look back, the dots: technology, MBA, and technology entry point into HR. So when opportunities came for me, like there were some opportunities for me to go into marketing, but I felt like humans, I always loved complex problem solving coming from the engineering background. And I felt like humans, an interesting problem-solving opportunity for me. Certainly complex, it's really complex. So that's the thing that actually attracted me to HR. It's a problem-solving mentality and the most interesting problem out there in HR I felt like builds the DNA for an organization. It's not seen but felt. So why can't I be the architect of the DNA of an organization? So that's what keeps me in HR and that's what we should call our HR programs, the architects of the DNA of the organization.
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Michelle Rigolizzo10:20
I love it. So also in thinking back, and since you've had sort of this long career in these different roles, I'm going to ask you to sort of go back to when you first started managing people and thinking about the way that you, the style that you had then, the priors you had then, and how that's evolved over the years. Has that been reasonably consistent or have there been some really key lessons as your management style has evolved that you've learned growing within your role?
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Sreenivasa Kutam10:50
I definitely evolved, it's not the same. So typical to any organization, what happens in organizations is the best performing person generally gets promoted to be a leader without actually thinking whether the person has leadership skills or not. Best salesperson becomes the sales leader generally speaking, best programmer becomes a programming manager. That's how I became a manager in the programming side. And I really struggled at that time because I was like, 'Why didn't you do this? It's so easy for me because I've been doing it for so long and why are you taking so long? Let me help you.' So I was like digging in and helping code the person. I'm like, I only have eight hours in an office, I cannot micromanage like that. I realized I have enough self-awareness, I'm working on it. Delegation is a skill that I learned as I matured in the leadership. And the second aspect is diverse opinions add strength to the team. So in HR we talk about diversity and inclusion a lot. So when we say that, it's not the, you know, the color of your skin, it's important, but the most important thing is actually the rainbow of ideas. Each of us, if you think about this way, I say this all the time, my team knows this, look at our face, it's a one by one cube, right? How many combinations are there? It's not a trick question, seven billion combinations in the world, right? That's the population. Each of us are generally unique in that small space, right? So as a leader, as a manager, the diverse backgrounds, the nature, the context, how we grew, the environment makes us. So having us surrounded in a team that has diverse backgrounds gives the leader an edge. The edge is looking at a problem from multiple angles. You're actually statistically increasing your odds of better decision making if you have diverse backgrounds and views around you. That's something else I learned along the way. Third, which is kind of related to it, is surround yourself with people that are complementary. So as a leader in my team, I'm more analytically minded, Deb nodding her head because of my background, that's my strength. I bring to problem solving from that angle. That brings to the table ADP's history as well as deep HR knowledge, human-centric knowledge, what would work, how to frame the problem, how to communicate it. Then we also have technology people, we also have people that know compliance. So the diverse experiences and complementary skill set around a team makes me a better leader, I make better decisions. So delegation, diversity of thoughts, and complementary skill set is something I observed would give me an edge as a leader as I matured in that leadership spectrum.
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Michelle Rigolizzo14:28
You know, a common theme throughout all three of those is that it's not one person doing this. You need multiple people, you need to delegate, you need to not try to do it all yourself, you need other people going to see things in ways that you literally cannot see them. And then you need to know your strengths and weaknesses to say, 'Oh, here's what I bring, but here's what they bring, and we're going to be so much better together.' So I think that's really, often we think of leadership models as this one person that's the great person leading everybody else, and what I'm hearing from you is much more, you've got to know that any one person's not going to do it, it's going to be multiple people.
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Sreenivasa Kutam15:04
That is true. And leadership is, you know, similar to I talked about earlier at the dinner time, it's a noble profession. Teaching is a noble profession. Leadership is a noble profession because it's an enabling function. A professor, a teacher enables all of us, unlocks the potential in us, right? I still remember my ninth grade math teacher, I wrote about him at ADP leadership blogs, my ninth grade math teacher who introduced love of problem solving to me. I was so bad at math until that point, but he unlocked that potential in me. And then I ended up as an engineer and I am here. So there's so many shoulders that I stand on in my path towards this career I have. So my point is leadership is not only about you managing people, leadership is about, you know, inspiring people. Sometimes as a leader myself, I have to know when to lead from front, when to lead from the side, and when to lead from the back. You have to know that it comes with experience and you have to adapt accordingly. So it's, you're called leader because there are followers. Without followers, you are not a leader. It's as simple as that, that's the pure definition of a leader. And that followership happens either you have a hierarchical relationship in an organization or you inspire people with ideas. Right, Martin Luther King, you can say he's a leader. And you have, you know, your frontline leader if you're working in an organization, he or she is a leader. So it comes in so many shapes and forms. For example, the best leader I know in my life is my grandma. The best, considering what she went through and what she gave to the people, and she can quickly assess a person in five minutes, God-given ability, and she gives the feedback right between the eyes, boom. You like it a lot, don't like it, you can ask my wife when she first met my grandma. And she came away saying that, 'Oh my god, if grandma is all right.' So anyhow, leadership is so different.
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Michelle Rigolizzo17:54
So you know, just as you said, you're a leader because you have followers, you're an employer because you have employees, right? And so thinking sort of back to HR, and so much of what the, it's not just the pandemic actually, but there's been this growing, this rising call for finding meaning in work, for finding purpose, and the pandemic did help a lot of people reprioritize that. In thinking about HR at ADP, how do you create a place where people are finding meaning in their work, are feeling empowered to do good work?
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Sreenivasa Kutam18:27
It's hard to do. It's very hard to do. We have to also recognize that we have to be practical about these things. It's not 100% all about meaning, it's not all about empowerment. We have to be practical and say sometimes it is transactional, that's the nature of the business. But any relationship is two-directional. Any relationship, personal, professional, it has to be giving and taking. It has to be value-adding, otherwise that relationship will not survive the test of time. So between an employer and employee, so I do the work, I get paid, okay, that's the transactional aspect of that. But to keep employees in an organization, you've got to do more than that. And that extra aspect we can call it values-based or things that tie the person to the organization at an emotional level. And the tricks of the trade is what I learned is organizations, people leave organizations because of the leader most of the time. So the bond that manifests for an individual is through that frontline leader, that's the key. So us as architects, we focus a lot of time building that bond between the leader and the individual because the leader is the representation of everything of the organization.
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Michelle Rigolizzo20:07
By the leader you mean like the direct manager, the person?
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Sreenivasa Kutam20:10
Yep, the direct manager. So it's really, really important in that aspect. And in the changed circumstances of post-pandemic, what our research shows is that flexibility is so important. Flexibility doesn't mean that how many days you work from home, that's important too, but flexibility of the number of hours when they work during the day also becoming important. So if you are a single mother, the hours, those regular office hours may not work in that context. So we tell our leaders, in fact I send communication to our frontline leaders, lead with understanding the context and then make a decision what works for you and for the individual. So we just gave a framework for decision making but not necessarily, oh, everybody has to work eight to five. That is empowerment to that leader when that leader makes the decision at the ground level on that flexibility question with that individual. That is practicing that empowerment at the ground level and that's building the culture right there and then. That's just one example. But I also see a macro trend when you talk about gig economy. We talked about, you know, evolving gig economy back in the day, 2014, 2015. I was afraid about lack of rights for these workers in the gig economy. As an HR practitioner that worried me. What's the impact if more number of people work in gig economy where the full-time employees have health benefits, retirement benefits, and HR help to go to? Yeah, all of that. What about these people working for themselves? Are they on their own? What's the societal impact of who is picking the tab for that? Because the issues are going to be the same, the mental wellness, right, all of that. However, recently I have seen Starbucks began to organize, Amazon began to organize. I kind of said at that time, if you remember the speech I made in 2014, I was like, these empowerment things are like a pendulum. Like they go from, 'Oh, you know, we have to collective bargaining, oh no, it's bad, let's not do that,' but then again, 'Oh, okay.' Anything at extreme is bad. We know that living in America now, right? So center is not a bad place to be. Being balanced is not a bad place to be. Evaluating a situation from multiple angles, come to your most reasonable solution is the best way. But in highly charged environments, it's very difficult to do. My comment about these trends I'm seeing is the individual rights might be coming back a little bit as a focus item for all HR people to pay attention to.
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Michelle Rigolizzo23:19
Yeah, it strikes me so much that it is the individual. It's like what was so critical about the managers is this messaging, it's like don't assume you know what works for this person, don't assume you know what schedule works for this person or what level works for this person. Have that conversation, listen to it, and then figure out something that works for both of you. And I think though different things will work differently for different people. There are these sort of universal things that everybody needs, they need time to care for their family, they need time to rest and rejuvenate, all of these things actually are the same but they play out in different ways. And so I think that's really interesting from a decision-making model from the manager to say, 'Oh, okay, well there are things that I can recognize that you all need, but the way in which you need them might differ.' And I think that, you know, that pendulum swing is always trying to find that spot. In thinking about the gig economy and this empowerment, is this need for continual learning, and you know, you've been described to me since sort of your name first came up as a continual or a lifelong learner. And I'm wondering, beyond the empowerment or in parallel with that, how do you help your employees or help your managers help your employees to want to continue learning, to want to learn and continue to learn?
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Sreenivasa Kutam24:36
I believe all of us need to be lifelong learners, whether we like it or not, if we want to make progress in our professional career. Because, you know, you're all graduating at some point very soon, you go in the real world, start working, but the things that you learn here, they give you fundamentals and then you need, it's like learning pure math, but you have to apply that in the real world, right? And the real world is so complex. I was talking to Michelle about, hey, you know, I can see integration of marketing techniques into HR, I can see behavioral economics coming into HR. So you have to be an integrator of all the knowledge that exists out there and take only what is applicable. But information is so much out there, knowledge is so much, it's hard. So you have to keep at it, you have to keep at it. I believe in it because I actually enjoy learning. That's a design flaw that I have. And with that biased view, in our organization what we're trying to do within HR, for example, because we kind of architect these solutions, so in HR what we try to do right now is every Wednesday we use behavioral economics nudge principle. We block on our calendars Wednesday 11 a.m., third Wednesday, invest in yourself hour. Just invest in yourself. We don't tell you what you want to study, it's up to you. But you could tell us what you learned and you can share with others what you learn. So it's creating that culture, it's taking that principle of investing in yourself, operationalizing it, and creating a clean loop process to create the energy behind it. And we started to do that. And we also, first Wednesday, that one hour, I started to teach this principle and how we should think about it about business and whatnot. And upcoming next Wednesday, one of my team members teaching sales and how sales commissions would work. So it's just teaching leaders how to become teachers. So that's the operational concept. Because once everybody sees, 'Oh, leader is teaching, they're interested in it,' everybody will follow. Then logically, rest of the ADP organization, we are trying to implement this concept of once a month invest in yourself for an hour, whatever you want to learn and share with others. So we'll see where we go from there. And we just did a survey with 3,000 of ADP population, part of the press. The number one item employees of ADP want ADP to do to keep them inside ADP is investing in upskilling programs and upscaling. Yeah. I was like, they're not asking for promotions, of course it is there, but the number one item is make us more worthwhile, invest in us. So the question for majority is, okay, how do we do that, right? How do we architect it? So I think it's an exciting time honestly to talk about it.
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Michelle Rigolizzo28:02
That's great. I want to, I do want to switch gears, so we're getting a little bit low on time and the student population here, I want to think about them in particular. And so a couple of sort of more practical things is, you know, all of your time in HR and all of your experience, how can our students when they want to enter in a position whether it's in HR or elsewhere really make themselves stand out, really be, make themselves remembered to say, 'Oh yeah, that's the person I want to bring into my organization.' To stand out, what should we do?
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Sreenivasa Kutam28:37
It has to be value-oriented, meaning there got to be something for the other person that you can provide value. Otherwise, you know, it won't really work. Networking helps a lot, but I was an introvert, I am an introvert. I'm only doing it because they said there is free food. So you have to have something to give to the organization, right? It's a barter system at a pure crude level. And then important people have to know what you can offer. You just doing your job, it's only part of the equation. Important people have to know what you can bring to the table. So that's why the networking aspect is really, really important. Because most of the career decisions are made when you are not in the room. Trust me. You're not in the room and people are saying yes or no for the promotion or for the hiring decision, what not. So the more people that are in the room that can talk nicely of you, the more probability you will have landing the job or getting that promotion. So how do you do that? Why would people say good things about you? Because you help them. It's as simple as that. So the most important principle is you got to be good at what you do, you got to be the best at what you do, whatever you do.
Number two, make sure important people know that you are good at it. And third, you're helping more people in the journey. In the end, if you're unselfish, the more you give, the more you get.
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Michelle Rigolizzo30:35
So is that how an introvert networks? Is by just helping people instead of saying, 'Oh, you know, I want to introduce myself. Here's who I am, here's what I can do for you, here, how can I help you?'
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Sreenivasa Kutam30:48
It's exactly that. Because I have this habit of learning new things. When I was in HR, I used to go sit down with business people like Barrett who runs sales, commercial operations. You would see me at the pantry or water station. I'm like, 'Barrett, how is it going in sales? Or how is this quarter looking?' I ask questions to learn what they're doing, and then I offer whatever I know to see if Barrett can use some of those things so that Barrett would be successful. So when Barrett is in a position to say a good word about me, he would say a good word. But I learned something again: that relationship has to be bidirectional. Barrett got something from me, and I got something from Barrett, and we both will speak positively of each other.
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Michelle Rigolizzo31:34
Yeah.
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Sreenivasa Kutam31:35
So that's how it worked for me, honestly. But I was also very... I tell the story: when I was a senior director at a company, I wanted to be a vice president for so bad. I worked really hard for four years. At last, I got it. And I was driving home to tell my wife. I stopped at the signal. My brain was telling me, 'When are you going to be a senior vice president?' Then I realized that that's the road that I don't want to take. And the question became to me really is, 'What are you going to do now you are a vice president? Rather than you trying to become senior vice president, how about you help the senior directors to become vice presidents?' And that framing changed my orientation towards my career. I became transformed, honestly. And the more I started to talk about others and their careers and how they can be better at what they do, amazingly, my career velocity increased after that. So that's where the principle came for me: the more you give, the more you get.
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Michelle Rigolizzo33:00
In a different way, and I think there is so much power in that reciprocal relationship too. Because thinking back in my own career, it's very much the people I've helped, but also when I've helped somebody and they've come back to me, I remember them very much, right? So it's both ends of that really create a relationship that I think gets people to speak well of you in the room. So we only have five minutes, right? Just give it a signal. But you actually answered my sort of follow-up question, what we can take from there, which is not just the entry, how do you sort of progress in your career? And that was a beautiful story to think about: don't always think about what's next, think about what I can do great now that will naturally lead to what's next. Thinking more, I guess specifically, and the fact that your employees are looking for upskilling, what are some of the skills and experiences right now that are just critical for, if you know, we talk about the future of work, for being seen as important to the organization, as somebody that can help the organization, that can contribute?
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Sreenivasa Kutam34:09
I think problem solving, root cause analysis, bringing quantitative skills to qualitative problems. I can go on.
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Michelle Rigolizzo34:18
Wait, quantitative skills to qualitative problems? Why don't we unpack that a little bit?
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Sreenivasa Kutam34:23
Okay. We all know we're in the great resignation phase. But how do I forecast who is at risk of leaving at ADP? That's a qualitative problem. 'Oh my god, people are leaving ADP.' But the quantitative way of looking at it is: can I quantify the risk that exists? But how do I do that? What are the leading indicators of that? Is it the strength of the bond between... Okay, what's the hypothesis for the risk? You start with the hypothesis. It's like a science experiment. You start with the hypothesis. What's the hypothesis? You're paid low, you're stressed out at your work, you don't have strong relationships. Guess what? You are at risk category. Okay, now how am I going to quantify the stress in the work? How am I going to quantify the strength of the relationship the person has with the leader? All of that. That's an example.
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Michelle Rigolizzo35:19
Yeah, that's all scientific inquiry. And so the problem solving you said was, yes, sorry, it was the quantitative, qualitative, but the problem solving, the root cause, it takes all of those, that ability to quantify it, to measure it, to even think about getting to the root cause.
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Sreenivasa Kutam35:34
Correct.
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Michelle Rigolizzo35:36
And in thinking about sort of how much data and data analytics are coming into play, particularly for HR, are there specific problems that you guys are addressing right now using data that maybe you hadn't done 10 years ago or 15 years ago, that data has now really become the key thing with which you're making the decision? You know, who said the data is the new oil? Somebody said that. New oil, gas, whatever. Data is the new... I'm not making this up. I generally make stuff up, but I'm not making this one up.
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Sreenivasa Kutam36:15
It's really important. By the way, I started a question when I started at ADP. I said, 'Hey, how do you know people like us? HR?' Yeah, I heard stories at the dinner. 'Oh my god, I try to avoid HR. I don't want to talk to HR in my entire career and life. I don't want to talk to HR people.' Oh great. How do you know where we stand? So we started doing NPS. Now I have a way to say, do you guys know what NPS is? It's basically kind of like, you know, voting off the island kind of thing. So NPS is like zero to, I don't know, minus 100 to plus 100. Right? It's... but we ask a 10-point scale whether you're a promoter or you're a detractor. It's kind of like up or down kind of thing. But anyhow, we started with that inquiry. We know how we're doing there. Second is, I also said, 'Hey, out of thousands of people we hired, which channel do we hire from? Experienced hires, campus hires, LinkedIn hires? Which channel gives us the best performing candidates?' Why is that important? Well, if I know that, I'm going to pay it there. So I'll have a better productivity for my recruiters. That's another example. Third one would be pay equity. How are African-American females paid relative to, you know, white associates? Okay, is that statistically significant by controlling for the variables, tenure, experience, etc.? Asking all those questions gives us... well, why is that important? That's really, really important for the culture. If that thing doesn't work, it's a problem. Oh, what about stress? What's the mental well-being strength of ADP's associates? I haven't solved that yet, but I'll work on it. But you know what I'm going with this: the data-based decisions, the quantitative... this is what happens when you put an engineer in the HR role. Like, you try to put a quadratic equation for everything. But to balance that, I have that double exchange. You really cannot say that. Like, why not? Because... so it's the complementary skill set. We work very well in helping ADP figure things out. So those are some examples.
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Michelle Rigolizzo38:40
That's great. I would... okay, Ashley's walking me. Ask one little final question, which is going to be the hardest one: what can't data solve? Like, what are some things that you shouldn't use data for? Just name one, because she's gonna... I'm gonna get in trouble if we go over.
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Sreenivasa Kutam38:57
Love.
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Michelle Rigolizzo38:58
Okay, that's the perfect way to transition. Thank you so much.
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Sreenivasa Kutam39:05
Thank you very much.
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Betsy Rossini39:10
We want to thank you both, Srini and Dr. Rigolizzo, for such an engaging and dynamic discussion. I think we're all walking away tonight much more wiser than we were at six o'clock. We learned a lot about HR, the role that it has in an organization, building a strong organizational culture. You gave us great advice about being lifelong learners. To all our students here, it doesn't end when you finish your degree. And we want to also give you a small token of our appreciation for tonight's talk and for all you do for the university. On behalf of the Feliciano School of Business and the MBA program, we would like to present you this plaque. Thank you.
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Sreenivasa Kutam39:47
Thank you, thank you very much. I never won a prize in my entire college life, so thank you so much. You are the best college I ever attended, making up for childhood.
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Betsy Rossini40:01
At this time, we would like to give an opportunity to the undergraduate students who have seven o'clock classes tonight to politely leave. If you don't have class at seven, please stay for a Q&A session. And if you're an MBA student, you should stay. Your professors know you're coming in late to class. Thank you.
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Sreenivasa Kutam40:19
Oh, thank you. How are we running the Q&A? Are you running it here? Yes, okay.
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Betsy Rossini40:30
So we have mics here. If anyone has a question, please raise your hand and we'll come around with the mics. Feel free to move to the front of the room here.
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Audience Member40:52
Um, thank you for the talk. That was really, really inspiring. Um, I'm always thinking of HR myself, like how would I see myself in the future? And I think your way to approach problems are really innovative, and I guess that's because of your background. So I think that's a good thing to, like, everyone should consider. But whenever I say to my friends, like, I'm interested in HR, they always come and say, 'Why?' Like, this whole culture behind HR, thinking of them as the bad guys, or like they're just managing people. Um, like someone told me, 'HR is just there to get the people, get the money, firing them, and then keep on keeping that cycle.' So I hear all these, like, confusion, you know what I mean? And that's not how I'm interested in HR. And I think, like, your approach is more aligned with what I think. So why do you think is this culture, and is that real at all?
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Sreenivasa Kutam41:47
Look, there is no smoke without the fire. It's on us. It's on us. We have to take some responsibility for it. But I think people like you coming into the function is going to help us market it better. But the work is really meaningful work. Our day... I would be going from a strategic discussion, like which markets we should enter, what type of people we need to enter into the market. Next meeting would be somebody that is not performing in the company. They are better off outside of ADP than inside ADP, because that is the best thing for them. So the day is filled with a combination of strategic, tactical, all the way up to, 'These cafeterias are serving free lunch tomorrow to attract our people.' So the spectrum of the responsibilities is really interesting also. And then for those doubting Thomases, have them come and speak to me. HR is, as I said, it's really true. It's the most complex problem that exists out there. And we should try to figure this thing out for humanity. And I can tell you, as I said, it's an enabling function for the entire organization. So without HR, there is no capital structures, and millions of people, you know, won't be out of poverty. So that's the bigger picture.
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Michelle Rigolizzo43:33
And there's a bit of history to overcome with HR. It has really evolved and changed, and a lot of those views are accurate a while ago. And so I think a lot of it has to do with, as you said, on us to change those views.
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Sreenivasa Kutam43:48
Yeah, it's a big... By the way, there are marketing majors here. I could use some marketing for HR. There you go. I'm telling you, communication... I have a leadership model, I didn't get to talk about it. Every leader should be very clear about the vision, the strategy to use to get to that destination, the vision you describe, with right people following you. And the most important thing is communication. If you do not know how to communicate, it will be very bad for you as a leader. And I'm talking about marketing and communications coming into HR. I mean, Doug, you and I talked about during the pandemic, for 60,000 people at ADP, when all of us in one day, I sent a note saying everybody work from home. Gone. Next day, gone. How do I keep the organization together? And we started writing emails. The best way, like, all right, send 3,000 emails every Friday. I started writing emails every Friday. And then somebody sent me an email later, I think three weeks later, they're like, 'Srini, I hear from you more than my own mom. Stop it.' In the next Friday email, I actually said that to people. So HR has a bad reputation because some of the communications, the language we use, is so like corporate. It's not human, even though we are human resources. So language, for those that are professors in language, I don't even know if that's the right department, but language plays an important role in building relationships. And HR professionals need to understand that. And so we should hire people that are specialists in language to come and help us to do this right. So with such a wide variety of needs dealing with humans, it's a fantastic field. I know there is AI, ML, and you know, blockchain, and I can teach blockchain, but I cannot teach human things. So that's why I'm here to learn.
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Audience Member46:00
How's it going? So I'm your marketing major, but I actually do have an interview with ADP next Wednesday.
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Sreenivasa Kutam46:10
Awesome.
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Audience Member46:11
You said a big part about getting jobs is networking, so here I am.
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Sreenivasa Kutam46:17
Make sure they say something good about you in there. Sergio DeLuca, do you think you're graduating this May? You should tell us which role you applied for, so we will talk.
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Audience Member46:28
I have all the information of who I'm meeting with and everything, but no, it's an entry-level sales job. It's in Monroe.
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Sreenivasa Kutam46:35
Nice, yeah.
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Audience Member46:41
No, but thank you for your talk. But my question is, like, along your career, you've definitely come across some struggles or hardships. So I'm wondering, like, what are some things that you do or take into consideration when making tough decisions?
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Sreenivasa Kutam46:57
At the beginning of the pandemic, me and along with my boss, we had to make a decision to let go of a few hundred people because our business was drying up. So the choices were: keep all that exists right now. This is around April 2020, right at the beginning of the pandemic. If we don't do that, what if the situation becomes bad? Our investors, because we're a public company, right? We work for the investors. So if we keep all the people, the people would be happy, but the investors would be unhappy because we are not going to make the margins that we promised. The margins would be... which means the stock price is going to go down. And if that goes down, obviously, we have a lot of other things that's going to be impacted. How do we make the decision? It's about making some bets. I mean, the problem was bigger, but we ended up letting people go. Fewer than in the end we thought we would need to do it. We also did some furloughs. We asked for volunteers, etc., etc. Those decisions are never easy. And in HR, I have to make those decisions. Some people, by the way, we stopped hiring. So I have recruiters, I have to tell them, 'Hey, you know, there's no work. I got to put you on furlough.' Or some of the contractors I had to let go. As a leader, to feel that pain... it's easy for me to say to my team, 'Hey, do that.' I felt a moral responsibility to actually call those people after their leader told them, 'Hey, look, you have no job here.' I called them. Not that it's a selfish act on my part, when I reflect, it made me feel better that I did it. But I rather look at the person in the eye and say, 'This is what I'm doing to you. This is the impact.' But I need to feel it, so I will never in the future make those decisions lightly. So some things, sometimes you have to do it as a leader, but make sure it's an opportunity for you to be in such a way that you learn from it. And we have a process afterwards to touch base, make sure once we start hiring, can we bring them back in, etc., etc. But luckily, the market immediately, the V-shaped recovery in the economy, now we're in the situation we can't... like, we're like, 'All right, can you spell ADP? You're hired.' So... But hard decisions in HR is about people issues, right? The happy day is when we do our merit increases, bonuses. We are like dancing in the hallways. 'Oh my god, three percent!' Right now, there's three percent inflation, is six percent, but you get the drift. The happy decisions are relatively easy. It's about, is it three percent or four percent? Okay, you can have the debate all day. But when you talk about, is it 300 people or 400 people? It's 100 people, 100 families. There are four dependents at an average for each person. Those are big, hard decisions in HR. You need courage to make that balance and act. And you have to advise your CEO as your general what to do in those. I mean, these are not just business decisions, these are people decisions. And then once the CEO makes the call, you have to communicate it to the organization. So these are hard. But I grew much as a person as a result of that. So as I always say, COVID-19 period is the most stressful period for HR, but also it's the most satisfying period.
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Michelle Rigolizzo50:59
Sergio is in my class, so I can recommend him. Very good thinker, actually.
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Audience Member51:06
Hello, my name is Dave Vasquez. I'm actually in professor's class, fourth year. Personally, I can relate a little bit to your upbringing in the sense of IT. Before, I'm actually currently getting into HR. My background was actually information systems. So what intrigued me of HR was what we consider problem solving. HR is troubleshooting for me. So I'm guessing you would understand troubleshooting when the code doesn't want to work or a PC doesn't want to turn on. Troubleshooting is the next step. But more to the question I have is, getting into HR, the biggest conversation piece was returning to the office. And a lot of corporations have had more of an executive level where they decided for their employees if we're going back into the office, and not necessarily considering the employees' input into it. I'm kind of curious, how did ADP... I'm not entirely sure what ADP's process is, if they're either accepted or work from home full-time, hybrid, or if they, let's say, they were surveys asked for their employees. I'm going to kind of want to understand what did ADP do during the time period of corporations having people come back to the office. I kind of want to see how ADP kind of handled this area of people being scared of, 'Oh, are we going to go back into the office full-time?' I'm just kind of curious how ADP worked on that.
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Sreenivasa Kutam52:35
It's a combination of things. Outside of the U.S., we have done many surveys to understand what the perspectives are. Inside the U.S., we did some focus groups, and I personally did monthly basis touch base throughout the COVID to say, 'Hey, what's happening?' Managers, individual contributors, to say, 'Hey.' We piloted quite a bit of things along the way. So we said, first two days a week, what happens? On a volunteer basis, we basically said offices are open. Because by the way, sometimes we have this view here that working from home is good, but trust me, for example, in India and the Philippines, where they're joint family systems, there are five people living in one bedroom. For them, working from home is hard. They can't focus. There is no office room within the walls, right? So they would like to come to office. So there are multiple reasons, culturally also, why we need to open the offices and say, voluntarily, if you feel like you can come to the office, we did that. And we have seen how that... if we had like 10, 20, that basically came in. In the service, we saw almost 70, they said, 'There's no way we're going back five days a week.' Oh, like, all right, that's very clear. And I was telling somebody earlier that we started talking to other organizations to say, 'Hey, what are you guys thinking? What's the market look like?' And then we said, originally we start with two days, we will increase it by a day depending on how the COVID-19 is, you know, up, down, etc. And we never even increased it. We stayed at two days for almost 12 months. And then after the Omicron, everything is done, then we went back and we said three days in the office, two days at home. But which three days? We let the team leader work with each individual, decide what works for the team and for that individual. And we also told them, in some, the context is important, right? So if you have a person that's taking care of elderly parents and they might be at a more immunocompromised risk, then we just told the manager, 'Hey, you know, you let the person work from home.' So there are so many varieties of these rules that happen at the ground level. All we said is 3-2 generally speaking, but there is a lot of flexibility within that. We'll see. It's been only like four weeks, so who knows how it's going to fluctuate. But we are doing all kinds of stuff, like free food on Wednesdays, because we felt like having people together three days, we should make it meaningful and fun. Meaningful in a way that being together, the productivity should increase, innovation should increase. But it should also be fun. We said, 'Hey, you know, bring the pizza, have social gatherings,' you know, of course, safety regulations and whatnot. But the principle is meaningful and fun, and see how the culture evolves from there. So that's how the process worked, but it's still evolving. I don't know how this would be in a month from now, who knows with all these variants.
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Michelle Rigolizzo55:59
Does it feel at the executive level like it is something you're giving up, like some level of control, some level of certainty you're giving up? Or is it at this point pretty open to, like, let's just find the thing that works and works well for how people are living?
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Sreenivasa Kutam56:14
You know, when you have, you know, 15 people together, there are 15 opinions. Yeah. And there are, you know, few people in the executive team like, 'Let's get everybody five days.' And there are executives in the group that say, 'Yeah, leave them where they are, happy with it.' So it's finding that middle ground. I think as humans, we always, you know, we talked about Daniel Kahneman's approach, loss aversion. So is there a way that we could... I think human beings are incrementally more comfortable with change than big change. So either way, incrementalism for big organizations seems to be the mantra. Unless you are Twitter founder, you can do whatever you want. It's always exceptions.
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Audience Member57:14
How has outsourcing...?
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Sreenivasa Kutam57:21
Well, we are a beneficiary, net beneficiary of that trend. Because ADP, basically, our value to the employer who contracts with us is: you outsource your payroll to us, or your HR services or HR systems, we'll deliver value to you rather than you doing everything in-house. Right? That's really our business. That's why we started in, you know, Clifton, 1949. So I think we've been a net beneficiary of that. Within our operational units, you know, very similar to other organizations, we have 10,000 people in India, we have 2,000 people in the Philippines, we have 2,000 people in Brazil. So I think capital flows, various advantages for the capital, that's fundamental theory, right? So but we're not outliers when it comes to taking advantage of the labor arbitrage and the skill arbitrage sometimes too, and the talent supply and demand. So we have taken good care of that. And we'll see. But supply, you know, we talked about supply chain issues and as a result, inflation, what not. But there is also the supply chain issues when you come to immigration. So a country's GDP is simply the number of people times the productivity. So if... I mean, that's what you're all MBA students, so I hope you know that, right? So if the number of people go down in a country, either you have to produce more or your GDP is not going to grow. So as a country's leader, people have to think about what that means. Either people have to make more babies or get more people from somewhere else. So immigration plays a key role at a country level. But at an organization level, again, you got to do what works for you to make sure that the balance between the number of people and the productivity levels are important. So we don't want to go into the economic side of it, but you get the point.
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Michelle Rigolizzo59:32
Well, thank you everybody for hanging in and staying. Thank you so much, Srini. It's wonderful to have you here.