Since its founding, Tata Steel has set a precedent for worker welfare schemes, reflecting its commitment to positively impacting the lives of individuals and communities. This ethos is integral to our business approach. Our Human Resource Management function plays a pivotal role in our strategy. We are dedicated to fostering a culture prioritising healthy employee relations, growth and development, and job satisfaction through best practices. Over the years, we have introduced pioneering policies and continue striving to be an employer of choice.
India
Tata Steel has demonstrated its commitment to employee welfare through several pioneering initiatives. In India, these include introducing the 8-hour work day at the Jamshedpur plant in 1912, implementing the Leave with Pay scheme in 1936, and establishing the Workers’ Provident Fund Scheme in 1920. These measures were later endorsed by the International Labour Organisation and incorporated into Indian law.
In addition to paternity and extended maternity leave, we offer the Mosaic platform, which focuses on meritocracy, gender diversity, support for differently-abled employees, and boosting the participation of women in senior leadership roles.
Our efforts have won us the Great Place to Work® recognition for the seventh time in Manufacturing and we have featured amongst the top 30 companies in India for our people-first approach, DE&I (Diversity, Equity & Inclusion), and agile working model initiatives.
The agile working model is a pioneering initiative by Tata Steel to provide flexibility and foster a culture of trust and outcome-based performance. It offers the following two options:
Tata Steel believes that a thriving workplace is built on a foundation of active listening and meaningful dialogue with its employees. Understanding and addressing their needs and concerns is not just a strategy but a core value that drives us forward. To this end, we place significant weight on employee listening, mainly focusing on stress, happiness, and a sense of purpose. To truly grasp how our employees feel, we conduct comprehensive surveys that delve into various aspects of their work experience.
One of the critical levers we capture is their ability to manage stress. When we asked employees if they clearly understood their work demands and felt capable of handling pressure comfortably, 83% responded positively. This indicates that our efforts to define roles clearly and provide necessary resources are broadly effective.
However, when creating an open environment where employees feel comfortable discussing stressful situations with their managers, the score was 64%. While this is a decent starting point, it highlights an area for improvement. In response, we have initiated programs to train managers to foster more open and supportive conversations about stress and mental health.
We have Emotional Health Counsellors deployed physically at various operating locations of Tata Steel. Our Employee Assistance Programme (EAP) services are extended to contract workers and their family members.
Happiness at work is another crucial metric we monitor. Our survey shows that 72% of employees feel happy coming to work. While this is encouraging, it also leaves room for improvement. We continuously explore new ways to enhance the work environment, making it more enjoyable and fulfilling for everyone.
A sense of purpose in one's work is a powerful motivator. Our survey revealed that 80% of employees feel they make a difference in their roles, and 81% believe their work has special meaning beyond just being a job. These scores reflect a strong alignment between personal and organisational goals, fostering more profound commitment and engagement.
The feedback is invaluable. It allows us to pinpoint strengths and identify areas for growth. Our commitment to listening doesn't stop at data collection. We actively implement targeted initiatives to improve employee well-being based on these insights. For instance, in response to the feedback on stress discussions, we have launched initiatives to improve manager training and support systems.
Our continuous feedback loop ensures that we remain responsive to the evolving needs of our workforce. By prioritising employee listening, we aim to cultivate a workplace where everyone feels heard, valued, and empowered to bring their best selves to work daily. This ongoing process improves individual well-being and strengthens our collective mission, driving us toward a sustainable and thriving future.
The UpNext initiative introduced Organisational and Divisional Goals, which cascade into Individual Goals. The People Partners and Executive Heads across all divisions conduct town halls to ensure strategic alignment between Individual and Divisional Goals. In addition to the vertical cascading, we have enabled the horizontal cascading of goals amongst employees by introducing the concept of cross-functional collaborative requests for role-based goals and projects.
The revamped Performance Development System broadens its focus towards Developmental Goals and the existing Performance Goals. During Performance Contracting, employees also curate a development plan after a detailed one-on-one conversation with their reporting manager, as per the 3E model of learning (Experience, Exposure, Education).
The new PMS enables two mandatory feedback conversations between managers and employees to embed the roots of a feedback-seeker culture in the organisation. While the Development Conversation is an opportunity for employees to seek feedback on their professional development and career growth, the Mid-Year Review conversation is performance-focused. Each conversation is followed by a survey filled out by employees and managers regarding the quality of managers' feedback, which helps calculate the managers' effectiveness scores.
In the final stage of the redesigned PMS, the Talent Review committee assesses an individual employee, discussing, in addition to the Performance Rating, the specific development needs that will flow into the employee's development plan for the subsequent year.
Furthermore, Divisional Goals are to be evaluated and rated on the scale of A, B, and C, wherein we consider 30% of the achievement of Organisational Goals and 70% of the achievement of Divisional Goals, which subsequently impacts the rating distribution.
Specifically for workers, different policies on career development and career progression are in place for various Tata Steel Group entities based on local market practices. Performance and career development reviews assess the skill level of each worker, which is essential in their career progression and development. Such reviews are at an individual level at some locations, and team-based performance review mechanisms are in place at other locations (e.g., Incentive Bonus schemes, Team Performance Rewards, Iron Ore Sufficiency Rewards, Coal Production Enhancement Rewards, etc.). The annual bonus scheme for Permanent Workers depends on their performance across productivity, profitability, and safety parameters. Our performance appraisal systems also integrate compliance and codes of conduct.
Europe: The UK and The Netherlands
For information on human resources for Tata Steel UK, please click here.
For information on human resources for Tata Steel Nederland, please click here.
Thailand
Tata Steel Thailand provides orientation and mentoring for new joiners, welfare and benefits improvements with the Together Programme, feedback initiatives from the Labour Union, Employee Committee, Welfare Committee, etc., to improve remuneration and facilities, knowledge-sharing sessions to build workforce capability, and a continuous emphasis on feel-good initiatives to keep employee morale high.