Detailed Analysis of Xero HRM Practices, Workforce, and Engagement

This report examines the human resource management (HRM) practices of Xero, an Australian-based cloud computing company. It analyzes Xero's initiatives to improve employee performance, focusing on feedback mechanisms, regular meetings, and attention to employee needs, such as healthcare. The report also explores Xero's efforts to cultivate a positive company culture, including its 'inside out' approach to attracting talent and its commitment to sustainability through reduced carbon footprint, recycling, and energy efficiency. Furthermore, the report details Xero's employee engagement strategies, such as community support, diversity and inclusion programs, business support, and flexible work arrangements. The conclusion emphasizes the importance of these practices for Xero's overall growth and development, particularly employee engagement, and highlights the initiatives undertaken by Xero regarding employee performance, organizational culture, and effective employee management techniques.

Running Head: XERO HRM PRACTICES 0
Xero HRM practices
Student details:

XERO HRM PRACTICES 1
Contents
Introduction......................................................................................................................................2
Initiatives regarding performance of employees.............................................................................2
Initiatives regarding culture.............................................................................................................3
Steps taken in regards to sustainability........................................................................................3
Overall culture prevailing within Xero........................................................................................4
Initiatives regarding employee engagement....................................................................................4
Conclusion.......................................................................................................................................5
Bibliography....................................................................................................................................7

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Introduction
The following report is based on Xero, which is a domiciled public technology company in
Australia. It is one of the top listed companies in the Australian Securities Exchange (ASX). The
company offers a cloud based accounting platform for minor and moderate sized business
organizations. It runs under the guidance of Steve Vamos, Chief Executive Officer of Xero. He
leads and keeps a command over the growth and performance of the company globally. The
following report will highlight the initiatives took by Xero to improvise the performance of the
workforce. The improvement brought to the performance factors will surely increase the
productivity of the human capital of company. Thus, the major initiatives took by Xero in order
to improve its culture will be highlighted in the report. Lastly, the report will make the reader
aware about the initiatives took by Xero to increase the employee engagement within
organization (Xero, 2019).
Initiatives regarding performance of employees
Effective and understanding management is primary ingredient in making sure that the
employees are serious and responsible about their job. Xero has taken numerous initiatives in
order to improve the productivity and performance of its employees. The managers at Xero give
feedbacks to the employees throughout the year (Xero , 2019). The feedback given by managers
helps the employees in understanding where there is a room for improvement and where the
employee has performed well. Most of the companies choose to do performance reviews
annually, these programs of performance reviews felicitates the employees who are performing
well and motivate other employees to perform better in their respective fields (Carroll, et al.,
2018).
The company has taken various steps to excel the performance of employees, one of the idea
used by Xero is of structuring meeting with the employees at regular intervals. The meeting
involves disclosure of new ideas; approaches and concepts formulated or which will be
formulated within the company in near future. It is duty of the company to ensure that the
employees are clear about every term included in company’s objective policy so that it will get
easier for the employees to achieve their targets (Son, et al., 2014).

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The meetings conducted at certain intervals are massively operative for the growth of an
organization. Effect of the following initiative can be easily observed with the help of total
returns generated by the firm throughout the year. This can be the prime way of calculating the
performance of employees (Glassdoor, 2019). The meeting motivates and encourages the
employees to work hard and provides them a path to work accordingly. The joint sessions not
only helps in making the objectives of company clear in front of its employees rather it also
helps in bringing the employees closer to each other. These interactions between employees and
employers increase coordination and cooperation at workplace and lead to reduction in
workplace conflicts. Altogether, these factors result in increasing the performance of the
employees within the organization (Yigitbasioglu, 2015).
Xero not only pays attention towards the work and services delivered by the employees but it
also focuses on the basic requirements an employee should get. Small initiative taken by the
company in regards to the personal needs of the employees makes a huge impact over the
performance of the employees. For instance, Xero provides health care services to the family of
the employees working within organization (Xero , 2019).
Initiatives regarding culture
Xero is constantly taking steps to improve its culture, the organization uses inside out approach
where it becomes accountable to attract the most talented people throughout the world to join
Xero (Xero, 2019). This is an external cultural approach whereas the company holds internal
cultural values as well. Since the inception of Xero, it is following the ideology of sustainability.
The company has developed the culture of not making harm to ecological assets. Henceforth, it
is taking initiatives like improving the carbon footprint, recycling, reducing waste and using
energy in a justified manner (Shen, et al., 2014).
The company has implemented environmental management programs in all the branches. These
are some of major steps objectives of the company in relation to its idea of sustainability.
 Diminishing the waste and reducing electricity ingestion at buildings
 Encouraging substitute mode of transportation for the workers in order to reduce air
pollution (Xero, 2019)

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 Arranging teleconferences or video conferences in spite of travelling, this will be helpful
in minimising the carbon exhaustive travelling options like flights (Xero, 2019).
Steps taken in regards to sustainability
Xero has started recycling paper, glass, plastic and aluminum cans. The company has prohibited
the use of bottled water in all its offices. The organization is planning to get all the printing
sheets and papers from FCS/PEFC sources. Xero has introduced recycling services for batteries,
unused electronic goods and printer toner cartridges (Lin & Chen, 2012). It also ensures of
removal of IT equipments from offices like laptops and printers when they are at end of their life.
The company has started using hand towels and toilet papers made up of recyclable paper. The
fifty percent of Xero’s electricity consumption in used in New Zealand and it is been observed
that majority of the electricity generation is from renewable sources. As per the ministry of
business innovation and employment (MBIE), in 2018 around 83% of the total energy supplied
in Australia was from renewable source of energy.
The organization is planning to introduce cotton t-shirts. These t-shirts are ecofriendly and
organic in nature. Thus, these t-shirts do not make any harm to the environment along with this
maintains decorum within the organization (Lin & Chen, 2012).
Overall culture prevailing within Xero
The organization holds five values which are to be followed by everyone in any circumstances -
human, ownership, champion, challenge and beautiful. According to these five values the culture
prevalent within Xero is firstly, to serve the needy the company pays special attention towards
the sufferers. The value of ownership highlight that the company works irrespective of the
ownership criteria it works of all (small as well as medium scale organizations).Xero aims to
become one of the top leading firms in the list of ASX. It is always ready to face and overcome
challenges and deliver services with beauty i.e. without damaging the environment (Newman, et
al., 2015).
Initiatives regarding employee engagement
Similar to any other business organization the prime focus of human resource department of
Xero remains at hiring the most talented and skillful people for the organization. The HR team
analyzes the talents, aptitudes, qualifications and abilities of the employees. Later, the company

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ensures that these employees should remain a part of company for long run. In order to engage
the employees within the company for longer duration various amenities are offered by Xero to
the employees (Employee Engagement, 2019). The compa0ny ensures that their employees
should remain happy and satisfied about their work and working conditions. Therefore, the for
employee engagement program the company has adopted concept of meritocracy. This concept
is gaining popularity these days. As per this concept the employees are free to give their opinion
in regards to any issue faced by them in organization. Meritocracy can be defined as a path,
which enables open communication and honesty. It has not only emerged as a way to give
opinion but it also acts as a positive weapon in the hands of employees. ( Daft, et al., 2010)
These are some of the employee engagement initiatives that are taken by Xero in order to attract
people towards the organization:-
Community support and volunteering- The employees working in xero participates in
community connect and volunteering programs. The organization gives one day paid off to the
employees so that they can participate in good causes. Along with this, the organization donates
a certain percentage of its total earnings to the non-profit and non-governmental organization.
Diversity and inclusion- The Company supports diversity in the workers. It hires people
according to their talents and approach towards work rather than based on social and political
grounds (Xero, 2019).
Business support- The Company runs a pilot program under which it provides confidential and
free mental health support to more than 5000 of small business customers within New Zealand.
Apart from this, the company keeps the data of its clients/customers completely confidential and
safe. This is one of the biggest reasons attracts the new clients.
Flexibility at work-The Company looks after the employees and their working preferences.
Xero ensures healthy working space for the employees; it provides flexible working hour shifts
and nominal leaves required by the employees ( Kelleher, 2014). The company grants festive
leaves and celebrates festivals within organization. This helps in keeping a balance between
work and social life of the employees.

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Conclusion
As per the above report, it can be concluded that Xero is a growing company in the sector of
cloud computing software and provide services to small and medium sized business
organizations running in Australia. The company seeks profitability by enforcing various
initiatives in regards to the performance of its employees, the development of healthy working
culture within organization and the employee engagement schemes. The following report
highlights the decisions and actions taken by Xero for the respective titles mentioned above. All
these factors are very important for an organization for its overall growth and development. Xero
should pay special attention towards the employee engagement program, as it is one of the major
requirements for an organization. The report overall highlights initiatives which are executed by
Xero in regards to employee’s performance, culture within organization and the effective
employee management techniques applied by employers.

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Bibliography
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Carroll, A. B., Brown, J. & Buchholtz, A. K., 2018. Business & Society: Ethics, Sustainability &
Stakeholder Management. 10th ed. Australia: Cengage Learning.
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