Binod Shah is HR Manager of Britannia Nepal Pvt. Ltd. He began his career as a teacher in 2005 prior to joining a manufacturing company as an Administrative Officer. Despite his techno-management background, he recognised early on that people are the heart of any effective system. That sparked his interest in human resource management.
In June 2005 he joined Jagadamba Enterprises as Administrative Officer, then moved to pharmaceutical industries. His career in human resource management began from multinational company, Unilever, in December 2012, where he joined in the role of Human Resource and Welfare Officer. In September 2016, he aligned his career with Berger Paints as Assistant Human Resources Manager.
He further excelled his career in Human Resource Management as Manager of Varun Beverages Limited from December 2017, where he worked for one year. Then he switched his career as a management consultant rather than a full-time employee. After having that experience, he again aligned with Britannia Nepal Pvt. Ltd. in October 2019 in a capacity of Human Resources Manager.
Shah, having a wealth of experience in human resource management, shared his insights with The HRM Nepal. Excerpts:
Q: What inspired you to pursue your journey in the HR profession?
A: I began my career as a teacher in 2005 before joining a manufacturing company as an Administrative Officer. Despite my techno-management background, I recognised early on that people are the heart of any effective system. During factory operations and audits, I observed how workforce morale directly influenced productivity, sparking my interest in human resources. This led me to pursue an MBA in Human Resources Management. I transitioned into full-time HR and ER (Employee Relations), finding purpose in aligning human behaviour with business outcomes. Over the years, I’ve worked with multinational companies and now serve as HR Manager (Business Partner) at Britannia Nepal Pvt. Ltd., managing diverse skilled and unskilled workforces in the Parsa industrial region.
Q: How has the HR landscape evolved in Nepal over the years?
A: In the early 2010s, HR in Nepal was primarily administrative, focused on attendance, leave records, payroll, and basic workforce management. Today, particularly in multinational companies operating in regions like Madhesh Pradesh, HR is a strategic partner. We prioritise performance management, employee engagement, grievance resolution, compliance and digitisation. For example, at Britannia’s Parsa factory, we shifted from manual registers to a biometric attendance system integrated with payroll software, reducing errors by 99%. SAP integration for leave management has further streamlined operations, though tech adoption remains challenging in peripheral areas with limited digital infrastructure.
Q: Why is Nepal still lagging in adopting standard HR practices?
A: Many small and medium enterprises (SMEs) in Nepal, especially outside Kathmandu valley, view HR as a cost centre rather than a strategic investment. In one factory I worked with, supervisors managed HR informally, leading to inefficiencies. After implementing structured systems – grievance cells, skill-based recruitment, training, and employee connect platforms – absenteeism dropped by 20%. However, progress is slow due to budget constraints, traditional mindsets, and infrastructure gaps like unreliable power. A mindset shift is essential, as standard HR practices drive long-term organisational and employee satisfaction.
Q: What role have you played in shaping HR policies through platforms like the HR Society?
A: As an Executive Member of the Human Resources Society of Nepal (HRSN) and a lifetime member of the Management Association of Nepal (MAN), I actively engage in policy discussions. In 2073 B.S. (2016 A.D.), I contributed to a panel during the consultation for Nepal’s Labour Act and Social Security Fund Act, offering insights from the manufacturing sector on contract labour, wage standardisation, and ‘No Work, No Pay’ policies. Post-enactment, I led awareness sessions at Britannia, aligned our HR policies with the new laws, and ensured timely Social Security Fund (SSF) compliance for workers. In 2016 and 2019, I helped draft model disciplinary procedures and bylaws adopted by two major companies, enhancing compliance in Nepal’s industrial sector.
Q: What key HR strategies have you implemented at Britannia to enhance organisational effectiveness?
A: Skill Matrix & Training: Monthly operator training, based on a competency grid, reduced machine breakdowns due to human error by 30%.
- Employee Suggestion Scheme: Over 400 worker ideas in a year led to measurable production improvements.
- Engagement Initiatives: Birthday celebrations and monthly recognition programmes boosted morale, especially among unskilled workers in Parsa.
- Retention Strategies: Addressing employee grievances and rethinking separation decisions reduced turnover. By understanding workers’ needs, I retained talent longer, critical in a region where labour migration to Gulf countries is high.
Q: What major milestones has your HR department achieved?
A: l Fostered a safety culture through training, earning the ‘Best Occupational Health and Safety Award’ from the Ministry of Labour, Employment and Social Security.
- Negotiated a two-year Long-Term Settlement (LTS) with the union, ensuring industrial harmony.
- Developed a standardised onboarding kit and orientation process, cutting first-month attrition by 15%.
- Introduced a grievance register at the admin office, speeding up conflict resolution and building trust.
- Provided medical and first aid training, enhancing worker well-being in our factory.
Q: Have you introduced innovative people management practices?
A: Yes, our ‘Voice of Worker’ initiative selects one worker per shift monthly to meet HR and management directly. In Parsa, where workers often distrust formal channels due to low literacy, this reduced rumours and improved transparency. One meeting led to canteen timing adjustments, significantly boosting satisfaction.
Q: What are effective HR approaches in Nepal’s context?
A: Localised, people-centric strategies are most effective. In our Parsa factory, where many workers come from rural areas, direct communication builds trust. Our ‘Chai Pe Charcha’ weekly sessions allow workers to voice concerns informally, reducing complaints by 35%. This resonates with Nepal’s collectivist culture, particularly in peripheral regions.
Q: How can senior leadership gain more trust in HR?
A: By showcasing measurable impact. I presented absenteeism trends linked to production losses, convincing our Plant Head to implement stricter leave policies, improving attendance. Other trust-building factors include:
- Timely execution of leadership tasks without disruption.
- Proactive resolution of union and interdepartmental conflicts.
- Achieving 15% cost savings through streamlined HR processes.
Q: How often does Britannia organise skill-building programmes, and what’s the impact?
A: We conduct quarterly technical and behavioural trainings. A Kaizen workshop increased packing line productivity by 11%. Leadership and communication training for line leaders reduced conflicts and improved shift coordination, critical in our 24/7 operations. Interactive Session with Q&A based on session makes learning easier to the employee through our ‘My HR’ Portal. We also encourage people to decide about their next step in the ladder and based upon that we check the skill set that they currently have and skill sets required for the position thereby making them understand to develop the relevant skills in that period.
Q: What key workplace gaps have you identified?
A: – Employer Side: Lack of structured feedback. We introduced mid-year appraisals and ‘DilSe’ surveys to address this.
– Employee Side: Expectation mismatches and resistance to change, common in Parsa due to traditional work mindsets. Town halls before policy rollouts have aligned expectations and reduced friction.
Q: Is retaining mid-career professionals in the industrial sector challenging?
A: Yes, many prefer service-sector jobs in Kathmandu. Retention strategies that worked include:
- Job rotation and clear career paths.
- Sponsorship for external trainings.
- Family-inclusive events like ‘Family Day’ and ‘Factory Visits’, fostering emotional ties in a community-oriented region.
Q: What are the key HR challenges in Nepal’s industrial sector?
A: Key challenges include union negotiations, high absenteeism during festival time and harvest season, skill shortages due to labour migration to Gulf countries, and legal compliance. Approximately 400,000 Nepali workers migrate annually for better-paying jobs abroad, particularly to Gulf nations, draining skilled labour from industries like manufacturing (Source: Nepal Labour Migration Report 2023, Ministry of Labour, Employment and Social Security).
For example: At our Parsa factory, we faced a 25% absenteeism rate during the 2024 harvest season, as many workers took unapproved leave to tend to family farms in rural areas. Additionally, we lost two skilled machine operators to jobs in Qatar, creating a production bottleneck. To address this, we negotiated with the local union to implement a flexible leave policy, allowing planned absences, and partnered with a technical institute in Birgunj to train new operators. We also conducted workshops to ensure compliance with Nepal’s Labour Act (2074 B.S.), particularly on wage timelines, to avoid legal disputes. These measures reduced absenteeism by 10% and filled skill gaps within six months, though migration remains an ongoing challenge.
Q: How does Britannia approach succession planning?
A: At Britannia Nepal Pvt. Ltd., succession planning is a strategic priority to ensure leadership continuity and operational stability, particularly in our fast-paced manufacturing environment in Parsa. Our approach is proactive, systematic, and tailored to address the unique challenges of Nepal’s industrial sector, such as skill shortages and labour migration. We focus on identifying, developing, and preparing high-potential employees to step into critical roles, ensuring no disruption to production or business goals.
Our succession planning process includes three core components:
Critical Role Map: We maintain a detailed framework identifying key positions – such as plant managers, shift supervisors, and quality control leads – that are vital to our operations. For each role, we assess its impact on production, compliance, and team dynamics.
Next Level Readiness Dashboard: This tool tracks the readiness of potential successors by evaluating their skills, experience, and performance against role requirements. It flags competency gaps, such as technical expertise or leadership skills, which we address through targeted development.
Development Programmes: We bridge gaps through cross-functional training, mentoring, and external certifications. Workshops and job rotations ensure employees gain diverse skills, preparing them for leadership roles while fostering adaptability in our dynamic factory setting.
To support this, we align succession planning with our broader HR strategy, integrating it with performance reviews and employee engagement initiatives. For example, we use data from our ‘DilSe’ employee surveys to identify motivated individuals with leadership potential, ensuring we nurture talent that aligns with Britannia’s values and goals.
Q: How are departmental KPIs aligned with company-wide KPIs?
A: At Britannia Nepal Pvt. Ltd., we align departmental KPIs with company-wide goals – like 98% order fulfillment and cost efficiency – to ensure every team contributes strategically. HR facilitates this through quarterly KPI alignment meetings, performance dashboards, and integrated appraisal systems.
In Q1 2025, we addressed a 7% absenteeism rate by introducing a flexible leave policy and backup operator training in partnership with a local institute. This reduced absenteeism to 4.5% and improved OEE to 96%, helping us achieve 97.5% fulfillment.
Tools like ‘Chai Pe Charcha’ support alignment by building trust, especially in rural contexts. Despite tech limitations, a hybrid system (SAP + manual logs) enables real-time tracking. This people-first, data-driven approach ensures operational continuity and strong KPI ownership across departments.
Q: How important are team-building and communication in industrial HR?
A: Team-building and communication are critical in industrial HR at Britannia Nepal Pvt. Ltd.’s Parsa factory, driving productivity, morale, and cohesion in a diverse, shift-based workforce.
Approach: Team Connect Saturdays: Monthly events with games and training foster unity across shifts.
Chai Pe Charcha: Weekly informal talks in Nepali/Bhojpuri address worker concerns, building trust.
Tools: Shift-log whiteboards and SAP updates ensure clear handovers despite tech limitations.
