‘People are our greatest asset’ is a mantra that companies have been chanting for years. But only a few companies have started putting Human Resources Management (HRM) systems in place that support this philosophy. There are a number of challenges in the Indian industry which require the serious attention of HR managers to ‘find the right candidate’ and build a ‘conducive work environment’ which will be beneficial for the employees, as well as the organization. The industry is already under stress on account of persistent problems such as attrition, confidentiality, and loyalty. Other problems are managing people, motivation to adopt new technology changes, recruitment and training, performance management, development, and compensation management. With these challenges, it is timely for organizations to rethink the ways they manage their people. Managing HR in the knowledge based industry is a significant challenge for HR managers as it involves a multi task responsibility. In the present scenario, HR managers perform a variety of responsibilities. Earlier their role was confined to administrative functions like managing manpower requirements and maintaining rolls for the organization. Now it is more strategic as per the demands of the industry.
Managing People
In view of the industry dynamics, in the current times, there is a greater demand for knowledge workers. Resumes abound, yet companies still fervently search for the people who can make a difference to the business. Often talented professionals enjoy high bargaining power due to their knowledge and skills in hand. The attitude is different for those who are taking up responsibilities at a lesser age and experience. These factors have resulted in the clear shift in approach to individualized career management from organization career commitment.
Motivating the Workforce
As the competition is growing rapidly in the global market, a technological edge supported by a talent pool has become a crucial factor for survival in the market. Naturally, as a result every organization gives top priority to technology advancement programs. HR managers are now performing the role of motivators for their knowledge workers to adopt new changes.
Competency Development
Human capital is the real asset for any organization, and this makes the HR role important in recruiting, managing, and retaining the best. The HR department has a clear role in this process and determines the success tempo of any organization. An urgent priority for most of the organizations is to have an innovative and competent HR pool; sound in HR management practices with strong business knowledge.
Recruitment and Training
Recruitment has become a major function from an imperative sub system in HR, particularly in the industry. HR managers play a vital role in creating assets for the organization in the form of quality manpower. Attracting new talent also is a top priority for software companies, but less so for smaller companies. Another challenge for HR managers is to put systems in place to make the people a perfect fit for the job. Skill redundancy is fast in the industry. To overcome this problem, organizations give the utmost priority to training and skill enhancement programs on a continuous basis. Many companies are providing technical training to the employees on a quarterly basis. These trainings are quite useful also in terms of providing security to the employees.
The Trust Factor
Low levels of trust inhibit tacit knowledge sharing in the knowledge based industry. It is essential that Our Company takes more initiatives to improve the security levels of the employees.
Work life Balance Factor
Another dimension to the challenges faced by our company is the growing pace of talent acquisition. This aspect creates with it the challenge of a smoother assimilation and the cultural binding of the new comers into the organization fold. The pressure of delivering the best of quality services in a reduced time frame calls for ensuring that employees maintain a work life balance.
Attrition/Retention of the Talent Pool
One of the toughest challenges for the HR managers in the industry is to deal with the prevalent high attrition levels. Though there is an adequate supply of qualified staff at entry level, there are huge gaps in the middle and senior level management in the industry. Further, the salary growth plan for each employee is not well defined. This situation has resulted in increased levels of poaching and attrition between organizations. The industry average attrition rate is 30–35 per cent and could range up to 60 per cent.
Bridging the Demand Supply Gap
HR managers have to bridge the gap between the demand and supply of professionals. They have to maintain consistency in performance and have to keep the motivation levels of employees high, despite the monotonous nature of work. The same also leads to recurring training costs. Inconsistent performance directly affects revenues. Dwindling motivation levels lead to a loss of interest in the job and a higher number of errors.
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Managing People
In view of the industry dynamics, in the current times, there is a greater demand for knowledge workers. Resumes abound, yet companies still fervently search for the people who can make a difference to the business. Often talented professionals enjoy high bargaining power due to their knowledge and skills in hand. The attitude is different for those who are taking up responsibilities at a lesser age and experience. These factors have resulted in the clear shift in approach to individualized career management from organization career commitment.
Motivating the Workforce
As the competition is growing rapidly in the global market, a technological edge supported by a talent pool has become a crucial factor for survival in the market. Naturally, as a result every organization gives top priority to technology advancement programs. HR managers are now performing the role of motivators for their knowledge workers to adopt new changes.
Competency Development
Human capital is the real asset for any organization, and this makes the HR role important in recruiting, managing, and retaining the best. The HR department has a clear role in this process and determines the success tempo of any organization. An urgent priority for most of the organizations is to have an innovative and competent HR pool; sound in HR management practices with strong business knowledge.
Recruitment and Training
Recruitment has become a major function from an imperative sub system in HR, particularly in the industry. HR managers play a vital role in creating assets for the organization in the form of quality manpower. Attracting new talent also is a top priority for software companies, but less so for smaller companies. Another challenge for HR managers is to put systems in place to make the people a perfect fit for the job. Skill redundancy is fast in the industry. To overcome this problem, organizations give the utmost priority to training and skill enhancement programs on a continuous basis. Many companies are providing technical training to the employees on a quarterly basis. These trainings are quite useful also in terms of providing security to the employees.
The Trust Factor
Low levels of trust inhibit tacit knowledge sharing in the knowledge based industry. It is essential that Our Company takes more initiatives to improve the security levels of the employees.
Work life Balance Factor
Another dimension to the challenges faced by our company is the growing pace of talent acquisition. This aspect creates with it the challenge of a smoother assimilation and the cultural binding of the new comers into the organization fold. The pressure of delivering the best of quality services in a reduced time frame calls for ensuring that employees maintain a work life balance.
Attrition/Retention of the Talent Pool
One of the toughest challenges for the HR managers in the industry is to deal with the prevalent high attrition levels. Though there is an adequate supply of qualified staff at entry level, there are huge gaps in the middle and senior level management in the industry. Further, the salary growth plan for each employee is not well defined. This situation has resulted in increased levels of poaching and attrition between organizations. The industry average attrition rate is 30–35 per cent and could range up to 60 per cent.
Bridging the Demand Supply Gap
HR managers have to bridge the gap between the demand and supply of professionals. They have to maintain consistency in performance and have to keep the motivation levels of employees high, despite the monotonous nature of work. The same also leads to recurring training costs. Inconsistent performance directly affects revenues. Dwindling motivation levels lead to a loss of interest in the job and a higher number of errors.
Download full report -
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