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Recent trends in critical HR management practices

Nobel Prize-winning economist Gary S. Becker, who coined the term “human capital,” says that”the basic resource in any company is the people. The most successful companies will be those that manage human capital in the most effective and efficient manner.” The present day economy has been titled as “Knowledge economy”. In such an economy, it is people who make all the difference. In political economy capital or market was important. Talent occupies centre stage in the Indian workplace. In view of this, managing and retaining manpower is becoming crucial to an organization’s success. To achieve this, companies across sectors are focusing on some of the more critical HR practices. Some of the trends that have been noticed are: Leadership development Creating a pipeline of leadership talent is key to a business’ future growth. It is imperative for the top level of an organization to make leadership talent management a priority, and put its money into longterm plans, as opposed to short-term ones. If companies are worried about their talent pipeline, they have to develop their people. Work-life balance No company or employee has found the Holy Grail of balancing work and life, but that is a work in progress. However, multinationals, information technology (IT) and IT enabled services (ITeS) companies have been able to promote the balance between career, family and leisure-time better. Other sectors have also been increasingly promoting a work-life balance. Interestingly, most companies in India use benefits such as flexible timings, telecommuting, crèche facilities and concierge services as an attraction and retention strategy. Experts say companies should see the work-life balance as a business proposition since progressive companies carry business forward with employees and families. Inclusion and diversity With higher numbers of Gen Yers joining the workforce in India at a time when companies across the world have an ageing workforce on their rolls, conflicts are to be expected. Therefore, companies are investing both time and resources in ensuring that all age groups are comfortable working together. Organisations in India have also been focusing on making workplaces more representative. For companies such as ICICI Bank Ltd, Hindustan Unilever Ltd, Vedanta Resources, PepsiCo India, Shell

. is gaining currency. Experts say companies need to take a fresh look at solid citizens and invest time and resources in managing and developing this group. and are adopting total rewards practices that include compensation in both cash and kind. the chances of the employee moving on to something more challenging are higher. DuPont has an Intranet-based tool. Right skilling Right skilling. etc. Companies use this strategy to tide over a manpower supply crunch and to broaden their talent baseApart from IT and ITeS firms. such as overseas assignments. for instance. Health and wellness The work culture at globalized workplaces involves long working hours. it is very difficult to meet her aspiration levels and. Managing ‘solid citizens Organizations which neglect their solid citizens are doing this at their own peril.. and career opportunities. These rewards can be tailored to suit the top performers’ aspirations to achieve maximum effect. Pai explains that when you have an over-qualified employee. deferred gratuity. Unlike star performers who are potential leaders. The upside? Lower attrition rates and wage costs. organizations in the banking and financial services sector. and wealth-building programmes in the form of stock options and soft loans. a car or a club membership. like many other IT companies. gender diversity has become a critical area of focus. profit-linked incentives. Instant rewards Recognizing and rewarding performers is one of the most effective tools to attract and retain the right talent.Companies in India and Bharti Airtel Ltd. multitasking and tight deadlines . have been increasingly hiring graduates and training them. companies are also offering yoga classes and health camps and have doctors on campus. Apart from medical benefits. therefore. competency pay packages where niche skills are compensated. to reward staff. frequent travel. this group provides stability and bench strength to an organization. and therefore more likely to move out of an organization faster. companies are also including work-life balance programmes. has 24/7 medical facilities in all its centres. too.and all this often leaves employees mentally and physically stressed. which assesses an employee’s health through a questionnaire and makes recommendations based on the scores. say experts. new projects. or matching jobs with a particular level of training rather than hiring overskilled workers. Apart from lifestyle perquisites such as a house. Companies in India are looking at rewards systems more seriously. Companies have begun to realize that healthy employees contribute to higher efficiency and productivity.HCL Technologies Ltd.

the need for a fair and transparent performance management system. Experts say people as well as organizations have aspirations. 360 degrees feedback Finally. And hence. this one allows an employee to give feedback to her reporting manager. During this same period of time. direct reports and others. And. So now we have companies looking to acquire the best talent and a growing workforce of talented individuals who are no longer attracted by compensation alone. . Exposure to widespread layoffs and corporate scandals has led to an erosion of company loyalty and reevaluation of career and life priorities by many employees. employee attitudes have changed dramatically. Companies should be clear about goals of individuals as well as of the organization. attracting and retaining the best employees is very difficult. In today’s business climate. and the role each needs to play.Measuring human capital: Evaluation of performance plays a key role. which gives unidimensional feedback. technology professionals are going to have to step out of their comfort zone and develop the holistic. and when the two get aligned. does that make it easier to hire good people? The answer is no. most of them now use the 360 degrees feedback system to identify the learning and development needs of employees. While most companies started using this system as a means for performance appraisal. The firm should also communicate the goals. recognizing the need to make performance appraisal systems more effective. Managing aspirations As aspirations of organizations grow. The reason is a combination of the change in business practices and the shift in employee attitudes. an increasing number of companies are using the 360 degrees or multi-rater feedback process. but are increasingly on the rise. but also in setting performance benchmarks. Since companies are finally valuing people and their softer skills. with the changing lifestyles and profiles of the workforce. so do those of employees. In order to achieve professional growth and success in the next period of increased talent acquisition. but who require and value intangibles as well. The bottom line is this. The business landscape has changed dramatically in the past decade as a result of many factors from the feverish hiring boom of the 90s to the economic slowdown in the later part of the last decade. not just in rewarding an individual employee. peers. achieving business goals becomes easier. Unlike the traditional appraisal system. A strong performance analysis helps make human resources both efficient and effective. personal and professional aspirations of employees are not just varied. and have robust and reliable processes to execute them. relationship-focused business skills that companies are requiring.

many CEOs are facing a critical. corporate values.and by continuing pressure to reduce costs.Growth is the top priority for many CEOs in 2012 with many organizations focusing on three key strategies: emerging markets. He further opined that. These are -In 2012.By capitalizing on the latest analytical tools and techniques.both as customers and as sources of talent . "As we move forward in 2012.in a world of low-probability events that have far-reaching impact and growing uncertainty. analysts. mergers and acquisitions (M&A). They also need the depth and breadth of skills and experience to work across converging industries. Deloitte in India. Leaders all over. Human Capital Advisory Services.retention. -Fast-track to the top .and the business of HR. they are . and Deloitte practitioners to refine the list. then work with clients. driven by the rapid rise of emerging and developing economies . CEOs today look at every advantage they can find to drive growth and they are of the firm belief that talent is a key enabler of growth. The India Talent Survey 2012 helps in understanding the evolving perspective of talent . This dual focus demands decisive action as the stakes are greater than ever" saidThiruvengadam P. Each year Deloitte begins with a wide range of potential topics. "In this competitive world. Here are the 8 top HR trends to wach out for BANGALORE: Deloitte India on Tuesday released its first annual "Human Capital Trends 2012" report titled. -Operation globalization .Developing the next generation of leaders to drive future growth. have come to understand that people risks represent a significant area of potential exposure". companies are going to have to take a more strategic and supportive approach to recruiting and retention if they want to find and keep the new breed of evolving talent. leadership and what do employees think of their HR and talent functions. to focus on enabling both their organization's overall growth agenda and on driving efficiency in the business of HR. dual imperative ie. communications.Advanced tools are turning workforce data into powerful insights that help businesses navigate uncertainty.High-potential leaders must be able to operate on a global scale and adapt quickly to change. academics. The report identifies the top eight trends that will shape potential business impact globally over the next year. These trends highlight the most potential business impact over the next 18 to 24 months. Leader. -People risk is risky business . growth is job #1 .And by the same token. and innovation. vendor teams. Deloitte also conducted its Inaugural India Talent Survey in collaboration with AIMA.Many companies around the world are moving to new global operating models. 'Leap ahead' which examines the broad impacts of eight trends that are reshaping both HR in the business . HR's role in managing enterprise risk is expanding Seeing around corners .

and more -Stay in front with an effective sales force . reducing labor costs. cost limits. and rewards. Although outsourcing has become popular recently. which lead to additional human chain and promotions and salary revisions. As projects pile up and organization face the changes and starts adapting to them.Social media and mobile devices are raising the bar on HR service delivery. Expert research teams including industry players have made an approximation of 21% growth in last 4 years in India. still many companies need to break the barrier and bridge this gap by trusting the idea of outsourcing. service levels. productivity issues etc. This has created many job opportunities and higher salary range especially in the IT and ITES sector. HR no longer refers to just human resources and has become synonymous as an umbrella term for various other functions within the organization ranging from recruitment to finance. Due to the lack of any set rules and regulations to follow. there is a need to understand the implications of learning and development of employees to enhance the work output. New roles of HR: The increasing pressure of clients. and HR has a key role in helping organizations adapt. The nature of Human Resource Management System is dynamic and widely fragmented which makes it difficult to follow a certain pattern of function. learning and development etc. This has led to lower .improving acquisition. it is obvious for the industry to face challenges considering its tremendous growth in the past few years.Cloud services are changing the way business operates. Following are a few day-to-day challenges that HR industry is struggling to overcome: Hesitation to outsource: Organizations continue to grow their business prospects. The HR heads need to accept this challenge. and managing risk more effectively. HR has an opportunity to use social media and mobile tools to create communities for sharing knowledge and to support employees through direct. This cannot be accomplished by only hiring talented pool of employees from the market. infrastructure needs.A multichannel environment is creating the need for a different kind of sales force. the workload exceeds all limits and there is genuine demand to outsource certain sections of work to an external expert service provider. retention.Cloud computing is changing the way people and businesses work. High attrition rate: Indian companies now have a global presence and many foreign investors have outsourced their business here because of the availability of talent at low costs. gather knowledge and spread it in most effective way to various HR personnel in the company. upending conventional ideas about time-to-value. -Clouds in the forecast . improving productivity and employee effectiveness. demands high levels of talent. yet informal communication. -#social #mobile @work .

However. These are a few of the many challenges faced by HR and addressing these is an even bigger challenge as every company has a unique structure. .loyalty levels and employees switch companies more often for better opportunities. This is one of the biggest challenges faced by HR. This poses a challenge for the HR to find an employee who is talented as well as have decent soft skills to communicate with oversees clients. Managing Soft Skills issue: Employees are hired by their level of technical skills to match the work. as most clients are out of India. there is a need to cater to the diversity. as they need to match their compensation figures with the industry and provide extra benefits to their employees to retain them for a longer period of time.