How talent involves in India's growth?
Source: economictimes.indiatimes
All the bad news about the meltdown in the US share markets has deflected the world’s attention from what is arguably an even more fundamental problem facing the US economy: the sharp deceleration in productivity growth since the middle of 2004. It is a stronger indicator of a slowing economy, reducing business and yes, lowering job prospects. Closer home, all of us are assured that the fundamentals of the Indian economy are strong. Yet, the recent fall in stock markets across the globe and the strengthening of the rupee against the dollar are events which continue the uncertainty in our minds. For India, the immediate implications of the US economy slowdown are not worrying, but this is getting organisations to look at productivity’ as the single most important determinant of long run prospects.India advantage The two fastest growing components of cost for any organisation in the country today are real estate and people. Business and HR professionals in India, more specifically for the technology and outsourcing sectors, where the nature of business is export oriented (with more than 75% of the produce regulated by the US economy), are concerned about how to manage these elements. From a salary increase standpoint the focus has already shifted from IT and outsourcing to real estate, infrastructure, telecom and retail, with real estate & infrastructure at 25%, seeing salaries rising to nearly twice as much, as compared to outsourcing at 14.1%. While salary increases are largely dictated by talent demand, supply and economic activity, Hewitt is forecasting a further, very gradual decrease in salary increases in India by 2011-12 , where the levels would range between 9-10 %. Organisations will be able to achieve this by addressing the talent/ skill gap through various factors like making training the vital constant in their growth, changing the talent model, opening up more locations for talent supply, re-engineering talent supply and focusing on productivity, quality and employee engagement. Innovation in rewards While organisations continue to hire in large numbers, they are missing out on the fact that the most effective way of addressing the looming talent situation is by increasing focus on retention . Pay for potential, deferred income plan for vital talent, performance accelerated equity, risk sharing and co-investment opportunities for top executives are just some of the new reward mechanisms that organisations are instituting to retain and engage talent.In today’s scenario of restricted resources, the focus really is on the best versus the rest. Organisations understand that the best measure of your high performance culture is your business results. While this dedicated focus through rewards and career opportunities is the right thing to do for the high performers, somewhere organisations are underestimating the strong performance being delivered, which often gets depressed by terming it average, mind you it forms over 60% of workforce in every organisation . There is a strong need to articulate an employer value proposition , which attracts talent for the most legitimate reasons and provides internal and external clarity on what can be expected. Also, somewhere HR needs to move away from the can’t do syndrome and look at talent just like customers. There is a strong need to introduce mass customisation , which will have organisations recognise unique needs across employee demographics and build reward strategies to address them.
All the bad news about the meltdown in the US share markets has deflected the world’s attention from what is arguably an even more fundamental problem facing the US economy: the sharp deceleration in productivity growth since the middle of 2004. It is a stronger indicator of a slowing economy, reducing business and yes, lowering job prospects. Closer home, all of us are assured that the fundamentals of the Indian economy are strong. Yet, the recent fall in stock markets across the globe and the strengthening of the rupee against the dollar are events which continue the uncertainty in our minds. For India, the immediate implications of the US economy slowdown are not worrying, but this is getting organisations to look at productivity’ as the single most important determinant of long run prospects.India advantage The two fastest growing components of cost for any organisation in the country today are real estate and people. Business and HR professionals in India, more specifically for the technology and outsourcing sectors, where the nature of business is export oriented (with more than 75% of the produce regulated by the US economy), are concerned about how to manage these elements. From a salary increase standpoint the focus has already shifted from IT and outsourcing to real estate, infrastructure, telecom and retail, with real estate & infrastructure at 25%, seeing salaries rising to nearly twice as much, as compared to outsourcing at 14.1%. While salary increases are largely dictated by talent demand, supply and economic activity, Hewitt is forecasting a further, very gradual decrease in salary increases in India by 2011-12 , where the levels would range between 9-10 %. Organisations will be able to achieve this by addressing the talent/ skill gap through various factors like making training the vital constant in their growth, changing the talent model, opening up more locations for talent supply, re-engineering talent supply and focusing on productivity, quality and employee engagement. Innovation in rewards While organisations continue to hire in large numbers, they are missing out on the fact that the most effective way of addressing the looming talent situation is by increasing focus on retention . Pay for potential, deferred income plan for vital talent, performance accelerated equity, risk sharing and co-investment opportunities for top executives are just some of the new reward mechanisms that organisations are instituting to retain and engage talent.In today’s scenario of restricted resources, the focus really is on the best versus the rest. Organisations understand that the best measure of your high performance culture is your business results. While this dedicated focus through rewards and career opportunities is the right thing to do for the high performers, somewhere organisations are underestimating the strong performance being delivered, which often gets depressed by terming it average, mind you it forms over 60% of workforce in every organisation . There is a strong need to articulate an employer value proposition , which attracts talent for the most legitimate reasons and provides internal and external clarity on what can be expected. Also, somewhere HR needs to move away from the can’t do syndrome and look at talent just like customers. There is a strong need to introduce mass customisation , which will have organisations recognise unique needs across employee demographics and build reward strategies to address them.
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