Wednesday, March 14, 2007

Challenges faced by HR Heads in India

In today's world, outsourcing companies increases the interaction between the employers and employees in India. Lot of Employee relations programmes are conducted to motivate the employees in all developing organisations. But still, many companies are facing some major challenges in India. Here are some insights in to the common challenges faced by Indian HR Heads to improve the support from their employees.
Recruitment
The absolute number one challenge is in the organisation is recruitment. Now a days all major players are hiring the talents with attractive pay packages with limited selection process. Recruitment is often linked to the season. Now all BPO/KPO/RPO doing recruitment in different parts of the country in order to tap the right talents. HR - Heads who is processing as per the law are framing the strategies based on the requirements. If they want to recruit 100 people the Talent Acquisition team should at least interview 1000 People. This consumes lot of paper work. Once selected we train the recruits to get them operational within 4-5 weeks.
Attrition
Attrition is considered as the enormous challenges for the HR Heads. The average BPO attrition rate was 30-35% in 2005.A Nasscom Hewitt-Associates Survey shows that the cost of attrition is 1.5 times the annual salary of an employee. Costs are due to loss of productivity, temporary replacement, loss of knowledge and new recruitment and training. Due to the rigid rules and strict monitoring the employees are affected. Major BPO Players in India are setting up a separate Employee Relations team to motivate the employees with the aim of minimizing the attrition.
Salaries and Incentives
Now a days new hires are offered a competitive salary based on their skills which attracts the Indian youngsters. Recently companies are coming up with new awards like bikes, jewels etc., for the best performers who are capable and loyal to the company. This type of gifts, financial bonuses enables the company to gain good will not only from the employees but also from the public.
Job Satisfaction
It is one of the most important element to retain the employees. When a employee is entering into the organisation he should be clear about his role and job descriptions. A Tesco employee segmenting survey in 2005indicates that there are five broad attitude segments of people working within their work force they are 25% work life balance rs; 25% percent want it all; 18% pleasure seekers; 16% live to work: 16% work to live. By understanding the needs of each segment the Head HR can tailor the employment proposition to improve retention.
Training
The training programme should focus on both interpersonal and intercultural training. And Educational Process Outsourcing HR Head says when "one candidate may be technically good but low on soft skills and the second candidate scores very well on soft skills. So what we do is take the guy lower on the technical skills and give him intensive training on the job and assign him on to a leadership profile."
People Oriented
The challenges for HR Heads in India are truly different form Challenges faced in other countries. Since the attrition rate is high in India the Indian HR Heads are are highly people oriented, where other countries HR Heads are more process and target oriented. The well being of employee on a personal level is of benefit to the organisation.
Best Cheers !!!

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