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HR Practices in India - 'Instant Gratification has to be Replaced by Will to Learn and Patience'

SME WORLD Bureau
Oct 2010

Experts often claim that employment is rising with the surge of the economy across all the industry verticals. Skilled professionals are getting more options to soar in their career. New employment opportunities are also emerging and showcasing the strength of our economy.

But it is also true that attrition rate is rising. Professionals are now switching to the concept of 'loyalty to organisation' to 'loyalty to the profession'. Desire to carry more in a very short span of time professionals have lost their patience to learn. Result is that very few professionals are there, who want to serve a particular company for a long time.

Another trend is also rising in the Indian economy. Despite booming economy, rising level of literacy, and growing opportunities, unemployment figure is also high. What could be the reasons? Why unemployment is also rising?

We discussed with Bharath Krishna Sankar, Chairman & Managing Director, Aparajitha Corporate Services Ltd about the trends that are emerging in Indian HR industry.

No doubt employment has risen during last two decades. But attrition rate is also high. What are the reasons?

The rise of employment opportunities itself is a reason for attrition as employees have a wider range of jobs to choose from. The concept of 'loyalty to the profession' more than 'loyalty to an organisation' is being talked about today. Also, a tendency to climb up the ladder diagonally across companies is there as that gives an opportunity for pay and designation betterment in short succession.

Every professional wants to join an MNC or a large corporate. Where are the professionals for small and mid size companies?

That is an issue that has to be thought of. There is a dearth of professionals for small and mid size companies today. There are a few who believe that getting into smaller companies provides them with their space and possibilities of better growth and recognition. However, brand pull, better compensation structures and working infrastructure and amenities draw most people to the MNCs or large corporates. Small and mid size companies have to position themselves quite well with the prospective employees by making their HR practices up to date and increased delegation combined with higher possibilities of decision making and empowerment for the professional.

SMEs are not supposed to be small always. All large companies were SMEs at a time. Even then professionals always rush behind the large companies. Why?

As mentioned earlier, it is the brand and image of the large organizations, the amenities, working infrastructure and possibility the seeming stability associated with those companies during all parts of the business cycle could be the factors that make professionals prefer large companies. Also, the thought that exposure could be higher and the learning opportunities better could be driving forces too in making that decision.

Despite growing number of employment across all the industry verticals unemployment is also high. Reasons?

It is more about getting the right pegs for the right holes. With greater emphasis on the service industry catering to employment numbers, the quality of service is determined by the quality of people with the right knowledge, attitude and skills. Our education system at all levels is not tuned to turning out 'work ready' students. In my opinion, the world of academics is pretty different from the world of work and it invariable falls on the employer to fill this gap. This is both a time consuming and expensive process. Disillusionment sets in at either end (the employer and the employee) sooner than later in the process. The academic set up has started realizing this gap but a lot more needs to be done to set it right as an on going process.

Gap between professionally literates and industry requirements has given thrust to the rise of HR services by independent organisations. How do you, at Aparajitha, see the growth trend of HR services in India?

To read full article please subsribe SME WORLD

1 Comments >>

Prof.Dr.S.K.Baral

09 Dec 2010 (07:34:28)

Talent retention is identified as the second most HR challenge to critically meet the business demands beyond tomorrow. Organizations can use a combination of four strategies viz., pay, benefits, learning and development and work environment to create and retain a pool of talented employees for the organization. Successful companies are continuously innovating and inventing new ways to keep talented employees stick to the organization which is changing the face HR practices in India.

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