WHY HRM??

NO MATTER WHAT PROFESSION…

PEOPLE NEED TO GET TRAINED AND MOTIVATED…

TO ACHIEVE……………….

TARGET’S

FOR ALL THESE TO HAPPEN WE NEED TO PROPERLY MANAGE PEOPLE AND TO ACHIEVE ALL THIS WE NEED…

One of the biggest problems faced by today's companies is

High turnover……

FACTS TO THINK ABOUT… • 90% COMPANIES HAVE RETENTION

PROBLEMS • 50% OF THESE ARE MANUFACTURING,

SERVICES AND MARKETING COMPANIES • THE SMALL-SIZED AND MEDIUM-SIZED

COMPANIES LOSE MORE PEOPLE • TURNOVER RATES ARE AS HIGH AS 7% IN

MANUFACTURING AND 13% IN THE HI-TECH INDUSTRY

• EMPLOYEES GO TO - SMALL COMPANIES-FOR EXCITING OPPORTUNITIES AND GREATER IDENTITY / LARGE COMPANIES-FOR DEFINED ROLES, CLEARER CAREER PATHS AND BETTER HR SYSTEMS

---- AIMA - BT Survey, July 1999.

Monotony (repetitiveness) and lack of challenge Lack of responsibility

More money Lack of value-addition to career

Lack of good developmental projects Idle(inactive) time 'sitting on the bench'

Lack of transparency 'Promises not kept' and ill-treatment

Organization culture Lack of quality consciousness

The old goal of HR Management - to minimize

overall

employee turnover -

needs to be replaced by a new goal: to influence

who leaves and when he leaves

•Ensure realistic expectations among applicants and avoid hype (i.e., do not promise a paradise) •Emphasize and test soft-skills in selection

•Build good work environment, good house-keeping, open and informal culture, concierge (caretaker)

services and so on •Share the wealth through profit-sharing etc. •Train in soft-skills regularly and intensively

•Train in business skills and team-working

Get top management involved in training •Insist on sensible schedules, give breaks

•Move up the value chain - from body shopping to programming to business solutions to product

development to technology development

Keep structures open, flexible, non-bureaucratic through small teams in large setups

Ensure first rate projects in joint ventures Encourage entrepreneurship in comparison with idea

generators, venture capital Certifications and encouraging mastery in

applications Inter-project, technical mobility and flexibility

• Ideas for compensation structure : 1.Up to 50% as Base pay per region, skill-set

and experience2. 10% of Base pay as annual increment 3.Tax-free benefits like HRA, lunch etc 4.Skill up gradation reimbursements

5.Pay for performance - project-based profit sharing, early completion bonus etc.

6.Tenure-based rewards 7.Pay directly for facilities offered - insurance

premium and not cash and so on

•In some cases, companies have found that high turnover isn't as big a problem as it appears. •If there's a large pool of talented employees available, it might want to focus on recruitment rather than retention. •since new hires have lower salaries than long-term employees, the company is able to keep a lid on compensation levels. •Cooperating with competitors is another way of dealing with retention.