THE MAJOR HR challenge facing multinational companies offshoring to India is not in recruiting, but in the retention of talent in a growth market
THE MAJOR HR challenge facing multinational companies offshoring to India is not in recruiting, but in the retention of talent in a growth market.
“The market has moved on and companies are being forced to review their strategy for reducing the cost of employee turnover,” according to Bob Charles, Watson Wyatt’s head of employee benefits consulting in Asia-Pacific.
Many companies have been confronted with the surprise cost of high staff turnover which has negatively impacted the cost savings of offshoring. “Retaining quality people is a CEO issue in India, not purely an issue for HR,” said Charles.
“In the past companies have strived to retain staff with competitive pay and developing a social and attractive work environment but increasingly that isn’t enough. Employees are looking to work for organisations which they perceive to be professional in their business operations on the basis that experience with a quality employer is the best form of training.”
HR in India has tended to focus most on benchmarking base pay to try to avoid losing staff to higher paying competitors. But increasingly employers are recognising that this alone cannot ensure low turnover –indeed, not all employers can pay above market rates.
Watson Wyatt said there is a need to focus more attention on performance related pay, incentive plans and retirement benefits.
“There has never been a greater need for HR professionals in India,”said Charles.
“Offering competitive salaries is important but not the whole story. Employers have been overly cautious in not wishing to develop talent for competitors. It is a catch 22. If companies do not invest in the career development of their people then employees will move on quickly anyway.”
