| This century has belonged to the manufacturing sector. | | | | responsibilities to satisfy & motivate their |
| Starting from the days of Fords assembly line to the | | | | workforce! |
| present emphasis on quality systems. The next | | | | - ATTRECTING THE BEST TALENT |
| millennium will belong to the convergence of Information | | | | In a tight job market, many organizations often |
| Technology. How organisations are able to leverage IT | | | | experience precipitous and simultaneous demands for |
| to get advantage in a highly competitive market will be | | | | the same kinds of professionals. In their quest for |
| the key to success. Leading the way would be the | | | | manpower, they are cajoling talent around the world. In |
| organisations which are in the IT industry. These are | | | | such a seller's market, software companies are striving |
| the ones which have shown that the quickest way to | | | | to understand which organizational, job, and reward |
| business excellence would be through optimum | | | | factors contribute to attracting the best talent one |
| utilisation of IT. | | | | having the right blend of technical and person-bound |
| The IT boom has brought with it, its own set of | | | | skills. This would mean a knowledge of 'the tools of the |
| challenges to organisations. How to put in place | | | | trade' combined with conceptualization and |
| systems and process that are in tune with the IT | | | | communication skills, capacity for analytical and logical |
| revolution, how to strategies and compete in the IT | | | | thinking, leadership and team building, creativity and |
| era? etc. But a major challenge that the IT industry per | | | | innovation. The Indian software industry suffers from a |
| se has been facing is in the field of Human Resource | | | | shortage of experienced people such as systems |
| Management. | | | | analysts and project managers, and attracting them is |
| The IT industry is a service industry. How well are you | | | | a key HR challenge. |
| able to offer quality service to individuals and | | | | - COMPENSATION AND REWARD |
| organisations will determine the success of your | | | | Increasing demands of technology coupled with a |
| organisation. This leads us to the fact that the | | | | short supply of professionals (with the requisite |
| creativity, innovativeness, knowledge and skill of your | | | | expertise) has increased the costs of delivering the |
| employees are your important assets. How you are | | | | technology. This makes incentive compensation a |
| able to manage these assets is the challenge that the | | | | significant feature, with the result that software |
| IT industry is facing. It is not capital or finance or | | | | companies have moved from conventional |
| marketing management that gives the competitive | | | | pay-for-time methods to a combination of |
| edge but rather how well you are able to manage | | | | pay-for-knowledge and pay-for-performance plans. |
| your human resources whose intellectual applications | | | | With the determinants of pay being profit, performance |
| drive your business. | | | | and value-addition, emphasis is now on profit sharing |
| Recruitment has become an important sub system in | | | | (employee stock option plans) or performance-based |
| HR especially in the IT industry. When your major | | | | pay, keeping in view the long-term organizational |
| asset are your Human Resources, it is important that | | | | objectives rather than short-term production-based |
| quality people join your organisation. | | | | bonuses. Skills, competencies, and commitment |
| How you are able to fine tune your recruitment | | | | supersede loyalty, hard work and length of service. |
| process in a manner that you are able to get the best | | | | This pressurizes HR teams to devise optimized |
| talent available and how well you have been able to | | | | compensation packages, although compensation is not |
| put systems in place so that the people that you | | | | the motivator in this industry. |
| recruit are a perfect fit for the job and the organisation | | | | - ENCOURAGING QUALITY AND CUSTOMER |
| is one of the major challenges. | | | | FOCUS |
| The challenge does not stop with recruiting the right | | | | Today`s corporate culture needs to actively support |
| person but with how you are going to manage the | | | | quality and customer orientation. With globalization and |
| performance of your employees. The challenge would | | | | rapid technological change, quality is of utmost |
| be to create a performance culture wherein | | | | importance for the Indian companies, which earn most |
| opportunities are provided for enhanced performance | | | | of their revenues through exports. Hence, the HR |
| and where giving out optimum performance becomes | | | | professional as a strategic partner needs to |
| a way of life. | | | | encourage a culture of superior quality to ensure |
| Training & and Development is another area | | | | customer satisfaction. To be competitive today, an |
| where challenges arise. In the IT industry training takes | | | | organization needs to be customer responsive. |
| a new connotation. It will not be just identifying training | | | | Responsiveness includes innovation, quick |
| needs and giving the required training. It is foreseeing | | | | decision-making, leading an industry in price or value, |
| and anticipating the requirements and develop suitable | | | | and effectively linking with suppliers and vendors to |
| training so that the employees are well equipped to | | | | build a value chain for customers. Employee attitudes |
| handle the challenges forehand.The IT industry is one | | | | correlate highly with customer attitude. The shift to a |
| of the high paying industries. Since it is also very | | | | customer focus redirects attention from the firm to the |
| competitive, vying with each other to attract the best | | | | value chain in which it is embedded. HR practices |
| talent, offering the best possible compensation | | | | within a firm should consequently be extended to |
| package to their employees is in itself a challenge. | | | | suppliers and customers outside the firm. |
| But the real challenge would be how we are able to | | | | Where HR can add the most value |
| incorporate all the sub systems in HR and help them in | | | | - Start the culture conversation at all levels. One way |
| achieving the ultimate goal - exceptional performance. | | | | to accomplish this is to conduct a cultural assessment |
| In a high performance driven industry like IT, this | | | | or audit of your organisation through employee |
| becomes all the more important. People have to be | | | | surveys, focus groups or interviews. Review your |
| groomed to get in tune with the performance culture. | | | | organisational history, leadership styles, HR |
| Creating an environment that stimulates the creation of | | | | programming and industry practices to determine what |
| knowledge, its sustenance and its dissipation | | | | currently drives and reinforces the culture. Finally, what |
| throughout the organisation will be the challenge for | | | | is your customer experience? What cultural elements |
| organisations in the future. How to go about doing this | | | | are obvious to customers? Is culture aligned with |
| will fall on the HR department. No longer will the HR | | | | business strategy? What needs to change? This can |
| department carry on with its traditional functions. That | | | | be the basis for healthy discussion at team meetings |
| will take care by Human Resource Information | | | | and employee chat sessions. |
| Systems that will be put in place. The function would | | | | - Develop a business case for cultural change. Why is |
| be to build and sustain a performance driven culture. | | | | the change needed? How will desired changes in |
| The role will shift to that of a facilitator. Facilitate the | | | | culture support the business strategy? |
| process of change, for change would be the only thing | | | | - Work with the senior leadership team to determine |
| that will be constant in the future. HR will have to | | | | the desired culture. Core values, desired behaviours |
| involve the whole organisation in this process and act | | | | and shared vision are essential for a positive culture |
| as a guide, counselor and facilitator. In the future the | | | | change effort to succeed. Every leader must |
| competitive edge that the organisations will get will only | | | | embrace the need to change. |
| be through their human resources. How organisations | | | | - Develop an agenda or action plan for enhancing the |
| are able to manage them, will determine whether they | | | | culture or bringing about change. Start with the highest |
| will run the race or be left behind. | | | | priorities and work on the toughest issues. For your |
| HOW THESE CHALLENGES HAVE AFFECTED US | | | | culture to become self replicating, the way things are |
| : | | | | done will have to reinforce the core values and the |
| Any organisation in the IT industry will have to face | | | | culture. |
| these challenges.We are leaders in the industry. And | | | | - Communicate what needs to change and why. Solicit |
| the reason we are leaders is of the fact that we have | | | | input from people. Once the needed changes and |
| been able to meet these challenges quite effectively. | | | | process for change is defined, tell people what is |
| As far as recruitment is concerned we have been | | | | expected. What are the rewards for changing, and the |
| able to address the issue effectively. We have an | | | | consequences for more of the same. |
| excellent databank where updating takes place on a | | | | - Change the organisational structure to enable change. |
| daily basis. This serves as the major chunk that | | | | Find new ways to accomplish work tasks. Use teams |
| addresses our recruitment needs. Further we also use | | | | for one-time projects. Broaden roles and responsibilities. |
| the services of placement agencies. The real catch | | | | - Acquire talent based on cultural fit. Identify the |
| lies in our selection process. All the probable | | | | characteristics of people who exhibit those behaviours |
| candidates have to go through a battery of tests that | | | | that you've identified as desirable. The people who fit |
| not only test their technical skills but their all round | | | | and thrive in your culture will perpetuate that culture in |
| personality to find out if they will fit into the job as well | | | | everything they do. If you have to choose between |
| as into our organisations culture. The rigorous selection | | | | the candidate who has better skills or knowledge but |
| process ensures that we get people who will fit into a | | | | doesn't fit, and a candidate who is slightly less qualified |
| culture that is our own. But this challenge of recruiting | | | | but fits culturally, choose the slightly less qualified |
| the right person is a continuos one and one that needs | | | | person and provide the necessary training or |
| continuos refinement. | | | | on-the-job experience. Get rid of those who don't fit in |
| Performance management is a practice that few | | | | the culture. |
| organisations follow. We happen to be one of them. | | | | - Redesign your on-boarding process. Make sure that |
| We have put in place a system that evaluates the | | | | every new hire knows what it will take to fit in, and |
| organisation as a whole, the systems and processes | | | | understands the cultural imperatives. Talk about the |
| that are followed in our organisation and the | | | | ways of working that lead to success and those that |
| performers. This is done on a contineous basis and the | | | | will derail careers. Create legendary stories of |
| feedback is passed on to the concerned people to | | | | successes and failures. |
| take corrective measures. Thus we have been able to | | | | - Create cultural messages. Be sure that every |
| tackle the question of performance in a fairly efficient | | | | meeting, every training program, every communication |
| manner and the quality of our services serve as a | | | | to people includes cultural messaging and reinforces |
| testimony for this. | | | | the values, mission, traditions and practices. |
| In the software industry where skill reduncy is very | | | | - Involve everyone. Southwest Airlines has a culture |
| fast there is this need for giving technical training to the | | | | committee, but there are many ways to get people |
| employees on a continuos basis. We are one of the | | | | involved. Try focus groups around topics. Form cross |
| very few who provide our employees with the | | | | functional teams. Call random groups of employees |
| opportunity to get trained on various platforms. This | | | | together for monthly breakfast or lunch meetings. |
| apart from keeping our employees highly skilled, also | | | | Engage the help and support of a group of passionate, |
| gives them a sense of security. Apart from this, | | | | committed people to identify cultural disconnects and |
| training is also given in personality development, team | | | | recommend remedies. |
| working related areas etc to enhance the quality of life | | | | - Build an internal brand that supports the external |
| of our employees. | | | | brand. Make a promise to deliver a consistent |
| As discussed earlier the most important of all | | | | employee experience. Be sure that your employees |
| challenges is in culture building. Now all our efforts are | | | | know the differentiating elements in their experience in |
| diverted in bringing about a performance driven culture. | | | | the organisation that will enhance their work lives and |
| The very tight schedule ensures that our employees | | | | careers. Begin to create an employer of choice |
| have to perform to the optimum. Apart from this the | | | | reputation internally and externally. |
| various systems that we have put in place like the | | | | - Recognise and reward results. Your recognition and |
| performance management system helps us to work | | | | rewards should support the culture that you are |
| towards achieving a performance driven culture. We | | | | working to reinforce. |
| are constantly refining our practices in order create an | | | | - Cultivate leaders who promote your culture. Develop |
| atmosphere where our employees are able to | | | | excellent leaders who will propel the culture down the |
| perform to their full potential. | | | | ranks. Identify high potential leaders and promote them. |
| MAJOR ISSUES FACED IN RECRUITMENT, | | | | Invest in leadership development programs. Be sure |
| ATTRITION AND RETENTION: | | | | content reinforces cultural messages. Keep the good |
| - RECRUITMENT: | | | | ones, and get rid of those who are unable to pass the |
| The major issue would be of getting the right type of | | | | culture on. |
| person. The issue would be that we first have to find | | | | - Make it interesting and fun. Create contests, activities |
| a person with the required skills and experience, and | | | | that enhance the culture. Decorate the office in |
| also he must be suitable for our organisation. Finding | | | | inspiring ways. Celebrations and events can reinforce |
| such a suitable person is the obstacle that we will | | | | the message. |
| have to cross over. | | | | - Use of HR tools. Something as mundane as the |
| - ATTRITION AND RETENTION: | | | | annual benefits enrollment can be a source of key |
| Software is one of the industry with the highest | | | | cultural messages. Every training class should reinforce |
| attrition rate. The challenge facing software companies | | | | the basic behaviors and values that reinforce the |
| is how to keep this as low as possible. Various | | | | culture. Performance review forms should measure |
| companies adopt different techniques to retain their | | | | cultural fit, as well as, job performance. |
| employees. Most of them offer exorbitant pay | | | | - No one should be locked out of the efforts to build a |
| packets. But the attrition rate is low compared to | | | | high-performance culture. Culture has to become the |
| industry standards. Though our compensation has | | | | DNA that forms the building blocks over everything |
| been on par with what the industry is offering, that's | | | | else. So the entire organisation must have a role in |
| not the reason why our rate is low. It has to do with | | | | keeping it alive. Work with corporate communications, |
| the opportunities that are offered to our employees | | | | advertising, and marketing to capture the culture |
| and organisational climate prevailing here. Our | | | | messages and tout these internally and externally. |
| employees are given the opportunity to learn and | | | | With lifetime employment in one company not on the |
| grow in the company itself. They are given a lot of | | | | agenda of most employees, jobs will become short |
| technical training and exposure to various types of | | | | term. Today's high-tech employees desire a continuous |
| project. The challenging work makes it difficult to leave | | | | up-gradation of skills, and want work to be exciting and |
| our organisation. | | | | entertaining a trend that requires designing work |
| - WORK FORCE RETENTION AND MOTIVATION | | | | systems that fulfill such expectations. As employees |
| Retention and motivation of personnel are major HR | | | | gain greater expertise and control over their careers, |
| concerns today. People in management of human | | | | they would reinvest their gain back into their work. HR |
| capital in IT organizations has observed that the | | | | practitioners must also play a proactive role in |
| average tenure for an IT professional is less than | | | | software industry. As business partners, they need to |
| three years. Further, the use of new technologies, the | | | | be aware of business strategies, and the opportunities |
| support of learning and training, and a challenging | | | | and threats facing the organization. As strategists, HR |
| environment ranked higher than competitive pay | | | | professionals require to achieve integration and fit to |
| structures as effective retention practices. Our own | | | | an organization's business strategy. As interventionists, |
| recent survey of 1028 software professionals from 14 | | | | they need to adopt an all-embracing approach to |
| Indian software companies, showed that while the | | | | understanding organizational issues, and their effect on |
| professional gave importance to personal and cultural | | | | people. |
| job-fit, HR managers believed that the key to retention | | | | Finally, as innovators, they should introduce new |
| was salary and career satisfaction. Money was a | | | | processes and procedures, which they believe will |
| prime motivator for 'starters', but for those into their | | | | increase organizational effectiveness. With the advent |
| third or fourth jobs, their value-addition to the | | | | of a work situation where more and more companies |
| organization was more important. Monetarily, offering | | | | are having to concede that their valued employees are |
| 'the best salaries in industry' is the minimum every | | | | leaving them, a new concept of career and human |
| company is doing, apart from performance-based | | | | resource management is bound to emerge. The focus |
| bonuses, long-service awards, and stock options. Many | | | | of this new paradigm should not only be to attract, |
| organizations frequently conduct employee satisfaction | | | | motivate and retain key 'knowledge workers', but also |
| and organization climate surveys, and are setting up | | | | on how to reinvent careers when the loyalty of the |
| Manpower Allocation Cells (MAC) to assign 'the right | | | | employees is to their 'brain ware' rather than to the |
| project to the right person'. In fact, some are even | | | | organization. |
| helping employees with their personal and domestic | | | | |