For India’s IT-BPM industry, its people have been the biggest differentiator and as such, it has made substantial investments in developing a future-ready workforce:
- 3.1 million: Largest private sector employer in India
- USD 1.6 billion: Investment made by the industry on training
- USD 4,000 per new recruit
- 5% man hours per annum
The industry has been implementing best practices in HR – employee engagement, leadership development, career management, skills development, etc. With a view to benchmark the industry in terms of its people connectivity, organisational culture, leadership development and employer brand, NASSCOM-Aon Hewitt published the Best Employer Study 2013:
Overall, though the IT-BPM Industry scores are healthy across the four indices, there is scope for further improvement to reach Best Employers level.
This push needs to come not only from HR but also from Business – with endorsement from Top Leadership.
Employee Engagement: >The industry’s clear areas of strength are Work Tasks, Sense of Accomplishment and Managing Performance.
However, Stay scores (employee stickiness) is relatively lower – indicating a need for firms to focus on developing career management and long term career paths for employees – job rotations, learning & development programs, senior level coaching, tools for career management and defining career path.
Effective Leadership: Scores are lower in comparison to Best Employers in aspects of people connect, strategy and business communication. This implies that IT-BPM industry leaders need to focus on improving both their people connect and the employees’ faith in their ability to truly lead a business. The key lies mainly in communication:
- Two-way communication: Dedicated time for employees; greater use of internal social media
- Execute: Leadership accountable for employee benefit programs as part of their KRA
- Going beyond Strategy: Employees mentoring leaders on their vision for the firm; ‘Shadow a Leader’ opportunities for employees
Compelling Employer Brand: For IT-BPM industry, where Employer Brand scores are good, Credibility Index – which measures the image of the firm as an employer delivering consistent employee experience – is main area of improvement.
High Performance Culture: With focus on performance metrics, the industry already has an edge as it has always been living the high performance culture. To take this to the next level, the industry needs to focus not just on competitive rewards but also increased accountability and continuous dialogue with employees.
Conclusion: For the IT-BPM industry, it is more important than ever that they develop unmatched talent practices that would equip them with capabilities for the future. An analysis of the Best Employers’ indicates:
- Best Employers have 25 per cent lower employee turnover
- Fill 40 per cent more job openings internally
- Achieve 20 per cent stronger earnings
- Achieve 40 per cent higher growth in profits
The industry has already taken numerous strides in this direction with firms like SAP Labs India, SCOPE International Pvt. Ltd., Wells Fargo India Solutions, RBS Business Services Pvt. Ltd., Ajuba Solutions India Pvt. Ltd. and Aegis Limited., being recognised as Best Employers for 2013.