Hr Concerns In The It Sector

HR concerns in the IT Sector

Human resources (HR) as a function is fast changing, since it works closely with senior management, business segments, line management and functional leaders in an IT organisation. HR management is undoubtedly one of the major challenges ahead for transnational IT companies.

The IT industry is already under stress on account of persistent problems like attrition, confidentiality, loyalty, etc. Managing HR in the knowledge-based industry is not a cakewalk for HR managers as it a multi-task responsibility. In the present scenario, HR managers are performing a variety of responsibilities. Earlier, their role was confined to administrative functions such as looking after manpower requirements and maintaining rolls for the organisation. Now it is more strategic in keeping with the demands of the industry.

A  Senior Vice-president HR, explains, "Since the IT industry is growing at an encouraging rate, the supply-demand issue will pose a major challenge for the industry, particularly for experienced professionals. Retaining the best talent will also be equally important. We can't retain professionals only by paying higher salaries and offering attractive perks; that is the not the best way. We need to create enthusiasm in their role, their work and the organization." He says organization must focuss on internal and external training programmes on a periodical basis; there is also job rotation. Every 18-24 months, professionals are placed on different processes of their choice.

Present issues

Some of the issues that the IT sector faces are managing people, motivation to adopt new technology changes, recruitment and training, performance management, development, and compensation management.

Bargaining power

Managing people in the knowledge-based industry is critical as the human resource is the soul of the organization. Since there is a high demand for knowledge workers, talented professionals often enjoy high bargaining power due to the knowledge and skills they have. The attitude is different for those who are taking up responsibilities at a lesser age and a lower level of experience. These factors have resulted in the clear shift to individualized career management from organization career commitment. Managing the pool of people talent is essential for the growth of knowledge-based sectors like IT and BPO.

Motivating the workforce

As global competition is growing rapidly, a technological edge supported by talented manpower has become crucial for survival in the market, which is why organizations give top priority to technology advancement programmes. HR managers are now performing the role of motivators for their knowledge workers to accept new changes.

Competency development

The success of the knowledge-based industry is dependent on its manpower talent pool. Hence, human capital is the real asset for any organization. This makes HR's role critical in recruiting, managing and retaining the best people available. The HR department has a clear role in this process, and determines the success rate of any organization. If HR managers are not competent enough, this will have a direct impact on the organization. There is now a need to develop competent HR professionals who are sound in HR management practices with strong business knowledge.

Recruitment and training

Recruitment has become a major function from an important sub-system in HR, particularly in the IT industry. HR managers play a vital role in creating assets for the organization in the form of quality manpower.

Another challenge for HR managers is to put systems in place to make people a perfect fit for their jobs. Skill obsolescence is rapid in the software industry. To overcome this problem, organizations give utmost priority to training and skill enhancement programmes on a continuous basis. Many IT companies are providing technical training to their employees on various platforms every quarter. Most find this regular training quite useful, apart from the feeling of security it provides.

Critical factors

Opines one HR head that the knowledge-based industry faces five critical challenges. One of the most important is talent management and development. Professionals bring with them a lot of aspirations, and to be on the competitive edge they look out for three important dimensions-learning, technology and early opportunities. A recent study conducted by a top notch IT organization showed that people join the company because of the above, and these act as a differentiating model for the organization. In the IT industry, the best practices of today may not be the best practices after some time, so it is imperative that the company constantly improve its own business-aligned HR processes to be at the leading edge. Another dimension to the challenges faced by the industry is the growing pace of talent acquisition, which creates with it the challenge of smoother assimilation of new employees into the organization fold. The pressure of delivering the best quality service in reduced time-frames calls for ensuring that employees maintain a work-life balance. Another important issue, which will continue, is retention of existing employees.

Addressing the issues

Talent Engagement & Development team at an IT organization elaborates on how they manages the challenges. The talent management and engagement team follows a two-fold approach. Contain the challenges by following best practices in two areas-compensation and non-compensation. Challenges arising due to compensation reasons are contained by continuously benchmarking their salaries with their competitors and providing merit-based salary increases. In addition, for middle and senior management, they have equity-based compensation through restricted Stock Units. They also have various employee benefit programmes. These ensure that we stay competitive on the compensation front." (For non-compensation issues, Employee care is a top priority. They value every associate and invest in their personal and professional development. They have a number of associate engagement initiatives that bring associates and their families together in learning, fun and social activities. This enhances the bonding and commitment to the organization. Continuously revising HR policies and re inventing themselves at every defining moment helps them stay closer to their valued employees.

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