Over the last two years we have seen a remarkable change. A growing number of HR professionals are thinking like Profit Centre professionals, with focus on initiatives that develop and transform these departments into strategy and profit centers.
The Deloitte Human Capital Trends 2013 report identifies “thinking like an economist” as most essential for HR professionals. With increase in deficit of necessary technical and leadership skills, organizations, big and small, have bee forced to innovate.
These innovations are illustrated by the following examples:
1. Salary is a hygiene factor
Salary is no longer a differentiator. On average, the difference is around 10% of median. Hence, the smarter companies are investing in incentives that includemore meaningful career opportunities, an awesome culture, employee benefits, and work environment.
2. Talent harvesting
Companies are looking ahead and reaching out farther, wider, and earlier – to harvest their talent group. On average, students have around 3 internship offers while still in college (source- letsintern.com); and at 2-4 year level a techie follows over 7 companies on Twitter.
3. Focus on local markets
Google and Microsoft started the trend of setting up R&D Centers in Hyderabad to attract local talent. Hyundai, Freescale, Dupont and others have followed suit. The strategy is to leverage local knowledge to corner talent. Tier-II and Tier-III cities such Bhubaneswar and Pune are seeing massive investments, as well.
4. Cross Training opportunities
Recently, a Senior Software Engineer from one of the top IT Services companies, described being given more of a liberal hand in UI/UX for a particular mobile development assignment. With attrition beating previous averages, such initiatives have extended beyond the few forward thinking managers – and are being used as a strategic initiative to retain people.
These are just a few of the ways organizations have overcome the talent crunch to attract and retain their target talent pool.
So what do you think about them? Are there any other philosophies that we should all follow?