As people explore new options on the career front –looking for an experience rather than money -organizations expect employees to become even more discerning in 2016. According to a survey of around 100 top executives comprising CEOs, CXOs and HR heads across industries in India, this will change the manner in which companies look at retaining people.
The survey by Executive Access, conducted exclusively for TOI, says retention of employees will be priority No. 1.This aspect was given the highest score of 32% by the survey . Given the concerns around quality of talent, an equal weightage of 20% was given to talent acquisition and learning and development in the survey by the executive search firm.
Although a lot of emphasis was put on performance management and rewards and recognition in the last couple of years, these figured way down at No. 4 and No. 5 on the list.
People are not just looking for jobs for money , it’s now more about job satisfaction and self actualization. The study shows a huge difference between retention and performance mana gement system as a priority for organizations. The old school of retaining people by merely giving more money is not working any more as employee needs are changing fast. Some HR heads fear losing people to entrepreneurial activity more than ever this year, he said. Employees are in creasingly exploring the new and are not ready to bargain that on money terms with existing organizations. So counter-offers won’t work any more. Alarmingly , some executi ves, feel attrition rates could even double in 2016.Organizations’ ability to retain and curtail attrition levels will be critical.
Organizational cultures and leadership reputation, he said, will become stronger hooks for both attraction and retention.
Talent retention will be a huge differentiator in the long run. 2015 continued to see the war for talent. Firms went all out to woo talent through compensation, but this may not be a sustainable business strategy . Also, at a time when digital is growing at a fast pace. Talent acquisition will be the top priority in addition to learning and capability development programmes “as clients are coming to expect deeper specialization and industry perspectives“. The firm is a division of Sapient, which is a global services company focused around the digital world.
“Talent is spoilt for choice and prefer to choose clients brands than the company they work for. This will create dual challenge for the companies hold onto their high performers who are being courted with greater intensity , while building new capabilities to serve client demand,“ said Bhatnagar.
With regard to job creation in 2016, the majority view, says the study , is that it would be about 10%. Most HR heads (38%) feel that it will be 5-10% and nearly a third are more bullish and predict a 10-15% growth. The market will remain choppy with sectoral variations, hopeful the Union Budget will trigger business growth and hence jobs. “If that were to happen, companies will be well advised to focus on key talent retention and an acrossthe-board heightened employee engagement.
Another factor which could undergo a change is the way companies look at learning and development (L&D). This will be the key , but with respect to inhouse training and learning on the job rather than sending people for external L&D. It is indicative of the fact that companies don’t want to spend too much on external L&D due to costcutting.
Retaining key talent, especially the millennials, would mean they need to learn new things faster as knowledge and skills can become obsolete within months.
Source: Times of India 31st Dec’2015