July 20, 2009 11:49:59 pm
With a significant slowdown being witnessed in recruitment by Indian companies the focus is now on retention and selective hiring,driven purely by critical skills along with business needs,a study says.
This study carried out by Deloitte,an audit,tax,finance and consulting firm,on the theme Employee Engagement in Recessionary Times surveyed companies in India to see how they are managing employee engagement in todays turbulent economy.
The Deloitte survey across 41 companies found that the companies are heavily investing in building a strong leadership pipeline and identifying,engaging and developing high-performing employees from within the organisation.
The survey found that there has been an overall decrease in attrition rates. Around 23 per cent of companies surveyed reported attrition figures of less than 5 per cent and 44 per cent of companies reported figures between 5 and 10 per cent. However,a few companies in the retail and pharma sectors reported higher attrition figures than the overall attrition faced by companies. It was revealed that 65 per cent was voluntary attrition and the rest involuntary.
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Most companies surveyed have stated building leadership pipeline (68 per cent),retention of critical workforce (51 per cent) and succession planning (51per cent).
Employee communication has taken on an even greater importance,especially to counter low employee morale. More than 90 per cent of the companies surveyed stated that there has been regular communication to employees about the companys performance and future plans. About 78 per cent of companies surveyed stated that the rewards structure has remained relatively unchanged.
P Thiruvengadam,senior director,Deloitte said,As the market dynamics and customer preferences change,companies are beginning to focus on innovative practices related to talent management and at the same time driving measures to cut overall operational costs. Companies appreciate that to remain viable and competitive both in the short and long term,they must focus on and improve their ability to attract,develop and retain top talent.
Other important findings include: companies undertaking re-deployment of resources to maximise outputs,organisational restructuring to eliminate layers and redundant groups and planning to use the workforce on improving future flexibility.
Companies are also redefining the mix of full-time,part-time,regular and contract employees and also undertaking additional initiatives and training programs to multi-skill people,the survey stated.
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