Tuesday, June 05, 2007

HR Talent and Attrition

HR talent and competency development has been a cause of concern for industry over the past few years and the growing requirement for quality HR professional is evident by the increasing HR attritions numbers over the last few years. It would be really interesting to analyze the HR attrition data of the organizations in India and look at the reasons for high exits. Gautam , Sanjay and Astha have already discussed this alarming trend which is eroding the credibility of HR professionals due to lack of retention plans for HR attritions.

HR as a career option has evolved over the last few years and HR professionals are no more content playing second fiddle as facilitators.Mostly they are continuously struggling to keep pace with the ever growing challenge of managing operational efficiency and contain attrition. Over the years some organizations have been very successful in integrating HR practices as part of their long term business strategy and have even gone to the extent of making HR a profit centre. This has made HR as an attractive career choice and it has become more competitive than ever before. The evolution of HR as a business partner also means that today HR also plays effective role in managing business and ensuring that it’s no more just a cost centre and a maintenance function.

Some organizations have not been able to make the transformation and HR continues to play the role of glorified administrators. Many organizations have failed to respond to the HR paradigm which goes beyond the clichĂ© of generalist vrs the specialist or as Anuradha puts it as push vrs pull role. The challenge lies in finding a more comprehensive and integrated HR roles in organization today.HR career development and learning is also something which needs to be addressed within organizations. Some organizations give HR function the space and support to become the driver of change and strategy execution. Lack of well defined career path with adequate reward and compensation at par with other business functions is also a cause of high attrition in HR. In some organization the specialist and generalist functions lack collaboration approach and always a cause of internal discontent within HR. It’s almost similar to left hand not knowing what right hand is doing or blaming each other in case things don’t work out.

The other possible reason for high HR attrition is the growing need for skilled HR professionals in the country. As this report suggests that the supply-demand gap in the HR industry is overwhelming. The country produces around 5,000 fresh HR professionals every year.

According to industry estimates, the economy is expected to generate 80 million jobs in the next five years. Assuming that the industry needs one HR manager for every 500 people (the ideal ratio being 1:200), there would be a shortfall of more than one lakh professionals in the area.

To bridge the numbers and the competency gap among HR professionals, NHRD along with CII and XLRI has embarked on a unique initiative to identify competencies required for the profession and also help people develop them. NHRD and CII have worked on a framework of competencies required for a HR manager. They have now partnered with XLRI, Jamshedpur, to start a development centre based on the framework. HR professionals will be assessed based on four competency types: functional, behavioural, technical and generic. The development centre will position HR managers at four levels: basic, competent, advanced and expert. The process, however, does not end with the assessment.

Sure we are heading for exciting time ahead ;o)

PS: Posting has been low due to high professional commitments and other pending projects. I was also away on a short holiday trip and you can check out some of the pictures here and here.

1 comment:

Scott said...

Interesting. I have had similar issues in the past both personally and when recruiting HR professionals in the UK. It seems to me that there are a number of things going on. In the UK the professional body the CIPD appears confused to me and they still train many HR professionals to be, at best, poor employment lawyers. Secondly, I like to think of HR as, at leats in part, people risk management. The problem is that too many HR people see the profession as some sort of internal thought police!