Fair reward, clear strategies to help cos retain talent: Hay Group

India's Most Admired Companies make sure that their packages are competitive with the market, and they strike the balance between external competitiveness and internal fairness, says company MD, Gaurav Lahiri

In the "eye of an employee turnover storm", Indian companies need to seriously focus on factors such as clarity about business strategies and fair compensation to retain talent, says global HR consultancy Hay Group.

 

Citing the practices of the country's most admired companies, which have been able to hire, harness and retain top talent, Hay Group said such entities depend on five factors for talent management.

 

They are providing clarity on strategies, instilling confidence, encouraging employees to reach their potential, enabling them to work better and aligning rewards, it said.

 

"The economic upturn is expected to come with a risk that will have implications for talent management -driven by an ambitious middle class, employers at India Inc will likely face a talent crisis in the coming year," Hay Group India Managing Director Gaurav Lahiri told PTI.

 

He said that already employees are starting to seek new job opportunities in sector where growth is returning.

 

"Given that we are in the eye of an employee turnover storm. In order to retain their top talent, organisations in India must give serious thought to the factors that drive employee commitment," he said.

 

Among the India's Most Admired Companies list, TCS is at the top on the talent criteria. It is followed by Hindustan Unilever (2), ITC (3), Infosys (4) and L&T (5), as per a Hay Group survey.

 

"Employees demand to be reasonably compensated for the work they do, but there is more to fair reward than the right salary and bonus.

 

"India's Most Admired Companies make sure that their packages are competitive with the market, and they strike the balance between external competitiveness and internal fairness," Lahiri said.

 

As per recent research findings by Hay Group, India is expected to see an employee turnover rate of about 26.9% this year, the highest in the Asia-Pacific region. The attrition rate is further projected to rise to 27.5% in 2014.

 

Emphasising on the need to have clear and measurable value in talent management, he said this is the right time for talent management strategies to focus on employees with mission critical skills, high potential and those holding crucial roles.

 

"At the heart of talent management lies a conundrum the more resources organisations apply to try and find a route through the maze, the more possible options or routes they seem to discover. They, therefore, get lost," Lahiri said.