Challenges faced by HR in India

Monday, 27 August 2012 11:14 Written by
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image_miniThe nature of Human Resource Management System is dynamic and widely fragmented which makes it difficult to follow a certain pattern of function. Due to the lack of any set rules and regulations to follow, it is obvious for the industry to face challenges considering its tremendous growth in the past few years. Expert research teams including industry players have made an approximation of 21% growth in last 4 years in India. Following are a few day-to-day challenges that HR industry is struggling to overcome:   

Hesitation to outsource: Organizations continue to grow their business prospects, which lead to additional human chain and promotions and salary revisions. As projects pile up and organization face the changes and starts adapting to them, the workload exceeds all limits and there is genuine demand to outsource certain sections of work to an external expert service provider. Although outsourcing has become popular recently, still many companies need to break the barrier and bridge this gap by trusting the idea of outsourcing.

New roles of HR: The increasing pressure of clients, cost limits, productivity issues etc. demands high levels of talent. This cannot be accomplished by only hiring talented pool of employees from the market; there is a need to understand the implications of learning and development of employees to enhance the work output. HR no longer refers to just human resources and has become synonymous as an umbrella term for various other functions within the organization ranging from recruitment to finance, learning and development etc. The HR heads need to accept this challenge, gather knowledge and spread it in most effective way to various HR personnel in the company.

High attrition rate: Indian companies now have a global presence and many foreign investors have outsourced their business here because of the availability of talent at low costs. This has created many job opportunities and higher salary range especially in the IT and ITES sector. This has led to lower loyalty levels and employees switch companies more often for better opportunities. This is one of the biggest challenges faced by HR, as they need to match their compensation figures with the industry and provide extra benefits to their employees to retain them for a longer period of time.

Managing Soft Skills issue: Employees are hired by their level of technical skills to match the work. However, as most clients are out of India, there is a need to cater to the diversity. This poses a challenge for the HR to find an employee who is talented as well as have decent soft skills to communicate with oversees clients.

These are a few of the many challenges faced by HR and addressing these is an even bigger challenge as every company has a unique structure.


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