Evolving HR practices and systems in IT industry and its challenges & progress

Published in New Global Indian magazine – April 2008 Issue – © Manali

Manali H. Shah in one-on-one conversation with C. N. Rao, Chief Executive Officer (CEO) of Cybertech Systems & Software ltd, an IT company on evolving HR practices and systems in IT industry and its challenges & progress. Cybertech is mainly involved into Software Solutions and Consultancy Services for various clients overseas.

NGI: What is the current scenario of IT industry in India like?

C. N. Rao: Currently, IT industry is growing at a marginal level, not too aggressively and is neither on declining stage. There are certain issues such as for smaller IT Company like organizations who have overseas clients have the maximum risk factor these days because of dollar fluctuation, which can adversely affect the whole system. Conversely to resolve the issue at large, companies incorporate several hedging strategies to pass through the flux period.  But over all, Information Technology in India is doing very well, and has a lot of potential.

NGI: What challenge does IT face today with regards to recruitment of its employees?

C. N. Rao: Right kind of recruitment is always a challenge and a conscious concern that every HR is concentrates on, especially while mass campus recruitment. Most of invest minimum period of 2-6 months and spend funds and energy on the training period. So here, it is very essential to realize the true skill set of the recruit, his frame of mind and approach, thus to optimize on his talent and put him on to right kind of project. If this is properly done, then evident positive results of the employee will show up, which is the ultimate motive of any company.

NGI: Today where employee retention has become a serious issue, how does the IT industry cope up with such high attrition rate?

C. N. Rao: Attrition has always been there. Not only in India, but also abroad. People want to move on if they get better opportunities, high end technology, good project to work on and elevated pay package, and these are most common reasons for employees to reallocate. Here, vehemently enforcing bond system does not work, as you can’t have an employee working in an organization forcefully. If the attrition rate is high then equal employment is also there. Besides, attrition rate in this sector has comparatively declined and currently is only 25%, which is very common in other fields to. Thus, coping up with attrition isn’t really a task.

NGI: For over all progress, keeping the workforce stress free has become very essential today. So how is the challenge of ensuring the employees productivity and performance dealt with?

C. N. Rao: Along with providing regular stress busters like yoga, art of living, celebrating festivals, gymnasium and office get-always, I also think good food, healthy working conditions and a gym are a bonus for any employee – which today most of the IT companies are striving and are successful at delivering. As far as productivity and performance is concerned, regular appraisal, annual awards, get away coupons, frequent appreciation reward, on sight working opportunities like sending the employee aboard on rotational basis and giving them exposure and so on helps in improving as well as enhancing the employee morale. So these minuscule things are seen to be taken care today, and the working atmosphere is really improving in Indian IT industry.

NGI: What are the evolving practices and systems in HR that are being importantly considered these days?

C. N. Rao: Well, in current picture, every employee is like an HR. As today ‘team’ is recognized and persisted upon rather then an individual – team work, team targets and team performance is of absolute importance. So this is one of the evolving change that is to be seen in this industry. And also problems like communication barrier between HR and employees is passé.  There is more and more candid communication one would notice in an organization, especially between HR and the other departments, as they are the main nerve bridging all the departments. Over all a good sign is evolving and bring practiced.

NGI: On final words, what are the other HR practices today that ensures individual employee growth an ultimately organisations success?

C. N. Rao: A lot of company’s growth is dependent today on the HR management, thus they becoming the main skeleton of the organisation. Yes, identification of issues and involvement of HR in minutest problems, resolving them at every stage and guiding each one as a mentor leads to a strong and healthy working atmosphere and thus definite individual satisfaction. This will definitely be an affirmative boost to the success of an organisation on whole.