Judicious people investment strategies needed to attract and retain talent
Itís never been so critical for small and medium enterprises (SMEs) as today to focus on attracting and retaining sound talent to cope with the ever changing market conditions and technological upheavals. The economic slowdown this year has prompted SMEs to be judicious in their approach to business growth and people investment. Rather than scaling up operations, the sector is now looking to focus on operational excellence, and this has reflected in their manpower needs as well.
For instance, employment for the year was rather stagnant in most sectors. Net employment in the current year grew only by 8%. Manufacturing, the mainstay of 67% SMEs, saw a decline in job levels in the second quarter and overall stagnation in 2012. The good news is that the sector can keep up its growth momentum through innovative HR practices that minimise employee spend.
Social media: SMEs have to enter the space of social media to attract the right people at the right cost and quality; entering the new age media to bring a brand positioning and recall value would go a long way in letting the pool of future employees know about the enterpriseís values, ethics and goals. The effect of social media branding would be not just working in the mind space to attract people but also leaving a technological lead for creating Ďan alumni effect.í This is linked to the next optionó crowd sourcing.
Crowd sourcing: Another novel way adopted by tech-savvy SMEs is crowd sourcing, a recent concept that involves outsourcing to online communities tasks that were traditionally performed by an employee or an outsourcing unit. Crowd sourcing enables companies to send out an open call to a large group or crowd available onlineócalled the freelance marketplaceóand get quality job done online at best possible prices. Crowd sourcing is largely used in areas such as software, writing, data entry and design.
Outsourcing & vendor consolidation: Though both are diverse strategies, these are interlinked. The growing workforce complexities and the lack of skilled labour have forced the SME sector to rope in professional agencies to make their organisations more structured. Apart from recruiting, SMEs are availing of professional help in performance management, compensation, rewards and HR policies. Companies that have already done vendor management would do well to evaluate and consolidate their options in the market to ensure competitive pricing.
Temporary staffing: More and