The Hindu : Business : Use of human management techniques to retain talent

Online edition of India's National Newspaper
Wednesday, Nov 24, 2004

Business

Business

Use of human management techniques to retain talent

By P. Vikram Reddy

HYDERABAD, NOV. 23. Higher attrition rates and rising cost of human capital is forcing corporates — from IT to manufacturing — to put in place techniques which can help them retain human resources and manage them efficiently.

Cost of employees in the West is estimated to have gone up to 66 per cent of total expenditure, as against 25 per cent 10-15 years ago. Even in India this has gone up to 40-50 per cent in most sectors. Similarly, attrition levels are put at 10-15 per cent per annum in the U.S., despite recession. During the boom, it was 20-25 per cent. In India, it is as much as 100 per cent a year particularly in BPOs.

India is still in the personnel management era, and Human Capital Management (HCM) is not yet seen as a strategic tool, which can improve the efficiency, productivity and profitability, says Raghuveer Sakuru, Managing Director of Kenexa which is operating in this niche segment.

The global market potential for HCM is put at $6 billion, with hardly 5-6 players surviving out of the 15 which started during boom time. With 100 of Fortune 500 and half of Dow 30 corporates as clients, Kenexa is a leading player in the U.S.

Founded 17 years ago, it is now 500 people strong globally (130 in Hyderabad). In the process, it acquired ten companies (including four people outfits). It now has clients such as Sodexho, Pfizer, Microsoft, Kmart, Cheesecake Factory, and Metlife, and 12 of 14 pharma majors in the U.S.

We use our 10-12 product-tool portfolio to help managements retain and manage human capital efficiently, said Mr. Raghuveer, speaking to The Hindu here.

Printer friendly page
Send this article to Friends by E-Mail

Business