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Are you humane towards your human assets?
14 August 2008:
"Our assets walk out of the door each evening. We have to make sure that they come back the next morning," said NR Narayana Murthy, chief executive officer (CEO) Infosys. In today’s knowledge economy, the single most important and powerful factor that differentiates one organisation from another is the human resources (HR) or human assets. While humans can be physically replaced, the skill-sets and knowledge of a person leaving an organisation cannot be exactly replaced by the successor. This is why loss of human resources is considered as the greatest loss to any organisation.
The individual skills and expertise of humans in various fields are indispensable in enhancing the corporate values of organisations and their clients. Dr RA Mashelkar, former director general of Indian Council for Scientific and Industrial Research (ICSIR), and ex-chairman of the standing committee on IT of World Intellectual Property Organisation (WIPO), Geneva, once rightly said, "Tomorrow’s wars will be fought not by conventional weapons, guns, missiles and so on, but in the knowledge markets, with new thermonuclear weapons called information and knowledge." Humans are the storehouse of information, knowledge, and experience, and can leverage the growth of an organisation by translating their intangible knowledge and experience into tangible wealth. Apart from the ability to convert experience into knowledge, humans also possess the ability to acquire new knowledge through the process of learning. This knowledge assumes immense potential when it is properly harnessed and disseminated for the organisation’s benefit.
With attrition rates steadily increasing, the biggest challenge for any organisation today is to retain its talented human assets from leaving the organisation. The average annual attrition rate in business process outsourcing (BPO) sector in India is about 30-35 per cent, unlike America, where the attrition rate is about 70 per cent. When an employee leaves an organisation after getting trained, the organisation loses about Rs 60,000. A 30 per cent attrition rate for a call centre, with about 300 employees, costs the company Rs 60 lakh per annum. The attrition rate in Indian Pharmaceutic sector is also very high with about 30-35 per cent per annum, compared with the global attrition rate of 10-12 per cent.attrition
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Source: Merinews
