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Attracting and retaining human talent is one of the biggest challenges Indian companies face today. This challenge is particularly daunting when it comes to industries that are perceived as slackers in terms of growth. But sectors on an upward growth curve are not spared the painful reality of attrition either, the only difference being they are able to hire fresh talent soon.
The ones moving in and out of jobs are often those referred to as Generation Y or Gen Y — born in the years 1981-2000. Not surprisingly, companies believe they have to learn to focus on them. After all, as Makrand Khatavkar, managing director and head of HR at Deutsche Bank, pointed out at a seminar organised by Europe Asia Business School in Mumbai, 65 per cent of India’s population is below 30.
Most human resources managers attending the seminar called Strategies to Attract, Recruit, Retain Gen Y said the traditional approach to attracting and retaining talent would not work anymore. A major shift in attitudes at the workplace was one of the critical changes needed to retain young talent, they said.
According to an HR official, you are not selling a job or a company anymore but a lifestyle. Typical questions that come up during the recruiting process are: is the company a stickler for rules; is there flexibility in working hours and location; is one expected to follow a dress code; is travel a part of the job. Once recruited, Gen Y is willing to be assessed on performance but wants its goals and deadlines to be well defined and then left alone to tackle them.
“There are many things that we need to first unlearn and then relearn when dealing with Gen Y,” Sanjay Muthal, managing director, Nugrid Consulting, said. Just as learning is no longer teacher-centric but student-centric, today’s workplace will have to be employee-centric and not the other way around, he adds. One-on-one mentoring had been one of the key factors in retaining employees, both Muthal and Khatavkar stressed.
The senior workforce is most often satisfied with one or two appraisals but Gen Y wants day-to-day feedback. Youngsters are in favour of the “walk the talk” approach or taking immediate action. They look forward to growth opportunities within the organisation. Giving responsibility early, making work fun and acknowledging that there is life outside the work environment are factors that help retain talent.
Deutsche Bank has a “young board” to which people in the 20-30 age group are nominated. “About 80-90 per cent of the recommendations made by this board have been accepted by the bank,” Khatavkar said.
Many years ago, the Godrej group introduced the concept of a “Young Executive Board,” a parallel board of directors aged below 35. This was done primarily to encourage vibrant ideas and utilise young talent in the growth of the group.
Young workers are fearless, achievement oriented, tolerant, goal oriented and entrepreneurial. The high pressures of the education system work to their advantage, turning them into efficient multi-taskers. They are also aware of social and environmental issues. But employers should avoid stereotyping youngsters. Some of the common stereotypes are that young workers are slackers, very demanding, do not respect authority, are not in the real world and not loyal.
Gen Y’s growing up years saw major social, political and economic changes in India and that helped alter their psyche to a great extent.
“We had scarcity in our mindset. Today’s generation’s frame of mind is that of abundance,” said Muthal. Those with a “scarcity mindset” have difficulty in sharing recognition and credit. “The attitude is, ‘The cake is not enough, I must grab my share’. Also, this mindset is power centric,” Muthal added.
In contrast, those with an “abundance mindset” have an inner sense of personal wealth and security and believe collaboration creates prosperity.
“Most of us wanted life-long careers. Life was just work and nothing else. But for Gen Y work is only one facet of their life. Of course, our focus was to build wealth for the family,” Khatavkar said. But it’s not all about money. Quoting a study, Khatavkar said that future career and development opportunities came ahead of monetary compensation in a job for Gen Y.
Companies will also have to offer learning opportunities to the young workforce, Muthal said. “Usually companies conduct exit interviews when employees leave. But I conducted “staying back” interviews. I spoke to employees who worked for over three years and asked them why they were staying back,” Muthal said.
The sticky factor — what makes young employees stick to a company — is what employers will have to discover and work on.