IT firms need to expand to other locations, hike salaries: Experts

“Instead of making returning to office compulsory for employees, employers can focus on creating more co-working spaces.

Business

By Rohini Rajhansh On Oct 8, 2022

The Indian IT services industry is perhaps facing its biggest talent crisis ever, as it battles with high attrition, moonlighting, employees unwilling to return to the office, and delayed onboarding of freshers, all at the same time. Experts believe the companies need to work in tandem with the employees to form policies that are in mutual interest.

“Many employees had gone back to their hometowns during the pandemic and are unwilling to return to their existing offices. To solve this, companies need to set up more offices across more cities in India, including tier-2 and tier-3 cities,” said TV Mohandas Pai, former HR head and board member of Infosys.

Companies have to realise that employees would have to reset their lifestyle in many ways, which is not easy, according to Aditya Narayan Mishra, managing director and CEO of CIEL HR Services. “Instead of making returning to office compulsory for employees, employers can focus on creating more co-working spaces, provide childcare centres either inside the office or in close proximity to make it easier for working mothers to return to work, and regularly take feedback from them to understand the gaps and address them,” he said.

As far as the challenge of moonlighting is concerned, IT companies can address the issue in two ways, according to Pai. “First, they should have very clear policies as to what amounts to moonlighting and what does not. For example, a person working on a hobby or an NGO outside of his or her work hours is not moonlighting. Second, the salaries of freshers must be increased. While the salaries of the senior-level people have increased 5x, the salaries of freshers have remained the same in the last 10 years,” said Pai.

It is also critical for organisations to prioritise skills over location to appeal to the millennial workforce. “Make learning and growth central to the employee experience, that is, integrate the appropriate learning resources and opportunities into the work to close the skills gap. A geographically dispersed workforce allows the company to hire the most qualified candidates and expand into new regions,” said Daya Prakash, founder, TalentOnLease, a provider of IT talent on demand.

According to Randstad’s Employee Brand Research Report, 85% of employees are likely to stay with organisations that offer reskilling or upskilling opportunities. “The best solution to retain talent lies in building a workforce that is engaged and future-proofed by relevant skilling opportunities. It is equally important to develop a fluid structure of working hours and hierarchy, coupled with a special focus on employee wellness,” said Sanjay Shetty, director of Professional Search & Selection and Strategic Accounts, Randstad India.

While delay in fresher onboarding occurs every year, this year the delays could be longer owing to multiple factors. According to CIEL HR Services estimates, about 10% of the candidates with offers are still waiting for a joining date.

“We see budget freezes by CIOs of global companies leading to delays in project execution by IT services providers. Thus, IT services companies in India have to optimise their costs. One optimisation method is to delay the joining of candidates and slow down the hiring process,” said Mishra of CIEL HR Services.

Some industry experts believe a large part of the problem can be solved by leveraging the available HR technology to find and engage talent. “Highly efficient businesses are unlocking geographically bound talent with remote work. Zero-touch applicant tracking systems are optimising their talent acquisition process.

Mobile-first and AI-enabled HR technology is helping them assign work on mobile apps in real-time and to track work progress efficiently in remote setups… HR leaders should look for the right HR tech solutions if they feel that there’s a talent crisis,” said Sumit Sabharwal, CEO of TeamLease HRtech.