FIIs, Stock Market And HR Development!

Just like investors deploy various strategies while investing, employees do
the same when they join, work in or leave an organization. It is therefore
essential that employers match the applicant's competency with the job profile
to select the right candidate. This will result in lower attrition rates.

The recent ups and downs in the stock market bring to sharp focus the
transient nature of events. This time round, we are being given a completely new
set of reasons for the sensex tanking almost 300 points in two days-a stronger
dollar conversion rate and US' talks of hiking interest rates!

Now that was something we had never thought of, had we? Just shows that FIIs
will put their money where it gets them the best returns. If the Indian markets
help them to achieve their objectives, they will be with India; if not, they won't
think twice before dumping you!

ARE FOREIGN POLICIES COOL?

What would you call the FIIs in the scenario mentioned above? Opportunistic!
Thorough professionals! Depends on how you have been affected. If you lost
money, you probably may not have very kind words for them.

But people who have chosen them as the custodians for their fortunes would
definitely want them to take whatever action is necessary to enhance their
wealth. Moral of the story: The same set of people are perceived differently at
different times and by different people, at the same time!

So what's all this got to do with our HR talk? I know of a manager who
would go to the extreme of almost stop talking to an employee when the latter
submitted his or her resignation.

BEING RESPONSIBLE

FOR ONE'S ACTS

I have always believed that every person must feel an ownership towards his
own state.

Similarly, if something good happens to you, then you should be able to truly
credit yourself of having taken the right decisions at the right time. (The
latter scenario isn't generally a problem. One seldom gives credit to other
people for one's success!)

The
story of the FIIs has a strong message for us; something that India as a country
has already started realizing; and something that as organizations we would be
better off coming to terms with. Employees are like the FIIs. They go wherever
they feel they will get the best returns. Some evaluate returns on a long term
basis, some in the medium term, and others on extremely short terms, a la the
hedge funds!

Similarly, organizations need to make themselves attractive to employees
(sic). There is no point blaming the new generation, or for that matter, anyone
for switching jobs at the drop of the hat. The employee is only trying to find
his or her right level! Just like the FIIs who will stay invested in your
country if you are attractive, the employee will stay invested if the
organization is attractive!

TESTING EMPLOYEE CAPABILITIES

Just like different investors deploy different strategies while investing,
so do employees while deciding to join, stay or leave an organization. Some go
for fundamentals and long term investment periods; others maneuver as the
technical analyses dictate — which could be couple of months, days or at the
extreme, on an intraday basis. (If you've experienced people joining today and
not turning up the next day, you'll know what I mean!)

But the onus of making ourselves attractive to investors on a long term basis
rests squarely with us. And that depends on the value we are able to create on
an ongoing basis. Fundamentals are the key.

TAPPING THE CORRECT POTENTIAL

Unlike the stock market where organizations may not have complete control on
the type of people who invest in it, there is considerable control that an
organization can exercise on the type of people it hires. The question is, do we
spend enough time and effort to get the type of people who will stay invested
with us? Are we as organizations able to create returns for them that they
value? Are we able to announce meaningful dividends for them? Do we generate
hopes of bonus issues as surprise elements?

While mapping competency of an applicant to the job profile can improve the
likelihood of selection of the 'right' candidate, avenues of learning on the
job and through formal training interventions create value for the employee in
the form of dividends. Enhancement of job responsibilities and empowerment are
bonus issues that add further value. Most youngsters will extend their tenure in
a company if they feel that they have an opportunity to augment their knowledge.

As the level of knowledge grows, so do aspirations of the employees. The
challenge for each organization is to continue to match the aspirations of its
employees, which the organization itself has raised. New lines of business, more
customers, additional revenue generating services, better profits, and better
prospects for its people. Make yourself so strong that the employee sees no need
to go elsewhere.

Sumeet Sharma is Vice
President, HR, and Head of Training and Consulting Business at RT Outsourcing
Services.