Most modern-day business organizations are faced with numerous challenges which may present either opportunities or threats to their survival. It is from this realization that organizations have adopted a structured form of management where different sections are mandated to handle challenges presented by different factors. One of the functional areas of an organization is the human resources department (Tan & Nasurdin, 2011). This is a department that is concerned with sourcing, training and retaining of staff in order to help the organization achieve its goals and objectives.
India is one of the most populous countries in the world. With an estimated population of about 1.1 billion people, India is poised to be a hub for human capital. One of the biggest attributes of India is its market leader position in information technology. It is best known for its IT innovative products. As such, the best companies to work for in India are mostly IT companies. from a study that was carried out by Mercer, six out of the ten best companies to work for in India are in the IT industry.
This does not come as a coincidence as the companies have set forth very good human resources practices that segregate them from the rest. This paper discusses the human resources practices that MindTree consulting has adopted in the quest to remain as one of the best companies to work for in India.
Mindtree company is a leading IT company in India. It has managed to expand its tentacles to become a global Information technology solutions company. It has managed to improve and command a huge market share. With the partnership with over forty companies in the fortune 500 lists, the company future has never been brighter. In a recent study carried by Mercer on the best companies to work for in India, Mindtree was ranked second to Infosys technologies limited. This is of course due to its very good human resources practices. It is evident that for the company to come top on the list of the best companies to work for, it must have initiated human resource policies and practices that are aimed at not only attracting the best employees but also retaining them (DeciI & Ryan, 1985).
As stated earlier, one of the main reasons why a firm is able to attract and retain employees is by the employment of best human resource practices. Just as any other resource, human capital is an essential factor to the success of any organization. The policies adopted by an organization are therefore critical in ensuring that the human capital is motivated and retained. It is important for organizations to understand the environment that they operate in. This helps them formulate policies that are relevant to the target group.
One human resource practice that Mindtree has successfully employed is training. The company has established several levels of training that ensure continuous staff development to enhance continual learning and self-improvement. While in the company education is extremely valued, training is necessary since it extends education and provides the employee with the much-needed connection between the skills learned in school and the expertise needed for high quality and top class performance at work.
Training for the employees is done at several levels of their employment life at the company and this seeks to meet several objectives. Through constant training, employees become loyal to the company and this is critical in ensuring that the staff is motivated (Budhwa & Khatri, 2001).
The other human resource practice done by the company is attractive compensation and benefits. While many people may cite a different reason for being at work, the most important reason to go to work is to earn a living. many employees are concerned about the remuneration offered by their employers. In Mindtree consulting limited, compensation is one of the best approaches that the company has used to formulate the best human resource practices.
The company provides a basic salary alongside other allowances such as house rent allowance, medical allowance, Leave travel allowance, and so on. Housing is very expensive in India. As such, the company provides for a house allowance in order to motivate and retain employees. This is done to help the employees to meet their house rents and living expenses. It, therefore, acts as a strong human resource practice that not only attracts but also retains employees.
These two practices differ from a current place of work. This is because the employer does not provide adequate training to the new employees apart from the induction training which is done at the entry level. After that, the employees are required to make a personal initiative to undergo training to improve their skills. The company also pays only the basic salary and the house allowance. This is different from what is paid at Mindtree which pays the employees to travel and leave allowances.
Mindtree company is inarguably one of the best companies to work for in India. The adopted human resources practices by the company are excellent and the company should keep maintaining such high standards. The training of employees, coupled with good compensation and benefits scheme has contributed highly to the success of the company and its subsequent ranking as the second-best employer in the country. These practices are desirable since they indicate positive feedback from the study carried by Mercer. It is, therefore, to say that these practices are desirable and good towards the employee’s motivation and retention.
Budhwa, P., & Khatri, N. (2001). A comparative study of HR practices in Britain and India. Journal of Human Resource Management, 12(5), 800-826. Web.
DeciI, E. L., & Ryan, R. M. (1985). Intrinsic Motivation and Self-determination in Human Behavior. New York: Plenum. Web.
Tan, C. L., & Nasurdin, A. M. (2011). Human Resource Management Practices and Organizational Innovation: Assessing the Mediating Role of Knowledge Management Effectiveness. Journal of Knowledge Management, 1(6), 243-254. Web.