Innovation and Talent Management
Commitment to Innovation helps retain your top performers, attract new talent, and develop future business leaders.
Yes it is true, innovation is a powerful tool to help retain and attract the best talent. This has become a huge issue in fast growing economies such as India, Brazil, and China. Kalpana Kochar, Chief Economist of World Bank, recently said South Asia alone needs a million new jobs per month to keep up with economic growth (The Hindu, September 24, 2011). India alone created 800,000 jobs per month between 2000 and 2010; an incredible growth rate compared to “developed countries”. This is good news and bad news. In such a climate, companies experience very high flight-risk; employees are more likely to depart for better opportunities. The IT industry in India has an average attrition rate of 30%.
How do you differentiate in this market? One strategy is to create an environment of innovation and innovators. By instituting an innovation culture, organizations can learn to jump the ‘S-curves” faster – the only sustainable strategy for growth in today’s globalized world.
HR can have a greater impact on the business and be a valued contributor to the senior leadership team by facilitating a culture of innovation. The benefits include the following:
- Improve employee engagement and retention, resulting in less hiring and re-training cost
- Develop leaders of new businesses lines by grooming top performers and build your leadership bench
- Strengthen the company image as an innovator, attracting high quality talent
- Ensure the company’s future by avoiding being outmaneuvered by more nimble competitors
How are you helping to create an innovation culture at your company?