EXECUTIVE SUMMARY

Overall, its heartening to note that the HR community is making progress and coming closer to achieving best practices as reported in each iteration of this survey. Many aspects of the HR function have shown a positive shift in trend while a few areas still need development. Below is a highlight of the survey findings: It appears that despite the current economic situation, total headcount numbers are steadily increasing over time, and promotions are on the rise! (almost half the respondents have promoted employees at an increasing rate over the last 3 years). Organization Culture All respondents have vision and mission statements, and 56% of them are developing them in house involving relevant stakeholders as well as CEO. Almost all respondents also regularly update their HR policies and procedures (94%), use employee handbooks, and conduct exit interviews. The trend for mobile working is on the rise, and half the respondents allow mobile working, and most of them are from the services sector (in 2010 this was 23%). Recruitment In recruitment, unstructured and behavior based interviews are most preferred assessment tools, as are technical and psychometric testing. Generally, organizations carry out 2 to 3 interviews before selecting a suitable candidate. HR has veto power in recruitment mostly for junior and middle management positions, but not senior management. Compensation A Formal Grading Structure is present in most of the surveyed organizations (89%). All Manufacturing (9) organizations surveyed indicate that, they have defined Cash Salary Ranges for their managerial and non managerial staff. However, in the Services sector, only 55% (5 organizations) have such salary ranges defined for their managerial level staff, and 67% have salary ranges specified for non managerial level staff. Most organizations review salaries once every year. In the Manufacturing sector, the top 3 benefits are Life Insurance, Petrol and Company car, whereas, in the Services sector, Life Insurance, Hospitalization and Provident Fund Scheme are the top benefits. Most organizations take part in General Market compensation surveys, at least once a year. Almost half the respondents took part in customized surveys over the last 2 years. Performance Management Performance appraisals are generally conducted once a year, with a single appraiser. Most organizations are using competencies, KPIs and interactive face to face discussions as the main features of their performance appraisal systems. About 28% organizations assign equal weight to goal setting and competency based skills in their appraisals. The remaining organizations generally prefer to assign more weight to goal setting (hard targets) than to competencies. Majority of the organizations conduct trainings on performance management. The manufacturing sector uses more traditional training methodologies such as workshops, while organizations in the services industry are more technology oriented and use more modern techniques such as intranet. The performance appraisal process takes on average, 2 to 3 months. Almost half the organizations are using the forced bell curve, and 66% respondents use a 5 point scale for their appraisals. Career and Succession Planning

A Formal documented Career Plan is present in 50% of the organizations, and while almost all of them are documenting career plans for the Senior and Middle management levels, only 6 organizations are documenting career plans for the Junior management level. It appears that formal succession planning is common for senior and middle management levels but mostly in larger organizations. However, majority of the organizations are not involved in formally identifying successors for different management levels.

Training and Development Its also interesting to note that the use of TNA as a formal technique has been steadily increasing over the years, as it was prevalent in 75% of the organizations in 2008, 81% of the organizations in 2010 and in 2012 it is around 83%. The tools used most commonly for TNA are performance appraisals and employee/supervisor surveys.

It appears almost all learning and development techniques are showing a relative increase in their use when compared with 2010 data. It appears that majority of the respondents are still reliant on external training courses (94%) and in-house training course (83%). There has been a significant increase in the use of job rotations from 46% in 2010 to 72% in 2012 and mentoring / coaching from 27% in 2010 to 56% in 2012.

HSE Most organizations (72%) have a formal policy for HSE, and most of these are from manufacturing sector. 55% adhere to international standards and 83% regularly conduct emergency drills. Technology 89% respondents use HRIS and 44% use an ERP software. Majority (89%) of organizations from the manufacturing and services sector use an automated process for employee record keeping. Similarly, most manufacturing organizations (78%) employ an automated process for attendance while its slightly lower in the case of services sector (56%). Only 28% use social media for enhancing employee engagement (and most of these belong to the IT/Telco sector). The majority (78%) of organizations in the services sector allow their employees to have a rich profile in social system such as facebook, linkedin, skype etc. However, only 22% (2 out of 9) of the organizations in the manufacturing sector allow such rich profiles.