Today, the biggest challenge faced by any organization is change. Globalization has made it even more imminent. Investing in human capital is the most desirable business strategy as only a talented workforce can give the company, a competitive advantage.

In the current scenario, recruitment is becoming even more critical as there is dearth of highly skilled workforce around. The best organizations succeed not because of their people, but, because they have the right people. Skill, knowledge and attitude—in one word “Competencies”—in the workforce are a critical input for success of an organization. Competency-based recruitment is in buzz.

The knowledge-based industry faces some critical challenges. One of the most important one is talent management and development. The growing pace of talent acquisition that creates with it the challenge of smoother assimilation and cultural binding of the new joinees into the organization fold is another big factor. The most important challenge though is the retention issue. Thus, the HR managers here have a multi-task responsibility and they need to manage it well. Focus has shifted to from transactional HR to transformational HR.