Companies in the technology sector
are exposing themselves to serious business risks due to their lack of adequate
HR planning, a report claims.
The absence of clearly defined
processes, procedures and documentation as well as a lack of consistency within
global strategies in people management have led to a third of the companies
surveyed experiencing staffing problems in the last five years, it finds.
The report by Deloitte and Touche
reveals that as many as half of the companies surveyed are unaware of potential
dangers associated with terminating contracts of employment, and almost 20%
have no procedures in place to deal with this.
It also highlights the industry’s
lack of long-term incentive plans and reward schemes and condemns the excessive
concentration on cash and equity.
Nearly half of companies in the
technology industry fail to include a long-term incentives plan and over a
third have yet to set in place a strategy for a stakeholder pension regime.
The report titled The Technology
Sector: People and Reward predicts that companies will be prompted to
increase reward schemes, incorporating not only cash plus equity but also less
tangible rewards such as career development in order to retain staff.
William Touche, from Deloitte and
Touche, said, “Increased competition for talented people could contribute to
problems retaining staff. As a result the role of people management will assume
greater importance in developing strategy based on a clearly identified
business case aligned with company goals.”
By Robert De La Poer