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Telecoms firms are poor at recruiting and retaining high standard employees, according to a report.
The study by HR consultancy Watson Wyatt reveals that most telecoms companies have human resources practices that provide good value to shareholders, but are not good at attracting and keeping the best employees.
Doug Ross, Watson Wyatt partner and co-author of the firm’s European Human Capital Index, said, “It shows that many telecoms companies do not have clear policies for retaining their better performing employees.
“They tend to have HR policies which encourage the retention of both good and less good performers within the organisation. Our research suggests that this will have a negative impact on their financial performance.”
Virgin Mobile’s HR director agreed. Lily Lu said, “The telecoms industry has been poor in the past in keeping good employees happy, but I do believe that the industry is improving.”
The study also shows that a significant improvement in key HR practices has contributed to an increase of more than a quarter in telecoms companies’ stock market values.
Lu said, “Staff incentives and reward schemes are now commonplace within the industry. At Virgin we have a bonus system that every employee is part of. Individual bonuses depend on the companies performance as well as the individuals.”
Mobile phone giant Orange dismissed the report’s findings and claims that it does not suffer from the retention and promotional problems highlighted by the survey.
A spokesperson said, “We employ a number of strategies designed to attract and retain good staff. The company has a commitment to providing career development, exciting and varied opportunities and good rewards. This has ensured that Orange has not experienced problems in retaining staff.”
The HR policies in telecoms companies that help recruit and retain good staff include sharing information, well-integrated leadership practices and consistent pan-European HR practices, claims the report.
The Watson Wyatt European Human Capital Index is based on a study of 200 companies across Europe. www.watsonwyatt.com
