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As the economy is on its recovery path the organizations are on a hiring spree again. So this
war for right talent puts pressure on the organizations to be an employer of choice. And it
becomes more relevant in sectors which are crowded by many players like the services sector
which includes the IT industry, hospitality industry, airlines etc. Though the services sector
has been able to generate a lot of economic value and employment opportunities over the last
decade but their very existence can be jeopardized by shortage of employees due to the
constrained labour markets. Moreover their business models which are based on continuous
steady supply of cheap labour will flounder due to the inability to attract the right talent. So to
continue in such a competitive environment the organizations need to segment and manage
their employee segments as deftly as their customer segments. Moreover structuring their
businesses and customer value proposition is needed so that they can fit the right base of
employees which they are able to attract. In addition to the above, the changing aspiration of
employees. I.e. pickier workforce due to drastically increasing job mobility among
professionals today and changing nature of workforce are adding to the pressure of attracting
right talent.

Moreover in an environment of rapidly changing technology, mergers and acquisitions and

corporate downsizing (i.e. which results in diminished trust between employees and
employers), workers are trading for flexibility embracing the concepts of ³boundary less
careers´ and ³free agent learners´. Increased IT capacity and decreased travelling costs also
make talent more mobile which means companies are now competing internationally for the
best employees.

As skills shortages continue to test candidate sourcing and attraction strategies, and
competition for the best possible staff remains high, the issue of employment branding
continues to gain attention. Moreover this problem is more evident in emerging economies
like India and China.

As we illustrate in the figure below the dearth of talent is in tandem with increasing demand
among global companies. Business survival depends on speed and continuous self renewal
and talent is central to the operations of any company. A complex economy that demands
more sophisticated talent, new skills and expertise at all levels of the organization and
fundamental changes to how companies respond to imperatives of new technology and
globalization poses challenges to the effective management of talent because it requires both
a larger supply and new kinds of managerial and professional skills. So the most important
challenge that organizations face while shifting to globally integrated enterprises will be
securing a supply of high value skills which is the consideration that is driving most
businesses today (Palmisano,2000).
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So Employer branding is the most important factor which will help you attract the right
quality and quantity of Talent.

Employment branding is referred to as the package of functional, economic and

psychological benefits provided by employment which is identified with the employing
organisation (Barrow, 2001).
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Sometimes the conditions in labour market are so tight due to intense competition that it
becomes difficult for companies to fill their job positions at the present wages. As such wages
rises. This was the situation in US in 1996 when the wages in services rose considerably as
compared to rest of economy. So increasing wages can put a lot of pressure on labour
intensive companies operating at lower margins. In situations like these businesses can look
at changing the customer offerings and the way of delivering them. So it involves redesigning
business at various levels. Some of the options are described as follows:

1) Operating with fewer employees by proving with support equipment, automated systems,
extending capabilities of employees etc. or examples: At checkout counters in supermarket
employees are provided with scanners to serve more customers
2) Elimination of certain elements of the process or example : In hotels, automated
processes using information technology will speed up the check in and check -out process of
customers.

3) To use broader employee pools deskilling is one option that companies are looking at. or
example: the operators using point-of ±sales system does not require them to read.

4)pOutsourcing non-customer centric work done by service people to other organizations. or

example: Banks have freed the branch staff from operations to focus on customers by
relocating production shops out of branches for achieving scale of economies.

5) Reducing costs of telecommunications have helped organizations to explore new ways to

reduce costs by differentiating between tasks which can be done near customers and others
which can be done far away from customers. or examples: Setting up of customer service
centres where labour is cheap and abundant though the actual deliver centres can be near
customers to increase the efficiency of operations.

6) Opportunities for many businesses to share work with suppliers. or example: Nowadays
Hospitals prefer pre-packaged surgery kits from suppliers to free the operating staff from
unnecessary work

7) Changing customer behaviour by encouraging customer participation in service delivery

process. Example: ATM Machines, Vending machines

The challenge in all the above options is eliminating aspects of service which customer value
most. Some credit customers may change providers if the human touch is replaced by
interactive voice response machines. Moreover using fewer people to do more work can lead
to customer dissatisfaction due to worst service.

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