• Insights

Over 70 percent of India’s population resides in rural areas and small towns. While it has been seen as a challenge for corporates to start operations in these areas, capturing these markets has of late become one of the most lucrative options for companies across industries.

With most of our population currently based in tier-II, tier-III and tier-IV cities, this is the best time to penetrate into India’s smaller towns. Many companies have already started doing that. Companies like ICICI, Unilever, LG, Hero Honda, ITC, Future Group, Airtel, Aircel, IDBI Bank, Bajaj Allianz and many FMCG, insurance, financial and consumer durable companies have already started deploying fresh talent and their existing employee base to tap these markets. And they are creating a base to grow further.

So far, the most common strategy has been to hire graduates and B-school freshers. The talent pool available in tier-II and tier-III schools, too, can easily cater to these needs. But one cannot overlook IIM or IIT graduates, either; they could be just as attracted to these markets, given the current economic situation. While urban markets are facing a cash crunch due to the slowdown, smaller towns remain relatively unaffected. Brain drain seems to have taken a reverse turn. Lateral hires at the metros have also started exploring options of returning to the smaller towns or their hometowns.

If you hire only from the top 10 B-schools/engineering schools, this will be an opportunity to attract talent by providing them the opportunity to work in rural India for, say, three years. Then, you could transfer them to the metros or even send them on international projects. First, this would help an organization create and strengthen its talent pool so as to work in any condition and devise strategies for any region. Second, job rotation will help employees take up new challenges. Many FMCG companies have been practicing this successfully.

With the push on corporates to increase their operational efficiencies and lower costs, this is an interesting way for companies to target smaller tows to deploy more entry-level and mid-management recruits. Every company focuses on hiring great talent, and great talent looks for good work, a great work culture and the best place to work at. Consider implementing these conditions if you are planning to set up operations in small towns. You will then automatically attract great talent.

DEBADATTA BAXI is a recruitment and compensation expert with Bechtel India Pvt. Ltd.

©Entrepreneur October 2009

Tags:
Aircel, Airtel, Bajaj Allianz, brain drain, FMCG, Future Group, Hero Honda, hire, ICICI, IDBI Bank, IIM, IIT, ITC, LG, manpower, quality, recruit, Rural, small town, smetv, Unilever