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Mohan Nair, founder of Ensigns Software & Communications
Mohan Nair, founder of Ensigns Software & Communications

Today one of the major crisis MSME’s are facing is manage growth and sustainability.

The problem in managing growth and sustainability is largely due to financial crisis, understanding complexity of business, market conditions and also managing and developing human resource.

My focus today is, on how to develop talents in MSME’s.

The challenges and constraints of developing talents in MSME’s are to be understood in a very practical term.

Most of the MSME’s have a disadvantage because they are not positioned and capable to attract talents. The reason is, they don’t have brands like large Corporates or MNCs. Hence, attracting good and capable talent is extremely difficult unless the company has differentiation.

The organization has to offer its employees some uniqueness by proper branding or creating a work culture and environment to attract and retain talents.

I would like to emphasize more on, how to develop talents in an MSME.

Firstly, we have to accept that most of the talents in MSME’s are basically not from professional background. These people, who are recruited largely, come from tier 3, tier 4 cities or from rural parts of India.

Their exposure is very less to the business world, education levels are not up to the mark and most of them are not from premier institution.

So, the lack of exposure and the inadequate educational background makes it very difficult for such talents to be groomed. Hence it is not easy.


At the same time there are advantages, which one has to understand; with such recruits is the strength they possess.

They are ready to change and adapt. Most of them are ready to learn and since they are not very conditioned they accept things faster.

In my experience of developing the talents in MSME sector for the last two decades, I would like to share few practical tips which are as follows:-

First and foremost, when we select people we should be very clear to understand; whether they really require a job; secondly- if a person has a survival problem and he should also have a passion to grow in life.

So, while selecting a person I think the two most important criteria is – his passion for growth need for a job. These are the two most important aspects while you recruit a person.


-         Secondly, it is very imperative for the management to recruit people and ensure that proper induction. Process is followed.

-         During induction the new recruit has to have clarity of his or her job, he or she should be able to understand the role and their contribution required for that position. These recruits should be very well informed about the challenges, constraints and the opportunities that come along with their position.

In fact, experience says, most of the youngsters are ready to take up jobs where there are challenges. So, it is the management which has to emphasize a lot on challenges and also it is the management’s responsibility is to ensure that people get freedom to work and freedom to innovate. If this freedom is given most of the youngsters during the induction process start showing a sign of aligning with the organisation from the beginning. 


-         The other aspect that I would like to share is that, it is the management’s responsibility to establish trust between the new employee and the existing employees. This trust has to be built through various engagement programs and also through various learning processes. The values and ethics have to be clearly explained and demonstrated to the employees along with the opportunities to learn new skills.

-         This actually imbibes the quality of learning among the young recruits and hence we can see a lot of talent development over the period of time.


-         I would emphasize that investment in human capital is very important; it has to be properly planned considering the long term benefits and to ensure adapting to new skillsets and enabling that the talent grows over a period of time.

-         In the process of developing talents, one has to ensure that the aspiration is taken care among these young recruits to enable them to grow.

-         A career plan has to be shared with them for at least next three years.


-         To create a sense of belongingness by giving them more ownership in activities and also ensuring that recognition and appreciations are continuous process.


-         Most of the talents in an organization are retained when they become aware of the future of the company as well as the future of the sector. All this information ensures that the person feels proud and his self-esteem goes up while working in an organization.


-         The last but the most important role of the management is to establish emotional connect with the employee. If the employee is emotionally connected to the organization then, the person grows faster in the organization as he feels and takes up ownership and responsibilities.


I have observed and experienced in last few years that, many of the youngsters definitely like to continue with the company if, the company acquires modern technology and they get an opportunity to work on this latest technology. This gives an opportunity and a thrill for them to be at par with their friends, colleagues and acquaintances from other organizations.

When they see the scope of their talent development is very good, they also ensure to move ahead and help developing talent of their subordinates.

This ensures leadership development and creates a pipeline of leaders.


I think developing talents in MSME’s is very important in this crucial phase of business because of the growth opportunities in Indian MSME’s.

It is very important to nurture talents and also to ensure that these talents are retained in the organization.


To conclude, I would like to sum-up by saying that the key points while recruiting are; passion and the proper clarity of role and responsibility of the job is essential, Induction has to be well planned for an individual to give clear purpose, of the job challenges, constraints and the opportunities in the job.

Freedom to innovate and freedom to work culture is very essential.


Lastly, during the process of developing a talent one has to establish trust between the new employee and the existing employees. Imbibe the values and ethics within the person during the initial stages and ensure to take care of his aspirations and emotions.

If they are emotionally connected the talent development takes place faster.

With this few words, I think it is essential for all of us to invest in human capital, spend a few hours with our upcoming talents and also give them opportunities and ensure that there is a proper growth and career path in the organization.


The above article is contributed by Mohan Nair, founder of Ensigns Software & Communications Pvt. Ltd. 

1 comment:

  1. Investment in human capital is a must. This investment needs to be positive, confident and motivated at all times.