Companies are taking up people-related initiatives as there is a need to manage human resources advantageously, so as not to lose the competitive edge in talent that they have built. Innovative HR practices thus helps in building competencies and capabilities of the workforce. In managing their human resources, companies have time and again focused on values, invested in personnel, emphasized on meritocracy and consequently attaining excellence in HR processes. Innovative HR practices by organizations can be witnessed in recruitment and selection, rewards and recognition, motivation, cost-cutting, training, performance appraisal, etc.

Downturn in the economy and risk of job cuts and salary freezes has transferred the balance power at the workplace back to the employees. Although companies were desperate to cut headcounts, they were not willing to let its best talent walk away at any time, least of all when they were needed the most. Companies who have got rid of their workforce are left with insecure employees who tend to jump ship if they are able to, in order to avoid pink slips. In an economic downturn, voluntary attrition leads to letting go of top performers from the organization. Companies that do not reasonably address their employees concerns in a downturn tend to lose their talented employees to competition. In the present challenging times, mishandling human resources can also have grave consequences on the brand equity and brand pull for top talent in the near future. As the economy grapples with financial crisis, this is a great time to build capacity of the workforce. In the current business environment, which is not too optimistic, human resources across different sectors are facing several challenges. So, corporate houses are thinking of ways to keep the workforce side of the business aligned with the overall business strategy while trying to boost employee morale. The recent economic slowdown has not only dented company's profitability but dampened business confidence. Companies are taking up people-related initiatives as there is a need to manage human resources advantageously so as not to lose the competitive edge in talent that they have built. Human resources management is thus of paramount importance as companies need to learn to think of employee programs. Companies across different sectors should train the right people in the right areas that impact business so as to get maximum return on investments.

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