In today’s world, managing human resources (HR) is crucial, especially in developing countries like Bangladesh, as it helps organisations optimise their workforce, leading to better outcomes and a stronger economy.
Bangladesh has a young and energetic workforce, which is a tremendous asset. According to the Bangladesh Bureau of Statistics, approximately 58% of the population is part of the labour force, reflecting a large pool of potential employees.
However, retaining skilled workers is vital, particularly in key industries such as textiles and technology. A survey by the Bangladesh HR Forum found that companies with strong employer branding achieve 30% higher employee retention rates.
For instance, Grameenphone, one of the leading telecom companies, invests in employee satisfaction by offering competitive salaries, comprehensive benefits, and career development programs. This approach not only reduces recruitment costs but also fosters a stable workforce, enhancing productivity and lowering unemployment rates — ultimately benefiting the economy.
As Bangladesh expands its presence in sectors like garments and IT, workforce training is essential. A 2019 report by the International Labour Organisation (ILO) revealed that 80% of employers identified skill gaps in their workforce. This indicates a pressing need for training to meet evolving job demands. To address this, many companies are implementing training programs.
For example, the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) has launched initiatives to improve skills in the garment sector, focusing on new technologies and production techniques.
According to the World Bank, such efforts can increase productivity by up to 20%, significantly boosting economic output. Additionally, Walton, a leading electronics manufacturer, has developed in-house training programs emphasising practical skills. These initiatives not only enhance employee competencies but also help the company stay competitive in the market.
A diverse workforce is vital for fostering creativity and innovation. In Bangladesh, companies that embrace gender diversity gain from varied perspectives and ideas. A McKinsey study found that businesses in the Asia-Pacific region with diverse teams are 21% more likely to achieve above-average profitability. BRAC, a prominent NGO in Bangladesh, actively promotes gender equality within its workforce. It runs programs supporting women’s empowerment, including leadership training and mentorship opportunities.
By increasing women’s participation in the workforce, BRAC not only enhances its effectiveness but also contributes to economic development by unlocking the potential of a significant segment of the population. Similarly, companies like Unilever Bangladesh have introduced diversity initiatives, attracting top talent from diverse backgrounds and creating a more innovative work environment.
Adhering to labour laws is essential to protect workers’ rights and ensure fair treatment. The ILO has reported that non-compliance with labour standards could cost Bangladesh billions in lost productivity and potential fines. Such issues not only harm businesses but also negatively impact the economy. HR professionals play a critical role in ensuring organisational compliance with these laws.
For instance, following the Rana Plaza disaster, the Accord on Fire and Building Safety was established to improve working conditions in the garment industry. Many companies now have dedicated HR teams focused on compliance, fostering safer workplaces, and building community trust. By upholding labour standards and prioritising safety, companies can avoid costly legal disputes, enhance their reputation, and attract foreign investment. This investment, in turn, drives job creation and economic growth.
Integrating HR with business strategies is critical for maximising organisational effectiveness. A study by the Bangladesh Institute of Management found that organisations aligning HR with business goals experience a 25% improvement in overall performance. For example, Beximco Group, a prominent local conglomerate, integrates HR into its strategic planning processes.
By forecasting workforce needs based on market trends, the company adapts swiftly to changes, ensuring it has the right talent in place. This agility helps Beximco maintain its competitive edge while contributing to job creation and innovation. Similarly, Robi Axiata has implemented clear HR strategies aligned with its business objectives, leading to enhanced employee performance and satisfaction, which further boosts productivity.
Effectively managing human resources is pivotal for economic growth in Bangladesh. By focusing on talent acquisition and retention, workforce training, diversity, legal compliance, and strategic alignment, HR plays a critical role in driving business success and supporting the national economy.
With its young and dynamic workforce, Bangladesh has immense potential for growth through intelligent HR practices, paving the way for a brighter future. Investing in HR is not just advantageous for individual companies — it is indispensable for the overall development of Bangladesh’s economy.
Md Jahangir Hossain is the Head of HR Division at First Finance Limited.
Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard.