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The Other Side of the Flat World
Continued from page: 2

Friday, August 31, 2007

Even when it comes to work culture, non-Indian firms are scoring. There are four non-Indian services companies in the Top 10 with Infosys plummeting to #20 on the culture parameter. The myth that non-Indian companies pay better seems to be dispelled as there are only three non-Indian services companies in the Top 10 list. In fact Infosys is last at #20, preceded by IBM at #19.

When it comes to satisfaction parameters, growth opportunity tops. Not surprising considering the industry is still growing at more than 30% and with that everyone is growing

The signs are ominous. There are still a lot of non-Indian firms, like HP, Oracle, etc that used to be part of the BES in the past but are not so now for a variety of reasons. Whereas companies like Microsoft, Accenture, EDS, SAP, Google, etc, that have been quite active in India did not participate in the survey. In the days to come, as these non-Indian services companies adapt further, they will continue to give the Indian companies a run for their employees.

Bangalore Tigers Tamed
But for TCS, the big Indian IT humpty-dumpties have taken a fall, especially the Bangalore tigers. The biggest surprise has been Wipro Technologies, which has dropped by 14 places and is out of the Top 20 list. The main reason can be its dismal performance on employee ranking. It is rated quite poorly on parameters like preferred employer (internal), appraisal, training, and culture. But has retained its HR rank, and is ranked at #3. Over the years, Wipro has had its ups and downs on the annual BES. In the first survey, in 2001, it was ranked a #8, rising to #3 in 2002, falling to #7 in 2003, to #18 in 2004, rising again to #15 in 2005 and #9 in 2006. There has been a lot of inconsistency in Wipros performance over the years, and for the first time, this year it is out of the Top 20.

On the other hand, Infosys has dropped by 4 places and is ranked #8. Like Wipro, Infosys also has performed badly on the employee rank, falling from #8 to #15 this year.

The drop could be attributed to the fact that the company has performed badly on the following parameters: preferred employer (internal), company image, salary, and others. In fact, on a lot of parameters Infosys is at the bottom, like appraisal, people, overall satisfaction, image, job content, culture. There seems to be a major discontent brewing among Infosys employees, all this while the company makes a media splash of its foreign interns.

The explanation offered oft times is that as both these companies are ramping up rapidly, there seems to be a tradeoff. Employees joining the organization now might be expecting the same informal atmosphere that used to exist half a dozen years back, for which these companies have been known. But that personal touch might have been lost in the huge number game. Whatever might be the case, one thing is certain, the Bangalore tigers need to get their act together.

Attrition Down

While the Indian employees have become more confident and are demanding more salaries, the average attrition rate of the industry has, in fact, gone down by a percentage point. It currently hovers at around 14%, unlike 15% last year.

The main reason for Indian employees leaving the company are: overseas opportunity and growth opportunity. Subsequently, retention rates have improved by a percentage point and are currently at 82% for the industry at large.

A Giant on Top
While the rest of the Indian biggies have tumbled, TCS has, in a way, improved on its performance. This year too it retains its number one position in the overall rankings. In the HR ranking, it tops the list, though there is minor drop in the overall HR score due to low CAGR as compared to last year. But on the employee part, TCS has gone a notch higher and is ranked #3.

TCS is ranked at the top on two parameters: overseas opportunity and job security. With the company going more and more global, obviously the employees seem to be excited about the opportunities opening up. The employees also seem to be quite happy, as the company scored well on the preferred employer (Internal) parameter, as compared to last year.

Yet, TCS must pay attention to lower and mid-level employees as it is ranked #9 on the issue that the appraisal system was fair. It is ranked #10 for "I get regular and constructive feedback from manager/superior" and #8 "I get a sense of great professional and personal accomplishment from the work I do". TCS is followed by another Indian strong player, HCL Info, ranked at #2.

Size Does Not Matter
Year after year, there is a discussion on how well small companies have fared on the BES. When we talk of small companies it means relatively, in terms of the big Indian and non-Indian giants. This year there were close to eight small companies in the Top 20: iGate, RMSI, Synechron, Tavant, Accel Frontline, Cybage, AztecSoft, and Geometric. iGates performance has been truly impressive as it gained 26 places to be ranked #3.

These small companies have performed well on the employee ranking vis--vis HR, implying that employees are satisfied with things like salary hikes, payment at par with industry standards or, more importantly, that employees are encouraged to take risk at work. Most of these companies have ranked high on the employee ranking, like iGate at #2, RMSI #4, and Tavant #6. Only Synechron, amongst these companies, has been ranked high on the HR ranking, # 5, and RMSI is #8.

There has also been a change in the way employees perceive these companies. Take the case of image, there are three small companies that have come in the Top 5. Even on the preferred employer (internal) parameter, there are two small companies in the Top 5. Though in the dream company parameter, there is only one small firm (iGate) in the Top 5. Small companies score on the job content front, as was made obvious from the fact that four small companies appear in the Top 5. They are also ranked highly on the culture parameter, with three in the Top 5.

The small companies have also learnt the art of retaining: RMSI is ranked at #1 and iGate at #2 on the retention rate. Though attrition is high as well, as on the same parameter, there were three small companies in the Top 5.

According to some arguments, employee rankings are no real indicator of a companys success, as a sudden windfall to cash to employees or other emoluments like ESOPs could influence that. So these companies need to get their HR processes in place to be termed as the great Indian employers.

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