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. Page(s) 1 2 3 4 5
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