Archives- News Updates On December

Changed scenario of employment in BPO and retail

The scenario of employment in BPOs has changed in these few decades. The sector is now providing young graduates a base to stand in the highly competitive market with its rigorous training programmes and also with its salary pattern.

Source: The Financial Express, December 31, 2008. “Employment trends in BPO and retail”

State government has to bear the maximum burden of pay revision: Kerala

The Central government is providing 80% of additional expenses to the state governments which is to be used for four years and three months, starting from January 1, 2006. This assistance is to pay the revised salary to university and college teachers. This means only 6-7 percent burden will be borne by the centre and rest by the state.

Source: The Hindu, December 31, 2008. “States to bear burden of pay revision”

FMCG becomes one of the top recruiters in campuses

In these turbulent times, FMCG sector has maintained its place in campus hiring. While other sectors are either freezing their hiring plans or are staying away from the campus, FMCG sector recruited, if not more, at least the same number as they did in earlier years. FMCG companies recruit an average of 40-50 students after visiting the top 10-12 B-schools across the country.

Source: The Business Standard, December 29, 2008. “FMCG sector fares well in campus hiring”

Economic crisis turning out to be a boon for Indian legal outsourcing industry

The cost-cutting measures by US and many other countries seem to be a boon to Indian Legal Process Outsourcing industry. Highly paid legal professionals of US and other European firms are now replaced by Indian legal professionals. This has increased the percentage of hiring and has also shown 20% rise in the salary packages of LPO employees and 25% bonus rise to the experienced lawyers.

Source: The Business Standard, December 28, 2008. “Legal outsourcing set to boom”

PSUs top this placement season

The painful recession and its aftermath are still playing its game on the market. Its side effects have resulted in desperate job seekers, who are pinning their hopes on Public sector units. This sector is gaining momentum with the experienced people joining them. The job security component has made this PSU a hot sector among B-school students.

Source: The Economic Times, December 28, 2008. “PSUs safest bet this placement season”

Government asks the rival union of coal industry to resolve differences on pay revision

Government asked the two rival union of coal union to resolve their differences and decide on the pay revision agreement. While one union wants the pay revision agreement for five year, the other is demanding it for ten years. CITU leader, DD Ramanandan, who wants the agreement for five years, insisted that the ten year agreement will be a loss for the employees.

Source: The Financial Express, December 27, 2008. “Centre asks rival coal unions to decide on pay revision agreement”

Ministers and MLAs of Gujarat state likely to get salary hike

Gujarat ministers and MLAs will get 25% increase in their salary package. Ministers will now get Rs. 50,000 with perks as per the new pay scales, while MLAs will get Rs. 40,000 per month including all perks. The new pay scale will be effective from April 2009, but will be implemented with retrospective effect from January 2006. All the arrears will be paid in cash to the Ministers and MLAs.

Source: The Times of India, December 27, 2008. “Gujarat ministers, MLAs likely to get pay hike”; Ahmedabad Mirror, December 27, 2008. “Our Ministers, MLAs double their salary”, Page no. 5.

Lt. Governors to get pay hike

The Union cabinet has cleared the pay hike and allowances of Lieutenant Governor in the light of the recommendations of the Sixth Pay Commission. They would now be entitled to get Rs. 80 000 per month on par with the Secretaries in the Central Government. This hike will be applicable from January 2006.

Source: The Hindu, December 27, 2008. “Cabinet clears pay hike for Lt. Governors”

Government to launch more polytechnics to meet the skill shortage

The government has launched a scheme to set up 1000 new polytechnics and upgrade the existing ones in order to meet the shortage of skilled manpower in the economy. This scheme was launched by the government to enhance professional skills among workers. Around Rs. 6, 828 crore is sanctioned for the project, to be spent by March 2017.

Source: The Financial Express, December 27, 2008. “More polytechnics in offing to meet skill manpower crunch”

Salaried individuals less aggressive in financial planning

A survey conducted by Right Horizons has revealed that a majority of salaried individuals are poor in financial planning. The survey, which was carried out on about 1169 individuals, found that these individuals are more comfortable in old and traditional investment schemes like Provident Fund, National Savings Certificate and Life Insurance.

Source: The Hindu, December 26, 2008. “Survey: salaried class poor in financial planning"

Companies get more aggressive on outsourcing, BPOs to thrive

The present tough times have seen companies becoming more aggressive on outsourcing and also on pursuing cost-cutting. They have already brought down their decision making time and are looking at other measures of cost-cutting. But at the same time, there is very less offshoring in the BPOs at present, leading to a contradictory situation.

Source: The Economic Times, December 26, 2008. “BPOs thrive as firms take to outsourcing in trying times”

In troubled times, Indian industries get a variety of talent for less

With layoffs, retrenchments, dip in sales and return of talent from overseas, there is an increase in the supply of manpower in the job market. This disequilibrium in the demand and supply of manpower has made many Indian industries flush with diversified talent for lower pay packages. Nowadays, professionals with experience of handling critical situations are in big demand in the market.

Source: The Economic Times, December 26, 2008. “India Inc now gets fresh talent for less”

Students throng for professional training modules to battle for that coveted job

To stand a chance in the competitive job market, students of tier-II and tier-III cities are registering with professional training programmes. These programme acquaint them with analytical & communication skills and leadership abilities so as to be marketable with the students of other big institutes like IITs and IIMs. There has been a 25% drop in job offers and a 20% drop in the number of companies visiting Tier II and III cities’ institutes, which has made these programmes more popular among students.

Source: Daily News & Analysis, December 26, 2008. “Tier II, III institutes start professional training modules”

BCCI, CII to come under tax net

The term “charitable purpose” has eventually been redefined by the Income Tax department. This will bring associations like CII, BCCI (Board of Control for Cricket in India), Assocham and Indian Medical Association, to name a few, outside the purview of claiming exemption. The entity that does business, trade or renders service in exchange for a fee or income has to pay tax at the rate of 30 percent plus cess and surcharge.

Source: The Business Standard, December 25, 2008. “Industry associations, BCCI to come under tax net”

Teachers in Andhra Pradesh to get their transfer and promotions soon

The Andhra Pradesh state government is trying hard to get the process of transfer and promotion of teachers done in stipulated time. The School Education Minister, Damodar C. Rajanarasimha, also assured the Andhra Pradesh State Teachers’ Union that the process will be finished by the first week of January.

Source: The Hindu, December 25, 2008. “Transfers, promotions of teachers soon”

Over 50000 IT professionals may lose their job

IT sector in India may lose over 50000 jobs in the next six months, says a forecast by the Union of IT Enabled Services. This is the result of worsening situation due to the economic crisis on the export oriented industry. In September- December it was medium scale firms which had a series of layoffs and now it is the larger companies that are facing the axe.

Source: The Financial Express, December 25, 2008. “IT sector in India may lose 50,000 jobs”

Economic slowdown proves hard for Labour ministry

With the economic crisis affecting every corner of the world, Indian labour ministry is one of many departments to be hit hard with its side effects. Mass retrenchments, social security concerns and upgrading technical training facilities for unskilled workers are rampant, to name a few. But the department has effectively handled the situation, as they have revised the minimum wages, made effecting changes in the law to protect women, children and workers and also have included nearly 450 lakh children into formal education system.

Source: The Hindu, December 24, 2008. “Globalization turmoils hit labour ministry hard”

Child labour issues take a backseat on reaching the court room

The labour department in Vadodara is taking every possible step to curb the child labour, but in vain, as the piles of child labour issues takes a back seat when they reach the court room. There were over 1800 child labourers in the Vadodara district in 2006 according to the survey by the labour department and over 93 such cases in the court of law which are waiting for the final verdict since the last 10 years, which makes the matter even more serious to take notice.

Source: The Indian Express, December 24, 2008. “Child labour takes a backseat in courts”

Government jobs emerge as the new hope for India’s minorities

The number of share of minorities in the government jobs rose with the new programmes launched by the Prime Minister to improve their social-economic conditions. Railways and public-sector banks and financial institutions; armed and paramilitary forces were the sensitive sectors with recruitment shares of 6.2%, 10.2%, and 4905 members respectively during 2007-08.

Source: Hindustan Times, December 24, 2008. “Jump in jobs for minorities”

A day-long nation-wide strike by public sector employees

All India Insurance Employees Association, a body with 1.14 lakh public sector insurance firms’ staff organized a one day nation-wide strike. This strike was in protest against the government’s intension to raise the FDI limit in the insurance sector form 26 percent at present to 49 percent.

Source: The Hindu, December 24, 2008. “Employees of public sector insurance firms on strike”

Corporate-backed institutes absorb students in-house

Institutions with corporate backing are absorbing students in their own institutions inspite of the tie- up with other organisations. The current market condition is the reasons which made the institutions like Neesa Leisure Ltd. and Silver Smith India Ltd. to place the students in-house.

Source: The Business standard, December 23, 2008. “Institutes with corporate backing place students in-house”

Indian Entrepreneurs foresee substantial growth with favorable market conditions

Entrepreneurs are starting new ventures and are growing their businesses in India as the market condition has improved and ample opportunities are knocking their doors, reports a study. Andhra Pradesh and Gujarat topped the list of highest confidence index and most preferred location respectively. The report also suggested some recommendation to the face the challenges that the entrepreneurs have listed.

Source: The Financial Express, December 23, 2008. “Entrepreneurs optimistic on business conditions: study”

Pensioners now have a reason to smile 

The Bombay High Court has given a landmark judgment by overruling the petition of the Solapur civic body on the issue of payment of pension. The court has held that pension is a part of right to live and an important aspect of social security for the pensioners. The court also held that the pension must be paid regularly in the first week of the month. This will surely bring smile back on the face of pensioners.

Source: The Economic Times, December 23, 2008. “Pension part of right to life: Bombay HC”

Pay hike likely for armed forces

With the government likely to agree on the three demands of the armed forces, they all are set for a pay hike. But their demand of equal grade pay for the military officers on par with civilian counterpart has been rejected. Even after this pay hike, Lt-Col rank officers will be under Pay Band-3 (Rs 15,600-39,100), while similarly placed civilians and paramilitary officers will be offered PB-4 (Rs 37,400-67,000).

Source: The Times of India, December 23, 2008. “Armed forces all set for pay hike”

Bill proposing over three fold hike in judges' salaries introduced in Lok Sabha

The govt has introduced a bill which proposes a hike in the salary of Chief Justice of India from Rs 33,000 to Rs 1,00,000 per month and Apex Court judges from Rs 30,000 to Rs 90,000 pm. Also the draft legislation seeks to increase the salary of the Chief Justice of High Courts from Rs 30,000 to Rs 90,000 pm and the judges of High Courts from Rs 26,000 to Rs 80,000 per month. The additional quantum benefit of pension and family pension with reference to the age of pensioner and family pensioner is also planned  to be extended to the retired judges.

Source: The Economic Times, December 22, 2008. “Bill seeking hike in SC, HC judges' salaries introduced in LS”

2009 to be labeled as unemployment crisis year?

The Indian job market is overflowing wit the news of layoffs, retrenchments, salary cut, reduction in benefits and there is no doubt the coming year 2009 will face an unemployment crisis soon. But this crisis have some good effects too, as job cuts will spawn the need for skilled professional and will also increase the saving rate which is in turn beneficial for the economy.

Source: The Economic Times, December 22, 2008. “India stands resilient as unemployment crisis looms”

New rules regarding Provident fund leave many companies worried

Many companies are left worried by the government rule of depositing 12% of expat workers’ basic wages to the provident fund by both the company and workers. The companies are worried as this will increase their overall cost. The companies are in dilemma as they can’t go the department as they are unsure about the various nuances of the notification and even can’t deny the rule.

Source: The Economic Times, December 22, 2008. “PF norms for expat staff put cos in spot”

Foreign business graduates seek to work in India

Indian job market has become the target of many foreign business graduates who have different reasons to settle here. One of the main cause is the US job markets which have cooled down these days and have very less opportunities. And for companies, this is a golden chance as they can acquire global talent at low cost and can perform well.

Source: The Economic Times, December 22, 2008. “Overseas business grads target Indian job market”

Job hunters become jobless

As per government data, the numbers of job seekers are declining as nearly 15 lakh job seekers are now out of the employment exchange register across the country. The number of men registered with the employment exchange declined by 8%, which has a total of 2.79 crore job seekers. But the scenario is opposite in the case of women as the number of women job seekers have increased by 26% to 2.6 crore during 1998 to 2007.

Source: The Economic Times, December 22, 2008. “Growth reduces rush of job hunters”

Companies exploring ways to avoid layoffs

Companies now are reworking on their strategies to cope with the economic crisis, by improving their employees’ skill, encouraging development programmes and treating them as their valuable assets. They are also trying to reduce their cost by internal training and visiting places through telepresence or virtual presence. But at the same time they continue to scale down their hiring plans and are also showing doors to non-performers.

Source: The Economic Times, December 21, 2008. “HR managers prefer training, retaining to layoffs”

Talent Management important for companies

In India, where there is no dearth of talent, companies are lacking to maintain people through talent management or by succession planning. A report concluded that companies are not able to maintain and develop their leaders. But with all odds, the core leadership skill is still the same with only its application bearing a change.

Source: The Hindu Business Line, December 20, 2008. “Cos need a clear policy on talent management”

Declining business performance forces companies to scale back salary hikes

With slumping corporate earnings, more than 80% companies are mulling to cut salary hikes for 2009 with some even considering a freeze in salaries, says a Mercer study. A severe curtailment in overall hiring is also in the offing. The double whammy of economic slowdown coupled with low earnings and rising employee costs has forced a majority of companies to take such drastic steps.

Source: The Business Standard, December 19, 2008. “Firms may cut planned salary hikes in ’09 : Survey”

Salaries register massive fall for Tier II B-school students

Management students are facing bad times as they prefer to take a practical approach rather waiting for their dream jobs. Pay packages offered in second-rung B-schools have declined by as much as 50% as corporates battle the slowdown in economy. As a result, students are opting for jobs which pay significantly less rather than sitting jobless.
Source: The Business Standard, December 18, 2008. “Second-rung B-schools feel the placement pinch”

NASCOMM predicts IT industry recovery in 12 months

NASCOMM chairman Mr. Ganesh Natarajan has said that the recessionary trends seen in the Indian IT industry will end in 12 months as companies focus more on domestic markets. Blaming negative sentiment for recessionary trends in the industry, Mr Natarajan said that 2 lakh people have been recruited in 2008 while 1 lakh job offers have been made for 2009.

Source: The Business Standard, December 18, 2008. “Indian IT industry to recover in 12 months: NASSCOM Chief”

PFRDA to invite new fund managers for citizens’ retirement corpus

The Pension Fund Regulatory and Development Authority (PFRDA) is inviting potential fund managers to manage the retirement corpus of citizens who join the New Pension Scheme on a voluntary basis after April 1, 2009. It is notable that the offer is open to private players as well contrary to only public sector players the last time. Banks, insurance companies and even post offices are expected to bid for the offer.

Source: The Financial Express, December 18, 2008. “PFRDA for new fund managers for citizens’ pension scheme”

Finally, social security bill for unorganized workers passed

Parliament on Wednesday passed the Unorganized Workers’ Social Security Bill 2008, which will be benefit about 94% of workers in the country. This bill seeks to provide welfare measures of health, life and disability insurance, old-age pension and the group accident scheme to these unorganized workers. It will also include agricultural and migrant workers and is assumes to cover bout 34 crore people in the next 5 years.

Source: The Hindu Business Line, December 18, 2008. “Bill on social security for unorganized workers passed”

Hefty pay packets for academicians

The government has announced the revised pay-scale for university and college teachers with an effort to improve the quality of education. The minister of state for HRD announced that there will be three designations henceforth: assistant professor, associate professor and professor, with a PhD degree compulsory for appointment as a professor. The entry level assistant professor will get a Rs. 6000 grade salary and that of a professor will be Rs. 12000 per month.

Source: The Hindu, December 17, 2008. “University, college teachers pay revised”

Supplementary budget for salary arrears by Uttarakhand govt

A supplementary budget has been brought by Uttarakhand government in the sate assembly in order to meet is commitment to nearly 63,000 employees and 60,000 pensioners. The state will have to bear Rs.1000 crore of extra budgets for implementing the new wage plan. The increase was 25% and 40% percent respectively for the state employees & pensioners and will be implemented with retrospective effect from January 1, 2006.

Source: The Business Standard, December 17, 2008. “Uttarakhand brings supplementary budget for salary arrears”

Referrals bonus raised for IT employees

Amid crisis, Indian IT companies have raised the referral bonus for their employees. This incentive is given to employees who refer people for slots that companies look for. Recruitment by referrals is 10-15% cheaper than the cost of recruitment process through executive search firms. US firms like Deloitte, ADP, Pegaystems and Broadridge are running such schemes in India.

Source: The Economic Times, December 16, 2008. “IT companies raise referral bonus amid crisis”

Pay hike for Orissa government employees

Orissa government has announced a pay hike of 35 to 60% to its 5.5 lakh employees and 2.49 lakh pension holders. The finance minister also announced that house rent allowance will be enhanced to 20%, 10%, and 5%, for municipal corporation areas, 20 other urban areas and for remaining town respectively. The gratuity amount has also been raised to Rs. 7.5 lakh from Rs. 2.5 lakh. The pay hike will be applied with retrospective effect from January 2006, and the payment of current salary and pension in the revised scale would be given from December 2008.

Source: The Financial Express, December 16, 2008. “35-60% pay hike for government employees”

FMCG tops the most-popular list among students

With job security becoming a major priority of young graduates, the FMCG industry has made it to the most popular charts among students, says a report. Nonetheless, retailing topped the list of most promising sector for the future followed by Management Consultancy, Entertainment & Media, FMCG and Investment Banking. Personal growth and independence in taking decisions were the top factors for joining a company, reports the survey.

Source: The Business Standard, December 16, 2008. “FMCG tops students' wish list”

Petition challenges higher income ceiling for OBC creamy layer

Nair Service Society has filed a petition against the revision of income criterion for the creamy layer for admission to educational institutions. The income ceiling was revised from Rs. 2.5 lakh to Rs. 4.5 lakh for the other backward castes (OBC). While filing the petition, the society clarified that the so-called backward people need no more such benefits as they have already reached the level of forward classes.

Source: The Hindu, December 16, 2008. “Higher income ceiling for OBC creamy layer falls foul of court order: petition”

MPs demand steep rise in salaries

A bill passed in the Rajya Sabha has proposed a sharp hike in the salaries of the President and Rajya Sabha chairman. As per the bill the Rajya Sabha chairman’s salary will be raised to Rs. 1, 25,000 and the salary of President will be raised to Rs. 3 lakh per annum. Members of Parliament (MPs) have demanded better salaries to cope with the demand of their work and the ongoing financial stress.

Source: The Times of India, December 16, 2008. “MPs demand better salaries”

Gujarat, Bihar to implement the 6th Pay Commission soon

The Gujarat government has decided to extend the benefits of the 6th Pay Commission to its staff from April 2009. This has been a major issue between the unions and the government, with workers going for mass leave as a mark of protest. Bihar has decided to implement the sixth pay commission's recommendations in the state as a new-year gift to its employees. This will cost the Bihar government Rs.15,000 crore every year.

Source: The Hindu, December 17, 2008. “Gujarat to implement 6th pay commission for its staff” ; The Times of India, December 16, 2008. “6th pay panel packages to state staff likely soon”

Unemployment allowance for retrenched ESIS workers

Union Labour Ministry has announced unemployment allowance to retrenched Employees’ State Insurance Scheme (ESIS) workers under the Rajiv Gandhi Shramik Kalyan Yojana. Those employees, who are insured for 5 years or more, will get allowance in cash equal to 50 per cent of their wage up to six months during his entire service. Also, these employees and their family is also entitle for medical care. 

Source: The Economic Times, December 15, 2008. “Retrenched ESIS workers can get unemployment allowance: Oscar”

Employment data to be released on a quarterly basis: NSC

National Statistical Commission is working on a proposal of releasing employment data quarterly against the current system of once in five years. This will help to effectively forecast the growth rate of the economy while bridging the gap in real sector data coverage. However, it is unclear as to how such massive amounts of data will be collected against the backdrop of severe shortage of trained people in the statistics ministry.

Source: The Business Standard, December 15, 2008. “Jobs data may go quarterly”

6% wage hike for road transport employees in Karnataka

Karnataka government has approved a 6% wage hike for its Karnataka State Road Transport Corporation (KSRTC) and other public transport corporation employees. This will be with retrospective effect from April this year and the arrears will be paid in cash, costing the government a total of Rs. 386 crore. Meanwhile, KSRTC is planning to introduce Volvo buses and recruit 153 security personnel to protect its bus stations. 

Source: The Business Standard, December 15, 2008 “KSRTC employees to get 6 per cent wage hike”

No job-cuts here; LIC, SBI, PNB on a hiring spree

Undiscouraged by the economic slowdown, many public sectors units are taking the bold step of increasing the strength of their workforce. For instance, Life Insurance Corporation (LIC) will be recruiting around 45,000 people this fiscal. The biggest lender, State Bank of India (SBI) is planning to hire 20,000 clerical staff and around 5000 supervisory staff by this fiscal end. Union Bank of India, Bank of Baroda, Indian Overseas Bank and Bank of India, Punjab National Bank are planning to hire 5000, 1950, 1200, 1737, and 2000 employees respectively in the near future.

Source: The Financial Express, December 14, 20008. “PSUs on a hiring spree; LIC, SBI lead” ; The Economic Times, December 15, 2008. “LIC, SBI, PNB to go for major hiring”

PR firms face the heat from cost-cutting

With business houses going slow on image building and advertisement campaigns amid cost-cutting operations, public relations (PR) firms are facing a fall in their growth. As corporates go through bad times, firms are even ready to renegotiate earlier terms for a sweeter deal. But this has also brought lots of opportunities for budding talent in the PR industry as they think of innovative ideas to sustain in the market.

Source: The Hindu, December 15, 2008. “Global crisis hits Indian PR industry; steep fall in growth”

Companies broadening roles to fight the recession 

Companies are creating new ways and ideas to fight the tough times which include planning of talent acquisitions. Broadening job roles and compressing layers of top management and thus restructuring their configuration are also on the cards. Companies like Cadbury, Suzuki Motor, Satyam Computer services Ltd are among the few who have taken such measures.

Source: The Hindu Business Line, December 15, 2008. “Cos broaden job roles to beat tough times”

Single-digit salary hikes by Infosys, Wipro and TCS

The Big Three IT firms have decided to offer only single-digit salary hike this fiscal to their employees, due to lack of demand of their services in the domestic and foreign market. Tata Consultancy service (TCS) and Wipro have decided that they will either defer the salary hike or will have only single-digit salary hike (7-8%). Infosys too will be offering single digit salary hike of around 7-8%, against the hike of 13-14% in previous years.

Source: The Economic Times, December 15, 2008. “Infosys to offer single-digit salary hikes”

Pay-cuts better than job loss

Employment is something more than just a job to earn a livelihood. Job-loss not only means loss of household income but it takes away something more important than it, that is, happiness, self-respect, and skill. Job-loss depreciates one’s skills with oneself. And pay-cuts, on the other hand, will provide less work load which will lead to more leisure time. Thus from every angle, pay cut is better than job-loss.

Source: The Hindu Business Line, December 14, 2008. “Why pay-cut is better than job-loss”

50% of Jet airways employees decline voluntary pay cuts

Around 50% of the 13000 employees of Jet airways declined the offer of a voluntary pay cut. This list includes 750-odd pilots too. The percentage of graded salary cut proposed was 5, 10, and 25 respectively for the employees earning monthly salary of Rs. 75,000- Rs. 2, 00,000, Rs. 2, 00,000- Rs. 5, 00,000 and above Rs. 5, 00,000.

Source: The Business Standard, December 12, 2008. “Only 50% staff buy Jet's pay cut”

Kingfisher to have new two-part pay structure for their pilots

Kingfisher Airlines has decided to have a new pay structure for their pilots in the form of a gross salary with additional flying allowances with effect from January 1, 2009. This allowance will ranges between Rs. 600 to Rs. 1300 per flying hour. This structure will hit the co-pilots’ salary by 14%. Such steps are common in the aviation industry currently due to the demand slump and to offset the losses of the past two years.

Source: The Business Standard, December 12, 2008. “Kingfisher links pilots' salaries to flying hours”

Print media also affected by the economic crisis

Increasing cost of newsprint and depreciating value of rupee has worsened the situation in print media. They too are taking steps to stimulate revenues, rationalize costs and are also having lay-offs. Dainik Jagran, Sakal group and Infomedia will be shelving around 50, 60, and 400 people respectively. But with expansion plans on hold everywhere, the launch of DNA (Bangalore) edition surprised the print media. 

Source: The Business Standard, December 12, 2008. “Print media firms rationalize costs, job cuts afoot”

Class-II staff to lose financially in the revised pay band

If Fitment Committee’s suggestion is implemented, then class-II government staff will bear financial losses. The revised pay band for class-II staff is lower than sections officers and private secretaries. They have recommended three pay bands like 9,300-4,800, 15,600-39,100 and 37,400-67,000, and class-II and class-III staff will be bracketed in the first two pay bands

Source: The Business Standard, December 12, 2008. “Class-II staff likely to lose in revised pay band”

Government jobs: the most recession proof employment option

The present recession has changed the prevailing trend since a couple of years, the trend of joining the “highly gratified” corporate world. But the situation has taken a U-turn, and bureaucrats who have joined private firms are returning back to their government jobs. They have realized the “job security” factor that government jobs possess, making it a recession-proof option.

Source: The Times of India, December 12, 2008. “Babus back to safe government jobs”

Indian Industries to have weakest-ever hiring outlook

In next three months, India will be hiring 27% less, but will have 19% positive recruitment plans for the next quarter. Apart from the slowdown in hiring, India is considered to have the second best hiring intentions globally after Peru. If we look regionally, East India is having the strongest hiring intention.

Source: The Business standard, December 11, 2008. “Firms to hire 27% less in 3 months: Report”; The Economic Times, December 12, 2008. “India has second best hiring intentions globally”

Meltdown effect: Yahoo! to reduce its workforce by 3% in India

The economic downturn has forced Global internet major Yahoo! to reduced its workforce. As part of its restructuring, Yahoo! issued lay off notices to three per cent of its Indian workforce which comprises of 2000 employees. It had also scheduled to lay off 10% of its workforce globally, about 1500 employees.

Source: The Hindu, December 11, 2008. “Yahoo! to lay off three per cent of India workforce”

Layoffs affect the company’s performance

Knee-jerk reactions for cost-cutting like layoffs have the most damaging affect on a company’s human capital. This may lead to a decrease in companies’ performance. Many HR experts suggests the following ways to fight the situation, like, giving incentives for performance, giving learning opportunities, visibility for talented individuals and even time-off from jobs. These measures will encourage the employees and will help in improving the companies’ performance.

Source: Yahoo.com, December 11, 2008. “Side-effect of layoffs: loss of talent”

Indian Industries worried due to slowdown, but optimistic

Indian industries are worried about the future business climate due to the present global economic crisis, reports a study. But are optimistic about the opportunities that education, media, healthcare, FMCG, biotechnology, advertising and PR and organized retail will throw up in the coming time to subdue the market conditions. The study also revealed that mid-level management were little insecure about the capability of the company to sustain in the periods of uncertainties than the top management.

Source: The Hindu Business Line, December 11, 2008. “India Inc working to maintain momentum in subdued market: Study”

Re-skill to survive during turmoil

Firms are cross-training its manpower in multiple technologies in order to survive in this global financial crisis. IT industries are battling a critical time, which leads to delay of projects and are planning to make their employees cross-skilled to enhance deployability of the bench. This process is gaining momentum among the firms as this protects jobs and makes hiring quicker.

Source: The Hindu Business line, December 11, 2008. “Firms leverage cross-training to beat slowdown”

Seven labour Bills are in queue to get Parliament’s nod

Seven labour bills are waiting in queue to get the go-ahead from Parliament. One of the bills, related to Unorganized Sector Workers Social Security, will be placed in the coming session of the house. But the other bills related to amendment of labour laws like Factories Act, 1948; The Plantation Labour Act, 1951; Workmen’s Compensation Act, 1923; The Payment of Gratuity Act, 1972 were approved by the Cabinet last year but are yet to move in Parliament. Constant disturbances in parliament proceedings have virtually stalled key Labour reform bills.

Source: The Business Standard, December 10, 2008. “Seven labour Bills await Parliament nod”

Hilly state Himachal too affected by the recent meltdown

The industries in Himachal Pradesh also have started giving pink slip to their employees following the recent global meltdown in the economy. Gabriel India Ltd (GIL), Su Kam Power System, Hunter Telecom India Pvt. Ltd., Purewal industries are few companies planning to either retrench employees or close their units.

Source: The Business Standard, December 10, 2008. “Himachal industries lay off workers following recession”

Sluggish demand to cause 10-30% job cuts in manufacturing units

Federation of Indian Chambers of Commerce and Industry (FICCI) surveyed manufacturing sectors like textile, metal, capital goods, leather and chemicals. The report stated that these manufacturing units will be cutting 10-30% jobs in next three months. The survey which included large, small and medium scale firms puts the onus for these cuts on the ongoing economic slowdown.

Source: The Times of India, December 10, 2008. “Manufacturing to cut 10-30% jobs”

LIC to add 10,000 people to its workforce

India’s largest insurer will be hiring more than 10000 employees and around 2,50,000 insurance agents this year. After a long gap LIC has decided to hire about 400-500 class-I officers, 4800 class-II employees and about 5000 class-III employees. And in public sectors banks, SBI alone will be hiring 25,000 employees this year.

Source: The Business Standard, December 09, 2008. “LIC to recruit 10,000 employees this year”

More than 80,000 families to get work in Mysore under rural job programme 

National Rural Employment Guarantee Programme (NREGP) in Mysore had about 87,950 families registered for work. Of which 74,380 families have been provided employment card so far. The programme assures 100 days of work during a fiscal year for rural families. The wages are fixed at Rs. 82 per day for 100 days.

Source: The Business Standard, December 08, 2008. “Rural job programme in 23 villages of Mysore”

SMEs not spared by slowdown

The current economic slowdown has not only affected the large scale firms but has also affected the small and medium scale business units of Kanpur. Decrease in demand and increasing production cost has forced these firms to resort job cuts and freeze their hiring plans. Plastic, auto ancillary, handicraft and textile industries are the ones which are badly affected.

Source: The Business Standard, December 08, 2008. “Kanpur units resort to job cuts, retrenchment”

Travel agents likely to get 3% commission

The Management of Jet Airways and JetLite have agreed for 3% commission to travel agents. Amid fears of losing jobs, travel agents had stopped selling the air tickets of Jet Airways in protest of no commission being paid out to them. This resulted in a sharp drop of bookings and created havoc in Jet Airways management and it was decided to pay a 3% commission to travel agents.

Source: The Business Standard, December 08, 2008. “Jet Airways agrees for 3% commission to travel agents”

Terror aftermath: Companies take safety measures

After the recent terror attacks in Mumbai, companies are increasingly feeling the importance of staff verification. They are planning to set up a staff verification procedure especially for temporary and contract employees. Those employed in ‘sensitive’ positions like hospitality, airline, BFSI, retail and telecom services will have additional checking apart from routine address, education and pervious employment verification.

Source: The Hindu Business Line, December 08, 2008. “Staff verification norms to be tightened”

All about enticing top talent

Acquiring top talent or outstanding tellers from the talent pool is a tricky play for many financial institutes. Such individuals give importance to the employee-employer relationship and the effective use of time invested by them. Thus it is imperative to show that the company operates at the highest levels, through their recruitment and selection processes. Financial institutes have to meet their high standards and expectations for tapping such immensely talented individuals.

Source: The Hindu Business Line, December 08, 2008. “How Financial Institutes can tap top talent”

Rupee depreciation: All smiles for IT employees working abroad

The deprecation in the value of rupee against dollar has brought good news for many IT employees working abroad. These employees are employed on short-term projects and given daily allowances in the local currency of the country of deputation. They save from these allowances and can convert it in to Indian rupees when they are back home thus giving them higher returns on the currency exchanged.

Source: The Economic Times, December 08, 2008. “Weak rupee helps IT employees working abroad”

“Punarbhava.in”: a job portal for differently challenged people

“Punarbhava.in” is an attempt to provide a gateway to information for persons with disability. It has information on companies, job opportunities and career avenues, and is specially designed for people with disabilities. Articles related to career and jobs, all government laws, orders and notifications related to disabilities find a place on the portal. It is also designed to be a one-stop site for comprehensive and interactive information on disability.

Source: The Hindu Business Line, December 08, 2008. "Enabling assistance"

Special Economic Zones to be opposed by AITUC

The General Secretary of AITUC, Gurudas Dasgupta has vocally opposed the government’s move to set up more Special Economic Zones (SEZs) in the country. He has said that SEZs, inspite of being for industrial growth, have created few jobs and have become a land-grabbing exercise with states doling out concessions for the same.

Source: The Financial Express, December 06, 2008. “AITUC to oppose setting up of more SEZs in country”

IIT placements set to survive the economic downturn

The economic slowdown has not affected the placement in many IITs. With renewed interest by start-ups and companies in emerging sectors, many IITians have accepted the challenge with packages of around 5 lakh to 6 lakh per annum. The ongoing placement season has brought smiles on their faces while defying the prevailing economic downturn.

Source: The Business Standard, December 06, 2008. “Start-ups bail out IITians facing placement blues”

Pay-cuts and Layoffs amid the recession in real estate sector

Amid of economic slowdown, many leading companies in the real sector are resorting to salary cuts, slashing their workforce, holding the projects and revising their plans. Omaxe will be reducing its workforce by 7% & slashing salaries by 20 percent for those who get more than Rs. 10,000 per month. Parsvnath has slashed 20 percent salary of top and middle management employees as well. DLF, too, has announced job cuts and put projects on hold.

Source: The Hindu, December 06, 2008. “Global crisis takes its toll on real estate sector”

65,000 jobs cut in three months as exports decline drastically

Dip in export orders due to slowdown in world economy has forced exporters to have a hard look back home. A recent survey revealed atleast 65,000 job losses across 121 export oriented firms besides a host of other impacts. Coupled with the low demand, lack of assistance and incentives from banks has been a major reason for the lay-offs. According to experts, more job-cuts may be on the anvil if urgent steps are not taken.

Source: The Business Standard, December 05, 2008. “65,000 lose jobs in 3 months across 121 firms: Government survey”

Lack of communication skills a major reason for low paid jobs

Students passing out from Indian universities are paid less abroad owing to low communication and interpersonal skills. These students land up doing jobs like electrician, plumber and construction workers in Australia and elsewhere. In this regard, many foreign universities are interested to tie up with Indian universities to provide various vocational courses to students.

Source: The Financial Express, December 04, 2008. “Lack of skills leads Indian students to low paid jobs”

New technique to cut cost by BPOs: ‘work from home’

Non-voice BPOs and KPOs are encouraging their employees to opt from the options like working from home and flexible hours, as a measure of cost cutting. But companies also have some concern over the issues of privacy and security, which remain to be fully addressed. There are differences in salaries for such employees and incentives are also provided if they use their infrastructures like PCs, internet and other softwares. 

Source: The Business Standard, December 04, 2008. “Meltdown effect: Gujarat BPOs say 'work from home”

Wealth managers are hiring in times of rising lay offs

With increasing geographic expansion, wealth managers are looking for new talent foreseeing a huge demand in the domain. The economic downturn has left people feel concerned about their investments and they are now approaching wealth managers to park their money at the right place. Reliance Money, Axis Banks and SMC Global plan to hire 100, 60-70 and 15-20 people respectively in the current fiscal as part of their wealth management team.

Source: The Economic Times, December 04, 2008. “Wealth managers go head hunting in times of pink slips”

60,000 contract workers face the brunt by IT companies

In order to cope up with the present economic downturn, many IT companies are trimming their workforce. The current session of trimming has seen contract or ‘vendor supplied’ employees facing the brunt as 60000 employees have lost their job. Most of the shrinkage is in multinational companies like IBM, Google, HP, SAP, Sun, and Accenture.

Source: Daily News & Analysis, December 04, 2008. “IT companies shut the door on 60,000 contract workers”

Jet Airways top management takes a 25% voluntary pay cut

Employees at the top management of Jet Airways, earning gross salary of Rs. 75,000 per month are taking voluntary pay cut of 25% effective December 8 this year. This wage cut will be graduated over next 12 months. As a part of cost cuttings measures airway is reviewing, rationalizing the perks and allowances, freeze in recruitment, eliminating overtime, identifying and eliminating wasteful activities.

Source: The Business Standard, December 03, 2008. “Top management takes 25% voluntary pay cut: Jet Air”

Small and medium IT companies freeze hiring plans

Small and medium scale IT companies too joined the list of Information Technology biggies like Wipro, in trimming their workforce. The slowdown effect is also seen in these small IT firms as they have freezed their hiring plans. And they also have dropped the plans of salary hikes for next few quarters. 

Source: The Business Standard, December 03, 2008. “Smaller IT firms too freeze hiring outlook”

Employee stock options plan for Public sector employees

After government approval, the department of public sector enterprise has directed all PSUs to formulate employee stock option plan to their employees. Public sector will give 10-25% of the performance related pay as Esops. But the quantum will depend on the grade of employee, their performance and the profitability of these sectors.

Source: The Economic Times, December 03, 2008. “Staff to finally have a stake in PSUs, via Esops”

Wipro, Infosys try different measures for cost-cutting

As a part of their cost-cutting program, Wipro and Infosys are adopting different measures. Like, Wipro asked its newly recruited engineers to join their BPO services. This will be for no more than 12-18 months after which they can resume their work in tech services. It has also assured them of the same pay decided between both the parties. On the other hand, Infosys asked its employees to save $10 (Rs. 500 approx.) per head, by cutting operational costs and controlling expenditures. 

Source: The Hindu Business Line, December 03, 2008. “Wipro offers campus recruits job switch”; The Economic Times, December 02, 2008. “Let's begin by saving $10 per staff: Infosys CEO Kris”

No lay offs but single digit salary raise at TCS, HP

Tata Consultancy Services (TCS) has said no to lay offs despite the negative economic sentiment and will be hiring 30,000 employees by next fiscal. On another front, TCS and Hewlett-Packard Co. (HP) plan a hike in current salaries, but a significant dip is expected. Last year the salary hike in TCS was 15% and in HP it was 14%; while this year, it will be lower than 10 % in TCS. HP has asked its employees to undertake cost cutting measures by restricting travel and having virtual meetings. 

Source: Hindustan Times, November 30, 2008. “TCS heads for single-digit raises”; Live mint.com, December 03, 2008. “No increase in pay, HP staff told”

Toyota to cut winter bonuses

With a heavy dip in auto demand globally and an unprecedented slump in earnings, Toyota has decided to cut the winter bonuses of 8,700 mangers this year. It has decided to lower the bonuses by 10%, for the first time since 1998. It has also decided to halt the production processes in some of its plants, amid the slowdown.

Source: International Business Times, December 02, 2008. “Toyota shares fall the lowest level of the year, fearing its bonus cuts”

Rich nations need foreign workers

The International Organisation for Migration appealed to countries to welcome skilled migrants despite the current downturn. The report presented by the organization in Geneva suggests that there is demand for foreign workers to fill the jobs shrinking work forces cannot or will not do. The demand for such workers is increasing in health care, domestic care and service industries. According to the report, China and India will be supplying 40 % of global workforce by 2030.

Source: livemint.com, December 02, 2008. “Rich world needs more foreign workers: migration report”

Freedom to fix directors’ pay may have strings attached

The Ministry of Corporate Affairs is planning to rethink the issue related to the freedom that companies had in fixing managerial remuneration. At present, firms in India cannot pay more than 5 per cent of net profits to any single director. This provision has been removed in the draft of the new Companies Bill 2008. Premchand Gupta, Minister of Corporate Affairs is mulling to put some checks in place to ensure firms making huge losses do not continue to pay assured compensation to its directors.

Source: The Business Standard, December 02, 2008. “Government may rethink lifting cap on directors' pay: Gupta”

Employee Provident fund and Pension scheme for all “International workers”

Government of India has issued a notification dated October 01, 2008, about the scheme of Provident fund and Pension for all “international workers”. International employees and his/her employer have to contribute 12% of their salary to PF, if India has agreement of Social Security with the host country. In case there is no SSA between India and host country then employee has to contribute to PF in both countries. The main objective behind this is to protect the employees from exploitation. 

Source: The Business Standard, December 01, 2008. “Scheme of PF and pension to expatriates premature”

HRD conference sets agenda for tough times

New HR agendas for tough and trying situations were set and discussed at the National HRD Network’s conference held at Chennai. It clearly mentioned the need for change management in the organization. Instead of knee-jerk actions like retrenching employing or closing outlets, HR people should make contingency plans and execute them effectively while also hiring visionary challengers and people who can manage change.

Source: The Hindu Business Line, December 01, 2008. “Like a tea bag, HR gives its best when put in hot water”

Huge pent-up demand in the Indian Logistics Sector

With companies setting up global sourcing back-offices and manufacturing units in India, there are ample opportunities for skilled manpower in the logistics industry. The shortage of people is mainly in senior level and middle level management. This industry now requires 4,20,000 skilled people in senior category alone. The industry is at the growing stage, which means that it will generate lots of opportunities in the future. 

Source: The Hindu Business line, December 01, 2008. “Hunt for talent in logistics sector”

 

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