Source | The Economic Times : By Sreeradha Dasgupta Basu
MUMBAI: Indian companies are taking an increasingly hard look at their employees’ performance and this trend will only gather pace in the future, experts say in the aftermath of Wipro sacking more than 500 people after a ‘rigorous performance appraisal’.
While IT firms, financial services companies, startups and BPOs will continue to be more aggressive in this respect, other sectors, too, are slowly but surely taking a tougher stance on under performers in today’s dynamic and hyper competitive workplace, they said.
“Going forward, the trend will be a lot more around performance-orientation,” said S Venkatesh, president group HR at RPG Enterprises. “People are negotiating hard: whether it’s while being hired off campus or while changing jobs. Naturally, companies, too, are taking a hard line on slips in their performance,” he said.
At RPG Enterprises, which owns companies such as CEAT, KEC International Zensar Technologies, employees with the lowest ratings are put on a performance improvement plan.
“The days when people joined a company only to retire from it are over,” said Venkatesh.
Reduction of salary budgets is also playing a part in weeding out people at the bottom of the pyramid, experts said.
“If your salary budgets are increasing by 7-8%, will you divide that across everyone, or focus more on the high-performers? That is the thinking now,” said Anandorup Ghose, partner at HR consultancy Aon Hewitt India.
In a comfortable situation, companies tend to overlook these issues. But given a tepid FY17 and uncertain expectation of uptick in terms of IT industry or financial services, any industry where compensation cost forms a large part of the expense pool will bear the brunt, Ghose said.
“That holds true for IT, BPO and even banking. Though that component is much lower for telecom, it will feel the heat as well given that the sector is going through a churn,” he said.
IT majors including Infosys, TCS and Cognizant have let go off under performers in the past, as have banks such as Axis Bank and ICICI Bank. Last year, at Flipkart, people who did not meet the performance bar and failed to make the desired progress were asked to seek opportunities outside the organisation in what the company called a “fairly common practice” across various industries, especially in high-performing Internet organisations.
Going forward, employees will need to constantly up-skill themselves and make themselves valuable to their organisation not just to boost their career progress, but even to save their jobs, feel experts. “One cannot be static and be hopeful that a growing, dynamic organisation will take care of them,” said K Sudarshan, regional managing partner-Asia at executive search firm EMA Partners.