All of us, at some point or the other, have cursed our bosses or managers for making us work overtime. But, have we ever wondered what makes India Inc ask their employees to burn the midnight oil? Traditionally, India has not been known for its employee-friendly policies. And since it has become the global offshoring destination, companies here have little choice but to give in to their clients’ demands.
An official from a service centre of a financial MNC said: “The management has mandated a year-on-year 10% efficiency save of headcount. This basically means we have to do the job of 10 employees with nine this year and expect to get it done with eight employees next year.”
While some amount of it can be realised through automation and technology interventions, we wonder how long we can sustain this in the long term to reduce costs, he added. With multinational companies bringing in the best work culture practices in the country, Indian firms are making efforts to stay in the race, albeit only on paper. For instance, the HR head of a top Indian IT services firm said the company follows a strict nine-hour work regime. “In fact, we pull up our managers if an employee works more than nine hours for more than two days in a row.”
However, according to employees, this is not the case. “Since the top management gives in to clients’ unrealistic demands, we have no choice but to ask people to work on weekends,” said an employee dealing with the firm’s HR policies.
Experts note that clients usually seek a reduction in billing rates every passing year. So, companies compensate by not filling up vacant positions. “It is a fiercely competitive market. For instance, if TCS bargains for more time from its clients, the latter has the option of reaching out to either Wipro or Infosys. Ideally, these firms should increase lateral hirings. But, by doing so, it will end up sacrificing its margins,” said Kris Lakshmikanth, chairman and managing director, Head Hunters.
Further, a slowing US economy has forced many companies, especially in the IT and ITeS sectors, to optimise existing capacities. “The companies receive flak if their results are not up to the mark in the quarter. Their share prices fall, leading to loss of confidence among clients. They have to make employees work hard at the expense of their personal lives to meet targets,” said a consultant, who deals closely with the IT firms.
A top official from an MNC investment bank said the employees have to justify the salary they earn.
“An employee with two-year work experience earns around Rs16 to Rs18 lakh per annum. We need to justify such high salaries. We can’t follow a nine-hour work regime for them. If our US-based clients have a query, we have to resolve that even if it means working late,” said the official, adding that the situation has improved when compared with the last decade, when even the salaries were low.
