Don’t be skeptical about the title.
I am referring to the top software companies and their HR policies. Software professionals are in dilemma with the things happening around them! First, it was variable pay cut, and, now, it’s the turn of firing fling!
Last year, the situation was just opposite to this. TCS was on the spree of expanding its workforce. Now, it is asking (rather ordering) its employees to opt to get out of the organization on their own (read: voluntary resignation), who are rated as poor, i.e., below 2 point grade as per their performance norms. Sounds polite, but, its not! It is equally humiliating than sacking, if not more.
Actually, there was no other choice left with the employees than to resign voluntarily, otherwise, they might have been sacked by this time. I heard two cases of such. Those employees who’ve put in years of experience were under pressure by the HR to resign voluntarily by the specified time.
See here how the company is downplaying the issue. Some comments of TCS spokesperson:
“Those who cannot meet the performance requirements of our company are asked to look for another job commensurate with their abilities.”
“This (financial) year so far about 500 people have resigned voluntarily.”
He, however, asserted that no employee has been sacked or fired. As a policy the only time when TCS dismisses people is for disciplinary reasons, he added.
It’s not the case only with TCS. IBM is also following the strategy of downsizing its work force as an option of cost-cutting drive. IBM in India has shown the door to 5000 entry-level employees in the country.
The appreciating rupee against dollar and the slowdown of US economy are being the major concerns of software industry right now. As their revenues slashed, the companies have cut the variable pay, which accounts for 30% of the total pay, of all the employees at various levels. So, all is said and done software professionals are facing gloomy times.
These companies can actually filter undeserving candidates in the initial levels of the recruitment process, if it is really flawless. Moreover, any appraisal policy follows a specified set of norms. And, TCS follows this modus operandi very strictly. As far as I know, the appraisal norms specify a percentage of employees per each band. The employees are placed between 5 to 1, 5 being the top most and 1, the least. So, for one to be in the 5 point band, one remains in 4 and other in 3 and so on. Consequently, some employees ought to stay in and below the 2 point band.
The points/grades depend on various factors which may not necessarily reflect an innate potential of a person. The factors which HR considers might show employees’ performance for a very short duration, which might be a temporary phase. Many aspects either personal or professional might influence employees’ performance within a stipulated time. The rationale of the evaluator might not be flawless. I agree that some unworthy staff dwell in any organization. If they fail to prove themselves worthy of their role repeatedly, sacking would be the only option left with companies. But, sacking, regardless of their experience, just for the sake of cutting down manpower as an alternative to cost-cutting – is injustice done to the employees. “First hiring and then firing”, should not be the practice.
lengthy post but it is really shocking the way the employees are fired. I spoke to my friend who is working in IBM Hyd, he said it is all because of the USD slip but not because of poor performance. As these people are not given any projects despite one year they are simply shown the door.
Lucky I didn’t opt for MCA.
Yeah, that’s the case with IBM. (See the link – downsizing) It has thrown out many entry-level trainees as a cost-cutting measure due to USD slip. But, I was largely referring to TCS there. If I had thrown light on IBM too, the post might have become lengthier.
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This will happen in all the software companies. Bt, this is done in a very large scale. ‘Poor performance’ is just the reason they tell for the sake of telling. Hopefully, no other s/w company would follow this.
We Indians have this tendency of getting psyched about layoffs. The truth is, in a globalised economy these things will happen. How does it matter what reason the company gives? People get laid off every day in big companies like AOL and Verizon. But they just pack there bags and start a new job hunt. However, if an Indian is laid-off, he’d beg to be taken back as if his life depended on it.
If anything, these layoffs are signs of things to come. If you want a job guarantee, go join a government organisation.
I don’t think getting psyched about lay-offs is the tendency of Indians only. If that is the case, why foreign countries are so worried about off shoring?
My only concern is, whether those employees were given enough notice and offered any compensation or not. And, were they dealt with in all dignity that they richly deserve?
No doubt, an organization has every right to sack any employee whom they think misfit for his job, but it should ensure systematic and scientific evaluation of the performance of employees before resorting to such a whimsical approach of sacking a huge number of employees at one stroke by branding them incompetent. After all, the companies are quite conscious of their self-worth, and so too the employees do.
And, it is just a misconception that the government job is fun-to-do. It is not that, in government organizations disciplinary action is not taken against employees and dismissals do not take place.
Lazybug… I dont know about how much Knowledge you have abouthow layoffs happen in the western world… Firstly a company can lay off someone only on discplinary grounds.. If a company needs to downsize then it is termed as making ‘redundent’.. and to do so the company needs to pay huge amounts of compensation..sometimes more than a years salary..also after this there is the social security provided by the government (almost all European countries)… so they can take it cool … what about us ? We get paid one months salary The govt will shamelessly take tax on this salary also.. and to make things worse the corporate sector would not prefer to hire anyone who has been laid off… the hypocracy of the ‘Lay Off Stigma’.
I share the same views as Sridevi, and think this should be the way to treat it:
1) When you lay off to downsize, companies should not lie that people are being layed off due to poor performance. This only ruins the career of the people laid off for no reason.
2) If you are layying off people, do one of the following :
a) Give them atleast a 3-6 months notice
OR
b) Pay them a year’s salary.
If you are staying in the UK/USA and have earned enough $$$ and are laid off in India…it would not hurt you for some time… but what about those who have to look after their famalies and also pay house rent/loan.
Be more sensible to such issue before you make statements like – If you want a job guarantee, go join a government organisation.
We are not talking about job security here , but trying to gauge why it hurts us more than it hurts a guy in the UK or US
It’s really a good blog.i want to know one thing, how long this continues?? i’ve heard that it’s short time economic contraction similar to 2001, is it true??
I am working with CMMI level company. this is the 7th month of my job. When i joined they have commited tht they will appraise me after 6 months now thy have changed the policy and tld me tht u wl get appraisal after 1 yr? how to fight with them? please reply me as soon as possible…they are not releaving me i signed one yr bond with them as i trusted their words. i dont hv any written proof for above matter. wt to do in this matter?
in our company the project lead is not having a basic technical knowledge,he has a fake experience, and he is surving himself by the other people work in the team.
though he is here in the company for past 3 years and placed an experience in this IT industry as 6 years.he has not even thought of learning the basics.
this happens in many IT company,there are people of these kind in managerial and lead position who have placed fake experience and not even attempted or try to gain knowledge from there current experience.firing this kind of people ia a must.
Companies are hiring and firing as per their wish and will. Larger companies like TCS,Wipro, Sathyam have accounts getting closed and whole account is closed and some of them who has prior information and have influence moves to other accounts which are active. Smaller companies like TRX have more politics and all the dirty games happens there. You are retained if you have “THOSE” skills and personal repo with your manager. Those who are retained are STARS!No other skills is required.
Our current system is not good enough to handle these companies and also poor employees are scape goat for all the poor decisions made by the top management and onsite management. It is a shame that we work with lot of dedication for such worthless companies and get hurt in the process.