The way India’s economy is going currently I am sure the 2009 pass outs of Engineering as well as MBA colleges would be cursing their stars. They had to suffer from low pay packages, not being recruited by many of the big names and neither having a chance of getting their desired profiles. But this year the story seems to be entirely different. The recruitment numbers across the board seem much more than one could have imagined. So much so that in a recent survey by consultancy firm Manpower places India among the top 3 countries with the best employment scenario in 2011.
But then the most interesting aspect of all this is that our IT companies seem to be back to offering strong variable pay as well as big salary hikes. Last year the top 3 IT behemoths of the country – Wipro, Infosys and TCS recruited just about 20,000. Even among the 20,000 many of them were people with work experience since the companies were looking for people on whom they wouldn’t have to spend that extra money for training. The pay packages had come down miserably and even the promotions were frozen in most of the IT cos.
But this year with Cognizant’s offering of stock options to top management to offering very attractive variable pay in Infosys and Wipro to offering promotions in TCS, the IT behemoths are going the full hog. Even though the entire scenario has come back to one of happiness and security, there are certain lessons which the companies have learnt.
IT companies have realised that getting a good number of work experience people is also very important. One of my friends currently working in a GE project with TCS was recently agreed to the same fact that TCS is now looking for experienced candidates these days who can work directly from day 1. This can save extra training and development costs.
Salary hikes, promotions etc. notwithstanding companies have realised that people give importance to special incentives like holidays with families and also youngsters give importance to social networking. And they are making sure that by some way or the other they provide these facilities to their employees. Internal social networking platforms like C2 in Cognizant are becoming an important tool to encourage youngsters to develop new ideas as well.
Bringing back variable pay and the stock options scheme has brought smiles across the employees in the IT industry.
So why are companies doing all this?
It’s all the fight to retain the best talent and reduce the attrition rates as the IT industry is looking up again and this time like never before!!
Batch of 2011 is probably the luckiest batch in the sense that it is passing out during one of the best times our economy has seen in probably a decade irrespective of inflation!!! What is your opinion?