IT industry
‘08 may see less play and less hike in pay
Rupa Jha

Keep employees happy' will be the mantra for IT and ITeS firms in 2008, although they will try to minimise the adverse impact of rupee appreciation with measures like lesser salary hikes and more working hours.

While the salary hikes and additional perks would need to be tightened to cushion the pressure on profit margins due to rupee appreciation, the IT and IT-enabled service companies would find it difficult to retain employees due to emerging job opportunities in other sunrise sectors, experts believe.

"This year will see the area of focus in the job market getting wider beyond the IT and ITeS. It will move on to sectors like retail, infrastructure, energy, manufacturing and SEZs," executive search firm Ma Foi Management Consultants' HR director Hemalatha Rajan says.

The higher attrition due to job openings in these sectors are likely to act as an additional burden for IT sector, which is already fighting the adverse impact of a weaker dollar.

The rupee appreciated by close to 14 per cent against the US dollar during 2007 and is estimated to have cost heavily on the profit margins of IT companies, for whom a majority of earnings and revenue come from the overseas markets.

"As per initial reports and market indicators, the appreciation of rupee could put pressure on compensation packages in 2008," domestic IT major NIIT Technologies' HR Head Rosita Rabindra says.

A number of companies are already mulling over measures like extending their work-week to six days or extending their daily working hours by 1-2 hours, besides curtailing the additional perks like transport and food facilities.

During such tough times, making employees feel on the top could be the least companies could do, industry believes.

"Chances are that many companies will go for six days a week schedule and also reduce their bench strength to meet the revenue threat arising out of the strengthening rupee," hiring firm Manpower India's Managing Director Naresh Malhan says.

Ma Foi's Rajan says that organisations that are able to win over the trust and confidence of their employees during such tough times would emerge as winners in retaining the right talent.

Experts believe that companies need to project themselves as 'employer of choice' if they wish to emerge unscathed after implementing measures like additional working hours and lesser pay hikes.

"Tapping into the intellectual quotient of the employees would help attract them towards this process, create a buzz, attracting them to the process," NIIT Tech's HR Head says.

Further, correct and effective talent management and employee engagement processes would help curtail the outward talent movement, she adds.

"Employee engagement and empowerment would be our prime focus areas. Also, we will try to build confidence in each employee to be successful in their present jobs," New Delhi-based BPO firm vCustomer's CEO Sanjay Kumar says.

Killing monotony in work through inter-departmental movements, encouraging entrepreneurship, regular skill enhancement trainings and employee satisfaction survey has helped us gain employee confidence and we would continue to use these tools this year as well, Kumar added.

"Acquiring the right talent will be the key area of focus in 2008 and the challenge will be to improve our success rate of getting candidates who are organisation-fit," Xansa India HR Director Shantanu Banerjee says.

As for the existing employees, Xansa also plans to bring higher level of involvement by understanding their voice and accordingly drawing out policies in line with their aspirations and expectations, he notes. — PTI