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H I R I N G & B E YO N D

VOLUME-I | ISSUE 10 www.research.timesjobs.com AUGUST 2011

Inside Insite

n Survey Highlights Whether the reason for corporate restructuring is strategic, financial or technical, people in an organisation are always central to the change. Managing the people side of change is extremely crucial. TJinsite explores the reasons, key success factors and the main challenges in a corporate restructuring exercise in India Inc. n Event Update National HRD Network and NHRDN Mumbai Chapter in association with TimesJobs.com held its one day conclave on `Emerging Human Resource Requirements in the Manufacturing Sector: Road Map for Innovative & Sustainable Strategies in Skills Development & Retention of Talented Employees.' Read the synopsis of the event in this issue. n Polls & Opinion This months TimesJobs.com poll finds out that approaching the target companies is the biggest challenge for the workforce while searching for a job. Another poll establishes that monetary benefits are the major motivators for employees to be part of organisation's referral programs. n Expert Speak Rashmi Deshpande, Chief Officer - Talent and Transformation, VivaKi shares her viewpoint on the requisites for a successful corporate restructuring strategy.

Has temping come of age?

While hiring for full time professionals declined, demand for Consultants/ Freelancers rose by 2 per cent. This point towards the emerging trend of temp jobs which is been overlooked, so far. (TimesJobs.com RecruiteX June 2011 report) Temping is emerging as a good option for freshers to enter the workforce. Companies irrespective of industry and size are fast catching up with the temp jobs trend. It has evolved as a start-up career option for freshers at a time when recruitment cycles have slowed down. The key reason for surge in temp jobs is the fact that while companies enjoy service of more people keeping the wages in control, employees get the flexibility to work according to their convenience. With costs being of utmost importance to corporates, headcounts being frozen and short-term projects on the rise, several domestic and multinational companies are offering temp jobs. Currently the temp jobs market is witnessing lot of activity because of the fresh supply of talent after the close of academic year in March 2011. During June 2011 both demand and supply were robust. There are a variety of sectors opting for temping today. Anyone who is interested can choose from IT and ITeS, FMCG, Retail, Manufacturing, Legal firms, BFSI firms among others, depending on qualifications and experience. According to RecruiteX June 2011, IT/Telecom (43%), BFSI (34%), Consultant/ Freelancers (30%) recorded highest growth in supply. Temping is nothing but hiring workers for a specified duration or on a project basis, rather than recruiting them on a permanent basis. Temporary employees include "contractual", "seasonal", "consultative", "interim", "casual staff ", or "freelance" employees. Temporary workers may work full-time or part-time, depending on the individual case. The temporary jobs act as stepping stones for freshers and help them gain the much needed work experience. Temp jobs are a quick way to pick-up new skills or brush-up and sharpen skills one already possesses. Moreover, temping gives an individual the option to sample a wide array of jobs. However, not only freshers but a significant proportion of the experienced workforce is also taking up temp jobs for varied reasons. Temping could be a perfect career solution for many people. It is ideal for those who want to gain initial work experience or for someone who want to take a break from a full-time job.

Do you have an idea you want to voice or have an opinion about industry trends? TJinsite would love to hear from you. Write in to [email protected]

SKILLS DIALOGUE

HIRING & BEYOND www.research.timesjobs.com VOLUME-I ISSUE 10, AUGUST 2011

(R to L): Gouri Gupta, Praveen Kamath, Sanjay Jorapur, Dr Sandhya Chintala, Jayant Krishna, V Krishnan, Srikantan Moorthy, TK Arun, R Sundar, Jayashree Kurup, Girish Bindal

TimesJobs.com & The Economic Times Skills Dialogue Phase II: A focus on IT industry Key Takeaways

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fter the successful completion of the ITeS ­ Skills Dialogue, TimesJobs.com and The Economic Times initiated the second phase of their Skills Dialogue initiative. The focus in phase II is on the skills crucial to the IT industry. The first IT dialogue was held at The Leela Palace, Bengaluru on July 22, 2011. The events saw leaders from IT and Technology giants such as Tata Consultancy Services, Infosys Technologies, Wipro BPO, HCL Technologies and Honeywell (India). Representatives from industry bodies such as NASSCOM and NSDC also discussed and deliberated on skills gap in the IT industry. A research conducted by TimesJobs.com has highlighted that technical skills such as "Data Centre and ERP", "Business Intelligence" and "Programming and Application Development" are in high demand in the IT industry. However, the talent availability for these are still at a nascent stage. Speaking at the event, Srikantan Moorthy, Senior Vice President & Group Head, Education & Research, Infosys Technologies emphasised that there exists a gap in the "Knowledge" and "Know-how". He said that elements such as working techniques, team work, methods, systems and communication &

presentation are seldom taught in the university but are important for the job. Sanjay Jorapur, Country HR Director, Honeywell (India) explained that companies which use IT and Technology for product development and innovation require IT engineers to be completely aware of the business situation and market. Jayant Krishna, Principal Consultant, Tata Consultancy Services affirmed "Skill gaps are huge and the need of the hour is to address them at their most fundamental level. As a part of TCS skills developing strategy, we have initiated a pilot project where we have started taking B. Sc and BCA graduates in addition to our staple streams, like M. Tech, B. Tech and engineering. The experiment has been quite successful, only our training investment has become intense." Dr Sandhya Chintala, Sr Director, Education Initiatives, NASSCOM pointed that globalisation has created a new set of standards and to meet these standards the current education system needs to be transformed. NASSCOM is facilitating and aggregating this

change and is trying to "bring into perspective what the industry has to do, to transform businesses and to transform India." For the transformation to happen, industry has to develop a global standard which will allow mobility of employees. Sharing his perspective on globalisation Praveen Kamath, General Manager & Global Head of Talent Acquisition, Wipro BPO, stated that his company is facing the dilemma of "globally mobile, locally immobile". Employees are willing to relocate to foreign locations but are not willing to relocate to small towns in the country. V Krishnan, Principal Training Architect, Campus Force (Training & Deployment), HCL Technologies Ltd. stated "One major challenge is that our education system is not at par with technology up-gradations and market needs. When fresh graduates enter our system, we put them through a 3-month training program, to refresh their knowledge taught in college. The idea is to test their willingness to learn and competency." Gouri Gupta, Lead-Program Development, NSDC explained that the set of competencies

Skill development should start at university level and be continued while employment Awareness of market, business and consumer is a must for all engineers and developers Global skill standards should be created to allow mobility of employees required by industry differ from what the educational institutions are providing. "Through NSDC we are striving to bridge this gap by getting industry closely involved in the development of standards as required by the industry." Experts at the event highlighted that soft skills such as "Communication and Presentation", "Team Work" and "Leadership Skills" are also important to the IT industry. Discussing need to develop soft skills, participants suggested that colleges should facilitate team community projects to enhance team skills and develop community empathy. The participants suggested that there should be a continuous learning and development of the employees. There is a need for more industry focused programs at the college level. Employability and skills development has become a target for both government and industry. With this initiative TimesJobs.com hopes to play its part as a facilitator and change-maker.

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SURVEY HIGHLIGHTS

HIRING & BEYOND www.research.timesjobs.com VOLUME-I ISSUE 10, AUGUST 2011

Why restructuring?

The main impetus for restructuring comes from within where there is a need to deploy the workforce differently for better efficiencies

ANALYTICS

OGY DOL HO MET

T

here are four main reasons advanced for corporate restructuring. Workforce realignment is one of the main reasons given followed by the push from maturing markets, fierce competition and advances in technological innovation. However the trend in the manufacturing industry is different. Here workforce realignment is very low on the list of reasons, only 8%. The main reasons forcing restructuring are seen as the increasingly fierce competition (42%) and stagnant demand (33%). At 50% of those surveyed, workforce realignment as a reason for restructuring was the highest in the IT industry .

The insights and analysis provided by TJinsite is based on the data collected from job seekers, employers and industry experts through personal interviews, telephonic interviews, mailers, online polls and surveys. l The TJ research team runs polls on TimesJobs.com to capture information from over 3 lakh unique job seekers visiting TimesJobs.com daily Data is . also collected from 3.5 lakh HR professionals, registered on TimesJobs.com, through telephonic interviews and online polls and surveys l Results of polls and interviews are corroborated by analysing the vast database that TimesJobs.com maintains and updates regularly l A final round of data and information check is undertaken by surveying job seekers across the recruitment industry l The data is also vetted by industry experts who check for aberrations and discrepancies at the macro level

Restructuring strategies

Most commonly followed restructuring strategy is right-sizing workforce by merging/acquiring companies

O

f the four strategies commonly employed in corporate restructuring, right-sizing, networking, delayering and verticalisation, nearly 40-50% of the organisations said that they used the right-sizing by mergers and acquisitions as a strategy . Significantly, this strategy was not so prevalent among the larger sized organisations, which preferred to `smart-size' or layoff employees by closing down unprofitable businesses.

Right sizing workforce by merging/acquiring companies Increasing headcount by adding new business segments and ventures Employee layoffs while closing unprofitable business Talent acquisition by creating JV with companies outside the group

A sizeable proportion (23%) also used the strategy of increasing headcount by adding new business segments and ventures.

32%

of the surveyed organisations take up corporate restructuring for workforce realignment

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SURVEY HIGHLIGHTS

HIRING & BEYOND www.research.timesjobs.com VOLUME-I ISSUE 10, AUGUST 2011

The biggest challenge

The biggest challenge during corporate restructuring quite obviously is seen as the actual execution of the restructuring process itself

As a subtext to this, the next big challenge is the planning and management of the workforce during the change. This situation is also extremely tricky, since the organisation has to deal with the employee's resistance to change, either from fear of the unknown, inertia or people's perception of how the change will affect them. The third big challenge is the designing and planning of the restructuring process itself. Given the complexity of such an exercise, the setting up of new systems to make the transition, dealing with the workforce and counselling them etc, will have to be done with a level of detail and meticulousness that can be quite challenging.

Preferred hiring strategies during mergers and acquisitions

Nearly three quarters of the organisations adopt the policy of relocating employees during restructuring

Relocating existing employees is the most preferred method of dealing with the human capital during mergers/ acquisitions for 73% of the surveyed employers. However if the manufacturing industry is looked at separately, they seem to be completely different; only about 40% followed the policy of relocation, about 33% hired contract employees. The levels at which the most re-organisation happens is the executive and the managerial levels. Very little happens at either the top or the bottom levels. About 36% of the organisations said that restructuring impacted their hiring rate by increasing the hiring volume.

Hiring contract employees Hiring new employees Relocating experienced employees Hiring part-time workers

The biggest challenge

73% 3% 11% 13%

R

estructuring is closely interwoven with technology, structure and the people. All four areas are related, and companies often must institute changes in the other areas when they attempt to change one area. This can lead to great complexity in the execution of the entire process.

40%

of the surveyed employers believe execution of the restructuring process is the biggest challenge

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EVENT UPDATE

HIRING & BEYOND www.research.timesjobs.com VOLUME-I ISSUE 10, AUGUST 2011

EVENTS

Conclave on Emerging Human Resource Requirements in the Manufacturing Sector

Road map for "Innovative & sustainable strategies in skills development & retention of talented employees"

AR END CAL

August 5, 2011

Organised by NHRDN in association with TimesJobs.com

Upcoming Events

Chief Learning Officers Summit 25th ­ 26th Aug 2011 Nehru Centre Dr Annie Besant Road, Worli, Mumbai Organised by LeapVault Manning Modern Retailing 13th Sep 2011 Hotel Westin, Goregaon (E), Mumbai Organised by Retailers Association of India

ational HRD Network and NHRDN Mumbai Chapter had its one day conclave in Mumbai on August 5, 2010, titled `Emerging Human Resource Requirements in the Manufacturing Sector: Road Map for "Innovative & Sustainable Strategies in Skills Development & Retention of Talented Employees'. Business leaders will have to increasingly deal with higher levels of complexity i.e. heightened globalisation of economies, sophisticated financial markets, greater sensitivity to environmental issues & increasing emphasis on `Global Approaches.' Developing sustainable business models, including technology will play a crucial role, as the discipline of sustainability/ corporate social responsibility gets on the top of the CEO's agenda. In this backdrop, the key challenge facing India Inc. is that of building scalequickly, in terms of manpower numbers having the right set of knowledge and skills and competency requirements.

N

The one day conclave on skills development and retention of talented employees had four sessions. The first session was on `Global supply chains/delivery modelschallenges of right skilling a globalised workforce'. The second session was on the topic `Challenges and opportunities in rising to the challenge of skilling Indian industry ­ Staffing firms, Partners and the ClientPartnership'. The third session covered `Challenges and opportunities- breaking new ground through supportive employee relations strategies - skilling India experiences in India & out of India'. The fourth session highlighted `Strategies and innovative experiences- improving retention levels and decreasing hiring pressures. The conclave basically aimed at enabling corporate to formulate innovative and sustainable strategies to meet skilled manpower requirements in the short and medium term.

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POLLS & OPINION

HIRING & BEYOND www.research.timesjobs.com VOLUME-I ISSUE 10, AUGUST 2011

Poll Vault

Current Poll

What is the most common reason given by candidates while quitting job?

g g g g g

Career growth Better salary Personal reasons Location is too far Boss/ Senior

To take the poll log on to http://hire.timesjobs.com

What is most challenging while searching job?

According to a study by TimesJobs.com approaching the target companies is voted as the biggest challenge by 41% of the workforce while searching for a job. One needs to do careful research while approaching any company Also one need . to see that the company has a position available in the functional area of your choice and that there is a fit. All this is time consuming and involves and a lot of effort. Creating and updating resumes and preparing for interviews are the other major challenges faced by the candidates during job search.

Approaching target companies Creating/ updating resume Preparing for interviews Deciding on the profile

41% 22% 21% 16%

What would get you motivated for employee referral programs?

Monetary incentives are the major motivators for employees to be part of referral programs. TimesJobs.com poll revealed that approximately 38% of the employees refer candidates for monetary benefits. For 25% of the employees the motivation lies in getting non-monetary benefits such as gift vouchers or holidays/ day offs in lieu. Investing time, energy and money in employee referral programs can help save organisation resources while sourcing appropriate fit for available positions. By using an employee referral program an organisation can get more quality leads. Also, this significantly increases the retention rates in an organisation.

Monetary incentives Non-monetary benefits Getting good feedback about earlier referrals Understanding about available job profiles

38% 25% 20% 17%

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RECENT NEWS

HIRING & BEYOND www.research.timesjobs.com VOLUME-I ISSUE 10, AUGUST 2011

N E W S

Amazon set to launch services in India next year

WORLD's largest online retailer, Amazon.com is set to enter India, riding on the second wave of ecommerce boom in India. Amazon is in discussions with leading Indian e-commerce players like Flipkart.com, LetsBuy .com and Exclusively .in, among others and may enter the market as early as the first quarter of next year. Hiring is currently on in Hyderabad, Bangalore and Chennai to fill up the various positions in this team, say sources. "A team of over 200 people is being built, though all of them might not end up in the core retail arm," said another source.

n The Times of India, July, 2011

B Y T E S

Hiring Activities Likely to be Muted in September Quarter

OVER half the country's workforce is self-employed and women receive less pay than men for similar jobs, latest government data shows. While 51% of the country's total workforce are self-employed, only 15.5% are regular wagers or salaried employees and 33.5% casual labourers, according to a survey by the National Sample Survey Office (NSSO), the key findings of which were released on Friday The number of . people selfemployed is higher in rural areas at about 54.2%, against 41.4% in urban areas.

n The Economic Times, July, 2011

Double-digit pay hikes, robust hiring on the cards, says Mercer

DOUBLE-digit salary increases and creation of new jobs will continue in the Indian economy, says a survey conducted by the consulting firm, Mercer. According to the Mercer India Monitor, a study of 90 companies released last week, India Inc is expected to provide an average salary hike of 12.7%, with the automobiles sector providing an estimated 14% hike, with IT & Telecom at the lower end of the spectrum, with 11.8%. Salary hikes across sectors, however , remain higher than last year.

n The Economic Times, July, 2011

Infy to Hire 12,000 in Q2

KEEPING up the hiring momentum, the country's second largest software exporter Infosys on Tuesday said it will hire about 12,000 people this quarter. The company currently has over 1.33 lakh employees. "We are looking at a gross addition of about 12,000 in our workforce and we are continuing with yearly target at 45,000 people," Infosys CEO and Managing Director S Gopalakrishnan said.

n The Economic Times, July, 2011

Infosys, Tata & Essar to Impart Skills to J&K Youth

A public-private sector initiative to generate 40,000 jobs for qualified youth from Jammu and Kashmir over five years, will get corporates to focus on `difficult areas' of the state rather than hiring people only from Srinagar and Jammu, besides ensuring a minimum respectable salary of Rs 20,000 per month for trainees absorbed. Under the special industry initiative scheme, cleared by the Cabinet last week, big industrial houses and corporates will join hands with the National Skill Development Corporation (NSDC) to induct graduates, PGs and professionals from J&K for training in special skill at their facilities across India.

n The Economic Times, July, 2011

Indian Companies to Hire Aggressively; IT Sector to Lead

REFLECTING the bullish employment market, Indian companies plan to recruit new employees at a good pace during the remaining part of the current fiscal, with the IT industry expected to offer the strongest hiring prospects, says a survey . According to a study by MyHiring-Club.com, 52% of employers surveyed plan to hire new employees from July through March 2012, up from 39% in 2010.

n The Economic Times, July, 2011

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EXPERT SPEAK

HIRING & BEYOND www.research.timesjobs.com VOLUME-I ISSUE 10, AUGUST 2011

Corporate Restructuring

With 22 years of experience in multiple HR functions, Rashmi Deshpande, Chief Officer - Talent and Transformation, VivaKi has been exposed to the IT, ITES, Retail, HR Consulting and the Media industry. She believes in combined application of contemporary and traditional HR practices to carry the organisation through changing phases of sustenance and scale. In conversation with TJinsite, she discusses the requisites for a successful corporate restructuring strategy. VivaKi is part of Publicis Groupe the world's third largest communications group. VivaKi aggregates the marketplace influence of four autonomous brands, including two global media agency networks: ZenithOptimedia and Starcom MediaVest Group; and two leading digital marketing agencies: Digitas and Razorfish. VivaKi includes a Talent & Transformation Practice, which leverages the scale of the VivaKi brands to develop and deliver tools and approaches designed to attract, develop, train, motivate and reward the world's best people.

meet the external challenges in the market to ensure our clients get a greater return on investment. Does corporate restructuring impact the market value? Do you think it also helps in recruiting high-profile candidates easily from the market? Corporate restructuring that is driven by business impact would affect the market value positively It helps to attract the . right talent and make the right slotting for the right roles. It equips the organisation better. What are your major sources of talent acquisition after restructuring/ setting up new ventures? Market intelligence, social networking platforms, and references from employees are the key resources for talent acquisition. At which level, shuffling of resources happens the most and why? It depends on a client requirement and the shuffle could be at varying levels. In restructuring processes, what is your retention strategy for highperformers? The high performers are fenced positively on a priority basis when structuring the organisation. How do you reduce HR cost implications in corporate restructuring? It is favourable for the business if Talent and Transformation (T &T) offers a one stop solution for people management. That helps the organisation manage costs better leading to better savings. Which points should be taken into consideration while planning corporate restructuring? Economic conditions, the market waves, measurable business impact and how restructuring affects high performers are some of the factors taken into consideration when planning a corporate restructuring.

Rashmi Deshpande Chief Officer - Talent and Transformation VivaKi Has your company engaged in corporate restructuring? Was it purely due to business decisions or was it done from an HR perspective? VivaKi is all about Skill and Scale. As an important constituent of the VivaKi family, Zenith Optimedia is continuously engaged in refurbishing its structure to optimise skills. The Talent and Transformation department supports brand decisions, to restructure the corporate structure, on a business need basis. In my personal opinion, restructuring from talent perspective, would not be a success story unless driven to impact business positively Our . restructuring has been purely business driven. What are the key focus areas for HR while designing a restructuring plan for an organisation? The key focus areas are business needs, operational scale, skill optimisation and business impact - in that order. Are your restructuring decisions affected by competition? As significant players in the business, we are aware of our strengths and weaknesses. Competition does not drive our decisions, be it restructuring or otherwise. We make relevant changes to

Disclaimer: Information provided in this newsletter shall not be reproduced, published, re-sold or otherwise distributed in any medium without the prior written permission of TimesJobs.com and a clear acknowledgement to TimesJobs.com. Contact: TJinsite, TimesJobs.com, Plot No 6, Sector 16A, Film City, Noida. Write in to [email protected]

Copyright ©2011 Times Business Solutions Limited. All rights reserved.

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