“Keep employees happy” will be the mantra for IT and IT enabled service 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.
Experts believe that, 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 also find it difficult to retain employees due to emerging job opportunities in other sun-rise sectors.
“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 said.
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,
It 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 the market indicators, the appreciation of rupee could put pressure on compensation packages in 2008,” domestic IT major NIIT Technologies’ HR Head Rosita Rabindra said.
A number of companies are already mulling over measures like extending their work to six days a week 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 that 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 said. Ma Foi’s Rajan said 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.
‘Employer of choice’
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 said.
“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,” city-based BPO firm vCustomer’s CEO Sanjay Kumar said.