3. Consumption: This is intrinsically linked to growth and we are having a services and consumption led growth. The focus is on spending from savings. Todays employees are deep into consumption with everyone using full credit and debts accumulating sometimes upto 60-70% of their monthly salary. The pressure to be "in-line" with trends wrt fashion, technology, cars and houses is tremendous. Todays employee is achieving these things by 30 years age which was achieved by their parents in their lifetime. So the question is whether this pace of consumption is sustainable and how can we as HR professionals create some balance. In India, we know IT/ITES industries have a fair share of contribution in making a generation of employees with large disposable incomes. The need for "take-home" salary to increase in double digits year aftre year is something this industry has practiced. But the question is how long can this happen in an industry which is largely based on "cost -arbitrage model" and when is the time when this model fizzles out. Already we know South East asia destinations like Philippines, Malaysia, Thailand besides China are posing a threat to us and having many other positives besides cost.
Q1. Are we in a position to stop this wage inflation/employee cost and create a model for which keeps our competitive edge
This shall require influencing our leaders who themselves under the pressure of attrition and retention forget the above.
Q2. What then is the new HR way to engage employee for long term if compensation needs to play a lesser role?
Q3. When can we draw a fine line between pampering employees with luxury cafes, health clubs etc and essential organisational environment for employees to succeed?
That is an extremely smart written article. I will be sure to bookmark it and return to learn extra of your useful information. Thank you for the post. I will certainly return.
ReplyDeleteHey keep posting such good and meaningful articles.
ReplyDelete