Archive for September, 2008

lariesIndia is considered as the hub of English speaking educated skilled manpower, but is this manpower rightly paid? Do Indian companies pay their employees equally as compared to their multinational counterparts? The table below gives some information about CTCs which various Indian and multinationals offers to fresh graduates at IIT.

Indian Company

Position

Cost to Company (CTC) in lakhs

Reliance Industries Limited

Engineering Graduate

3.5

Infosys

Engineering Graduate

3.5

Wipro

Engineering Graduate

3.0

TCS

Engineering Graduate

3.0

L &T

Engineering Graduate

3.5

Godrej Industries

Engineering Graduate

5.0

Tata Motors

Engineering Graduate

4.5

Tata Steels

Engineering Graduate

4.5

Maruti Udhyog Ltd

Engineering Graduate

3.5

Mahindra & Mahindra

Engineering Graduate

4.0

Dr. Reddys Laboratories Ltd.

Engineering Graduate

4.5

Essar Group

Engineering Graduate

4.5

Multinational s

Position

Cost to Company (CTC) in lakhs

Hindustan Unilever Limited

Engineering Graduate /MBA

15.5

P&G

Engineering Graduate /MBA

12.0

Shell Technologies

Engineering Graduate

11.5

British Gas

Engineering Graduate

8.0

Bank of America

Engineering Graduate

10.0

3M India Ltd.

Engineering Graduate

6.0

Citicorp Finance India Ltd.

Engineering Graduate

9.0

D.E. Shaw India Software

Engineering Graduate

8.0

Deutsche Bank, India

Engineering Graduate

12.0

Google

Engineering Graduate

10.0

Yahoo

Engineering Graduate

10.0

Microsoft

Engineering Graduate

10.0

Data mention in above tables reveals that Indian companies don’t pay compared to their multinational counterpart .Do they undervalue Indian talents or MNCs overvalue? One of the facts is true either MNC are stupid organizations to offer double even triple the salary or Indian Companies don’t want talent. Former seems to be unrealistic but latter is not completely true. As none seems to be completely true then why there is such a disparity. Do Indian companies are poor? No as Mukesh Ambani draws an annual salary of 44 crore and Anil Ambani following him with 40 crore. The gap between the salary of a fresh engineering graduate in RIL to its MD Mukesh Ambani is 1000 folds this is quite large compared to central government employees where it is 20 fold only. The market cap of RIL is close to 2 lakh crore (count number of zeros); surely it is not a poor company. Do Tatas offer same packages as in India, in their Corus or of Jaguar and Landover plants outside India? Then why are Indian Companies reluctant to offer comparable packages?

Some Indian companies believe in catching fresh catch every year using them to their maximum capacity for a year or two in the name of experience and training when they leave, they go out for a fresh catch again. Most of the Indian companies not even go to look for fresh talent they just rely on their consultants for finding experienced manpower who are underpaid in companies who recruit them a fresh. In this way they save their expenditure on training as well as time. Thus most of the Indian companies are not able to make long term employee relationship. After this they cry out of high attrition rate and unreliable IITians. All the more some time they question the quality of education given at IITs. I would like to say to such companies offer salaries comparable to MNC like ITC do (10.5L) and then question the IIT talent.

Looking with a different prospective, as India has a vast pool and a good population of educated unemployed there a long queue of talented manpower ready to work on these meager packages .Indian companies takes a major benefit of this situation . Since multinational jobs are limited and majority of Indian companies don’t recruit fresher. Fresh graduates are unwilling working for these blood sucker companies in the name of experience and in a hope of better future elsewhere.

Some of the multinationals like HUL pays a considerable attention to employee satisfaction and company employee relationship that they have people who had given only single interview in their lifetime and are willing to retire with same organization. They provide such an environment to its employee that they start considering company not as their employer but as their own baby and are willing to give their lifetime to them.

I have a little hope from shrewd Indian companies owned by so called Baniyas to offer good packages to talented fresh graduates and built a long term employee relationship. With small number of MNC jobs, grabbed by fortunate few, Indian youth have to burn themselves in an oven of Indian companies in the beginning of their careers hoping for a  better future ahead.

Recently World Bank increased cost of living from $1.00 to $1.25 per day as bench mark of poverty. This renders India as a host of one-third of world’s poor. Also percentage of Indian population living below poverty line increased from 24% to above 40%.World bank is rightly justified in its move as price of most of the commodities have increased considerably in recent years. 

Here the question is whether wages increased in the same proportion to counter this rise. Still an industrial worker is working on monthly wage of Rs 3000. Ideally if a worker has to support a family of four then the daily share per head is Rs 25, not even fulfilling the earlier mark of $1.00 per day.
Everyone is talking of India shining and success of India inc ,but a deeper insight into it reveals the fact that only rich is becoming richer and poor is not even able to meet the basic needs. Indian middle class is trapped in a virtual hurricane rose out of increasing inflation coupled with the increase in loan EMI’s and is struggling hard to cope up even with their daily grocery bills. 
Speculation regarding recession in US economy, with its 3 out of top 5 investment banks either gone bankrupt or sold, its impact on India if not directly but indirectly is inevitable. Even though Indian FM is trying to convince people about the insulation of Indian economy with that of US but it’s not completely true. India being a service economy and US based companies constitute a large portion of its clientele. If US economy goes into recession, how come the service providers (read Indian companies) remain insulated from their clients? Impact of it is rightly seen in the firing spree in the service sector and deferred placements.
It’s really a hard time for Indian youth but we have to cope up with it in a hope of better future ahead.