We conducted an internal survey among our NDLF members on the statements of various company. we asked them to find the reason for such statements posted in news media. The various statements posted by different leaders are listed below:
- Raj Mehta – Cognizant Technology – We want to weed out deadwood higher up in the pyramid so that the juniors can grow
- Mohandas pai – Manipal Global Education chairman and member of the board of directors of Infosys – Layoffs in IT industry is not the end of the world. Employees should upgrade the skills
- Saurabh Govil – Wipro HR head – Involuntary attrition is more at employees having 10-15 years level as the employee at these level find difficult to adapt to change
- NASSCOM – No mass layoff by Indian IT companies. Skilling and workforce realignment are essential to remain competitive in international markets. It needs to be appreciated that such workforce realignment is a normal part of the internal process of companies based on their own operational imperatives –
These are a few sample statements given by industrial leaders and there are many such statements available from industry leaders across almost every Indian company. These statements portray the following information to outside world:
- IT industry require reskilling and companies have the right to terminate people based on bad performance. This gives a perception that employee can be terminated based on poor performance quoted as part of appraisal process
- This gives perception that hire and fire is normal accepted process in IT industry
- It gives outside world the perception that only non-performers are terminated out of the company
- Media will also publish statements in favor of companies and there is not even single a article portrayed in media whether terminating by IT companies based on some reasons is legally correct.
We want to understand why companies are giving these statements to outside world. The following are the options given as part of this survey:
- People who are the spokesperson of these company are not aware of legal system in India. So they are giving loose statement like this without cross checking with their legal team
- Company wants to portray to the outside world that it is cutting down employees to trim cost. This is linked to profit and it boost the company share price as this is a direct message to share holders
- Companies are transparent in setting up the expectation and it motivates employee to upgrade the skills.
- Companies want to create panic to employees to portray that hire and fire is legal so that affected employees will not take up legal fight.
- Indirectly threatening all other employees. They make all employees live in fear. The existing employees will not ask for promotions, salary hikes or any right as being in job itself is created now as big achievement
- Any other reason
Readers of this article can post the comments on reason for such statements in comments section with their explanation in our site. Some people can still refute my statement and argue that company can terminate based on poor performance. But if you really see what is happening in the industry, each company wants certain percentage of employees to be tagged as bad performers.
Many of the companies have internal forums or facebook pages formed by employees. But unfortunately some of the pages are managed by company management itself. These forums or facebook pages are used to promote negativity among employees. They promote wrong perceptions like the above statements and make employees believe that hire and fire is legal and so on.
For example, if you read our Innautix (Bank of New York Mellon) article , company tagged 20% of its employees as bad performers. So if the company is not recruiting any employee for the next 5 years, then company will terminate all employees in 5 years. (20% each year for 5 years will terminate all 100% employees). Well, if you want to take 20% of the reduced number each year in 5 years 67+% would have been terminated
- 20% in the first year,
- 20% of remaining 80% that is 16% second year
- 20% of 64% that is 13.8% in the third year
- 20% of about 50% of initial count in the fourth year that is 10%,
- 20% of the remaining 40% in the fifth year that is 8%
- to bring up a total of 67% employees would have gone.
On the other hand, if they company actively recruits every year to replace terminated senior employees with low cost freshers then in 5 years all employees currently employed would have lost their jobs. But every year, only those who are affected suffer, others are relieved that they are safe. They don’t realise that the company’s policy will lead to the above outcome sooner or later.
Inautix employees have a facebook page called Inautix Chennai confession and there are 3000+ employees who are the part of this facebook page. When our comments are posted in this page, they are deleted with reason that NDLF is commenting on employees or about the forum instead of attacking the management.
We are really sorry if our posts hurt employees of Inautix in any manner. We posted about employee ignorance as we feel many of the employees lack legal knowledge. They fall prey to the management tactics. Our intention is to make employees understand their mistakes. That is the prime reason for us to post some of the comments posted in Inautix forum.
We assure that we can help affected employees and terminated employees can contact our union (by mobile 9003009641 or by mailid email@example.com). We will legally guide you in taking this forward.
So if facebook admin of Inautix stands by the affected employees and if the page is created with the intention to help employees, then they should consider our explanation and encourage employees to contact us to seek legal help.
Otherwise if they stick to their point of removing NDLF posts, it is evident that this forum is created with the wrong intention of creating negativity among employees for management needs and making employees fall prey to management tactics.
Let us see where the forum of Inautix stands!
Finally we request once again people in IT industry post comments on our survey.