Today's Economic Times has a headline right below the masthead screaming " TCS cuts staff salaries". As one reads it through, one is re-assured that itsnt too bad!!
"TCS has clipped a portion of the variable pay linked to its performance, effectively reducing an employee’s salary by about 1.5% for the January-March quarter, "
" the management has sought to lower their expectations of wage inflation through this small cut -in view of macroeconomic challenges,”
Typically, a TCS employee gets 70% of salary as fixed component and the rest as variable. The latter, in turn, is split into one part linked to individual performance and the other to company performance. So, the cut is essentially a speed breaker, and must be seen in the context of the larger picture that the party isn't going to last forever.
Refer late last week Business Week's story on "India companies struggle as wages rise " .
More than the paucity of people it is the expanding company ambitions, of a lot of new entrants as well as consolidation of established players in the fast-growing sectors such as retail, infrastructure and engineering, aviation, health care, technology, and real estate, where the demand-supply gap is huge.
What are the lessons for us, as HR professionals? As employees planning our careers?
I would like all of us to read a masterpiece of an interview by DNA probing Mr AM Naik of L&T .It is a must for all students of business and one can feel challenged by the sheer passion -while echoing his views on outsourcing & the effect on career management, visavis building a nation-and what if both are all aligned together!!
For once, can we stand back - breathe heavily, and look at the larger picture? Can we learn before it is too late, once again?