Big Priority!
The IT job market in India is apparently crashing. It is mayhem in the IT sector. According to various reports and studies, about 2 lakh job cuts are going to happen every year in the next three years. This unfortunate happening is more severe than ever after globalization. A few reasons for mass-scale terminations of employees in IT companies are identified as the rise of protectionist policies in the US and Europe, the rise of automation, a decrease in the hiring of Indian engineers abroad, the rising rupee value to the Dollar leading to lower realizations for software exports, and efforts of IT majors to maintain their profits in bad weather, commonly known as cost optimization.
Challenges Faced by IT Majors
Could IT majors not read the writing on the walls earlier? Did they make any efforts to address the challenges as global hiring policies in the IT sector were targeted by foreign governments? Were IT industries not fully prepared in adapting newer technologies? These questions are to be answered by the IT sector.
Impact on Employees
It is said that the maximum employees targeted for job loss fall into the category of having outdated skills that are no longer required in the business. Here, two questions come to the surface. First, who will take care of re-skilling and up-skilling of such "redundant" employees working for years in the organizations as performers, and overnight they become underperformers? Will it be the employer or the employee himself?
Handling Job Cuts
The second question is, how should job cuts, which are popularly termed as layoffs, be handled by HR? Actually, in the legal terminology of employment laws, these are not layoffs. These are actually retrenchments, which need due compliance with relevant law before being effected. To avoid legal compliances and further disputes if such retrenchments are challenged, IT industries have adopted the way of forced resignations, and that too in a brutal manner.
The Role of Employers and Employees
Business demands that to keep the talent pool intact, organizations should invest consistently in re-skilling and upgrading the skills of their employees much before such situations arise. Because it is the employer who knows better what up-gradation of skills is required for people in the future. These initiatives may reduce the numbers of terminations. Employees should also understand the job market and take note of what is in demand and upskill themselves to remain employable before such an unfortunate situation knocks on their door.
HR's Role in Mass Terminations
In the whole process of mass terminations, the manner in which these are affected has brought a bad name and a dent to the image of reputed organizations, particularly in terms of HR capabilities for handling such sensitive issues. If the organizations have to terminate hundreds of employees every day to execute the mandate of top management, it is perhaps difficult, rather impossible, for anyone to remain empathetic and sensitive in each case. To develop empathy and sensitivity towards each employee who is going to face the heat of job loss needs time, which an HR Executive may not have because he has to show the achieved figures every evening to his boss. HR cannot be blamed alone for such insensitive mass terminations. Public apologies of seniors can be a damage control exercise and to save public image but can't really improve HR practices at the bottom line. HR practices flow from the top after all.
Conclusion
The August 2017 cover story is on the same burning topic of the importance of reskilling to remain updated in the market; otherwise, no way. CEOs, HR experts, and industry stalwarts have shared their wisdom through responses to our questions.
If you like it, let us know. If not, well, let us know that too.
Happy Reading!
Regards, Anil Kaushik, Business Manager - HR Magazine, B-138, Ambedkar Nagar, Alwar - 301001 (Raj.) India Mob.: [Phone Number Removed For Privacy-Reasons], Landline: [Phone Number Removed For Privacy-Reasons] www.businessmanager.in
From India, Delhi
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181The IT job market in India is apparently crashing. It is mayhem in the IT sector. According to various reports and studies, about 2 lakh job cuts are going to happen every year in the next three years. This unfortunate happening is more severe than ever after globalization. A few reasons for mass-scale terminations of employees in IT companies are identified as the rise of protectionist policies in the US and Europe, the rise of automation, a decrease in the hiring of Indian engineers abroad, the rising rupee value to the Dollar leading to lower realizations for software exports, and efforts of IT majors to maintain their profits in bad weather, commonly known as cost optimization.
Challenges Faced by IT Majors
Could IT majors not read the writing on the walls earlier? Did they make any efforts to address the challenges as global hiring policies in the IT sector were targeted by foreign governments? Were IT industries not fully prepared in adapting newer technologies? These questions are to be answered by the IT sector.
Impact on Employees
It is said that the maximum employees targeted for job loss fall into the category of having outdated skills that are no longer required in the business. Here, two questions come to the surface. First, who will take care of re-skilling and up-skilling of such "redundant" employees working for years in the organizations as performers, and overnight they become underperformers? Will it be the employer or the employee himself?
Handling Job Cuts
The second question is, how should job cuts, which are popularly termed as layoffs, be handled by HR? Actually, in the legal terminology of employment laws, these are not layoffs. These are actually retrenchments, which need due compliance with relevant law before being effected. To avoid legal compliances and further disputes if such retrenchments are challenged, IT industries have adopted the way of forced resignations, and that too in a brutal manner.
The Role of Employers and Employees
Business demands that to keep the talent pool intact, organizations should invest consistently in re-skilling and upgrading the skills of their employees much before such situations arise. Because it is the employer who knows better what up-gradation of skills is required for people in the future. These initiatives may reduce the numbers of terminations. Employees should also understand the job market and take note of what is in demand and upskill themselves to remain employable before such an unfortunate situation knocks on their door.
HR's Role in Mass Terminations
In the whole process of mass terminations, the manner in which these are affected has brought a bad name and a dent to the image of reputed organizations, particularly in terms of HR capabilities for handling such sensitive issues. If the organizations have to terminate hundreds of employees every day to execute the mandate of top management, it is perhaps difficult, rather impossible, for anyone to remain empathetic and sensitive in each case. To develop empathy and sensitivity towards each employee who is going to face the heat of job loss needs time, which an HR Executive may not have because he has to show the achieved figures every evening to his boss. HR cannot be blamed alone for such insensitive mass terminations. Public apologies of seniors can be a damage control exercise and to save public image but can't really improve HR practices at the bottom line. HR practices flow from the top after all.
Conclusion
The August 2017 cover story is on the same burning topic of the importance of reskilling to remain updated in the market; otherwise, no way. CEOs, HR experts, and industry stalwarts have shared their wisdom through responses to our questions.
If you like it, let us know. If not, well, let us know that too.
Happy Reading!
Regards, Anil Kaushik, Business Manager - HR Magazine, B-138, Ambedkar Nagar, Alwar - 301001 (Raj.) India Mob.: [Phone Number Removed For Privacy-Reasons], Landline: [Phone Number Removed For Privacy-Reasons] www.businessmanager.in
From India, Delhi
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