Hi harshita,
1. How much is Rupee appreciation an HR Concern?
Yes this is a serious concern for companies those who have signed contracts before rupee appreciation. Companies those who are providing offshore support services are mainly following hourly billing and when rupee appreciates, no client is going to reconsider the deal. Secondly, the weak dollar represents US economic slow down and this again may force clients to cancel the deal and go for fresh deal with some other service provider (Eg: - a small ITeS firm with average working capital can't offer services at a reduced cost but a big company can afford this by considering various strategic aspects)
2. In the face of rupee appreciation, what are the moves by the industry to increase productivity of their people?
Who told you that productivity of Indians is less? According to a very recent study, Indian workers are more productive when compared to their US counterparts. As far as my understanding is concerned, IT/ITeS professionals are not working merely on the basis of fixed time shifts but most of them spend more hours in office depends on the
project requirements. But when companies start making Saturday as working day for these professionals that may demotivate them. But alternatively corporate management can request them to reduce project delivery time.
3. Is increasing work hours for the same pay is the only solution?
Yes if the time demands...HR needs to take initiative for this. But already people are working more than 12 hours (need basis) and I think a formal change in pattern of work hours is not required. In case optimum utilization of resources is not happening in a company, need of the hour is to check its processes and project management strategies?
Self-managed teams (SMTs) are proved to be very effective. Are we using this concept or still following the traditional vertical patterns?
4. Are we then going to see reduced pay scales in future for IT professionals?
If the time demands such a step, there is no alternative. It is an undeniable fact that IT and ITeS are knowledge intensive sectors but if there is no business, how does the company exist? and if there is no company, what do the IT professional do?
Some companies will offer CTC just to hire some key personnel from its competitor and during turbulent period, they fail to retain the employee. Is that the right way of hiring?
Also from the HR perspective, one should ask some thought provoking questions?
What should be the basis for salary structures?
Do we structure salary standards purely based on billing?
Do we offer salary structure just to hire skilled people?
Do we conduct job analysis?
Do we conduct a salary comparison study?
5. Are we going to see decrease in spends on training and development?
At least some companies will go for a cut on ‘time pass’ training programmes or ‘show offs’ If your training system is not linked to corporate objectives and not based on TNA, I would say allocating money for training is of no use to the company/employees and this will ultimately benefit some training service providers only.
6. Are we going to see campuses becoming less extravagant?
Depends on the extravaganza. If companies spend more on extravaganza with a hope to reduce attrition, I would say it is just a myth. People are unique and interests are different. So it is advisable to control expenses and limit the number of programmes and cut costs.
7. Are we going to decrease in spending on non critical assets such as gym, play courts etc?
If the time demands such a step, there is no alternative. For a company the first and foremost aspect should be the business profitability.
If the business is not viable, obviously corporate management will check for all sorts of alternatives and HR folks should be able to suggest best alternatives for optimum utilization of human resources and in order to support the business needs and should be able to support the genuine interests of employees.
regards
Sreekumar.J