Will the Innovative HR Practices Bring the End of Small IT Co.s?
I happened to attend HCL’s Global Customer meet last month and quite liked their corporate videos. But one thing that excited me was their policy of ‘Employee First’, which I came to know of only during the meet.
Well, we all know that IT companies like HCL, are innovating various ways to fight attrition and build a democratic and more employee-friendly workplace. And the corporate policy of ‘Employee first, Customer Second’ (EFCS) is one such policy put in place by HCL to create a unique environment where employee development and empowerment is of prime importance. And in fact, HCL claims that they have let go of their customers some times by putting their employees ahead of them.
HCL had a concerning attrition rate once at 20.4 percent, which was among the highest in the industry. But it has dropped to 17.2 percent, three quarters in a row (though it is still higher than that of many rivals), after Vineet Nayar took over as President in 2005 and formulated this policy.
But what interests me here is the fact that HCL is a big company with annual revenue of $1.5 billion, which can possibly afford to lose a customer or partner once in a while by employing the EFCS policy.
But think about the companies with very small revenues, can they afford to employ such policies that would risk losing customers? And does that mean smaller companies care any less about their employees? Else, in what ways can the smaller firms walk the tight rope between employee and customer satisfaction?
I wonder what would be the fate of these small companies as:
1) They certainly have the big challenge of attrition. Their employees would also be lured by the HR practices and employee policies big companies follow, and leave the small ones for them.
2) And in such a situation, if they try to prevent attrition by implementing policies as EFCS, they could be on the risk of losing their customers.
Dear Friends,
Small companies with clear and strong vision for themselves can sustain in such a competitive environment. Aligning organization Vision to the individual goals, empowering employees and motivating them will help the organizations to compete with relatively big firms.
Right. Dream on. I work for a large US outsourcing firm (HR BPO) and the day the company puts it’s employees before the customers will be a cold day in Hell.
Order of importance at my place:
1) Shareholders
The rest of the employees except for IT
2) Execs
3) Relatives of Execs (Nepotism)
4) Customers
5) Some employees (Those that fit Diversity standards)
6) Cafeteria Staff
7) Roaches
9) IT employees
The Balance b/w customer and employee satisfaction need to be made..Loss of customer would be a momentary phenomenon before it becomes norm to consider the employees wellbeing.
I had to quit one major Indian IT Company (@ middle layer Mgmt)for the same reason. I dont see it in the small or big companies in mature markets.
I guess its the law of nature in action now for Indian IT Industry for their turn to take care of the employees