HR Buzz – May 2, 2012

ILO says global unemployment is alarming
Financial Express / Hindustan Times
The International Labour Organization (ILO) has described the global job market situation as "alarming", showing no signs of recovery, Financial Express reports. In advanced countries, especially in Europe, employment is not expected to return to pre-crisis levels until the end of 2016. ILO said in its World of Work Report 2012 that about 196 million people were unemployed worldwide at the end of last year. This is expected to rise 6 percent to 202 million in 2012. Morale among the workforce in advanced countries is down. An average of 40 percent of job seekers aged 25 years to 49 years have been without work for more than a year, the report found. Lead author of the report Raymond Torres said austerity measures and ill-conceived labour market reforms had failed to create jobs. Employment rates have stagnated or ''double-dipped'' in China, India and Saudi Arabia.

Click here for the story from Financial Express.
Click here for additional coverage from Hindustan Times.

India's challenges more to do with skills
The Hindu Business Line
Workers have been affected the most by the global financial crisis, says Tine Staermose, director, International Labour Organization (ILO) Decent Work Team for South Asia, in The Hindu Business Line. The only solution is more stable jobs and a social dialogue between all stakeholders. What is required is medium-to-long-term investment in people and restructuring and re-skilling of the workforce. In India, the challenges are more skill-related. There is a need to find out the sectors that will provide jobs with dignity, an issue the national manufacturing policy is partially addressing. The only way out for businesses is to invest in workers, and contract and casual work alone cannot achieve that. In the long run, there is a need to promote jobs that are more stable and encourage investment in a skilled workforce. Apart from this, workers need to be provided social protection.

Click here for the story from The Hindu Business Line.

Core sector down, dampens March industrial growth
Economic Times
Growth in key infrastructure industries was slow in March, dragged by a contraction in natural gas and crude oil output, Economic Times reports. Broader industrial growth may therefore remain sluggish. Output at the eight core industries, coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity, grew at an annual rate of 2 percent in March, compared to a 6.9 percent rise in the previous month. The eight industries have a 38 percent weight in the index of industrial production (IIP). Growth in all eight of them decelerated from the previous month, with natural gas and crude oil recording contraction. The core sector had a cumulative growth of 4.3 percent in 2011-12, compared to 6.6 percent in the previous fiscal. Only coal performed well, growing at 6.8 percent, compared to a decline of 1.1 percent in the like year-ago month.

Click here for the story from Economic Times.

Measures pay off, IT attrition levels drop 2%
Financial Chronicle
Attrition in IT dropped drastically in fiscal 2012, with large companies taking steps to clear "hiring backlogs" and streamline operations, Financial Chronicle reports. All four major IT firms saw their attrition rates shrink about 2 percent compared to FY11. Wipro witnessed the largest drop, from 22.3 percent to 17.6 percent. P¬raveen Kumar P, offshore h¬ead, global outsourcing, UST Global, said the industry saw the h¬i¬ghest-ever attrition levels in 2010-11. He attributed it to the econ¬omic slowdown and irrati¬onal hiring. Three years ago, companies hired in bulk to meet future demand. When recession hit in 2009-10, they were left with a huge load of offers to be honoured. Hiring was scaled down and companies started to take in employees in small batches over two years. By then, the external situation improved and employees began switching jobs again, leading to a rise in attrition.

Click here for the story from Financial Chronicle.

Gallup poll: A third of Indians are suffering
The Hindu Business Line / Mint
A Gallup Research poll has found that almost 31 percent of Indians feel they are suffering, The Hindu Business Line reports. A "good job", which Gallup terms as being employed full-time for an employer, is important to overall well-being. The poll also found India's engagement number to be 8 percent, meaning only 8 percent people who come to work were engaged, positive and happy about their jobs. Some 30 percent are miserable and actively disengaged. The poll covered 5,000 respondents, representative of 90 percent of India's adult population. Respondents were classified as "thriving", "struggling" or "suffering" according to how they rated their current and future lives on a scale of 0 to 10. The study found that 5 percent of Indian adults with at least a college degree fell into the suffering category, compared to 32 percent with a secondary school certificate or less.

Click here for the story from The Hindu Business Line.
Click here for additional coverage from Mint.

ACMA survey: Rework skills and HR strategies
Economic Times
A survey by the Automotive Component Manufacturers Association of India (ACMA) says business strategies will be shaped to a great extent by workforce challenges, Economic Times reports. The survey was conducted by Deloitte India to gain strategic insights into human capital challenges, HR practices and remuneration trends in the auto component industry. According to Arvind Kapur, president of the apex body, the industry will need the best HR practices and must benchmark its HR systems and policies against the global best. Talent retention and attraction remain a challenge across all management levels. Employee skills need to be upgraded with the changing business environment. Many organisations lack leadership and managerial depth at the middle management level. There is a need for effective business and HR processes to help in knowledge management and transfer. Other pressing issues are industrial relations, labour availability, wage levels and productivity.

Click here for the story from Economic Times.

At 8.6%, salary growth most in Bangalore
Business Standard
Despite modest increments, Bangalore has emerged as the leader with the highest median salary growth of 8.6 percent in the last one year, Business Standard reports. Mumbai had a median growth of 8.1 percent, Delhi 7.7 percent and Chennai 6.8 percent. Attrition rates for specific profiles have touched three-year lows, according to a report by TeamLease Staffing Solutions. Select profiles within healthcare, retail, consumer goods and agriculture and agrochemicals have longevity scores topping 93 percent. Retention rates for the IT industry are on the rise, especially for higher skilled talent. Profiles for posts such as business analyst (BAN) and program manager (PRM) have recorded significantly high longevity scores, despite receiving lower pay hikes than last year. IT has given smaller increments, yet retained top-of-the-line talent. The sector's comparatively high salary structure, coupled with a dull market, has ensured that the strategy worked.

Click here for the story from Business Standard.

Talent management starts with CEO
Economic Times
Talent strategies begin with the CEO who needs to be the perfect role model, says Marc Effron in an Economic Times report. Effron is president of The Talent Strategy Group and author of "One Page Talent Management". Companies need to have talent philosophy or rules that ask tough questions, such as can one be an average performer forever. The employee should know how to win. The CEO needs to be setting goals for his team and prove to the organisation that he is serious about talent management. In tough times, put out a truthful message to people instead of the corporate dribble. Define their role in the turnaround strategy. Smart companies know who are their top 10 percent employees, and give them incentives to not quit for two years. Simplify processes, for managers will not have the time to implement complex ones.

Click here for the story from Economic Times.

Campus hiring of engineering grads on track
The Hindu Business Line
IT companies have been hiring engineering graduates in large numbers this year, The Hindu Business Line reports. Data from some engineering colleges in Hyderabad points to an increase in the number of people hired as well as the average compensation. IT picked up the largest number, making about 89 percent of the offers, said NLN Reddy, placements officer, Chaitanya Bharathi Institute of Technology (CBIT). Cognizant and Wipro hired 410 and 205 students, respectively, of the total 660, and Tata Consultancy Services about 275. Most colleges had expected an even higher number of placements until August last year. However, hiring may have been affected by the downward trend in economy, said Parthasarathy, placements head at CBIT. J Bhaskar Rao, chairman, JB Group, which runs JBIET, said the automobile sector too hired in good numbers.

Click here for the story from The Hindu Business Line.

People Moves & Recruitments

APL Apollo Tubes names MD
Financial Chronicle
APL Apollo Tubes has appointed Ashok Kumar Gupta managing director of the company, Financial Chronicle reports. Gupta has 30 years of industry experience.

Click here for the story from Financial Chronicle.

Max Healthcare Mental Health Chief moves to Fortis
Business Standard
Samir Parikh, former head of mental health and behavioural sciences department at Max Healthcare, is moving to Fortis, Business Standard reports. He is joined at Fortis by a team of 30 experts, of whom 18 are from Max Healthcare.

Click here for the story from Business Standard.

Mogae Digital picks Mobile Activation Chief
exchange4media
Mogae Digital has appointed Yudhvir Singh head of mobile activation, exchange4media reports. In his previous role, he was part of the corporate VAS team in Videocon.

Click here for the story from exchange4media.

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