HR Buzz – May 7, 2012

Services PMI gains slightly in April
Business Standard
The HSBC purchasing managers' index (PMI) for services in India advanced marginally to 52.8 points in April from 52.3 the previous month, Business Standard reports. Services and manufacturing account for bulk of the country's GDP. As growth in manufacturing output fell for the third month, the HSBC composite output index for April remained unchanged at 53.8 points. The index includes manufacturing and services. New businesses in services remained strong, though growth was slower than in January and February. Respondents were optimistic about the outlook for 2012. The average input costs for service providers rose significantly in April. Price pressures were strong as service providers passed on higher costs to clients through increased output charges. The rate of inflation was unchanged from that in the preceding month, the report said. Output price inflation was the highest in 13 months.

Click here for the story from Business Standard.

Real growth in manufacturing must create jobs
Financial Express
India's growth story can be truly inclusive only if manufacturing generates large-scale employment, Financial Express reports. Vidya Mahambare and Aindrila Roy Chowdhury of CRISIL say the sector has failed to create sufficient jobs. The national manufacturing policy aims to raise annual growth in the sector to 14 percent until 2021-22 and add 100 million jobs. However, will increasing the share of manufacturing ensure sufficient job creation? For this, employment intensity, or the number of people required to produce output worth Rs 1 lakh, will need to change. Between 2002-03 and 2011-12, manufacturing growth increased to 8.1 percent versus 5.8 percent a year in the 1990s. Employment intensity of the sector fell drastically to 7.0 percent in 2009-10 from 11.5 percent a decade earlier. If fewer people are required for the same amount of output, there is limited scope for additional job creation.

Click here for the story from Financial Express.

Survey: Prospects of double-digit hikes bright
Financial Express
Salary hikes are expected to be in double digits this year, regardless of the economic conditions, Financial Express reports. A survey by TeamLease Services says double-digit salary hikes are likely to be the norm this year, with the average salary growth hitting 20 percent. Companies are hiring and rewarding the right talent. In IT, hiring grew by almost 20 percent year-on-year in 2011. The industry also managed to retain top talent without having to give large pay hikes. With businesses looking to balance talent and pay, companies are finding solutions for problems such as talent acquisition and retention, said Sangeeta Lala, senior vice president at TeamLease. Salary hikes were the highest in the healthcare industry in 2011, reaching a healthy 19 percent average growth rate across profiles and cities. Interestingly, attrition was at a three-year low in 2011, the survey found.

Click here for the story from Financial Express.

Social media finds favour with manufacturing
Financial Express
Social media is being used actively as a medium to communicate and collaborate by the manufacturing sector, Financial Express reports. These were the findings of a study by Wipro Consulting Services, which aimed at assessing the impact of social media in HR. It polled CXOs in more than 150 companies. More than 63 percent of the respondents claimed to be using social media or were planning to use it. The finding is interesting as the sector employs an extremely diverse workforce. All discussions around organisational policy, policy communication, virtual meetings, technical discussions and employee recognition use social media, the study said. The challenge for employers lies in being present where the employees are. Their preferences shift rapidly, from Orkut to Facebook to Twitter and now Google+. It is extremely important for organisations to change, else their social media strategy may stop being relevant, the report said.

Click here for the story from Financial Express.

Employee engagement adding cheer to workplace
Economic Times
Companies are devising novel ways to motivate employees, from creating fun zones to providing health and lifestyle support services for parents, Economic Times reports. Philips Electronics India has a "fun room", a bright and cheerful space which displays the latest Philips products employees can tinker with. No business meetings are conducted in the room and employees are free to spend as much time as they please. Google allows its staff to use 20 percent of their work week to pursue special projects or areas of interest beyond their field of work. This fosters creativity and employees get the flexibility to explore other avenues. American Express has parents' interests in mind too. It launched a parental care work-life programme in late 2011 which provides access to health, personal and financial services, a health emergency helpline, and drugs at lower rates.

Click here for the story from Economic Times.

Coming up: Leave donation to help colleagues
Times of India
An interesting leave-sharing policy at some companies is being viewed as a step in the right direction, Times of India reports. The scheme allows employees to donate their excess leave to their colleagues who may need it in times of crisis. Accenture India has termed this initiative "Hours that help". Manoj Biswas, geographic unit HR lead, says the idea emerged when many employees wanted to assist their colleagues who needed extra leave because of a medical emergency or personal problem. The company also realised that many in its staff did not avail of their full leave in a year. Many companies have a system of advance leave which employees can avail of in an emergency. However, schemes such as "Hours that help" create goodwill, a positive culture and employee bonding. More companies are now mulling flexible leave policies.

Click here for the story from Times of India.

Lufthansa to cull 3,500 administrative jobs
Indian Express
Lufthansa is planning to cut 3,500 administrative jobs over the next few years as part of a cost-cutting programme, Indian Express reports. The move would reduce administrative costs by 25 percent, the airline said. The company is undergoing a revamp as it faces stiff competition from budget airlines. It said in February it was looking to save $2 billion by 2014. CEO Christoph Franz said only long-term jobs could be protected and the reorganisation could lead to job openings in the future. The group has suffered a net loss of €397 million in the first three months of the year, more than the estimated €336 million. The higher passenger numbers had failed to offset the steep rise in the price of jet fuel, leading to losses.

Click here for the story from Indian Express.

Quit if you hate your job, avoid burnout
Business Standard
A study said continuing in a job that you dislike is bad both for you and your employer, Business Standard reports, citing the Daily Mail. The research, conducted by John Molson School of Business, Canada, found that those who stay on out of misguided loyalty suffer from experience exhaustion. This leads to burnout, prompting them to leave the company without warning. Employees often stay with their organisation because they feel that they have no other option, said Alexandra Panaccio, co-author of the study. Panaccio and her colleagues surveyed 260 workers aged 34 from various industries. They measured various types of organisational commitments such as whether employees identified with a company's goals and values and felt they had an obligation to stay on. Employers can minimise this type of commitment arising solely out of alternatives by enhancing employee competencies, Panaccio said.

Click here for the story from Business Standard.

Mid-level managers key to developing leadership
Economic Times
A survey by Harvard Business Publishing (HBP) highlighted the role of mid-level managers in developing a leadership pipeline, Economic Times reports.
Around 78 percent of the respondents have given strategic priority to the development of mid-level managers. The traditional role of these managers has changed significantly, said Ian Fanton, vice president, global sales and marketing, corporate learning. They are being asked to be change leaders and have to continually operate with different parameters. However, this section of the hierarchy remains under-developed. Research showed that despite training, 49 percent of mid-level managers are rated by employers as fair or poor in performance. HBP is rolling out its Breakthrough Leadership Programme for mid-level managers in the U.S. The research and writings of Harvard Business School professor Linda Hill and executive coach Kent Lineback form the basis of the programme.

Click here for the story from Economic Times.

People Moves & Recruitments

BDO India CEO resigns
VC Circle
Sunil Sharma, CEO of public accounting firm BDO India, has stepped down after a 25-year stint, VC Circle reports. Senior Partner Manoj Daga will be replacing him.

Click here for the story from VC Circle.

Max Bupa designates CEO
Financial Chronicle
Max Bupa has named Manasije Mishra CEO-designate, Financial Chronicle reports. Max Bupa is a private company in the health insurance sector.

Click here for the story from Financial Chronicle.

AB Nuvo appoints Madura Fashion & Lifestyle CEO
Economic Times
Aditya Birla Nuvo (AB Nuvo) has picked Ashish Dikshit as CEO of Madura Fashion & Lifestyle, Economic Times reports. He replaces Pranab Barua, who will be business director of apparel and retail divisions at AB Nuvo.

Click here for the story from Economic Times.

MindTree names Exec VP & People Head
The Hindu Business Line
IT firm MindTree has named Ravi Shankar executive vice-president and chief people officer, The Hindu Business Line reports. Shankar was previously senior vice-president HR at HCL Technologies.

Click here for the story from The Hindu Business Line.

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