Forbes has recently published its Global 2000 companies list and placed Infosys at 891. Not only that, as per Forbes, Infosys is among the companies that are hiring along with TCS and Wipro. Quite contrary to what Forbes has said, Infosys has actually fired 2100 employees for poor performance.
Some of these employees have been asked to go while some have left on their own. Prior to asking the employees to leave, they were put on a performance improvement course and those who showed no improvement were asked to leave while some others quit. Tolerance for poor performance is very low given the current economic scenario.
Read This News at Read it India.
My Question: Companies like Infosys that hire very high talent, and also show profits in the Balance Sheet, how can they fire employees based on performance? Whom are these companies cheating: Employees or Shareholders?
From India, Calcutta
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1Some of these employees have been asked to go while some have left on their own. Prior to asking the employees to leave, they were put on a performance improvement course and those who showed no improvement were asked to leave while some others quit. Tolerance for poor performance is very low given the current economic scenario.
Read This News at Read it India.
My Question: Companies like Infosys that hire very high talent, and also show profits in the Balance Sheet, how can they fire employees based on performance? Whom are these companies cheating: Employees or Shareholders?
From India, Calcutta
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Hello Mr. Kumar, I think companies are firing because they are in trouble. However, the question of profits in balance sheet is genuine...
From India, Delhi
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From India, Delhi
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Yes, this news is confirmed by Business Standards. Read here.
[2,100 Infosys employees face axe](http://www.business-standard.com/india/storypage.php?autono=58411&tp=on)
From India, Calcutta
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[2,100 Infosys employees face axe](http://www.business-standard.com/india/storypage.php?autono=58411&tp=on)
From India, Calcutta
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Well,
The question of cheating is natural and valid. It puts everyone's "thinking cap on." However, I believe it's not about cheating, but as the level of competition increases, the performance of the employee must also improve. In situations where there is a lack of competition, if an employee scores 6 out of 10, they may be considered good. But as overall competition rises, this score should ideally increase to 8 in order to thrive.
Please guide me if my thinking makes any sense.
From India, Vadodara
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The question of cheating is natural and valid. It puts everyone's "thinking cap on." However, I believe it's not about cheating, but as the level of competition increases, the performance of the employee must also improve. In situations where there is a lack of competition, if an employee scores 6 out of 10, they may be considered good. But as overall competition rises, this score should ideally increase to 8 in order to thrive.
Please guide me if my thinking makes any sense.
From India, Vadodara
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This truly sounds very traumatic, especially for employees who have been asked to leave. It's really difficult to get into companies like Wipro, Infosys, etc., as their selection procedure is real tough. Those who clear it come in only on the basis of their knowledge, talent, and educational background. If companies like Infosys are firing people like this, it's worth thinking about.
Regards
From India, Delhi
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Regards
From India, Delhi
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Hi,
I believe that firing would be a gun used on the shoulders of market downfall. Yes, the organization is showing a profit and still firing employees. There are two points I would like to mention here:
A. The organization is looking at the future context. If they are making a profit, they would consider survival mode if things worsen. They have to preserve some amount for survival, and major expenditure is directly proportional to the number of employees associated with an organization. The picture is similar to when the organization was doing well; they were hiring without any contingency plan. So, the phenomenon continues...
B. Earlier, the recruitment slogan was "Job Fit," and now it's "Skill Fit." Employees who are not skill-fit for a longer time are asked to leave to cut costs.
The balance sheet can only be a way to show that we can sustain the market or attract more projects and shareholders.
Regards,
Maninder Singh
Executive - HR
+91.98864.13064
From India, Bangalore
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I believe that firing would be a gun used on the shoulders of market downfall. Yes, the organization is showing a profit and still firing employees. There are two points I would like to mention here:
A. The organization is looking at the future context. If they are making a profit, they would consider survival mode if things worsen. They have to preserve some amount for survival, and major expenditure is directly proportional to the number of employees associated with an organization. The picture is similar to when the organization was doing well; they were hiring without any contingency plan. So, the phenomenon continues...
B. Earlier, the recruitment slogan was "Job Fit," and now it's "Skill Fit." Employees who are not skill-fit for a longer time are asked to leave to cut costs.
The balance sheet can only be a way to show that we can sustain the market or attract more projects and shareholders.
Regards,
Maninder Singh
Executive - HR
+91.98864.13064
From India, Bangalore
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Companies like Infosys, GE, IBM, Wipro have such good HR practices that we even give examples of these companies while writing our answers. They have highly knowledgeable people in the company, and HR takes utmost steps for employee satisfaction, empowerment, motivation, etc. However, I think their respective HR departments are competent enough to handle situations by offering sabbaticals, outplacements, etc., rather than resorting to immediate mass layoffs of 2000 employees.
Organizational Development (OD) is often a separate wing of HR in these top-notch companies, if I am not mistaken. In such cases, they might struggle to find interventions or alternative solutions.
From India, New Delhi
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Organizational Development (OD) is often a separate wing of HR in these top-notch companies, if I am not mistaken. In such cases, they might struggle to find interventions or alternative solutions.
From India, New Delhi
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Hi,
I agree with Maninder that all these steps are based on the future, but that's true Infosys is still making good profit. They have given the reason of performance, which is just like showing a different picture. Maybe we all don't even have any clue about the real picture.
My question is, there are some other companies as well taking all these steps and blaming it on the recession. This is really a very bad signal. Now we need to think about what employees need to do in this condition?
Regards, Brijesh
From India, Mumbai
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I agree with Maninder that all these steps are based on the future, but that's true Infosys is still making good profit. They have given the reason of performance, which is just like showing a different picture. Maybe we all don't even have any clue about the real picture.
My question is, there are some other companies as well taking all these steps and blaming it on the recession. This is really a very bad signal. Now we need to think about what employees need to do in this condition?
Regards, Brijesh
From India, Mumbai
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Guys you are very young but let me give you bit insight of manpower planning. Manpower planning is not done overnight it has various phases and directly linked with projects and future need of manpower which is derived through scientific analysis of projects and trends..
Most of the companies have hired people b'coz they wanted to counter attrition, which was massive (you all know). People were running left right all over without logic and some of them were black mailing the employer as they knew the demand and supply gap (reality). Therefore these companies have devised a mechanism to counter all these trouble to save their project time and cost. But now situation is better and therefore despite making profits they are asking employees to go but not asking to employees who are performer and engaged with the org but only to those who are disengaged or non contributor and they have reached to what ever level b'coz of luck or chance instead of having right competence.
So don’t get demoralize, market is still there and it will not impact to those who really have the right competence.
From India, Delhi
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Most of the companies have hired people b'coz they wanted to counter attrition, which was massive (you all know). People were running left right all over without logic and some of them were black mailing the employer as they knew the demand and supply gap (reality). Therefore these companies have devised a mechanism to counter all these trouble to save their project time and cost. But now situation is better and therefore despite making profits they are asking employees to go but not asking to employees who are performer and engaged with the org but only to those who are disengaged or non contributor and they have reached to what ever level b'coz of luck or chance instead of having right competence.
So don’t get demoralize, market is still there and it will not impact to those who really have the right competence.
From India, Delhi
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According to me, many employers are firing employees for poor performance. Reflecting on last year, in April, we encountered candidates with 2-3 job offers negotiating with potential employers. Undoubtedly, during tough times for employees, some employers show little concern for their well-being. However, in such market conditions, some young employees fail to grasp the importance of perseverance and working efficiently. This mindset often impacts their performance negatively, resulting in organizations not retaining employees who are not on billable assignments or underperforming.
It is likely that when the market rebounds, these employers may not only rehire some of these employees but also potentially those performing below par. Being mentally prepared for various scenarios and planning our lives thoughtfully seems crucial. Consider the statistic that only 10% of the working-age population possess the necessary skills for employment. Therefore, collective efforts from society, employers, employees, and government are essential for cultivating the right attitudes, effective planning, and enhancing educational systems.
From India, Mumbai
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It is likely that when the market rebounds, these employers may not only rehire some of these employees but also potentially those performing below par. Being mentally prepared for various scenarios and planning our lives thoughtfully seems crucial. Consider the statistic that only 10% of the working-age population possess the necessary skills for employment. Therefore, collective efforts from society, employers, employees, and government are essential for cultivating the right attitudes, effective planning, and enhancing educational systems.
From India, Mumbai
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According to me, many employers are firing employees for their performance. If we look back at the situation last year, in the month of April, we used to receive candidates with 2-3 offers in hand and then negotiate with the employer. I also agree that when times are tough for employees, many employers tend to overlook their concerns. However, in these market situations, some young employees have not yet learned that they need to persevere and excel in all circumstances. This mindset often hampers performance, and organizations will not retain employees who are not on billable assignments and whose performance is subpar. It is highly likely that when the market improves, these employers will not only rehire a few of these employees but also potentially those who fall below the current standards.
I believe we should be mentally prepared for such situations and plan our lives accordingly. Looking at the statistics, out of our total working-age population, only 10% are truly employable with the necessary skills. Therefore, as a society, employers, employees, and even the government, we all need to work together to focus on developing attitudes, enhancing planning skills, and improving the education system.
Would any of us retain a maid who is not performing well? Even if the maid has been with us for a long time, would we keep them or offer them a little extra for their loyalty and service?
From India, Mumbai
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I believe we should be mentally prepared for such situations and plan our lives accordingly. Looking at the statistics, out of our total working-age population, only 10% are truly employable with the necessary skills. Therefore, as a society, employers, employees, and even the government, we all need to work together to focus on developing attitudes, enhancing planning skills, and improving the education system.
Would any of us retain a maid who is not performing well? Even if the maid has been with us for a long time, would we keep them or offer them a little extra for their loyalty and service?
From India, Mumbai
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Hello, everyone.
What is it that we are going overboard about regarding the Infosys firings? Considering the size of the manpower the company has, it is actually very low. 2000 out of more than 1 lakh employees - we can't expect companies like Infosys to retain non-performing resources during these troubled times. It's not good for the industry overall.
From India, Kochi
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What is it that we are going overboard about regarding the Infosys firings? Considering the size of the manpower the company has, it is actually very low. 2000 out of more than 1 lakh employees - we can't expect companies like Infosys to retain non-performing resources during these troubled times. It's not good for the industry overall.
From India, Kochi
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Dear All:
I am writing my comments with respect to the following:
"Companies like Infosys, GE, IBM, Wipro... have such good HR Practices that we even give examples of these companies while writing our answers, and they have ultimate knowledgeable people in the company that HR takes utmost steps for employee satisfaction, empowerment, motivation etc. However, I think their respective HR is competent enough to handle this by giving sabbaticals, outplacements, etc., rather than firing 2000 employees straight away... OD is a separate wing of HR in these big-notch companies if I am."
I too agree that the above said companies have good HR practices. Of course, it is true that they are also human beings before they become HR professionals. To some extent, they would try to bridge the gap. But the gap is too long and unable to catch the goal, then HR cannot do anything. If things are going well, employees are enjoying the fruits. If not, the reverse swing has to happen. This season is for a short period.
I suggest to all, let's not worry. Nothing is going to happen. This is the best time for everyone to develop our skill set.
During the recession time, my advice is to the people who have lost their jobs:
1) Do not focus on a particular organization.
2) Whatever job comes, we have to accept it. I am not trying to demoralize any individual. This will help us to survive in the market.
3) Keep our options open for trying until we get onto the right track. We never know when the acquired skill will be utilized...
From India, Hyderabad
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I am writing my comments with respect to the following:
"Companies like Infosys, GE, IBM, Wipro... have such good HR Practices that we even give examples of these companies while writing our answers, and they have ultimate knowledgeable people in the company that HR takes utmost steps for employee satisfaction, empowerment, motivation etc. However, I think their respective HR is competent enough to handle this by giving sabbaticals, outplacements, etc., rather than firing 2000 employees straight away... OD is a separate wing of HR in these big-notch companies if I am."
I too agree that the above said companies have good HR practices. Of course, it is true that they are also human beings before they become HR professionals. To some extent, they would try to bridge the gap. But the gap is too long and unable to catch the goal, then HR cannot do anything. If things are going well, employees are enjoying the fruits. If not, the reverse swing has to happen. This season is for a short period.
I suggest to all, let's not worry. Nothing is going to happen. This is the best time for everyone to develop our skill set.
During the recession time, my advice is to the people who have lost their jobs:
1) Do not focus on a particular organization.
2) Whatever job comes, we have to accept it. I am not trying to demoralize any individual. This will help us to survive in the market.
3) Keep our options open for trying until we get onto the right track. We never know when the acquired skill will be utilized...
From India, Hyderabad
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HI, The 2% of easyout happens in most of the Majors irrrespective of the Economic conditions.Which comes under the Best Practices to achieve a vibrant workforce. Rgs, S.Aravind.
From India, Madras
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From India, Madras
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I am very sad to see comments of some of my friends as they think companies are doing the right thing by firing employees due to recession and calling them underperformers, thus blocking their career path in certain ways.
Think if any of us were fired by these big companies due to recession and labeled as underperformers, how difficult it would be for us to find a new job.
When everyone knows that companies are firing due to recession and economic crunch, why not employers be transparent and talk to employees to find a way that is beneficial for both the company and the employees? Most employees would agree to a salary cut instead of a job cut. There are many other areas where companies can reduce costs.
While big companies call themselves a family, how can some family members be thrown out in bad times.
With regards,
Nitin.
From India, Pune
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Think if any of us were fired by these big companies due to recession and labeled as underperformers, how difficult it would be for us to find a new job.
When everyone knows that companies are firing due to recession and economic crunch, why not employers be transparent and talk to employees to find a way that is beneficial for both the company and the employees? Most employees would agree to a salary cut instead of a job cut. There are many other areas where companies can reduce costs.
While big companies call themselves a family, how can some family members be thrown out in bad times.
With regards,
Nitin.
From India, Pune
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I completely agree with what Nitin has said. When the recession will be over and a boom will come, every employee who was let go or anyone who has felt the pain of losing a loved one will remember the processes companies adopted. This will create an image and judgments about what makes a good employer.
From India, Chandigarh
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From India, Chandigarh
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Whether it’s mentioned in Infi’s offer letter about such action? Why can’t an organization with such a hugh HR strength can recruit people who will perform by default?
From India, Pune
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From India, Pune
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Dear all,
This is an interesting post and a reality check of the current situation.
Before commenting on the same, let's understand what happened in the past five years, which was a boom time. Now, with the global recession, particularly, we have been witnessing the slowdown in our economy. These big employers had hired a large number of people in anticipation of the high number of projects coming their way, which has, albeit, slowed down. There are projects and work happening, but not at the anticipated acceleration as expected. Please remember good times don't last forever, and the bubble had to burst one day or the other, which is the current situation.
Rationalizing the manpower is the only way out, only after considering the redeployment options and cost-cutting measures. If you look at Infosys, which had to resort to the same, which is 2% of the existing manpower, is not bad per se from the broader perspectives of the current shape of the economy.
However, a word of caution, companies have to handle layoffs in a very sensitive way, as once the economy turns around, then these people laid off may not return to the company!
The next three months are crucial for India for the following factors:
- General Elections, which is expected to pump over Rs 10,000 crores into the economy.
- IPL
- Reliance's find of gas in the KG basin
- Nano launch
Yes, there would be a recovery, and there would be realistic job expectations with corrections in the salary ranges, which went over the roof in the last 5 years!
Best wishes,
Rajat
From India, Pune
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This is an interesting post and a reality check of the current situation.
Before commenting on the same, let's understand what happened in the past five years, which was a boom time. Now, with the global recession, particularly, we have been witnessing the slowdown in our economy. These big employers had hired a large number of people in anticipation of the high number of projects coming their way, which has, albeit, slowed down. There are projects and work happening, but not at the anticipated acceleration as expected. Please remember good times don't last forever, and the bubble had to burst one day or the other, which is the current situation.
Rationalizing the manpower is the only way out, only after considering the redeployment options and cost-cutting measures. If you look at Infosys, which had to resort to the same, which is 2% of the existing manpower, is not bad per se from the broader perspectives of the current shape of the economy.
However, a word of caution, companies have to handle layoffs in a very sensitive way, as once the economy turns around, then these people laid off may not return to the company!
The next three months are crucial for India for the following factors:
- General Elections, which is expected to pump over Rs 10,000 crores into the economy.
- IPL
- Reliance's find of gas in the KG basin
- Nano launch
Yes, there would be a recovery, and there would be realistic job expectations with corrections in the salary ranges, which went over the roof in the last 5 years!
Best wishes,
Rajat
From India, Pune
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There is no need to be sad when we hear about job cuts in these troubled times. I think a good HR person should be equally responsible to employer and employees. Tell me, how many employees will stay back, who have been saved from job loss by cutting pay packages instead of outright firing, when the situation improves and other companies offer more. Will they think then that they should be thankful to the company for not firing them during the recession? No way.
From India, Kochi
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From India, Kochi
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Nitin, you are right... there is no ethics at all. What underperformance are we talking about here? Even those who have gone on medical leave and out of the project, not their fault, are asked to leave forcefully. There is no absolute time, test, or training offered for the so-called non-performers to prove themselves.
We are talking about people here, 2000 or even more. Think about their future. No buffer period or warning is given to any. At least they could plan for another job or find some cash to strive in the bad times ahead. Remember, we are talking about the time when the company still has reserves.
I totally agree that true non-performers should be fired. However, the criteria determining them as non-performers should be specified clearly and notified earlier. Infosys has lost the respect it had for both its employees and from outside.
From India, Kochi
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We are talking about people here, 2000 or even more. Think about their future. No buffer period or warning is given to any. At least they could plan for another job or find some cash to strive in the bad times ahead. Remember, we are talking about the time when the company still has reserves.
I totally agree that true non-performers should be fired. However, the criteria determining them as non-performers should be specified clearly and notified earlier. Infosys has lost the respect it had for both its employees and from outside.
From India, Kochi
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