IIM ROHTAK H U M A N E - R CLUB P re s e n ts
H R BULLETIN VOLUME 42
humane.r@iimrohtak.ac.in
HUMANE-R|VOLUME42
HR BULLETIN
Deciding compensation for new talents: How much does it matter? Talent is the composition of specific capabilities and competence that an employee brings to a job. It comprises all the attributes that indicate the potential of an employee to perform well, e.g. knowledge, skills and abilities along with relevant work experience. Compensation is integral to an organization. It influences several decisions related to attraction, development and retention of employees because of its alleged direct and indirect effect on employee performance. It is considered vital for getting the best employees, keeping them motivated, and enabling them to continue their association with the organization.
Compensation can impact performance only when employees have the requisite talent for a job position. Talent is the composition of specific capabilities and competence that an employee brings to a job. It comprises all the attributes that indicate the potential of an employee to perform well, e.g. knowledge, skills and abilities along with relevant work experience. It is then easy to assume that talent would be the overall deciding factor for compensation, apart from industry standards and the financial capability of the organization. But is this assumption correct? have felt
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How is compensation decided? Let us consider the first time when compensation is determined for an employee, i.e. when s/he applies as a candidate for a job. At this time, compensation is influenced, to a large extent, by the existing demand-supply dynamics for the talent in the job market. It is common knowledge that organizations can be willing to offer a much higher salary (fixed or variable percentage hike over the salary in the current organization) to experienced candidates if the demand for their talent exceeds the supply. Besides, candidates themselves may drive up their own price tag through salary negotiations, leading to a compensation offer higher than the initially planned offer. Salary negotiations are common phenomena during recruitment for lateral positions in most of the organizations. Candidates negotiate for a higher salary on the basis of expectations of a standard hike, applicable to the job position and industry. They also negotiate for a non-standard hike on account of alternate job offers. Organizations, on several occasions, concede to candidates’ offer due to dire need for the talent. They may also do so because of the desire to close an offer, as considerable time and effort has already been spent with a candidate, or additional costs would have to be incurred to close a job position with other candidates. Also, there is a lingering uncertainty about finding the right candidates in the near future. For such reasons, final compensation offered to a candidate can diverge from the initial compensation planned for the job position. A related implication is that candidates with equivalent talent may not be offered equivalent compensation. This is because a) job market for a specific talent changes over time and b) candidates differ in their willingness, ability or feasibility (e.g. due to an unfavorable personal situation) to negotiate. This can result in salary variation for two employees with comparable talent doing the same job in the same organization, or inequitable compensation. Impact of inequitable compensation Inequitable compensation can have serious negative fallouts. Employees who lose out in compensation at the time of recruitment, may feel cheated and exploited. They may get dissatisfied with their job and disengaged with the work, and have low commitment for the organization. They would thus perform at suboptimal level. They would also be likely to quit the organization whenever they find better job opportunities. As a corollary, we might say that employees who gain from market driven and negotiation-based compensation at the time of recruitment, would be highly satisfied, committed and engaged, leading to high job performance. But is that really the case? Individual performance is driven by two kinds of motivation: extrinsic and intrinsic. Extrinsic motivation is an external incentive to invest time and effort in a job, and may take the form of salary and recognition. Intrinsic motivation is an internal drive to perform well in a job, and may be related to beliefs, interest, empowerment and challenge associated with the job. Extrinsic motivation can help employees perform initially. However, if they lack intrinsic motivation, they cannot achieve their full potential and may not be able to even sustain their performance over time. In short, they would not be able to do justice to their salary. Besides, they would be on a perpetual look out for higher-paying job opportunities because monetary considerations are important to them. It is evident from the above arguments that differential salaries can be a major cause of poor performance and turnover amongst both categories of employees. There can also be far reaching consequences for the organization over time. Artificially hiked salaries for some employees can considerably increase the overall costs of the organization impacting its profits and capacity to reinvest in the business, thus lowering the potential for growth and advancement. It can also lead to limited scope for increments (within a salary band) and bonus, affecting the morale of the whole workforce, and further increasing the possibility of turnover. Frequent turnovers..
Read more at: https://www.peoplematters.in/article/compensation-benefits/decidingcompensation-for-new-talent-how-much-does-it-matter-29067
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Disability Sensitization eModules: An NSDC and FCDO initiative NSDC in collaboration with the former Department for International Development - GOV.U, has launched Disability Sensitization E-Modules on its digital skilling platform eskill India to enhance workforce participation and access for people with disabilities. Further to its commitment towards boosting participation and providing accessibility for inclusion of Persons with disability, in collaboration with the Foreign, Commonwealth and Development Office (FCDO), formerly known as Department for International Development - GOV.UK, National Skill Development Corporation (NSDC) has launched 'Disability Sensitization EModules' - Eight eLearning modules focused on sensitization towards people with disabilities, "The prevalence of disability is estimated to be 2.2% of the population in India, according to a survey by National Statistical Office (NSO). It is therefore imperative to design policies and development programmes that provide specially-abled persons with equal opportunities, enabling them to earn a livelihood and lead a life of dignity,” said NSDC MD & CEO Dr. Manish Kumar at the launch. “I thank FCDO for being a part of NSDC’s vision of providing specially-abled persons with the right skills, and enabling them to be a part of India’s economic growth. In my view, our empanelled trainers and partners together with the youth enrolled on NSDC’s eSkill India portal, and network organisations will benefit from these e-modules. These modules will further strengthen our sensitization efforts and help create a learning environment which responds to the needs of specially-abled persons," added Dr. Kumar. NSDC is affirming its commitment towards people with disabilities through its digital skilling platform eskill India, which enables the creation of a skilling ecosystem and society at large, that is inclusive of people with disabilities. The eight elearning modules have been designed to empower practitioners in management, teaching,..
Read more at: https://www.peoplematters.in/news/diversity/disabilitysensitization-emodules-an-nsdc-and-fcdo-initiative-29130
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Narayan Gangadhar joins Angel Broking as new CEO Narayan Ganghadhar comes with an illustrious global experience of over two decades with top tier Silicon Valley companies. He has also served on the board of technology companies and advises many early-stage startups looking to advance their teams and platforms. Financial services firm Angel Broken has announced the appointment of Silicon Valley veteran Narayan Gangadhar as its new CEO. The appointment is expected to further the firm’s Fintech First ambitions in the country.
Narayan comes with an illustrious global experience of over two decades with top tier Silicon Valley companies in the likes of Microsoft, Google, Amazon and Uber, and brings along strong operating expertise having led highly disruptive businesses by driving innovation in technology, product, processes automation and capability building. He has also served on the board of technology companies such Madison Logic, Digital Asset and advises many early-stage startups looking to advance their teams and platforms, positioning them for success. “Narayan is the right person to lead Angel Broking along its journey as a leader in this industry. He is a wellrounded engineer with great leadership qualities and will add significant value to our existing digital assets. Plus, he will help us realize our aspirations to become a preferred Fintech company in India,” said Dinesh Thakkar, CMD, Angel Broking. “With Narayan leading the team, I am sure we will scale new heights in making international standard apps, offering world-class customer experience, and taking best-in-class AI/ML journeys for new and existing customers to understand investing and trading well.” His most recent appointment was that of Group Chief Technology Officer at Ola. Prior to joining Ola, ..
Read more at: https://www.peoplematters.in/news/c-suite/narayan-gangadharjoins-angel-broking-as-new-ceo-29125
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Accenture India head Rekha Menon becomes first woman Chairman of Nasscom She succeeds U B Pravin Rao, COO, Infosys, to become the first woman to take on this role at Nasscom. The National Association of Software and Services Companies (Nasscom) has appointed Rekha M Menon, Chairperson and Senior Managing Director at Accenture in India as its Chairperson for 2021-22.
Menon succeeds U B Pravin Rao, Chief Operating Officer, Infosys, who served as the Chairman of Nasscom for the year 2020-21. Meanwhile, Krishnan Ramanujam, President and Head of Business & Technology Services, Tata Consultancy Services as the Vice-Chairperson for this financial year. Menon becomes the first woman to take on the role of Chairperson for Nasscom in the technology service association’s 30-year history. “I am honored and humbled by this vote of confidence by the Nasscom Executive Council at such a crucial time for our industry. The ongoing Covid-19 pandemic continues to test the resilience of our more than 4 million people, even as it has created new opportunities for growth with technology emerging as the lifeline for societies and economies across the world,” said Menon in a statement. “As we cautiously navigate the pandemic, I look forward to working with the Nasscom Executive Council and its members to drive our industry’s long term growth by augmenting India’s position as the digital talent nation for the world, driving people-first innovation, and working with the government to create a conducive policy environment needed for sustainable growth,” Menon added.
Debjani Ghosh, President, Nasscom stated, “With the industry re-aligning itself in the new normal, I am delighted to have the opportunity to work with Rekha and Krishnan to drive the industry through another uncertain but growth opportunity year. As a champion of future skills and inclusive growth, Rekha’s past contributions to..
Read more at: https://www.peoplematters.in/news/c-suite/accenture-indiahead-rekha-menon-becomes-first-woman-chairman-of-nasscom-29123
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Experian India appoints new MD Neeraj Dhawan brings over 27 years of experience in banking and strong product knowledge. Leading global information services company Experian India, specializing in decisioning, data analytics, has strengthened its senior leadership team with the appointment of Neeraj Dhawan as its new Managing Director. Commenting on Neeraj’s appointment, Ben Elliott, CEO Experian Asia Pacific said, “We’re excited to welcome Neeraj to Experian. Neeraj brings decades of banking experience and strong product knowledge, and as a former Experian client, he is well versed in Experian’s unique offerings and how we are positioned to win in India. As a people leader, Neeraj is passionate about creating a strong cohesive team to build a stronger business. We are confident that Experian India will benefit under his leadership. His vast experience and expertise will help the company scale to greater heights. In a career spanning over 27 years with multinationals and large corporations, Neeraj possesses senior leadership experience in technology, designing and executing business strategies, risk management, and debt management to name a few. He was most recently Chief Credit Officer at CSB Bank, focusing on Retail, SME, and analytics. His past stints include working with renowned companies such as GE Capital, ABN Amro Bank, HDFC Bank, ICICI Bank, and Yes Bank among others. Neeraj has managed large portfolios along with teams of over 3,500 people and is highly experienced in taking on transformation projects, leading teams to create next-generation end-to-end digitalized processes in credit underwriting. His passion for digitization and Business Process Re-engineering is what will add immense value to Experian..
Read more at: https://www.peoplematters.in/news/leadership/experian-indiaappoints-new-md-29120
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