The centrality of entrepreneurship in the economic growth of nations is increasingly coming into focus in these troubled times. As pointed out in a recent article in The Economist, even as governments are busy trying to save their economies, policy makers are demonstrating a renewed interest in entrepreneurship and innovation.
In modern open economies, entrepreneurship is argued to be far more important than it ever was. There is a general consensus that almost all the new jobs in the U.S. in the last couple of decades have been created by startups spearheaded by energetic entrepreneurs. The large companies, if anything, have been steadily losing jobs.
The question that follows then is what type of entrepreneurship is important. Entrepreneurial ventures vary widely in their characteristics – from self-employment or necessity based entrepreneurship at one end of the spectrum to opportunity based entrepreneurship at the other, that seeks to revolutionize the world by leveraging new technology and creating new markets, Opportunity based entrepreneurship is usually based on significant innovation in the realm of technology, business process or the like and is set up to grow, right from inception. A significant share of new employment, particularly in the US, is created by the latter kind -- a small bunch of fast growing firms referred to as 'gazelles".
While India has a long history of entrepreneurship, as evidenced by centuries of business and commercial activity and the existence of generations old business groups and families, recent Global Entrepreneurship Monitor studies found that entrepreneurship in India has predominantly been necessity based rather than opportunity based. There have been very few 'gazelles' to create the desired impact on the economy through job creation. Thus the challenge of entrepreneurship in India is: - How to increase the incidence of potentially high growth entrepreneurial ventures?
To say that formidable barriers exist for high growth entrepreneurship in India is an understatement. Our research into the barriers and facilitators of entrepreneurship in the Indian context has revealed many facets of this problem. The catch up nature of technological opportunities, together with a strong focus on indigenization, has driven technological innovation away from commercial viability and state of the art knowledge. Indirect tax regimes favoring the small enterprise have suppressed scale and encouraged firms to remain small. Labor laws that limited the mobility of labor forced entrepreneurs to fear growth in employee strength. Poor infrastructure has led entrepreneurs to create their own and in the process, lock up precious capital which should have been deployed to grow the business. Inadequate availability of land with clear titles, and owner-occupant friendly policies have led to the diversion of scarce capital towards unproductive investments in land and buildings. Poor judicial enforcement of property rights and private contracts has led to sub-optimal business practices, such as make instead of buy and own instead of rent. Perhaps the most damaging impact of our deeply entrenched policy regime of the past has been the effect it had on the entrepreneurs' own beliefs concerning economy of scale, diversification and efficiency wages that limit their propensity to grow.
The accent on liberalization and globalization in the last two decades has brought about some mitigating effects in many of the areas cited above. A cursory look at some of the high growth ventures that have established themselves during this period points to a positive role played by the new economic policies in opening up areas with huge pent up demand for private investment and providing unrestricted access to the state of the art technology available in the world. Sectors such as telecommunication, power, transportation, logistics, media etc have seen significant entrepreneurial activity both from traditional business houses and first generation entrepreneurs. However, high growth entrepreneurship has not yet reached a proportion in India that commands attention.
Given the ambitious economic growth targets that India has set for itself, high growth businesses have a crucial role to play. While high growth businesses have to use their entrepreneurial ingenuity to overcome the environmental constraints or render them irrelevant, public policy has a significant and decisive role to play in minimizing, and preferably, completely removing the constraints that tend to be hostile to high growth entrepreneurship.
The challenge for policy makers in India can thus be articulated as one of creating the right framework conditions to enable the establishment of fast growing innovative new businesses by entrepreneurs. There are many avenues open to policy makers to address the issue, but the challenge would be in prioritization -- picking the right set of issues and sequencing them to achieve significant and quick pay-off.
Firstly, at the macro level, the government has to focus on upgrading and making available on demand quality physical infrastructure like power, roads, and transportation. Other than the quantum of the investments, what is required is also efficient project management and effective coordination among all stakeholders to ensure speedy implementation of projects. This will enable entrepreneurs to conserve capital and direct it to their core competence -- innovation.
Secondly, significant attention has to be paid to create and upgrade the knowledge infrastructure. This is where India has to reverse certain strongly entrenched trends in the economy that have proved to be counterproductive. Two thirds of the R&D expenditure in India is happening in the government and public sector, which is exactly the opposite of the trends in U.S . Technologies developed in the confines of government laboratories often find it difficult to face the test of viable commercial application. Also, effective mechanisms for efficient technologies to move from the government owned laboratories into the realm of commercial exploitation continue to remain weak despite years of trying. The combined impact has been a poor pipeline of innovative technologies that could be economically deployed by the commercial organizations in the form of products and services. On the other hand, the private sector, now increasingly open to global competition, should progressively increase its focus on R&D to develop a competitive edge through technological innovation. Any policy support to incentivize the private sector to increase its engagement with R&D would go a long way in promoting innovation with a sense of urgency and commercial viability. In addition, the processes and systems governing the public-private partnerships in commercializing technological innovations need to be overhauled to maximize their impact.
Thirdly, policies have to gear up to channelize the early stage risk capital towards sustaining vibrant innovative activity. There has been a significant increase in the number of government innovation funding programs to support new ideas falling into various domains. This directional shift in focus from controlling economic activity to promoting innovation is welcome, particularly because private venture capital in India has tended to be growth capital rather than risk capital. But, at the operating level, the rules, regulations and processes have not evolved with this change in focus. This, together with the near total absence of expertise on the part of the government machinery to assess and respond to risks associated with innovation, renders such resources inaccessible to those who need and deserve them. This has to change.
Comfort Jobs
Friday, July 30, 2010
Thursday, July 29, 2010
10 Signs It’s Time to Leave Your Job
Do you get into the office without a plan of action for the day? Are you not being rewarded for your efforts? Does your boss often pull you down and embarrass you in front of colleagues?
If any or all of these ring true, it might be time to shake things up.
Here are 10 signs that could indicate that it’s time for you to move on – either from your current job function or from your organization – to other adventures.
1. Social networking but not working
Are Facebook, LinkedIn and Twitter taking up more of your working day than preparing that PowerPoint presentation? If your company doesn’t allow access to these sites, perhaps your energies are focused on finding proxy sites which allow you to access sites that have been blocked by your company.
Or, do you simply dread coming to office and wait for the day to end quickly?
If this happens some days a week, then maybe you simply need a holiday. “But if one spends more than a month populating Farmville on Facebook, then yes, it’s stagnation and you need to move on,” says Purvi Sheth, chief executive officer of Mumbai management consulting firm Shilpusti Consultants.
2. Been there, done that
If your job has become so routine or monotonous that you can do most of it without thinking much, what are you doing in it? Essentially, you are not learning much or growing in that role, so you won’t be able to stay motivated for long. “Careers are not ponds, they are streams; they have got to be going somewhere from somewhere,” says Dony Kuriakose, director of Delhi-based recruitment firm Edge Executive Search Pvt. Ltd. “If you’re not moving, you’re dead in the water.”
Remember that if you have become too complacent and start taking the company for granted, your employer will soon recognize that, putting your role in jeopardy.
3. Not challenged enough
This is related to the point above. But if you feel that your organization is not giving you the right exposure or a challenging enough position, you could end up becoming very frustrated. “Take the initiative of engaging with (your) employer and…ask for more responsibilities,” says Pankaj Arora, managing director of Protiviti Consulting Pvt. Ltd, a business consulting and audit firm. If that doesn’t work, look for challenges elsewhere within or outside your organization.
4. Unmet goals
You want to become a team leader or a business head but your employer is moving you around into different departments without really promoting you. “It is time for you to move on when you feel your career objectives are not being met or fulfilled by your employer,” says Ms. Sheth.
5. Too big for your shoes
You were good at your first job, so you were promoted to the next level and the next level and so on. But now you have reached a position which is too much for you to handle. This is popularly referred to as the Peter Principle which states that in a hierarchy, employees rise to a level of their incompetence.
Either you need to re-skill and reinvent yourself pretty quickly to survive in that role or you need to move into another position which is a better fit for you.
6. Closed to change
Today’s organizations are nimble on their feet and are often changing their processes or businesses to meet delivery and cost pressures. If you can’t handle that change because you are too set in your ways, you could end up getting left behind. Or, maybe you don’t agree with your organization’s changes at a philosophical or an ethical level. “There are certain reasons why you work at a place and there are certain things that enthuse you,” says Mr. Kuriakose. “If those core issues change and you suddenly find that you’re working for a place that you wouldn’t have joined” it might be time to rethink.
7. Politics over mechanics
Every organization has politics and it’s smart to keep on top of major changes as well as the movers and shakers of your organization. But if your professional relationships at work have become so entangled and complicated that they are keeping you from your work, that’s a problem. Don’t let politics become more important to you than the mechanics of your job.
8. You’ve been overlooked — again
Are your batch mates from school and college more successful than you are? Or is your company promoting people with less experience and fewer achievements above you? Figure out why that is happening. If they’re working harder and are smarter than you, then consider adding to whatever skills are keeping you from that next job. But if your company is overlooking you, then it might be time to go where you get more recognition.
9. Don’t want your boss’s job?
We typically envy our bosses not only for their higher salaries but also for the responsibility and authority they command. But if you don’t aspire to be in your boss’s position at some time in the future, then it’s time to look around and reconsider your career plans. You can’t stay in your current position forever. Not everyone has to be the top dog, but a career path that promises advancement and satisfaction is a good road to be on.
10. Evil thoughts about your boss?
Ok, so all of us have some evil thoughts about our bosses every now and then. That’s normal. If you hate him or her as a person, deal with it. But if your professional relationship is troubled, then you have a problem. “You have to work with all kinds of people,” says Mr. Kuriakose. However, a boss who is always pulling you down, and maybe embarrassing you in front of colleagues, could be harmful for your morale and progress. Time for some introspection and perhaps an exit strategy.
If any or all of these ring true, it might be time to shake things up.
Here are 10 signs that could indicate that it’s time for you to move on – either from your current job function or from your organization – to other adventures.
1. Social networking but not working
Are Facebook, LinkedIn and Twitter taking up more of your working day than preparing that PowerPoint presentation? If your company doesn’t allow access to these sites, perhaps your energies are focused on finding proxy sites which allow you to access sites that have been blocked by your company.
Or, do you simply dread coming to office and wait for the day to end quickly?
If this happens some days a week, then maybe you simply need a holiday. “But if one spends more than a month populating Farmville on Facebook, then yes, it’s stagnation and you need to move on,” says Purvi Sheth, chief executive officer of Mumbai management consulting firm Shilpusti Consultants.
2. Been there, done that
If your job has become so routine or monotonous that you can do most of it without thinking much, what are you doing in it? Essentially, you are not learning much or growing in that role, so you won’t be able to stay motivated for long. “Careers are not ponds, they are streams; they have got to be going somewhere from somewhere,” says Dony Kuriakose, director of Delhi-based recruitment firm Edge Executive Search Pvt. Ltd. “If you’re not moving, you’re dead in the water.”
Remember that if you have become too complacent and start taking the company for granted, your employer will soon recognize that, putting your role in jeopardy.
3. Not challenged enough
This is related to the point above. But if you feel that your organization is not giving you the right exposure or a challenging enough position, you could end up becoming very frustrated. “Take the initiative of engaging with (your) employer and…ask for more responsibilities,” says Pankaj Arora, managing director of Protiviti Consulting Pvt. Ltd, a business consulting and audit firm. If that doesn’t work, look for challenges elsewhere within or outside your organization.
4. Unmet goals
You want to become a team leader or a business head but your employer is moving you around into different departments without really promoting you. “It is time for you to move on when you feel your career objectives are not being met or fulfilled by your employer,” says Ms. Sheth.
5. Too big for your shoes
You were good at your first job, so you were promoted to the next level and the next level and so on. But now you have reached a position which is too much for you to handle. This is popularly referred to as the Peter Principle which states that in a hierarchy, employees rise to a level of their incompetence.
Either you need to re-skill and reinvent yourself pretty quickly to survive in that role or you need to move into another position which is a better fit for you.
6. Closed to change
Today’s organizations are nimble on their feet and are often changing their processes or businesses to meet delivery and cost pressures. If you can’t handle that change because you are too set in your ways, you could end up getting left behind. Or, maybe you don’t agree with your organization’s changes at a philosophical or an ethical level. “There are certain reasons why you work at a place and there are certain things that enthuse you,” says Mr. Kuriakose. “If those core issues change and you suddenly find that you’re working for a place that you wouldn’t have joined” it might be time to rethink.
7. Politics over mechanics
Every organization has politics and it’s smart to keep on top of major changes as well as the movers and shakers of your organization. But if your professional relationships at work have become so entangled and complicated that they are keeping you from your work, that’s a problem. Don’t let politics become more important to you than the mechanics of your job.
8. You’ve been overlooked — again
Are your batch mates from school and college more successful than you are? Or is your company promoting people with less experience and fewer achievements above you? Figure out why that is happening. If they’re working harder and are smarter than you, then consider adding to whatever skills are keeping you from that next job. But if your company is overlooking you, then it might be time to go where you get more recognition.
9. Don’t want your boss’s job?
We typically envy our bosses not only for their higher salaries but also for the responsibility and authority they command. But if you don’t aspire to be in your boss’s position at some time in the future, then it’s time to look around and reconsider your career plans. You can’t stay in your current position forever. Not everyone has to be the top dog, but a career path that promises advancement and satisfaction is a good road to be on.
10. Evil thoughts about your boss?
Ok, so all of us have some evil thoughts about our bosses every now and then. That’s normal. If you hate him or her as a person, deal with it. But if your professional relationship is troubled, then you have a problem. “You have to work with all kinds of people,” says Mr. Kuriakose. However, a boss who is always pulling you down, and maybe embarrassing you in front of colleagues, could be harmful for your morale and progress. Time for some introspection and perhaps an exit strategy.
Wednesday, July 28, 2010
Employership vs Entrepreneurship
With more than half a billion people under the age of 25, India is sitting atop a potential powerhouse of intellectual and physical energy. But, India’s demographic dividend is only a ‘potential’ positive unless India’s social entrepreneurs become actors in this transition.
A look at the numbers released in the recently published India Labour Report 2009 reveals that the population will grow to 1.4 billion by 2026, and 83% of this increase will be in the 15-59 age group—a huge lump of productive labor. Much has been said about India’s need to educate its youth in order to capitalize on this demographic window of opportunity. And, there is no denying the importance of education. But, there is also a dire need for job creation and job training. By 2025, India will house a whopping 25% of the world’s total workforce, with the projected number of new entrants into the workforce each year at 12.8 million. Where are these jobs going to come from?
The India Labour Report cites the need for a smooth legal and regulatory ecosystem, as well as employability frameworks and employment ecosystems in order to create a more enabling environment for job creation. I would argue that we also need to encourage social entrepreneurs to take on the challenge—by becoming employers themselves.
Social entrepreneurs are known for the creativity and innovation they bring to bear on the gaps in development. Whether tackling water or education, energy or sanitation, social entrepreneurs develop inventive ways to bring new solutions to social challenges. But, in all this creativity, they may be missing one of the larger issues at hand: “employership,” or, the generation of jobs where none existed before.
Lest you confuse employership with entrepreneurship, allow me to elaborate. ‘Entrepreneurship’ is a loaded word. There is pressure to launch a game-changing idea—or nothing at all. It asks for confidence and considerable chutzpah. It takes passion and an affinity for risk. To be an entrepreneur is to take the weight of the world on one’s shoulders in order to create something that no one has ever done before. It’s not something taken lightly, nor is it something many Indian families encourage.
Now, consider “employership.” The task of creating 100 jobs is challenging, but beautifully concrete. The framework is Problem/Solution, rather than Blue-Sky thinking. It requires flipping the idea of a target market on its head: it’s not about the consumer (yet); in the initial stages, it is about determining who to employ.
Several social entrepreneurs have founded companies that use already existing business models, but employ a specific segment of the labor pool. Dhruv Lakra started a courier company, Mirakle Couriers , which employs deaf adults, a group that receives concessions on Mumbai train transport. Revathi Roy is the Managing Director of ForShe , an all-women-driven taxi service, preferred by many women traveling alone. Vivek Agrawal is the CEO of Kanak Resources Management, a company that employs ragpickers—who have plenty of experience—to assist in municipal waste collection. In the case of all three enterprises, very few, if any, of the current employees were previously employed. But, each company’s labor pool also happens to offer a competitive advantage.
Perhaps we should encourage India’s budding social entrepreneurs to be less creative. Less innovative. Because employership does not require a game-changing idea, or a system-fix—just basic businesses that create jobs, raise standards of living, and create a virtuous cycle of advancement. If 1,000 people in each of 20 states built businesses that employed just 50 people, we’d see 1 million new jobs created—a decent dent in the projected 12.8 million demand. And, no doubt, by creating employment some of the problems social entrepreneurs are trying so desperately to solve may go away without direct intervention.
India has the chance to use its coming demographic transition as a catapult into the future, building its economy, its workforce, and its global brand. But, a working-age population won’t provide value on its own. By challenging India’s social entrepreneurs to become part of the solution, India will reap the benefits of this new wave of human capital.
–Lindsay Clinton, associate vice president of Intellecap, argues that India’s innovators should innovate less and employ more to help reap the nation’s demographic dividend.
A look at the numbers released in the recently published India Labour Report 2009 reveals that the population will grow to 1.4 billion by 2026, and 83% of this increase will be in the 15-59 age group—a huge lump of productive labor. Much has been said about India’s need to educate its youth in order to capitalize on this demographic window of opportunity. And, there is no denying the importance of education. But, there is also a dire need for job creation and job training. By 2025, India will house a whopping 25% of the world’s total workforce, with the projected number of new entrants into the workforce each year at 12.8 million. Where are these jobs going to come from?
The India Labour Report cites the need for a smooth legal and regulatory ecosystem, as well as employability frameworks and employment ecosystems in order to create a more enabling environment for job creation. I would argue that we also need to encourage social entrepreneurs to take on the challenge—by becoming employers themselves.
Social entrepreneurs are known for the creativity and innovation they bring to bear on the gaps in development. Whether tackling water or education, energy or sanitation, social entrepreneurs develop inventive ways to bring new solutions to social challenges. But, in all this creativity, they may be missing one of the larger issues at hand: “employership,” or, the generation of jobs where none existed before.
Lest you confuse employership with entrepreneurship, allow me to elaborate. ‘Entrepreneurship’ is a loaded word. There is pressure to launch a game-changing idea—or nothing at all. It asks for confidence and considerable chutzpah. It takes passion and an affinity for risk. To be an entrepreneur is to take the weight of the world on one’s shoulders in order to create something that no one has ever done before. It’s not something taken lightly, nor is it something many Indian families encourage.
Now, consider “employership.” The task of creating 100 jobs is challenging, but beautifully concrete. The framework is Problem/Solution, rather than Blue-Sky thinking. It requires flipping the idea of a target market on its head: it’s not about the consumer (yet); in the initial stages, it is about determining who to employ.
Several social entrepreneurs have founded companies that use already existing business models, but employ a specific segment of the labor pool. Dhruv Lakra started a courier company, Mirakle Couriers , which employs deaf adults, a group that receives concessions on Mumbai train transport. Revathi Roy is the Managing Director of ForShe , an all-women-driven taxi service, preferred by many women traveling alone. Vivek Agrawal is the CEO of Kanak Resources Management, a company that employs ragpickers—who have plenty of experience—to assist in municipal waste collection. In the case of all three enterprises, very few, if any, of the current employees were previously employed. But, each company’s labor pool also happens to offer a competitive advantage.
Perhaps we should encourage India’s budding social entrepreneurs to be less creative. Less innovative. Because employership does not require a game-changing idea, or a system-fix—just basic businesses that create jobs, raise standards of living, and create a virtuous cycle of advancement. If 1,000 people in each of 20 states built businesses that employed just 50 people, we’d see 1 million new jobs created—a decent dent in the projected 12.8 million demand. And, no doubt, by creating employment some of the problems social entrepreneurs are trying so desperately to solve may go away without direct intervention.
India has the chance to use its coming demographic transition as a catapult into the future, building its economy, its workforce, and its global brand. But, a working-age population won’t provide value on its own. By challenging India’s social entrepreneurs to become part of the solution, India will reap the benefits of this new wave of human capital.
–Lindsay Clinton, associate vice president of Intellecap, argues that India’s innovators should innovate less and employ more to help reap the nation’s demographic dividend.
Tuesday, July 27, 2010
MBA Placements 2010: Nothing Much to Cheer
NEW DELHI--The placement process is over in the top three Indian Institutes of Management and all the students have received job offers. In some other top-ranking business schools, 90% to 95% of students had been placed in jobs by mid-March.
So for the top business schools, the placement scenario this year has shown some improvement in the sense that the duration of the placement process has reduced significantly compared with last year.
But the increase in salaries has been only marginal. And the situation is as bad as last year in the majority of our B-schools. Even in the top private B-schools that run parallel management programs to their main programs the scene is no better. The placements so far in most such programs have been between 40% and 60%.
For example, Dr. C.S. Venkata Ratnam, director of the International Management Institute in Delhi , says that although 95% of students that pursue the flagship post graduate diploma in management program have been placed, only about 60% of students in other parallel programs for executives have received job offers.
Lower rung B-schools also are struggling to place their students. In many of them, not even half the batch has been hired. Nonetheless, there is optimism in some quarters that in April the situation will improve.
"Many companies are still finalizing their recruitment needs and will hopefully start their recruitment process in April," says Dr. Suresh Ghai, director of K. J. Somaiya Institute of Management Studies & Research in Mumbai, where over 60% students have been placed.
Accompanying every placement season is the practice of exaggerating salary figures and the appearance of misleading media reports. I have been writing about this practice for the past few years.
Though the top IIMs are not officially disclosing salary figures, there have been "leaks" to the media about salaries of 10 million rupees-plus that some of their students have received. Such a salary is, in fact, often paid in dollars or pounds, and for foreign postings. So, it's not as if the alumni are earning abroad and spending in India .
Also, one has to take into account purchasing power parity to convert the salary into effective Indian rupees. In other words, a dollar's purchasing power in the U.S. is not equivalent to roughly 45 rupees in India ; it is the equivalent of less than 10 rupees. So $100,000 doesn't automatically translate to 4.5 million rupees but really somewhere close to 1 million rupees.
Then, one should not forget that these are cost-to-company or so-called CTC offers, which many times include intangibles such as the cost of training, relocation expenses as well as variable pay. The performance incentive, which can be substantial in these pay packages, is a tricky component. One has to achieve targets to qualify for full pay. If we take all these into account, the 10 million rupee salary is, in effect, a lot less.
In the annual survey of business schools that we do, we ask these institutes for a copy of campus placement offers. A careful look at the offer letters gives the true picture. The package is inflated by notional benefits and the bonus component is usually very high. City relocation charges, which are one-time payments, can themselves go up to over 100,000 rupees. Some companies even include subsidized canteen food in the pay package.
The salary figures look even less impressive if we take into account the education loans that most students take out. The fee in many of our top B-Schools varies between 500,000 rupees to one million rupees for the full program. For a loan of 600,000 rupees, the monthly repayment installment is about 18,000 rupees, which students have to start paying six months after getting a job or after one year if they don't get a job.
If we leave out laterals (students with at least two years' work experience), the average monthly take home for a fresher (a student with no work experience) from a top Indian B-school is about 50,000-60,000 rupees.
For second rung B-schools, it's between 20,000-30,000 rupees. For those lower in the schools hierarchy—and they constitute over 95% of B-schools in India-- the average monthly take home salary works out to anywhere in the range of 10,000-20,000 rupees; that is for those who are lucky enough to get a job.
So for the top business schools, the placement scenario this year has shown some improvement in the sense that the duration of the placement process has reduced significantly compared with last year.
But the increase in salaries has been only marginal. And the situation is as bad as last year in the majority of our B-schools. Even in the top private B-schools that run parallel management programs to their main programs the scene is no better. The placements so far in most such programs have been between 40% and 60%.
For example, Dr. C.S. Venkata Ratnam, director of the International Management Institute in Delhi , says that although 95% of students that pursue the flagship post graduate diploma in management program have been placed, only about 60% of students in other parallel programs for executives have received job offers.
Lower rung B-schools also are struggling to place their students. In many of them, not even half the batch has been hired. Nonetheless, there is optimism in some quarters that in April the situation will improve.
"Many companies are still finalizing their recruitment needs and will hopefully start their recruitment process in April," says Dr. Suresh Ghai, director of K. J. Somaiya Institute of Management Studies & Research in Mumbai, where over 60% students have been placed.
Accompanying every placement season is the practice of exaggerating salary figures and the appearance of misleading media reports. I have been writing about this practice for the past few years.
Though the top IIMs are not officially disclosing salary figures, there have been "leaks" to the media about salaries of 10 million rupees-plus that some of their students have received. Such a salary is, in fact, often paid in dollars or pounds, and for foreign postings. So, it's not as if the alumni are earning abroad and spending in India .
Also, one has to take into account purchasing power parity to convert the salary into effective Indian rupees. In other words, a dollar's purchasing power in the U.S. is not equivalent to roughly 45 rupees in India ; it is the equivalent of less than 10 rupees. So $100,000 doesn't automatically translate to 4.5 million rupees but really somewhere close to 1 million rupees.
Then, one should not forget that these are cost-to-company or so-called CTC offers, which many times include intangibles such as the cost of training, relocation expenses as well as variable pay. The performance incentive, which can be substantial in these pay packages, is a tricky component. One has to achieve targets to qualify for full pay. If we take all these into account, the 10 million rupee salary is, in effect, a lot less.
In the annual survey of business schools that we do, we ask these institutes for a copy of campus placement offers. A careful look at the offer letters gives the true picture. The package is inflated by notional benefits and the bonus component is usually very high. City relocation charges, which are one-time payments, can themselves go up to over 100,000 rupees. Some companies even include subsidized canteen food in the pay package.
The salary figures look even less impressive if we take into account the education loans that most students take out. The fee in many of our top B-Schools varies between 500,000 rupees to one million rupees for the full program. For a loan of 600,000 rupees, the monthly repayment installment is about 18,000 rupees, which students have to start paying six months after getting a job or after one year if they don't get a job.
If we leave out laterals (students with at least two years' work experience), the average monthly take home for a fresher (a student with no work experience) from a top Indian B-school is about 50,000-60,000 rupees.
For second rung B-schools, it's between 20,000-30,000 rupees. For those lower in the schools hierarchy—and they constitute over 95% of B-schools in India-- the average monthly take home salary works out to anywhere in the range of 10,000-20,000 rupees; that is for those who are lucky enough to get a job.
Monday, July 26, 2010
Improving the Odds For Changing Jobs
If you've been marking time at work and hoping to get a new job, you've got company. Employment experts caution, though, that moving too quickly could land you in a new job that you dislike even more. Here are some ways to improve the odds of finding the right one.
• Re-evaluate the situation. Think about why you're dissatisfied at your current job. If you aren't challenged enough, there might be a way to make a change without leaving. "There may be ways that your job can be changed for the better or your role in the company expanded to offer more challenges," says Tony Mulkern, a management consultant in Los Angeles. Scout job openings in other departments or at higher levels that you may qualify for with some additional extended education or skills and ask your manager to support your effort to get the training you need.
• Reach out. If the opportunities just aren't there or you're simply dissatisfied and aching to move, tap your personal and professional network for information on who is hiring. Many job postings go up with a candidate in mind already, if you know someone at the companies you are targeting—or someone in your network does—work to get personal referrals.
But be discreet with your inquiries. Keep requests off social-networking websites like Facebook and Linkedin—they can be indexed by search engines and discovered by anyone, including your current boss.
• Do your homework. When you land an interview, use the opportunity to learn about the company. You should get as much from them as they will try to get from you, says Sharon Armstrong, a human-resources consultant in Washington. Salary and benefits are important, but so is fit. It's difficult to tell what the workplace culture is like from casual visits. Don't be shy about calling for more information and contact current and former employees, if possible, to get a feel for the company and opportunities.
If you get an offer, before you accept, consider doing more in-depth financial research on the company. Try The Securities and Exchange Commission's EDGAR Public Dissemination Service (edgarcompany.sec.gov). For private firms and startups, Gail Rosen, an accountant in Martinsville N.J., says to look for a profit-and-loss statement, a balance sheet, references, a business plan and a list of where the company is getting funding.
"You may not get that all but it doesn't hurt to ask, and they might at least give you something else you can use," she says. Some information also can be found on fee services like Hoovers or on business blogs.
• Leap carefully. Whatever you do, don't quit your job until you're certain you're hired, says Ms. Armstrong. "Even if a job offer seems imminent, there are a lot of things that can happen at the last minute."
If your current company wants to keep you and replies with a counteroffer, keep in mind why you're leaving. "People seldom move just for money, so don't be swayed by a bigger paycheck if everything else stays the same," says Ms. Armstrong. "Job satisfaction comes from a lot of different places. If the boss offers to help change the other things that are making you unhappy, that might be worth at least discussing."
From: wsj.com
• Re-evaluate the situation. Think about why you're dissatisfied at your current job. If you aren't challenged enough, there might be a way to make a change without leaving. "There may be ways that your job can be changed for the better or your role in the company expanded to offer more challenges," says Tony Mulkern, a management consultant in Los Angeles. Scout job openings in other departments or at higher levels that you may qualify for with some additional extended education or skills and ask your manager to support your effort to get the training you need.
• Reach out. If the opportunities just aren't there or you're simply dissatisfied and aching to move, tap your personal and professional network for information on who is hiring. Many job postings go up with a candidate in mind already, if you know someone at the companies you are targeting—or someone in your network does—work to get personal referrals.
But be discreet with your inquiries. Keep requests off social-networking websites like Facebook and Linkedin—they can be indexed by search engines and discovered by anyone, including your current boss.
• Do your homework. When you land an interview, use the opportunity to learn about the company. You should get as much from them as they will try to get from you, says Sharon Armstrong, a human-resources consultant in Washington. Salary and benefits are important, but so is fit. It's difficult to tell what the workplace culture is like from casual visits. Don't be shy about calling for more information and contact current and former employees, if possible, to get a feel for the company and opportunities.
If you get an offer, before you accept, consider doing more in-depth financial research on the company. Try The Securities and Exchange Commission's EDGAR Public Dissemination Service (edgarcompany.sec.gov). For private firms and startups, Gail Rosen, an accountant in Martinsville N.J., says to look for a profit-and-loss statement, a balance sheet, references, a business plan and a list of where the company is getting funding.
"You may not get that all but it doesn't hurt to ask, and they might at least give you something else you can use," she says. Some information also can be found on fee services like Hoovers or on business blogs.
• Leap carefully. Whatever you do, don't quit your job until you're certain you're hired, says Ms. Armstrong. "Even if a job offer seems imminent, there are a lot of things that can happen at the last minute."
If your current company wants to keep you and replies with a counteroffer, keep in mind why you're leaving. "People seldom move just for money, so don't be swayed by a bigger paycheck if everything else stays the same," says Ms. Armstrong. "Job satisfaction comes from a lot of different places. If the boss offers to help change the other things that are making you unhappy, that might be worth at least discussing."
From: wsj.com
Sunday, July 25, 2010
Paychecks shall improve in 2010 for India
It is celebration time for India Inc. With media reports of the economic recession slowing dwindling away, finally companies are all set to loosen their purse strings to much-relieved employees. If 2009 was marred by the gloom of global economic downturn, 2010 promises to be a year with less of downsizing, job-freeze and most importantly, heftier pay packages to follow!
While the road to better pay package and compensation benefits depend on performance, companies are all out this year to recruiting ‘specialists’ - where both time and money can be optimised to impact the company’s profits.
“Companies will recruit employees based on their ‘domain expertise’. I foresee a 5-15% growth at a company-to-company and industry-to-industry basis, while naming IT, ITES and Infrastructures sectors as offering higher pay packages in 2010,” says Vivek Madhukar, Vice President, Timesjobs.com.
And which functional roles can expect a good raise this year? Says Madhukar, “Definitely revenue-generating roles such as sales agents, call-centre executives and software developers.”
Adds Anurag Batra, Chairman & Editor-in-Chief, Exchange4media Group,“Ad sales, Internet specialist and media specialist roles will benefit the most in terms of pay packages.” He continues, “Editorial salaries will flatten because of retrenchment in the last year leading to oversupply. Media CEOs who have proved their mettle in their last job will be in demand and will command premiums.”
A media and advertising veteran, Anurag Batra, predicts, “Advertising compensation might not leapfrog as business models of ad agencies will be further under pressure. A lot of advertising industry professionals will jump to the media side.”
Taking a cue from Madhukar, it seems to be actually good news for the IT and ITES sector as we hear it from another source. C.S. Puri, President, Puri Consultants & Associates, an executive search company, says, “Last year, there was only 4-5% hike in the salaries in the IT sector. This year IT companies are planning on 8-10% hike in salaries. Other sectors such as FMCG and Consumer Durables shall also see a reasonable growth in pay structures.”
While news reports of IT companies such as TCS, Wipro and Infosys have already done the rounds, there are other sectors as well where pay packets are bound to get heavier.
“The projected growth rate for luxury industry in India is as high as 25% over the next couple of years. This is a phenomenon that is being watched very carefully by the West, where the recovery process is much slower,” says Roasie Ahluwalia,
GM – Marketing Communications, Genesis Luxury.
“Given this optimism in the market the surge is also visible in compensation packages. Jobs that were on freeze, are already back and the industry is looking at doling out good compensation packages,” continues Roasie.
Roasie also comments on the compensation standards in India. “I think most large corporates are already aware of compensation benchmarking and they do have reward systems that are tuned to performance. Given the current influx of International brands into India, we will have to further align ourselves to global best practices.”
And higher pay packets just do not end with the old guns! B-school graduates can expect a higher starting salary this year. Jyotirmoy Bose, Founder & CEO, White Spaces Consulting has this to share, “The FMCG sector has emerged as the industry of choice, as 44% management graduating in 2010 voting it as their most preferred industry in the latest Nielsen Campus Track–B School Survey.”
He adds, “The average salary expectation of students from their “dream company” has notched up a few decimals to Rs.14.6 lakhs this year. Salary expectation from a foreign company is almost twice than that from an Indian company.”
From: paycheck.in
While the road to better pay package and compensation benefits depend on performance, companies are all out this year to recruiting ‘specialists’ - where both time and money can be optimised to impact the company’s profits.
“Companies will recruit employees based on their ‘domain expertise’. I foresee a 5-15% growth at a company-to-company and industry-to-industry basis, while naming IT, ITES and Infrastructures sectors as offering higher pay packages in 2010,” says Vivek Madhukar, Vice President, Timesjobs.com.
And which functional roles can expect a good raise this year? Says Madhukar, “Definitely revenue-generating roles such as sales agents, call-centre executives and software developers.”
Adds Anurag Batra, Chairman & Editor-in-Chief, Exchange4media Group,“Ad sales, Internet specialist and media specialist roles will benefit the most in terms of pay packages.” He continues, “Editorial salaries will flatten because of retrenchment in the last year leading to oversupply. Media CEOs who have proved their mettle in their last job will be in demand and will command premiums.”
A media and advertising veteran, Anurag Batra, predicts, “Advertising compensation might not leapfrog as business models of ad agencies will be further under pressure. A lot of advertising industry professionals will jump to the media side.”
Taking a cue from Madhukar, it seems to be actually good news for the IT and ITES sector as we hear it from another source. C.S. Puri, President, Puri Consultants & Associates, an executive search company, says, “Last year, there was only 4-5% hike in the salaries in the IT sector. This year IT companies are planning on 8-10% hike in salaries. Other sectors such as FMCG and Consumer Durables shall also see a reasonable growth in pay structures.”
While news reports of IT companies such as TCS, Wipro and Infosys have already done the rounds, there are other sectors as well where pay packets are bound to get heavier.
“The projected growth rate for luxury industry in India is as high as 25% over the next couple of years. This is a phenomenon that is being watched very carefully by the West, where the recovery process is much slower,” says Roasie Ahluwalia,
GM – Marketing Communications, Genesis Luxury.
“Given this optimism in the market the surge is also visible in compensation packages. Jobs that were on freeze, are already back and the industry is looking at doling out good compensation packages,” continues Roasie.
Roasie also comments on the compensation standards in India. “I think most large corporates are already aware of compensation benchmarking and they do have reward systems that are tuned to performance. Given the current influx of International brands into India, we will have to further align ourselves to global best practices.”
And higher pay packets just do not end with the old guns! B-school graduates can expect a higher starting salary this year. Jyotirmoy Bose, Founder & CEO, White Spaces Consulting has this to share, “The FMCG sector has emerged as the industry of choice, as 44% management graduating in 2010 voting it as their most preferred industry in the latest Nielsen Campus Track–B School Survey.”
He adds, “The average salary expectation of students from their “dream company” has notched up a few decimals to Rs.14.6 lakhs this year. Salary expectation from a foreign company is almost twice than that from an Indian company.”
From: paycheck.in
Friday, July 23, 2010
Job Seekers - Read the article carefully
In a tight job market, building and maintaining an online presence is critical to networking and job hunting. Done right, it can be an important tool for present and future networking and useful for potential employers trying to get a sense of who you are, your talents and your experience. Done wrong, it can easily take you out of the running for most positions.
Here are five mistakes online job hunters make:
1. Forgetting manners.
If you use Twitter or you write a blog, you should assume that hiring managers and recruiters will read your updates and your posts. A December 2009 study by Microsoft Corp. found that 79% of hiring managers and job recruiters review online information about job applicants before making a hiring decision. Of those, 70% said that they have rejected candidates based on information that they found online. Top reasons listed? Concerns about lifestyle, inappropriate comments, and unsuitable photos and videos.
"Everything is indexed and able to be searched," says Miriam Salpeter, an Atlanta-based job search and social media coach. "Even Facebook, which many people consider a more private network, can easily become a trap for job seekers who post things they would not want a prospective boss to see."
Don't be lulled into thinking your privacy settings are foolproof. "All it takes is one person sharing information you might not want shared, forwarding a post, or otherwise breaching a trust for the illusion of privacy in a closed network to be eliminated," says Ms. Salpeter, who recommends not posting anything illegal (even if it's a joke), criticism of a boss, coworker or client, information about an interviewer, or anything sexual or discriminatory. "Assume your future boss is reading everything you share online," she says.
2. Overkill.
Blanketing social media networks with half-done profiles accomplishes nothing except to annoy the exact people you want to impress: prospective employees trying to find out more about on you.
One online profile done well is far more effective than several unpolished and incomplete ones, says Sree Sreenivasan, dean of students at Columbia University Graduate School of Journalism. He made the decision early on to limit himself to three social-networking sites: Facebook, LinkedIn and Twitter. "There is just not enough time," he says. "Pick two or three, then cultivate a presence there."
Many people make the mistake of joining LinkedIn and other social media sites and then just letting their profiles sit publicly unfinished, says Krista Canfield, a LinkedIn spokesperson. "Just signing up for an account simply isn't enough," she says. "At a bare minimum, make sure you're connected to at least 35 people and make sure your profile is 100 percent complete. Members with complete profiles are 40 times more likely to receive opportunities through LinkedIn."
LinkedIn, Facebook, and Twitter are the three most popular social networking sites for human resources managers to use for recruiting, according to a survey released last month by JobVite, a maker of recruiting software.
3. Not getting the word out.
When accounting firm Dixon Hughes recently had an opening for a business development executive, Emily Bennington, the company's director of marketing and development, posted a link to the opportunity on her Facebook page. "I immediately got private emails from a host of people in my network, none of whom I knew were in the market for a new job," she says. " I understand that there are privacy concerns when it comes to job hunting, but if no one knows you're looking, that's a problem, too."
Changing this can be as simple as updating your status on LinkedIn and other social networking sites to let people know that you are open to new positions. If you're currently employed and don't want your boss to find out that you're looking, you'll need to be more subtle. One way to do this is to give prospective employers a sense of how you might fit in, says Dan Schawbel, author of "Me 2.0" and founder of Millennial Branding. "I recommend a positioning, or personal brand statement, that depicts who you are, what you do, and what audience you serve, so that people get a feeling for how you can benefit their company."
4. Quantity over quality.
Choose connections wisely; only add people you actually know or with whom you've done business. Whether it's on LinkedIn, Facebook or any other networking site, "it's much more of a quality game than a quantity game," says Ms. Canfield. A recruiter may choose to contact one of your connections to ask about you; make sure that person is someone you know and trust.
And there's really no excuse for sending an automated, generic introduction, says Ms. Canfield. "Taking the extra five to 10 seconds to write a line or two about how you know the other person and why'd you'd like to connect to them can make the difference between them accepting or declining your connection request," she says. "It also doesn't hurt to mention that you're more than willing to help them or introduce them to other people in your network."
5. Online exclusivity.
Early last year, Washington's Tacoma Public Utilities posted a water meter reader position on its website. The response? More than 1,600 people applied for the $17.76 an hour position.
With the larger number of people currently unemployed (and under-employed), many employers are being inundated with huge numbers of applications for any positions they post. In order to limit the applicant pool, some have stopped posting positions on their websites and job boards, says Tim Schoonover, chairman of career consulting firm OI Partners.
Scouring the Web for a position and doing nothing else is rarely the best way to go. "When job-seekers choose to search for jobs exclusively online– rather than also include in-person networking–they may be missing out on 'hidden' opportunities," says Mr. Schoonover. "Higher-level jobs are not posted as often as lower-level jobs online. In-person networking may be needed to uncover these higher-level positions, which may be filled by executive recruiters."
From: online.wsj.com
Here are five mistakes online job hunters make:
1. Forgetting manners.
If you use Twitter or you write a blog, you should assume that hiring managers and recruiters will read your updates and your posts. A December 2009 study by Microsoft Corp. found that 79% of hiring managers and job recruiters review online information about job applicants before making a hiring decision. Of those, 70% said that they have rejected candidates based on information that they found online. Top reasons listed? Concerns about lifestyle, inappropriate comments, and unsuitable photos and videos.
"Everything is indexed and able to be searched," says Miriam Salpeter, an Atlanta-based job search and social media coach. "Even Facebook, which many people consider a more private network, can easily become a trap for job seekers who post things they would not want a prospective boss to see."
Don't be lulled into thinking your privacy settings are foolproof. "All it takes is one person sharing information you might not want shared, forwarding a post, or otherwise breaching a trust for the illusion of privacy in a closed network to be eliminated," says Ms. Salpeter, who recommends not posting anything illegal (even if it's a joke), criticism of a boss, coworker or client, information about an interviewer, or anything sexual or discriminatory. "Assume your future boss is reading everything you share online," she says.
2. Overkill.
Blanketing social media networks with half-done profiles accomplishes nothing except to annoy the exact people you want to impress: prospective employees trying to find out more about on you.
One online profile done well is far more effective than several unpolished and incomplete ones, says Sree Sreenivasan, dean of students at Columbia University Graduate School of Journalism. He made the decision early on to limit himself to three social-networking sites: Facebook, LinkedIn and Twitter. "There is just not enough time," he says. "Pick two or three, then cultivate a presence there."
Many people make the mistake of joining LinkedIn and other social media sites and then just letting their profiles sit publicly unfinished, says Krista Canfield, a LinkedIn spokesperson. "Just signing up for an account simply isn't enough," she says. "At a bare minimum, make sure you're connected to at least 35 people and make sure your profile is 100 percent complete. Members with complete profiles are 40 times more likely to receive opportunities through LinkedIn."
LinkedIn, Facebook, and Twitter are the three most popular social networking sites for human resources managers to use for recruiting, according to a survey released last month by JobVite, a maker of recruiting software.
3. Not getting the word out.
When accounting firm Dixon Hughes recently had an opening for a business development executive, Emily Bennington, the company's director of marketing and development, posted a link to the opportunity on her Facebook page. "I immediately got private emails from a host of people in my network, none of whom I knew were in the market for a new job," she says. " I understand that there are privacy concerns when it comes to job hunting, but if no one knows you're looking, that's a problem, too."
Changing this can be as simple as updating your status on LinkedIn and other social networking sites to let people know that you are open to new positions. If you're currently employed and don't want your boss to find out that you're looking, you'll need to be more subtle. One way to do this is to give prospective employers a sense of how you might fit in, says Dan Schawbel, author of "Me 2.0" and founder of Millennial Branding. "I recommend a positioning, or personal brand statement, that depicts who you are, what you do, and what audience you serve, so that people get a feeling for how you can benefit their company."
4. Quantity over quality.
Choose connections wisely; only add people you actually know or with whom you've done business. Whether it's on LinkedIn, Facebook or any other networking site, "it's much more of a quality game than a quantity game," says Ms. Canfield. A recruiter may choose to contact one of your connections to ask about you; make sure that person is someone you know and trust.
And there's really no excuse for sending an automated, generic introduction, says Ms. Canfield. "Taking the extra five to 10 seconds to write a line or two about how you know the other person and why'd you'd like to connect to them can make the difference between them accepting or declining your connection request," she says. "It also doesn't hurt to mention that you're more than willing to help them or introduce them to other people in your network."
5. Online exclusivity.
Early last year, Washington's Tacoma Public Utilities posted a water meter reader position on its website. The response? More than 1,600 people applied for the $17.76 an hour position.
With the larger number of people currently unemployed (and under-employed), many employers are being inundated with huge numbers of applications for any positions they post. In order to limit the applicant pool, some have stopped posting positions on their websites and job boards, says Tim Schoonover, chairman of career consulting firm OI Partners.
Scouring the Web for a position and doing nothing else is rarely the best way to go. "When job-seekers choose to search for jobs exclusively online– rather than also include in-person networking–they may be missing out on 'hidden' opportunities," says Mr. Schoonover. "Higher-level jobs are not posted as often as lower-level jobs online. In-person networking may be needed to uncover these higher-level positions, which may be filled by executive recruiters."
From: online.wsj.com
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