For a long time now, I have been thinking, why not these IT companies in India come to an agreement (may be with the help of NASSCOM) & come up with min-max salary levels for their employees based on experience, skill levels & roles (just like how the prices of Pepsi and Coke are same). This may help to stop attrition to some extent especially jumping ships for the same role with (way) higher salaries.
Everytime a team member comes to me with his resignation quoting his offer in hand with >50% hike, I stand helpless and let them go with nothing much that I can do to stop them. This agreement among the IT companies will in fact help them to control the spiraling wage increase (not that I am against getting a huge wage increase).
Today when I read this news I was a bit surprised. Though it's not exactly what I have been thinking I think it is a good move and this may be a step towards achieving what I envisaged(!). I am sure the top guys in the Indian IT industries would have already thought about this. Who knows they might have already discussed & dropped or the discussion may still be on.
Snippets of the news...
In Pune, IT companies in Hinjewadi IT park managed to seal a pact under which they will hire from rivals only after candidates have fully served out notice periods.........The companies have also agreed that new employees cannot join without a relieving letter from the previous employer
So suriprised to see how much money these companies loose because of the attrition.
...These companies have been crippled by 17% attrition leading to an estimated loss of about 5% of total revenues — about Rs 850 crore — every year....
Smart move, right?
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“If I have the belief that I can do it, I shall surely acquire the capacity to do it even if I may not have it at the beginning.” - Mahatma.
2 comments:
The idea of min-max salaries... Nope... That seems to be incorrect. That would ultimately lead to market discrimination and it is like price fixing.
The idea will not only affect the employees. But, it will also affect the new startups which would like to get good employees even by giving them some extra money.
The idea of min-max salary will disrupt the market... I am not sure about the Indian market. But, such an agreement would be illegal in USA.
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