NOV. 24, 2002
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Two Slab
Income Tax

The Kelkar panel, constituted to reform India's direct taxes, has reopened the tax debate-and at the individual level as well. Should we simplify the thicket of codifications that pass as tax laws? And why should tax calculations be so complicated as to necessitate tax lawyers? Should we move to a two-slab system? A report.


Dying Differentiation
This festive season has seen discount upon discount. Prices that seemed too low to go any lower have fallen further. Brands that prided themselves in price consistency (among the consistent values that constitute a brand) have abandoned their resistance. Whatever happened to good old brand differentiation?

More Net Specials
Business Today,  NovOctober 13, 2002
 
 
Help, Tarun!!!


I am a 34-year-old with an IIT-IIM background and have been working in the petroleum sector for the past 10 years. My company recently asked me to relocate to the Western region of the country. I was not willing to shift from Delhi. As a result, I am without a job. I have plenty of project experience but there doesn't seem to be much demand for it in the northern region. I have worked with the best companies in the industry and on some prestigious projects. I have met several recruitment agencies but all to no avail. What should I do?

Recruiter's Diary
Negotiating Compensation: Dos And Don'ts

There are plenty of project-related jobs in the North. Since you have worked in the petroleum industry, you need to look at the chemical industry or other process industries in the northern region. Once you widen your search definition and become amenable to move to other locations in the North (apart from Delhi), it may become easier for you to find a job. You could also look at project-planning jobs that may be available in Delhi (or Gurgaon, Noida and other industrial belts around Delhi). Finally, you could think of public sector and quasi-government organisations as prospective employers.

I am a 47-year-old HR director in a niche multinational IT company based in Mumbai. I am currently in charge of a 350-strong workforce. I have worked in established companies as well as start-ups. The company I'm working for has a young workforce and it is a little difficult for a person from the old school like me to come to grips with their informal and often-flippant attitude to work. The CEO has an easygoing work-style and tends to encourage this attitude. This has led to an impossible situation for second-rung executives like me who are judged strictly on our performance. Would looking for a new job be advisable given the current market situation?

You have answered the question yourself. Since the market situation is not very good and you are 47- an age where you are likely to have substantial family responsibilities-I would strongly recommend finding another job before quitting this one. A bird in hand is definitely worth two in the bush. No company is perfect and though you may not want to live with the particular problems of this company, I am afraid you may have to grin and bear it. And look at the positive side-it's, after all, an MNC and the workforce is sizeable.

I am a 23-year-old MBA from a well-known Indian B-school. My specialisation was in the area of information technology. After entering the job market, I realised that there was no specific job profile that fits my specialisation. More so, if you did not have a combo-qualification (like a BE, B Tech, or MCA) to go with it, which I didn't. I have managed to land a job with a small software firm in the area of database design and development, but my interest lies in the area of software marketing. How can I make the switch?

You can definitely switch to software marketing-the only issue is that the scenario in software is not very bright at the moment. I would suggest that you apply to some better-known firms and simultaneously scan the papers for openings in software marketing. Don't be choosy about the company's size. You need a foot in the door, so a mid-sized software firm, even the IT department of a company will do just fine.

I am a 21-year-old graduate in economics. I am planning to apply for an MBA programme. I am applying to B-schools in India and the UK. What are the advantages of pursuing a management degree abroad vis-a-vis doing so in the country? What are my chances of landing a job in the UK itself if I get a degree from one of the B-schools there? What kind of weightage do Indian companies give to MBA degrees from abroad?

The value of an international MBA depends on what you plan to do with it. If you want to stay and work abroad, it is easier to do that with a foreign MBA-but not always. A good foreign b-school will give you a better chance at landing a job in that country. The change in your visa status will depend on the company employing you-if you are considered an excellent candidate, it may sponsor you. As for the weightage given by Indian companies, you would do well to spend time on a careful comparison-i.e., it would be better to do an MBA from an 'a' grade school in India than a 'd' grade school abroad. Indian companies give good weightage to MBAs from well-known foreign b-schools and treat them on a par with the best Indian b-schools. What I am trying to say is that merely a foreign MBA may not guarantee you a red carpet welcome in the Indian corporate world; but, it won't be a disadvantage either.


Answers to your career concerns are contributed by Tarun Sheth (Senior Consultant) and Shilpa Sheth (Managing Partner) of HR firm, Shilputsi Consultants. Write to Help,Tarun! c/o Business Today, Videocon Tower, Fifth Floor, E-1, Jhandewalan Extn., New Delhi-110055.


Recruiter's Diary

R. Suresh, CEO, Stanton Chase

Changing jobs at the senior level can, at times, be a long-drawn and messy affair in India Inc. Delicate employee-corporate courtships on which corporate fortunes hinge so much in India are facilitated in the main by head-hunting and employee search firms. In the first of this series, BT presents a head-hunter's perspective on issues that need to be kept in mind while making career moves at the top. Stanton Chase's Chief Executive Officer R. Suresh presents his views on compensation negotiation for prospective ceos.

Every 'C' level appointment (head-hunterspeak for CEO, CFO and COOs) starts off with both sides-the hiring company and prospective candidate-stating their past track-record and the roles they want to play in the future. Then comes the issue of compensation. Compensation has always been a sticky issue in Corporate India, requiring careful resolution. This is illustrated by the following account of an awkward case that our executive search firm recently had to handle.

A retail food multinational client of our firm needed a director for its sales and marketing division. We researched, shortlisted and presented two finalists, ranked first and second.

The first candidate was someone we had known for years and whose capabilities were proven, while the second finalist was a new find. During the initial discussion, when we put forth the salary-band on offer, the first candidate (ranked No. 1) categorically stated that his role in the organisation and its future were more important than to him the salary (he refused to part with his current details). After several rounds of assessment, our client zeroed in on the first candidate and invited him to Mumbai for a discussion on the issue of compensation.

The candidate sensed he was being sought after and decided to play hard-ball. He demanded a business-class ticket for the trip and even called up the secretary of the client company's managing director to specify the type of car that should pick him up from the airport. In the ensuing negotiations, this candidate aggressively drew up his compensation stack, including sundry benefits such as cell phone, credit card, and a broadband internet connection. He added that a 50-60 per cent jump in salary was in order: he was factoring in a 'risk-premium' for shifting from a stable career; and there was an imminent salary hike in his current organisation that he would have to forgo. Though this far exceeded the initial estimate, our client yielded. Once this was settled, everything fell into place. The appointment note was issued the very next day.

After a week, our friend called back to say that while the overall annual compensation had been settled, there were still many unresolved issues about his terms of employment. We felt it was time we stepped in to address these issues along with the client and invited this candidate again to Mumbai. He now had a new list of demands that included benefits like a 'sign-on' bonus and 'severance pay'. We dropped him and hired the second choice instead.


Negotiating Compensation: Dos And Don'ts
Things you should and shouldn't be saying at the negotiating table.

Ensure clarity: Both the employer and the candidate should fix a 'compensation-band' as a reference point.

Current compensation and expectations must be clearly spelled out: It is absolutely essential that the candidate share the details of his current compensation with the prospective employer while spelling out his expectation. Remember: There is nothing wrong in admitting that your main motive for a job change is a good pay hike. That's much better than giving a reason that's implausible on the face of it.

Cost-To-Company (CTC): It's a misnomer. We all know that, but it still continues to be in vogue. No two companies are alike in computing CTC. So avoid bringing it up.

Don't nitpick: Don't haggle over details like travel and medical allowances. They probably form 1 per cent of the overall compensation package. Firm and clearly stated compensation expectations followed by graceful handling will get what you desire.

 

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