DEC. 22, 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,  November 24, 2002
 
 
Help, Tarun!!!


I am a 35-year-old chartered accountant working in the corporate finance division of a large consulting firm for the last nine years. After a recent merger with a bigger consulting firm, the company has decided to downsize nearly 20 per cent of its workforce. A little birdie tells me that a pink slip is coming my way too. During the last three years at this consulting house, I have done extensive work on the business process outsourcing (BPO) market and it is fair to say that BPO is now my area of expertise. My attempts to find a lucrative opening in the financial services sector have come to a nought. Do you think the BPO market will be a little more responsive, given my experience that field?

Recruiter's Diary
Sunshine On The Net

Your knowledge of BPO will find many takers not only in financial services but also in consulting firms, banks and credit rating agencies. With specialisation in corporate finance, you could also consider applying to the finance departments of your present employer's clients. A host of multinational companies are outsourcing operations to BPO companies in India. That brightens up your chances further. You could also consider switching to corporate or financial planning. With age still on your side, there is no harm in venturing into a relatively new territory.

I am a 33-year old running my own web portal for the past two years. I had earlier quit a consulting job to set up this business with my friends. We survived the dotcom bust and still manage to make ends meet. However, I see little growth prospect in the dotcom space and hence feel the need for a change. The offers are few and far between, and the ones that don't look like falling through, are not commensurate with my experience. What should my approach be?

Make a realistic assessment of the situation. Are the posts being offered to you really junior or do you feel this way because you are now used to being the boss? A good benchmark would be to compare the offers with your job two years ago and also compare it with positions your peers are in today. Even if you were to get a position similar to the one you quit three years ago, it won't be a bad deal given the current scenario. If your priority is to get back into the mainstream, then a minor compromise on emolument is well worth it. Keep all these factors in mind and I'm sure you'll find the answers.

I am a 26-year-old IIM graduate working for a MNC. Initially the job seemed a dream come true, but over time I realised the company was stagnant and its bureaucratic systems were no better than a second rung family-run Indian business. In contrast, my friends in smaller but dynamic companies are thriving. Should I make switch to a smaller company that encourages young executives?

What has worked well for your friends may not necessarily work for you. Fitting into a position in a particular work environment depends on a number of factors, including your temperament and motivation. Also, there exists no such creature called the "perfect employer". I would recommend that you don't jump onto something just because you think the grass is greener on the other side. You are working with a multinational company and you should make use of this experience by learning as much as you can from the systems and processes there. I would advise you to make the most of what you've got, unless of course, you find the situation absolutely unbearable.

I am a 49-year-old senior vice president in an Indian software firm. I was recently offered the CEO's post by an MNC that's setting up an offshore facility in India. The stint with my current employers has been an enjoyable one and I have a decent chance of making it to the very top if I stay on. But then a CEO posting and an irresistable financial package don't come your way every day. The offer, however, entails less focus on marketing and is more of an operations role-something that doesn't excite me much. What should I do?

Your decision should be based on what you regard as more important in a job-if occupying the top slot is more important, you have a good opportunity right now to attain it through this offer. However, if you cannot compromise on job satisfaction, you would perhaps do well to stay on.

Also bear in mind that you are already 49 and similar opportunities may not come along too frequently in the future. I can only say that neither choice seems a bad one-go for what you would be most comfortable with.


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
Emotional intelligence is increasingly becoming a critical parameter of evaluation for senior-level recruitment.

There is no scientific formula that guarantees a successful hire. But a structured approach and clear knowledge of your requirements can help you avoid pitfalls in the hiring process.

HOW TO SIDE-STEP HIRING PITFALLS
» Functional experience should just be one criterion among many
» Focus on the traits essential for success in a particular role
» Evaluate all candidates against the same benchmarks
» Structure interviews carefully to bring out the candidate's competencies
» Make sure you hire people for fit, not merely for skill
» Avoid the 'just like me' trap that most recruiters fall into

For long, recruiters have tended to overlook the importance of behavioural or emotional competencies while making critical selection decisions. Too many companies select executive talent on the evidence of attributes that can be learnt over a period of time-like technical skills. They tend to look at factors like education, IG, and track record but fail to probe the elements of emotional intelligence: willingness to learn, ability to work in a team and cultural fit.

The performance of a multinational had slipped and its systems needed to be rehauled. The company required a country manager with an excellent technical orientation in order to put the company back on track.

The company evaluated several candidates and zeroed in on an individual with very little experience in a multinational environment, reasonable academic pedigree, considerable technical expertise and heavy 'star' tag.

The new manager began well. However, within a few months he showed signs of slowing down. His approach didn't work too well with domestic and international colleagues. Slowly the incumbent became isolated and he resigned within a year-some even speculated that he was asked to go.

By disregarding emotional intelligence in the hiring process and ignoring the aspect of organisational fit of the candidate, the company overlooked a critical success factor. This incident substantiates the result of a study conducted by Egon Zehnder International with 500 managers across three continents that unsuccessful managers failed largely due to their low levels of emotional intelligence.


SUNSHINE ON THE NET
Finally, some good news for job hunters on the internet.

Jobs are aplenty. or so the newspapers would have you believe. And if the market buzz is anything to go by, the online job market is also fast catching up. Says Sanjeev Bhikchandani, CEO, Naukri: "Online recruitments are picking up faster than the offline ones". Naukri's revenues in the first two quarters of the current financial year have exceeded their earnings of Rs 4 crore in 2001-02. Job listings on Naukri.com too have jumped from 12,000 last year to 18,000, while Jobsahead.com currently has 1 lakh-plus vacancies listed on its site. Naukri has added 1,500 clients this year taking the total number to 6,000 and at Jobsahead, it has gone up to 3,000 after the addition of 1,000 new clients this year. "It's not just the big players who are benefitting. The effect is now even trickling down to smaller firms." says Arun Tadanki, Country Manager, Monster India. Certainly big numbers for the troubled online operators.The upswing in online recruitment is largely due to the ressurgence in the it and it-enabled sectors. The two contribute nearly 40 per cent of Naukri's revenues.

Online recruitment is now a serious option by the hr managers. "It's not only a low-cost option but now companies are considering the internet for senior-level recruitments too," says Alok Mittal, coo, Jobsahead which has big ticket clients like Wipro. Hopefully, this online boom is more than just a mirage.

 

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