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JULY 30, 2006
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Oil On Boil, Again
Oil is hitting new highs after a US government report showed strong fuel demand in the world's top oil consumer. Prices also drew support from international tensions ranging from Iran's nuclear ambitions to North Korea's missile tests. Adjusted for inflation, oil is more expensive now than at anytime since 1980, the year after the Iranian revolution. A look at how oil is affecting economies, and what's in store for nations.


Driving The Market
India is becoming key to the growth plans of global auto makers as its emerging market and low-cost manufacturing base offer an alternative to rival China. To cite just one example, Japan's Suzuki Motor Corp has said it would build a new compact car in India for Nissan Motor Co to sell in Europe. India's passenger vehicle market is only a fifth of China's, but is forecast to nearly double to two million units by 2010.
Business Today,  July 16, 2006
 
 
BECKONING CAREERS
HR Pros In Demand

They were traditionally people who recruited others. Now, they are the ones being chased.

Talent hunt: Infosys' Maitra is aggressively hiring HR personnel
Help, Tarun!
Call Of The Wild

The transformation is complete; the buyers have become the merchandise. Human resource (hr) professionals were the anonymous backroom boys who shot off appointment letters, drew up job contracts, worked out group insurance policies, maintained industrial relations on an even keel and coaxed, cajoled, lured and enticed key personnel from rival, and other, firms into the fold of their employers. But in a delicious irony, it is they who are being coaxed, cajoled, lured and enticed by almost every section of India Inc over the last six to 12 months.

"It's a direct fallout of the jobs boom in the economy," explains Achal Khanna, Country Manager, Kelly Services, a staffing services firm. Companies normally employ one hr person for every 200 employees, so the hundreds of thousands of new jobs being created in the country are leading to a massive demand for hr professionals. Concurs E. Balaji, COO, Ma Foi Management Consultants, an executive search and staffing services firm: "hr is a value-enabling function; so every sector that is hiring in large numbers will need hr professionals." Not surprisingly, then, the IT and IT enabled services sectors, which are hiring big numbers in their core functions, are also recruiting large numbers of hr professionals. "We currently employ over 62,000 people and plan to add another 30,000 this year," says S. Padmanabhan, Executive Vice President and Head, Global HR, TCS, the country's largest it company. This is expected to translate into a demand for about 150 hr professionals. "Infosys, too, has been recruiting big time," says Bikramjit Maitra, Vice-President, hr, Infosys Technologies, adding: "in the last year alone, we have recruited 150 hr pros." The retail and real estate sectors, which are expected to create one million new jobs over the next three years, are also doing the same.

Everyone BT spoke to for this report was unanimous that the hr function today has become extremely specialised. "The focus earlier was on campus selection," says Balaji of Ma Foi, "but today, hr professionals have to concentrate on talent acquisition and management." At the very minimum, this means aligning hr to business objectives. Adds Udai Upendra, VP, Global hr, Ranbaxy Laboratories: "To effectively manage growing workforces, companies are looking for specialists in functions like performance management, organisation development and learning and leadership development."

Quality-conscious: LG's Verma require his HR managers to be highly-qualified

There is also growing emphasis on innovation and the quality of hr processes and personnel. "LG and many other quality-conscious companies today require their hr managers to be Six Sigma-qualified. We require an hr candidate to be at least a green belt, which is a grade in the Six Sigma process," says Yasho Vardhan Verma, Director, hr and ms (Management Support), LG Electronics India (LGEIL).

According to Mandeep Maitra, Country Head, HR, HDFC Bank, the bank's hr functions are focussed on activities like performance improvement, organisational productivity, organisational restructuring and culture building. "It is our endeavour to help create an environment where employees can build on their individual competencies and take up challenging roles in the organisation," says Maitra, who leads a team of 52 hr pros.

Kris Lakshmikanth, CEO of Bangalore-based executive search firm The Headhunters India, says recruitment has, over the years, become a plain-vanilla function. Though some companies, like Infosys, still list recruitment as one of their core hr functions, employers today are increasingly outsourcing this to external headhunting agencies. "Most big companies today are happy to have their hr people off recruitment," says Kelly Services' Khanna. Consequently, the explosive demand across sectors and functions has forced search firms, too, to ramp up. All the headhunters BT spoke to admitted that they are expanding their workforce 60-200 per cent. The bulk of this growth is driven by the services sector.

Building careers: HDFC Bank's Maitra focusses on creating the right environment

High attrition rates are the bane of most industries. "Companies cannot take employees' loyalty for granted anymore," points out Ronesh Puri, Managing Director, Executive Access, an executive search firm. "To counter this," says Sudhakar Balakrishnan, coo and Executive Director, Adecco Peopleone, another placement firm, "employee engagement and retention training have become the primary focus of hr managers." Many companies also depute junior and mid-level hr professionals to work very closely with other departments, in effect, converting hr management from a staff to a line function. "They are expected to support business leaders by aligning hr processes with business requirements and take change initiatives of the business forward; so hr personnel must have a conceptual understanding and experience of business functions," says Balaji.

Such a high degree of specialisation means that even experienced hr professionals often find it difficult to cope with the new demands of this still evolving field. HDFC Bank's 52-strong HR department, for example, has specialists in Learning and Development, Employee Relations, Remuneration and Benefits, Resourcing, hr Operations, Performance Management and Reward Planning, Career and Succession Planning, and Talent Management. "Some of us may be taking care of more than one of these functional areas," says HDFC Bank's Maitra. LG Electronics, too, encourages specialisation. Its 34-strong hr team has experts in Training, Culture Building, Recruitment, Organisation Development Intervention, Talent Management, and Labour Relations. Not surprisingly, "there is an acute shortage of hr talent at most dynamic organisations," says Balaji. This puts a premium on people who do possess the relevant skills.

So what do recruiters look for while hiring hr personnel? "The first thing recruiters look at is education," says Khanna. Puri agrees. "An overwhelming majority of companies still prefer the MBA tag," he says. But educational qualifications can only be the starting point of an elimination process. "In people-oriented sectors like retail, the most important qualification for an hr candidate is attitude," says Sanjay Jog, Head, hr, Pantaloon Retail. After the first job, though, what matters most is experience. In fact, organisations today prefer, and even encourage, people from other domains to spend some time in their hr departments. "At TCS, we encourage technical workers to work in the hr side for a couple of years and vice versa," says Padmanabhan.

Attitude counts: Pantaloon's Jog says academic qualifications are only the starting point

Interestingly, quite a few headhunters and employers say they prefer non-IIM (Indian Institute of Management) graduates for hr functions "as IIM grads have very high expectations and get disillusioned very fast if they don't achieve their goals." And, at the entry level, graduates from Tier-I institutes like Xavier Labour Relations Institute (XLRI), Jamshedpur, and Tata Institute of Social Sciences (TISS), Mumbai, are paid considerably higher salaries than those from Tier-II colleges (see Salary Structures). Beyond this, it is, as it is in the case of most functions, an issue of natural selection with experience and company mattering more than educational background.

The general consensus is that the demand for hr professionals will remain robust. The economy is expected to canter along at 8 per cent plus in the foreseeable future; millions of new jobs will be created over the next 3-5 years; and the industry thumb rule says at least 5,000 hr professionals will be required for every million jobs. "Companies require hr people to help their employees build careers," says Khanna. Puri, though, advises caution. "I see a correction happening around 2008," he says. If his prediction comes to pass, it will, at worst, retard job creation in the hr function by a few hundreds only. We're still talking of a massive, incremental job creating machine. Most hr pros, and wannabes, will take that.


COUNSELLING
Help, Tarun!

Q: I am a 26-year-old with an MBA (dual specialisation in HR and marketing). I am keen to work either in the corporate sector or in academics. Please advise whether I need to pursue a PhD or get any other degree to be qualified for my areas of interest.

You have an interesting combination of specialisations. However, you have to decide if you want to work in the corporate sector or academia and accordingly decide whether to pursue any further qualifications. If your calling is academia then you will certainly require a PhD which you can then embark upon. But, immediately pursuing a long-term programme or degree will only slow down your career.

Q: I am an 18-year-old and have recently cleared my Class XII exams (PCM stream). I am quite good at drawing/painting/sketching and want to pursue a career in the field of architecture. Are there any institutes/colleges that offer a bachelors degree in architecture?

Because you are good at painting/drawing does not mean that you are made to be an architect. However, there are several colleges that offer degrees in architecture like Rachana Sansad, NID, etc. You should try to pursue these as well as courses in interior designing or even commercial art.


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


Call Of The Wild
If you love nature and don't mind odd hours, there could be a job waiting for you.

Boom time: Wilderness' Nanjappa (r) is preparing for the unexpected

With over two million eco-tourists expected to visit India this year, hospitality companies across the spectrum are queuing up to hire naturalists. You don't need an armful of degrees; all you need is intricate knowledge of the wild and an affable personality. "You must be able to identify animals in the wild and should be prepared for unexpected questions from guests," says Vikram Nanjappa, Senior Naturalist with Wilderness Resorts (an eco-tourism venture). Salaries aren't too bad either; freshers can expect Rs 10,000-Rs 15,000 per month, and given the boom in the market, the upside is practically unlimited. Be warned: early hours are a must (remember the dawn safari?) and guests can be demanding, "There aren't courses that teach this subject in India, so we have to look for on-the-ground knowledge in candidates," says Tiger Ramesh, CEO of Wilderness Resorts.

 

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