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Juxt Consult India Employee Speak 2007 Current Hr Trends

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One of the ‘biggest’ annual syndicated study tracking employment trends, employee engagement cycle and corporate perceptions among the white collar employees in India

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Juxt Consult India Employee Speak 2007 Current Hr Trends

  1. 1. India Employee Speak 2007
  2. 2. Current HR Trends India Employee Speak 2007 Current HR Trends
  3. 3. India Employee Speak 2007 © copyright JuxtConsult
  4. 4. Current HR Trends
  5. 5. India Employee Speak 2007 Table of contents India Employee Speak 2007 ............................................. 1 India Employee Speak 2007 Reports ................................... 2 Methodology ............................................................... 3 Executive Summary ...................................................... 5 Key Findings ............................................................... 7 Detailed Findings- Current Terms of Employment ........................................21 Age at First Job ..........................................................23 Total Work Experience .................................................26 Number of Jobs Held....................................................29 Proportion Who Moved Jobs with a Promotion .....................32 Total Work Experience .................................................35 Average Tenure per Job ................................................37 Tenure with Current Company ........................................38 Demographic Profile ....................................................43 Socio-Economic Profile .................................................62 Segment Wise Detailed Tables ........................................64
  6. 6. Current HR Trends
  7. 7. India Employee Speak 2007 India Employee Speak 2007 India Employee Speak 2007 is one of the largest survey based annual HR studies on the latest ‘white collar’ HR trends and corporate perceptions in India. The study attempts to uncover the HR trends in all types of industry segments and companies. It not only profiles the work experience details and current job satisfaction levels of those currently employed but also uncovers job aspirations and expectations of those who aspire to be employed soon. The study also delves into the job search behavior and preferences of both the currently employed as well as the prospective ‘white collar’ employees. The India Employee Speak 2007 reports are designed to provide you with: Insightful understanding of key current HR trends and issues in the white collar world - employment terms, average tenures, salary levels and benefits, employee expectations, satisfaction levels, improvements desired, etc. Comparative trends - by industry segments, sectors, size of companies, job functions, hierarchy levels, etc. Expected future trends - based on current aspirations and intentions of employees and prospective employees. Employee expectations and aspirations – employee speak on good job content, HR policies, corporate reputations, etc. Job search dynamics – active versus passive search, preferred search methods, preferred job search intermediaries (both offline and online) and their perceptions. Corporate brand perceptions - attractiveness of companies on key corporate image parameters and key HR parameters (both at the overall level as well as at the industry level). Demographic and socio-economic statistics on current and potential while collar employees. 1
  8. 8. Current HR Trends India Employee Speak 2007 Reports Main Reports Current white collar employment trends and practices Current job search behavior and preferences Current employee expectations, motivations, satisfaction and desired improvements Current company perceptions on key corporate and HR parameters Possible Supplementary Reports Category Reports ∗ (examples)- Industry specific (IT/ITES, Consumer Goods, Consumer Services, industrial Goods, Banking/Finance) Function specific (Marketing, Finance/Accounts, Admin & General Management, IT) Segment Reports ∗ (examples)- Women (vis-à-vis men) Qualified professionals (vis-à-vis general qualification ones) Corporate employees on the net Fresher (vis-à-vis the working ones) ∗ depending on the sufficiency of sample size of relevant respondents 2
  9. 9. India Employee Speak 2007 Methodology The India Employee Speak 2007 study findings are based on a very large sample base of over 16,500 current and prospective employees surveyed online in April-May 2007. The online surveys were conducted through an e-mailer campaign undertaken by a leading generic portal in India among their opted-in and active email users, as well as banner and text ads using Google Ad Sense (contextual search ads). The online survey was conducted using an e-questionnaire segmented into three sections. In the online questionnaire, a response format of ‘clicking’ a single or multiple options among the various given options was used for most questions. For each of these questions it was also possible for a respondent to answer ‘none’ or ‘any other’. However, all perceptions, associations and recall based answers were collected ‘unprompted’ and respondents were asked to type in the name of the company in a ‘text box’ provided for the purpose. To enlist complete and sincere responses, an incentive of a significant cash prize was also announced to be given to one randomly selected respondent at the end of the survey. The questionnaire was pre-tested and timed to take approximately 20 minutes (± 5 minutes) for a respondent to complete depending on the speed of comprehension and answering of the questions. The questionnaire was structured and designed to reduce the level of ‘respondent fatigue’ to an extent that was practically possible. Over 16,500 unduplicated and clean responses were collected from the online survey campaign in about 4 weeks time. The responses covered employees of over 4,765 companies of various sizes from all types of industry segments, sectors, job functions and hierarchy levels. These respondents came from over 2, 975 unique universities and educational institute alumni. Table 1: Sample sizes achieved in the online survey Employment Profile Sample Size % Salaried employees 9,000 55% Completed studies but unemployed 1,315 8% Students 3,232 20% Others (self-employed, business owners, retired) 2,772 17% Total Sample 16,319 100% The collected data was then made representative of the urban Indian population by using appropriate 'demographic multipliers’ using highly authentic Govt. of India population statistics. The weights were derived using 4 highly employment relevant demographic parameters – age, socio-economic classification (SEC), town class and region. The end result is that the findings possibly represent the 'white collar' employment and HR trends of over 160 million urban Indians (almost 3
  10. 10. Current HR Trends half of the total urban Indian population of around 336 million in 2007 1). Further, the findings represent and effectively cover urban Indians from all SEC groups, all age groups above 18 years, all income groups and all types of town classes (right down to 20,000 population size level towns). Table 2: Urban population representation of the survey sample data 2 Demographic Attributes Study Respondent Profile Actual Urban Population Below 18 years Not included in study NA 18-24 years 38% 33% Age Distribution 25-35 years 25% 27% 36-45 years 19% 18% Above 45 years 18% 22% SEC - A 17% 9% Socio Economic SEC – B 31% 18% Classification SEC - C 52% 25% SEC – D & E Not included in study 48% Up to 1 Lakh 25% 31% City Type by 1-5 Lakhs 9% 27% Population Size 5-30 Lakhs 40% 25% Above 30 Lakhs 26% 17% North 23% 24% Region-wise East 13% 15% Distribution South 32% 29% West 32% 32% The occupational break up of over 160 million urban Indians as represented in this study is as follows: Salaried employees - 52% - 83 million Completed studies but unemployed - 5% - 8 million Students - 27% - 43 million Self-employed - 8% - 13 million Business owners - 4% - 6.5 million Retired - 4% - 6.5 million Total - 100% - 160 million The study broadly represents employment profiles, status, preferences, and job search behavior and company perceptions of 83 million white collar salaried employees. It further covers employment preferences, job search behavior and corporate perceptions of 51 million ‘prospective’ white collar employees. Lastly it includes corporate perceptions of additional 26 million important ‘influencers’ in the employment market (retired employees, self-employed individuals and business owners). 1 Estimate by Indicus Analytics, a leading economic research firm in India. The estimates have been derived using Census 2001 population data extrapolated to year 2007 using decadal population growth numbers. 2 Same as 1 4
  11. 11. India Employee Speak 2007 Executive Summary Full time employment is the norm among urban white-collar employees – only 2% hold part-time positions. Interestingly, the incidence of part-time jobs is slightly higher among those working in NGOs, IT, Consumer Services and Banking/Finance jobs and also in Emerging Towns. Females constitute about one-tenth of the urban white-collar workforce. The gender ratio improves in the IT, Consumer Services and Consumer Good industries as well as in the Private sector and in NGOs. Female employees are also relatively more common in HRs, Office Administration and Accounts /Finance roles and in Metros. The typical employee is middle-aged at 36.3 years. While less than one-fifth of the employee base is below 25 years, over a third is 25-35 years old and the majority viz. nearly half the workforce is above 35 years of age. Those employed in the Private sector, working in IT, Consumer Goods and Healthcare industries are relatively younger. About 2-in-5 are from relatively smaller towns. If Metros and Urban Uptowns account for 58% of the urban white-collar workforce, the Emerging Towns and Other Towns account for a sizeable 42%. In fact while Public Sector employees largely originate from the smaller towns (73%), employees of NGOs are primarily from Metros (76%) and the Private Sector has a sizeable contribution from Metros and Urban Uptowns (59%). Only 1-in-5 holds a ‘professional’ educational degree. In fact ‘professional’ stream post-graduates number even fewer at 1-in-10. The clear majority, 66%, has either not pursued an under-graduate degree or has done so in a general stream. The incidence of ‘professional’ employees is higher in IT, Healthcare, Core Industries and in the HR function. The socio-economic profile is largely commonplace - only 1-in-5 belongs to the ‘premium’ stratum. A minority, 21%, belongs to SEC A and a similar proportion claims monthly household income levels of Rs.30,000 or more. This also gets reiterated by the low ownership of cars (23%) and credit cards (41%). The average age for entering the white-collar workforce is 23 years. While nearly a third starts working when they turn 20 years old or even earlier, the majority does so only later. This offers an explanation for the fairly ‘old’ age profile of the average employee. The initiation age is slightly lower (22 years)among those who belong to Metros /Urban Uptowns, those who have not pursued higher education post schooling and for those engaged in Office Administration functions or in the Government sector. Experience runs high with the average work experience adding up to 13 years. This ties up with the aforementioned age profile and is also 5
  12. 12. Current HR Trends not surprising since over half (51%) the employees have work experience of 10 years or more and about a fourth (26%)have been in the workforce for at least 2 decades! The work experience is higher among those engaged in Marketing/Communication Services or Core Industries and those in the Office Administration function. Among the town classes, the work experience of those in smaller towns is relatively higher (13.3 years compared to 10.8 years among Metro employees). On the other hand, those working in the Private sector especially in the IT sector have lower work experience. The average number of jobs held is 2.7 although 1-in-4 has held 4 or more jobs. While half the workforce has held 1 or 2 jobs, the balance has held at least 3 jobs. The number of jobs held is relatively higher among Private sector employees, among those engaged in Consumer Goods, Consumer Services, Core Industries, Healthcare and those in the HR function. Employees in larger towns have held more jobs on an average than their counterparts in smaller towns. While the typical tenure with the current company is 7.7 years, the average tenure per job is significantly lower at 4.7 years. The length of the tenure varies interestingly across the various segments. Those employed in Marketing/ Communication Service, Banking/ Finance, Core Industries or engaged in Accounts/ Finance or Administrative functions tend to stick on longer in their jobs while those the Private sector especially in IT industries and those engaged in Marketing, Design/ Creative functions change relatively jobs faster. Employees in small towns also show a relatively higher average tenure per job. Over half the workforce earns up to Rs.2 lacs annually and the average annual package is roughly Rs.2.6 lacs. Packages are relatively better among Private Sector companies, among Core Industries and in the IT, HRs and Accounts/Finance functions. Surprisingly, employees in Urban Uptowns and Other towns have higher salary and benefits packages on an average than their counterparts in Metros. Most aspire for jobs in the Private Sector especially in Core Industries and IT companies. This could be partly on account of the higher salary packages drawn by employees in the Private Sector and in these industries. The Private Sector is specially sought after by those in Government jobs. The majority would move out of Healthcare, Marketing and Consumer Services industries if given a choice. IT and Core Industries not only top the list of aspired industries overall but also have the highest ‘loyalty’ in terms of proportion of employees voting for their current industry. Bonus, HRA and Medical Reimbursement are the most sought after company benefits. Nearly 3-in-4 employees aspire for these benefits. Employer’s contribution to Provident Fund and LTA are lower in the list. Driver allowance, Company leased car and Stock Options – which are currently fairly rare benefits- are also desired by a sizeable proportion of employees. 6
  13. 13. India Employee Speak 2007 Key Findings Full time employment is the norm among white collar employees – only 2% hold part-time positions Interestingly, the incidence of part-time jobs is slightly higher among those working in NGOs (11%), IT (5%), Consumer Services (4%) and Banking/Finance (4%) jobs and also in Emerging Towns (3%). Part-time jobs are also somewhat more common among the latest entrants to the workforce – About 6% of those with experience of less than a year, have a part-time/apprenticeship arrangement with their employer. Full-time Part time Apprenticeship / Internship 2.0% 0.4% 97.6% Females constitute about one-tenth of the urban white-collar workforce Males dominate the white-collar ‘employee-scape’ with a whopping 89% share. M ale Female 89% 90% 60% 30% 11% 0% All white collar 7
  14. 14. Current HR Trends The gender ratio improves in the IT, Consumer Services and Consumer Good industries as well as in the Private sector and in NGOs. Table 3: Distribution of employees by gender, by industry verticals Marketing / Consumer Core Ind. / Ind. Banking & Consumer Gender IT Healthcare Comm. Services Services Goods & Services Finance Goods Projected Base 2,482,231 8,297,777 11,498,625 5,446,781 5,922,796 5,076,814 3,502,774 Male 91% 87% 95% 89% 81% 87% 89% Female 10% 14% 6% 11% 19% 13% 11% Female employees are also relatively more common in HRs, Office Administration and Accounts /Finance roles and in Metros. An interesting observation is that while the share of Female employees among Trainees/ Freshers is 22%, this alarmingly reduces to 6% among Senior Mgt. This could either be indicative of a growth in female employees at the entry level and/or of a disposition of female employees to exit the workforce over time. The typical employee is middle-aged at 36.3 years While less than one-fifth of the employee base is below 25 years, over a third is 25-35 years old and the majority viz. Nearly half the workforce is above 35 years of age. This is also evident from the fact that 58% are married and have children. Below 21 years 21-25 years 25-35 years 35-45 years Above 45 years 40% 35% 30% 26% 22% 20% 14% 10% 3% 0% All white collar 8
  15. 15. India Employee Speak 2007 Those employed in the Private sector, working in IT, Consumer Goods and Healthcare industries are relatively younger. Marketing / Comm. Consumer Core Ind. / Ind. Banking & Consumer Age IT Healthcare Services Services Goods & Services Finance Goods Projected Base 2,482,231 8,297,777 11,498,625 5,446,781 5,922,796 5,076,814 3,502,774 Bellow 21 years 1% 4% 4% 7% 7% 3% 1% 21-25 years 11% 9% 10% 15% 32% 17% 16% 25-35 years 37% 37% 27% 26% 49% 45% 50% 35-45 years 18% 31% 30% 23% 8% 24% 25% Above 45 years 34% 19% 29% 30% 5% 12% 10% Average age of 39 37 38 37 28 34 33 employees As may have been expected, the age profile of employee by and large increases with seniority – while the average Trainee is aged 26 years, Senior Managers at the other end of the spectrum average 40 years. Interestingly, Junior Managers (average 38 years) do not appear to follow this trend since they are actually older than Middle Managers (average 36 years). This could be related to their education level and will be examined subsequently. Only 1-in-5 holds a 'professional' educational degree In fact 'professional' stream post-graduates number even fewer at 1-in- 10. The clear majority, 66%, has either not pursued an under-graduate degree or has done so in a 'general' stream. The incidence of 'professional' employees is higher in IT, Healthcare, Core Industries and in the HR function. Educational All white Marketing / Consumer Core Ind. / Ind. Banking Consumer IT Healthcare Qualification collar Comm. Services Services Goods & Services & Finance Goods Projected Base 56,614,875 2,482,231 8,297,777 11,498,625 5,446,781 5,922,796 5,076,814 3,502,774 HSC/SSC 32% 53% 34% 36% 18% 23% 23% 21% Graduate General 35% 23% 33% 30% 50% 34% 42% 42% Stream Graduate Professional 8% 3% 4% 11% 5% 15% 6% 5% Stream Post-Graduate 9% 6% 11% 5% 13% 8% 11% 9% General Stream Post-Graduate 10% 8% 10% 9% 13% 10% 8% 20% Professional Stream Others 7% 7% 7% 10% 2% 9% 9% 3% Professional stream 15% 10% 14% 20% 18% 25% 14% 25% Interestingly, the proportion of ‘professional’ stream employees is significantly higher among Middle and Senior levels. This could explain the relatively lower age profile of Middle Managers compared to Junior Managers – since holding a ‘professional’ degree seems to increase the upward mobility on the corporate ladder and age does not appear to be the leading determinant of the same. 9
  16. 16. Current HR Trends Educational All white Trainee/ Executive/ Junior Middle Senior Advisory Staff / Qualification collar Fresher Operation level Management Management Management Consultant Projected Base 56,614,875 4,129,904 13,433,566 9,669,740 13,469,914 7,006,215 2,660,007 HSC/SSC 32% 36% 33% 30% 21% 33% 39% Graduate General 35% 35% 41% 38% 32% 28% 39% Stream Graduate 8% 13% 7% 6% 9% 13% 2% Professional Stream Post-Graduate 9% 7% 6% 12% 11% 8% 14% General Stream Post-Graduate 10% 5% 6% 7% 16% 15% 4% Professional Stream Others 7% 4% 8% 6% 11% 3% 1% Professional Stream 18% 18% 13% 13% 25% 27% 6% About 2-in-5 are from relatively smaller towns If Metros and Urban Uptowns account for 58% of the urban white-collar workforce, the Emerging Towns and Other Towns account for a sizeable 42%. M etros Urban uptowns Emerging Towns Others 40% 32% 30% 26% 21% 22% 20% 10% 0% All white collar In fact while Public Sector employees largely originate from the smaller towns (73%), employees of NGOs are primarily from Metros (76%) and the Private Sector has a sizeable contribution from Metros and Urban Uptowns (59%). Also, the Marketing/Communication services industry and Core Industries (to a lesser extent) have a higher proportion of employees belonging to Other towns whereas IT industries are skewed on Metro residents and Banking and Healthcare companies have a higher share of employees from Emerging Towns. 10
  17. 17. India Employee Speak 2007 Table 4: Distribution of employees by city type, by industry verticals Marketing / Consumer Core Ind. / Ind. Banking & Consumer City Type IT Healthcare Others Comm.Services Services Goods & Services Finance Goods Projected Base 2,482,231 8,297,777 11,498,625 5,446,781 5,922,796 5,076,814 3,502,774 7,610,865 Metros 29% 33% 22% 27% 53% 32% 30% 33% Urban uptowns 13% 22% 29% 24% 29% 31% 21% 23% Emerging 13% 24% 22% 29% 12% 17% 28% 19% Towns Others 45% 22% 27% 20% 7% 19% 22% 26% The socio-economic profile is largely commonplace - only 1-in- 5 belongs to the 'premium' stratum A minority, 21%, belongs to SEC A and a similar proportion claims monthly household income levels of Rs.30,000 or more. This also gets reiterated by the low ownership of cars (23%) and credit cards (41%). On the other hand, mobile phones are very common with 87% ownership. SEC A SEC B SEC C 50% 43% 40% 30% 21% 22% 20% 10% 0% All white collar Distribution of employees by MHI All white collar Projected Base 56,614,875 Sample Base 9,000 Up to Rs.10,000 34.10% Rs.10,000 to Rs.20,000 27.70% Rs.20,000 to Rs.30,000 14.50% Rs.30,000 to Rs.50,000 8.40% Rs.50,000 to Rs.75,000 3.40% Rs.75,000 to Rs.100,000 3.00% More than Rs.100,000 6.60% 70% of the salaried employees are the chief wage earner of the household. This also means that at least 30% are from multiple income households. 11
  18. 18. Current HR Trends Chief Wage Earner (CWE) Not the CWE CWE 30% 70% Marketing/Communication Services and Consumer Services have a significantly higher share of SEC C employees whereas Healthcare, Consumer Goods and Core Industries have a relatively higher proportion of SEC A employees. Banking/ Finance industry has the highest share of SEC B employees. Distribution of Marketing / Consumer Core Ind. / Ind. Banking Consumer IT Healthcare employees by SEC Comm. Services Services Goods & Services & Finance Goods Projected Base 2,482,231 8,297,777 11,498,625 5,446,781 5,922,796 5,076,814 3,502,774 SEC A 17% 15% 24% 23% 20% 25% 28% SEC B 22% 31% 39% 44% 33% 36% 37% SEC C 61% 54% 38% 33% 47% 38% 35% Other highlights related to the socio-economic profile are: The Public Sector boasts of the highest proportion of SEC A employees (26.4%), the Government Sector has a relatively higher share of SEC B employees (43%) while the NGOs are dominated by SEC C (69%). The above sectoral SEC distribution is also reflected in the income level - 28% of Public sector employees belong to households with monthly incomes Rs.30,000 or more whereas this proportion drops to 23% and 13% respectively among Private sector employees and NGOs. HR function has a visibly higher share of SEC A employees (44%) Designing / Creative function largely comprises SEC C employees (75%) Credit card ownership is most common among employees belonging to Metros (34%) Middle/Senior Mgt have larger shares of SEC A employees (31%, 37% respectively) Car ownership is as expected more common among Middle/ Senior Mgt 12
  19. 19. India Employee Speak 2007 Ownership of credit cards as well mobile phones is less prevalent among employees working in the Consumer Services industry - this could be related to the higher share of SEC C employees in this sector as mentioned earlier The average age for entering the white-collar workforce is 23 years. While nearly a third (30%) start working when they turn 20 years old or earlier, the majority does so only later - the most common age of entry being 21-22 years. This offers an explanation for the fairly 'old' age profile of the average employee seen earlier. Up to 18 years Age 19-20 years Age 21-22 years Age 23-24 years Age 25-30 years Above Age 30 years 40% 28% 30% 19% 20% 19% 20% 11% 10% 4% 0% All white collar The initiation age is slightly lower (22 years) among those who belong to Metros /Urban Uptowns. Not surprisingly, those who do not pursue higher education post-schooling enter the workforce relatively earlier. Employees engaged in Office Administration functions or in the Government sector also start working earlier than others. On the other hand, those in the IT and Designing / Creative functions are comparatively older when they embark upon their careers. To illustrate this point, 64% of employees engaged in IT and 66% of those engaged in Designing/ Creative functions began working at the age of 21-24 years compared to only 48% among all white-collar employees. Experience runs high with the average work experience adding up to 13 years This is not surprising since over half (51%) the employees have work experience of 10 years or more and about a fourth (26%)have been in the workforce for at least 2 decades! Up to 1 year 1-3 years 3-5 years 5-7 years 7-10 years 10-15 years 15-20 years Above 20 years 30% 26% 20% 15% 10% 11% 10% 9% 9% 10% 10% 0% All white collar 13
  20. 20. Current HR Trends The work experience is higher among those engaged in Marketing/Communication Services or Core Industries and those in the Office Administration function. Among the town classes, the work experience of those in smaller towns is relatively higher (13 years compared to 11 years among Metro employees). On the other hand, those working in the Private sector especially in the IT sector have lower work experience. Total work Marketing / Consumer Core Banking & Consumer IT Healthcare Others experience Comm Services Services Industries Finance Goods Projected Base 2,482,231 8,297,777 11,498,625 5,446,781 5,922,796 5,076,814 3,502,774 7,610,865 Up to 1 year 5% 6% 7% 4% 15% 6% 8% 4% 1-3 years 8% 11% 7% 17% 33% 12% 10% 4% 3-5 years 12% 5% 8% 11% 15% 13% 20% 7% 5-7 years 5% 14% 5% 8% 14% 13% 9% 7% 7-10 years 15% 7% 8% 8% 9% 14% 14% 8% 10-15 years 11% 20% 16% 9% 8% 15% 18% 18% 15-20 years 9% 8% 12% 7% 3% 16% 8% 13% Above 20 years 35% 28% 37% 37% 4% 13% 13% 39% Average Years 17 13 16 14 5 10 9 17 The average number of jobs held is 2.7 although 1-in-4 has held 4 or more jobs While half the workforce has held 1 or 2 jobs including the current job, the balance has held at least 3 jobs. 1 2 3 4 5 6 7 8 9 10 29% 30% 25% 21% 20% 12% 10% 7% 3% 1% 1% 1% 0% 0% All white collar The number of jobs held is relatively higher among Private sector employees, among those engaged in Consumer Goods, Consumer Services, Core Industries, Healthcare and those in the HR function. Employees in larger towns have held more jobs on an average than their counterparts in smaller towns. Not surprisingly, the average number of jobs held increases with the work experience of the employee. For instance, while the average number of jobs among those who have been working for a year is 1.3 (22% have moved on within a year of their first job!) This increases to 14
  21. 21. India Employee Speak 2007 3.3 among those with 7-10 years of experience. Interestingly, the white collar veterans with work experience of more than 10 years actually display lower mobility (average number of jobs 3.0) than those with 7- 10 years of work experience. While the typical tenure with the current company is 7.7 years, the average tenure per job is significantly lower at 4.7 years The tenure with the current company is significantly higher than the average tenure across all jobs held. This indicates that by and large, the disposition to change jobs is higher during the earlier period of an employee’s career graph. Chart 1: Tenure with current company Up to 1 year 1-3 years 3-5 years 5-7 years 7-10 years 10-15 years 15-20 years Above 20 years 40% 30% 30% 21% 20% 15% 9% 10% 10% 5% 5% 6% 0% All white collar The length of the tenure varies interestingly across various segments. Those employed in Marketing/ Communication Service, Banking/ Finance, Core Industries or engaged in Accounts/ Finance or Administrative functions tend to stick on longer in their jobs while those the Private sector especially in IT industries and those engaged in Marketing, Design/ Creative functions change relatively jobs faster. Employees in small towns also claim a relatively higher average tenure per job. 15
  22. 22. Current HR Trends Average Tenure Average Tenure with per Job Current Company (years) (years) All Employees 4.7 7.7 Marketing/ Communication Services 6.2 13.4 Core Industries 5.6 8.5 Banking / Finance 5.6 10.4 Consumer Services 4.6 8.9 Healthcare 3.4 4.1 Consumer Goods 3.3 5.2 IT 1.9 1.6 Government sector 8.8 17.6 NGO 8.6 15.6 Public Sector 7.5 15.7 Private Sector 3.9 6.0 Office Administration 6.6 12.0 Accounts and Finance 5.2 9.2 Human Resources 4.5 7.5 Project Management 4.4 6.6 Marketing 3.7 5.3 Design / Creative 3.3 6.0 IT 3.1 5.1 Larger size companies show more efficient use of employees (better productivity) Only 1 in 5 (21%) white collar employees come from a small company of less than 50 employees. Almost half (47%) are working in relatively larger size companies with over 500 employees. However in terms of turnover, a significantly higher 40% of the white collar employees work in smaller companies with less than 50 crores in turnover. This indicates a disproportionately less efficient use of people (or lower turnover per employee) in the smaller companies as compared to the relatively larger companies. The efficiency equation increases with size and large companies show the best efficiency ratio (probably a result of economies of scale). 16
  23. 23. India Employee Speak 2007 Distribution by company size Size by no. of employees Size by turnover in crore rupees 50% 47% 40% 40% 39% 30% 33% 20% 21% 21% 10% 0% Small (upto 50) Medium (51- 500) Large (501 plus) Over half the workforce earns upto Rs.2 lacs annually and the average annual package drawn is roughly Rs.2.6 lacs Packages are relatively better among Private Sector companies, among Core Industries and in the IT, HRs and Accounts/Finance functions. Surprisingly, employees in Urban Uptowns and Other towns have higher salary and benefits packages on an average than their counterparts in Metros. Up to Rs 1 lac Rs 1-2 lacs Rs 2-3 Lacs Rs 3-5 lacs Rs 5-7 lacs Rs 7-10 lacs Rs 10-20 lacs Above Rs 20 lacs Not Specified 30% 26% 27% 20% 15% 15% 10% 10% 3% 2% 2% 0% 0% All white collar Current Salary Levels Marketing / Consumer Core Ind. / Ind. Banking & Consumer IT Healthcare and Benefits Packages Comm Services Services Goods & Services Finance Goods Projected Base 2,482,231 8,297,777 11,498,625 5,446,781 5,922,796 5,076,814 3,502,774 Up to Rs.1 lac 18% 34% 22% 23% 27% 34% 26% Rs.1-2 lacs 41% 26% 24% 28% 35% 20% 31% Rs.2-3 Lacs 15% 19% 16% 21% 14% 14% 9% Rs.3-5 lacs 4% 6% 13% 15% 9% 10% 16% Above Rs.5 lacs 6% 5% 15% 6% 5% 8% 12% Rs.7-10 lacs 2% 1% 4% 2% 1% 3% 1% Rs.10-20 lacs 1% 1% 5% 1% 1% 1% 2% Above Rs.20 lacs 0% 0% 0% 1% 1% 1% 0% Average annual salary 218731 183977 332324 251621 238612 252728 249540 (Rs.) 17
  24. 24. Current HR Trends Other highlights related to salary and benefits are: Not surprisingly, the average packages increase with hierarchy – ranging from Rs.1 lac for Trainees to Rs.4 lacs for Senior Managers. Those with a ‘professional’ degree, especially a post-graduate degree, earn more than those possessing a ‘general’ degree Salary levels are relatively higher in IT, HRs and Accounts/ Finance functions Most aspire for jobs in the private sector and in core industries and IT companies This could be partly on account of the higher salary packages drawn by employees in the Private Sector and in these industries as seen above. The Private Sector is specially sought after by those in Government jobs - 4-in-5 aspire for a Private Sector job. Further, 95% of the employees currently with the Private Sector want to continue with the sector. Aspired All White Currently in Currently in Public Currently in Private Sectors Collar Government sector sector sector Projected Base 24,497,230 2,886,979 1,188,199 18,542,505 Public Sector 6.20% 11.90% 41.50% 3.60% Private Sector 91.60% 80.30% 58.20% 95.10% Others 2.20% 7.80% 0.40% 1.30% The majority would move out of Healthcare, Marketing and Consumer Services industries if given a choice. IT and Core Industries not only top the list of aspired industries overall but also have the highest ‘loyalty’ in terms of proportion of employees voting for their current industry. Marketing / Core Ind. / Banking All White Consumer Consumer Aspired Industry Verticals Comm Ind. Goods & & IT Healthcare Collar Services Goods Services Services Finance Projected Base 24,497,230 635,881 3,356,202 5,674,216 2,976,054 3,257,304 2,257,245 1,384,939 Marketing / Comm. Services 2% 14% 4% 0.0% 0.1% 4% 0.3% 2% Consumer Services 14% 14% 29% 9% 4% 5% 18% 8% Core Ind. / Ind. Goods & 32% 17% 19% 54% 28% 13% 21% 17% Services Banking & Finance 11% 17% 2% 6% 42% 7% 7% 8% IT 29% 33% 31% 20% 22% 69% 22% 25% Consumer Goods 11% 6% 12% 11% 4% 2% 32% 27% Healthcare 0.9% 0.2% 0.3% 0.4% 0.0% 0.0% 0.0% 11% Consultancy 2% 0.6% 2% 0.4% 0.6% 0.3% 0.7% 1% 18
  25. 25. India Employee Speak 2007 Other points related to aspirations of employees are: As may have been expected, most employees aspire for the next hierarchical level Project Mgt, Marketing and Office Administration functions are overall more sought after while HRs and IT functions show the highest growth in movement from current function to aspired function Employees in Accounts / Finance and IT functions display the highest ‘satisfaction’ in terms of proportion voting for their current function Bonus, HRA and medical reimbursement are the most sought after company benefits. Nearly 3-in-4 employees aspire for these benefits. Employer’s contribution to Provident Fund and LTA are lower in the list. Driver allowance, Company leased car and Stock Options – which are currently fairly rare benefits and relatively more common among the middle/senior Mgt cadre - are also desired by a sizeable proportion of employees. Current Benefits Aspired Benefits Bonus 50% 76% House Rent Allowance (HRA) 58% 74% Medical bill reimbursement 52% 71% Medical insurance and Hospitalization 44% 65% Employers Contribution to Provident fund 58% 64% Leave Travel Allowance 50% 63% Performance Incentive 33% 61% Petrol Expense Reimbursement 32% 56% Gratuity 47% 53% Transport (pick and drop) 24% 47% Company leased accommodation 17% 36% Company leased car 7% 31% Ex-Gratia 20% 28% Stock options 3% 25% Driver Allowance 4% 19% Restricted stock unit 1% 9% 19
  26. 26. Current HR Trends Detailed Findings- Current HR Trends 20
  27. 27. India Employee Speak 2007 Current Terms of Employment Chart 2: Current terms of employment Full-time Part time Apprenticeship / Internship 2% 0.4% 98% Base: 9,000 21
  28. 28. Current HR Trends Table 5: Current terms of employment by industry verticals Marketing / Core Ind. / Ind. Current Terms Of Consumer Banking Consumer Comm. Goods & IT Healthcare Others Employment Services & Finance Goods Services Services Projected Base 2,482,231 8,297,777 11,498,625 5,446,781 5,922,796 5,076,814 3,502,774 7,610,865 Full-time 98% 96% 99% 96% 95% 100% 98% 99% Part time 2% 4% 0.8% 4% 5% 0.5% 2% 1% Apprenticeship / 0.1% 0.5% 0.7% 0.1% 0.2% 0.0% 0.7% 0.2% Internship Base: 9,000 Table 6: Current terms of employment by job function Current Terms Accounts & Office Admin & Project Mgt & Designing / Marketing IT HR Of Employment Finance General Mgt Operations Creative Services Projected Base 6,146,271 12,504,097 12,221,536 4,172,091 1,397,504 9,691,283 2,651,668 Full-time 99% 97% 97% 98% 98% 97% 98% Part time 1% 2% 3% 1% 2% 2% 2% Apprenticeship / 0.1% 0.3% 0.5% 0.1% 0.0% 0.8% 0.0% Internship Base: 9,000 Table 7: Current terms of employment by hierarchy level Current Terms Of Trainee/Fresher Executive Junior Mgt Middle Mgt Senior Mgt Advisory Staff / Employment /Operation Consultant Projected Base 4,129,904 13,433,566 9,669,740 13,469,914 7,006,215 2,660,007 Full-time 92% 98% 99% 97% 99% 98% Part time 4% 2% 1% 3% 1% 2% Apprenticeship / Internship 4% 0.3% 0.0% 0.0% 0.4% 0.0% Base: 9,000 Table 8: Current terms of employment by educational qualification Current Terms Of Graduate Graduate Post-Graduate Post-Graduate HSC/SSC Professional Others Employment General Stream Professional Stream General Stream Stream Projected Base 17,843,583 19,640,344 4,422,478 5,276,626 5,559,933 3,871,911 Full-time 97% 98% 97% 99% 98% 99% Part time 3% 2% 0.9% 1% 1% 1% Apprenticeship / Internship 0.4% 0.2% 2% 0.2% 0.5% 0.0% Base: 9,000 Table 9: Current terms of employment by years of experience Current Terms Of Employment Less than 1 year 1 - 3 years 4 - 6 years 7 - 10 years More than 10 years Projected Base 5,777,915 6,405,850 7,635,364 8,042,904 28,752,843 Full-time 94% 96% 99% 97% 98% Part time 3% 3% 0.8% 3% 2% Apprenticeship / Internship 3% 0.2% 0.4% 0.1% 0.1% Base: 9,000 22
  29. 29. India Employee Speak 2007 Age at First Job Chart 3: Age at first job Up to 18 years Age 19-20 years Age 21-22 years 40% Age 23-24 years Age 25-30 years Above Age 30 years 28% 30% 19% 20% 19% 20% 11% 10% 4% 0% All white collar Base: 9,000 23
  30. 30. Current HR Trends Table 10: Age at first job, by industry verticals Marketing / Consumer Core Ind. / Ind. Banking & Consumer Age At First Job Comm. IT Healthcare Others Services Goods & Services Finance Goods Services Projected Base 2,482,231 8,297,777 11,498,625 5,446,781 5,922,796 5,076,814 3,502,774 7,610,865 Up to 18 years 6% 21% 12% 10% 8% 10% 7% 11% Age 19-20 years 42% 15% 20% 19% 20% 21% 14% 18% Age 21-22 years 16% 25% 29% 26% 30% 32% 34% 32% Age 23-24 years 18% 16% 19% 32% 26% 18% 24% 21% Age 25-30 years 17% 21% 19% 13% 14% 17% 21% 17% Above Age 30 years 0% 3% 1% 1% 1% 2% 1% 1% Average age in 1st Job 21.50 22.10 22.10 22.10 22.10 22.30 22.70 22.30 Base: 9,000 Table 11: Age at first job, by job function Accounts & Office Admin & Project Mgt & Designing / Age At First Job Marketing IT HR Finance General Mgt Operations Creative Services Projected Base 6,146,271 12,504,097 12,221,536 4,172,091 1,397,504 9,691,283 2,651,668 Up to 18 years 7% 21% 10% 7% 13% 9% 2% Age 19-20 years 21% 25% 18% 13% 9% 21% 19% Age 21-22 years 25% 21% 31% 33% 31% 31% 45% Age 23-24 years 27% 13% 21% 30% 22% 17% 21% Age 25-30 years 19% 17% 18% 16% 23% 20% 13% Above Age 30 years 2% 2% 3% 0% 1% 2% 0% Average age in 1st Job 22.40 21.60 22.60 22.40 22.80 22.40 22.10 Base: 9,000 Table 12: Age at first job, by hierarchy level Age At First Job Trainee/Fresher Executive/ Operation Junior Mgt Middle Mgt Senior Mgt Advisory Staff / Consultant level Projected Base 4,129,904 13,433,566 9,669,740 13,469,914 7,006,215 2,660,007 Up to 18 years 15% 9% 15% 11% 7% 9% Age 19-20 years 25% 16% 18% 18% 29% 24% Age 21-22 years 37% 31% 26% 29% 30% 21% Age 23-24 years 12% 20% 22% 25% 17% 18% Age 25-30 years 11% 23% 18% 16% 12% 24% Above Age 30 years 1% 1% 1% 2% 5% 4% Average age in 1st Job 21.30 22.50 22.10 22.20 22.60 22.90 Base: 9,000 24
  31. 31. India Employee Speak 2007 Table 13: Age at first job, by educational qualification Age At First Job HSC/SSC Graduate Graduate Post-Graduate Post-Graduate Others General Stream Professional Stream General Stream Professional Stream Projected Base 17,843,583 19,640,344 4,422,478 5,276,626 5,559,933 3,871,911 Up to 18 years 29% 11% 9% 7% 2% 6% Age 19-20 years 23% 21% 14% 7% 12% 28% Age 21-22 years 18% 29% 38% 29% 23% 34% Age 23-24 years 8% 22% 27% 26% 34% 21% Age 25-30 years 15% 15% 13% 28% 27% 9% Above Age 30 years 6% 2% 1% 3% 2% 2% Average age in 1st Job 21.90 22.20 22.20 23.50 23.70 21.90 Base: 9,000 Table 14: Age at first job, by years of experience Age At First Job Less than 1 year 1 - 3 years 4 - 6 years 7 - 10 years More than 10 years Projected Base 5,777,915 6,405,850 7,635,364 8,042,904 28,752,843 Up to 18 years 29% 18% 14% 8% 13% Age 19-20 years 16% 23% 19% 21% 19% Age 21-22 years 18% 24% 27% 37% 25% Age 23-24 years 12% 23% 24% 16% 20% Age 25-30 years 12% 12% 15% 17% 21% Above Age 30 years 14% 1% 1% 2% 3% Average age in 1st Job 23.30 21.40 21.80 22.20 22.60 Base: 9,000 25
  32. 32. Current HR Trends Total Work Experience Chart 4: Total work experience Up to 1 year 1-3 years 3-5 years 5-7 years 7-10 years 10-15 years 15-20 years Above 20 years 26% 30% 20% 15% 10% 11% 10% 9% 9% 10% 10% 0% All white collar Base: 9,000 26
  33. 33. India Employee Speak 2007 Table 15: Total work experience by industry verticals Marketing / Core Ind. / Ind. Total Work Consumer Banking & Consumer Comm. Goods & IT Healthcare Others Experience Services Finance Goods Services Services Projected Base 2,482,231 8,297,777 11,498,625 5,446,781 5,922,796 5,076,814 3,502,774 7,610,865 Up to 1 year 5% 6% 7% 4% 15% 6% 8% 4% 1-3 years 8% 11% 7% 17% 33% 12% 10% 4% 3-5 years 12% 5% 8% 11% 15% 13% 20% 7% 5-7 years 5% 14% 5% 8% 14% 13% 9% 7% 7-10 years 15% 7% 8% 8% 9% 14% 14% 8% 10-15 years 11% 20% 16% 9% 8% 15% 18% 18% 15-20 years 9% 8% 12% 7% 3% 16% 8% 13% Above 20 years 35% 28% 37% 37% 4% 13% 13% 39% Average Years 16.80 13.30 15.80 13.90 5.00 10.30 9.40 16.50 Base: 9,000 Table 16: Total work experience by job function Designing / Total Work Office Admin & Project Mgt & Accounts & Finance Marketing IT HR Creative Experience General Mgt Operations Services Projected Base 6,146,271 12,504,097 12,221,536 4,172,091 1,397,504 9,691,283 2,651,668 Up to 1 year 6% 6% 11% 10% 7% 7% 6% 1-3 years 12% 8% 11% 25% 6% 11% 11% 3-5 years 14% 5% 15% 15% 9% 6% 8% 5-7 years 9% 9% 11% 10% 10% 6% 13% 7-10 years 9% 9% 9% 9% 8% 11% 20% 10-15 years 14% 12% 14% 14% 17% 19% 14% 15-20 years 8% 11% 7% 8% 10% 10% 12% Above 20 years 27% 40% 22% 10% 33% 30% 17% Average Years 13.00 17.20 10.70 8.10 14.90 13.60 10.60 Base: 9,000 Table 17: Total work experience by hierarchy level Total Work Experience Trainee/Fresher Executive/Operation level Junior Mgt Middle Mgt Senior Mgt Advisory Staff / Consultant Projected Base 4,129,904 13,433,566 9,669,740 13,469,914 7,006,215 2,660,007 Up to 1 year 67% 5% 1% 1% 6% 0% 1-3 years 33% 13% 13% 7% 5% 8% 3-5 years 0% 14% 11% 11% 7% 10% 5-7 years 0% 11% 10% 13% 6% 5% 7-10 years 0% 11% 9% 12% 12% 4% 10-15 years 0% 13% 12% 18% 18% 27% 15-20 years 0% 8% 13% 14% 11% 7% Above 20 years 0% 26% 32% 25% 37% 41% Average Years 1.10 12.10 14.50 13.50 16.70 15.50 Base: 9,000 27
  34. 34. Current HR Trends Table 18: Total work experience by educational qualification Total Work Experience HSC/SSC Graduate General Graduate Post-Graduate Post-Graduate Others Stream Professional General Stream Professional Stream Projected Base 17,843,583 19,640,344 4,422,478 5,276,626 5,559,933 3,871,911 Up to 1 year 20% 11% 19% 9% 12% 10% 1-3 years 14% 15% 25% 15% 20% 16% 3-5 years 7% 13% 9% 7% 11% 13% 5-7 years 5% 9% 6% 10% 9% 16% 7-10 years 6% 9% 9% 12% 13% 14% 10-15 years 14% 13% 8% 16% 11% 10% 15-20 years 5% 10% 7% 13% 11% 7% Above 20 years 31% 20% 17% 20% 13% 15% Average Years 12.20 10.90 9.20 11.30 9.10 9.30 Base: 9,000 28
  35. 35. India Employee Speak 2007 Number of Jobs Held Chart 5: Number of jobs held 1 2 3 4 5 6 7 8 9 10 29% 30% 25% 21% 20% 12% 10% 7% 3% 1% 1% 1% 0% 0% All white collar Base: 9,000 29
  36. 36. Current HR Trends Table 19: Number of jobs held, by industry verticals Number Of Marketing / Consumer Core Ind. / Ind. Banking & Consumer IT Healthcare Others Jobs Held Comm. Services Services Goods & Services Finance Goods Projected Base 2,482,231 8,297,777 11,498,625 5,446,781 5,922,796 5,076,814 3,502,774 7,610,865 1 41% 17% 23% 30% 27% 21% 26% 43% 2 15% 21% 22% 23% 27% 23% 22% 16% 3 20% 37% 28% 26% 21% 23% 22% 21% 4 7% 13% 11% 12% 11% 15% 17% 9% 5 4% 6% 9% 8% 8% 10% 6% 6% 6 10% 3% 2% 1% 3% 4% 6% 4% 7 4% 1% 2% 1% 1% 1% 1% 0% 8 0% 1% 1% 0% 1% 2% 0% 0% 9 0% 0% 0% 0% 1% 1% 0% 0% 10 0% 1% 0% 0% 0% 1% 0% 0% Average Number of 2.70 2.90 2.80 2.50 2.70 3.10 2.80 2.40 Jobs Base: 9,000 Table 20: Number of jobs held, by job function Designing / Number Of Jobs Office Admin & Project Mgt & Accounts & Finance Marketing IT HR Creative Held General Mgt Operations Services Projected Base 6,146,271 12,504,097 12,221,536 4,172,091 1,397,504 9,691,283 2,651,668 1 30% 30% 23% 34% 18% 21% 18% 2 25% 23% 19% 19% 19% 22% 14% 3 28% 25% 29% 20% 22% 23% 37% 4 11% 8% 15% 14% 14% 18% 11% 5 3% 9% 7% 7% 18% 7% 7% 6 2% 2% 4% 2% 4% 5% 12% 7 1% 1% 2% 1% 1% 2% 1% 8 1% 1% 1% 3% 1% 1% 0% 9 0% 1% 1% 0% 2% 1% 0% 10 0% 0% 0% 0% 0% 0% 0% Average Number 2.50 2.60 2.90 2.60 3.30 3.10 3.20 of Jobs Base: 9,000 30

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