The reskilling route to retention

Font Size

Print

Feedback

Email

Discuss

be promoted to the GM post through the MBA programme,” said Singh. Finally, the high performers in the organisation will be promoted as senior-level managers.

When asked if this will fulfill the requirement of gathering a large pool of talent? Singh replied, “No” but the attempt is “on”. Apart from internal promotions, the company largely considers advertisement in newspapers as an important medium for hiring employees from outside. Also, it will make use of e-search and engage expert consultants for senior-level appointments.

While IT and manufacturing industries in general have been hit with high attrition rates—with an attrition rate of just 6%, JSW has been successful in retaining its employees. Singh says, “Apart from a harmonious work culture, we are competitive in salary. Employees who stays with the organisation grow with it.” He remarks, “We pay better salary to our employees at the entry level than any IT company would pay.”

However, the main problem that the manufacturing companies face while hiring employees is the location of the plant. “The plants are located at remote places, hence it, sometimes, becomes a problem in attracting talent. Also, the mismatch in the demand and supply creates difficultly in hiring quality people,” Singh reveals.

Meanwhile, the latest trend that is being witnessed and is catching up fast in this sector is variable pay introduced by many of the manufacturing companies including the public sector companies to motivate employees. “JSW has, in the financial year FY 2008, started a variable pay scheme, where the employee will get 15% of their gross salary as a variable pay—reward for performance—of which, 50% will depend on employees’ performance and 50% on the company’s performance,” reveals Singh. Essentially, the employee is expected to align himself to the company’s goals.

This particular company has the following firms under its banner—JSW Energy Ltd, JSW Steel Ltd, JSW Aluminium Ltd, JSW Cement Ltd, JSW Infrastructure & Logistics Ltd and JSoft Solutions Ltd. However, declining to give specifics about the total number of employees, the company would hire for each of its group companies, Singh said, “The maximum number of people will be hired for the company’s steel, cement and aluminium businesses.”