New Delhi: The HR mantra at Software Services International Pvt Ltd (SSI), which provides IT services to major US companies, is ``participative management''. At every level, in every activity, a conscious effort is made to involve all the staff members in decision-making, be it the kind of training they need, to a helping hand in selecting candidates.The company attributes its low attrition rate-15 per cent, as against an industry average of 25-30 per cent-to this, coupled with the strong system of mentoring/training, recruitment and healthy compensation policy it has put in place.
Says Sunil Vadehra, director, SSI: ``Handling total project life cycles is our specialisation. Since sourcing the `right people' with the relevant experience in managing large teams and projects is a tough job, retention becomes an important issue. This year also we hope to retain last year's employee turnover rate of 15 per cent or even less.''
Set up in 1992, SSI focuses totally on projects and over 80 per cent of its services focus on Net-based development services. It has a marketing office in New York and works in domain areas like financial services, healthcare and pharmaceuticals. Its clients include various US govt departments, like the New York State Insurance dept, Wisconsin State Dept, besides Deutsche Bank, Citigroup, Novartis, Merck and Parke-Davis. So just how does participative management fit into this scenario? Consider-- Recruitment-- While using multiple methods in sourcing staff-like the usual campus bids for new recruitments and IT recruitment agencies and walk-in interviews for more experienced staff-SSI uses referral bonuses to encourage in-house recommendations. If a new employee is accepted, the referee receives as bonus 72 per cent of the gross monthly salary of the selected person. The advantage? ``This not only encourages staff members to help the company try to find the best talent in the industry, but it also reinforcestheir belief in the company,'' says Nabarun Chaudhuri, head, HR.
Training: Every process/procedure is thrown open to the staff and ideas and solutions sought. Brainstorming sessions throw up recommendations, on the basis of which processes are evolved. ``This results in a feeling of ownership,'' says Chaudhuri. A technical training working group (TTWG) has been set up to tap potential skills and identify training needs of the staff. The group decides on in-house workshops and the senior staff merely act as facilitators. Ten to 12 per cent of the annual budget is spent on training for transition from client servicing to Web technology.
Special incentives are also given for special skills. The `Learn & Earn scheme' encourages staff to adapt to the new Web-based technologies and learn new skills. Once they qualify for courses like the Java or Microsoft certificate, not only is the fee reimbursed, but they also receive a five per cent raise in salary.
Performance management linked to compensation management: Also in place is a `Perform & Grow' system. Added to the six monthly evaluations and reward systems, there is also the annual increment scheme that can range to up to three months' gross salary. The guideline for growth is Rs 1,00,000 per year of experience.
Again, staff is given an opportunity to interface with the end-customer to understand their perspective. For this, employees are sent to the US marketing office on a three-month deputation. Selection is on the basis of skill sets, but even employees with a year's experience can qualify. Currently, a team of 40 has been shortlisted. ``This works as an acknowledgement of the person's worth. During this period the person gets $2000 per month plus accommodation. In fact, an exit analysis for January-December 1999, showed that 23 per cent `left for the USoffice of SSI.'''
The company achieved a turnover of Rs 11 crore last year and is targeting Rs 30 crore this year, with ambitious expansion plans in place. With moves to enter the Japanese and European markets this year at a high level of completion, it is currently in the process of setting up a new unit in Gurgaon to handle newer business. With 300 professionals on the staff, it is inducting more people. Its target: 700 by the end of 2000 and 1,000 by 2001. It is also due to receive CMM level three accreditation in the third quarterthis year.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.