As the
Indian economy is looking at its worst crisis since its independence, the big
media is silent and largely ignoring the plight of the common office worker and
labourer on the street. But media ignoring something doesn’t mean it is not
happening. We every now and then have access to a few news outlets that do give
us the true figure of over 9 million jobs lost just in this year. But the other
side of this is the Corporations. Are they really in a fix businesswise or are
they just holding their positions right now? An interview with an insider in
the corporate human resources scene reveals the best laid plans of the
Corporates.
Welcome and
thank you for speaking to me. Could you state who you are and what you do for
our readers?
You can
call me Shyam. I am the Head of HR at a Media House and it is one of the bigger
Channels out there. I have been in HR all my life and I started my career back
in 2000 when liberalisation was at its peak. I would say that I have had a good
career and a fruitful one.
So, it’s
all good then? You don’t have any complaints against the Corporate dream?
Oh, I have
many complaints about it and I despise what the work environment has rapidly
deteriorated to but for people like me there is no real alternative but to
slave away in these conditions. The funny thing is that we make light of the
plight of farmers when they say, “if we cannot do farming, what else do we do?”
that is pretty relevant for us Cubicle slaves as well. What choice but sitting
in cubicles and pressing buttons do we have for a living? That aside, work
since the 2008 crisis has been steadily on a downturn. When I joined the media
world, hiring was what we did! We were building teams and teams built products
and products sold etc etc. Now, being in HR is about firing people in the least
amount of time possible – down to mere minutes in fact.
You
mentioned 2008. What was that like?
To be
completely honest, I know about it anecdotally and academically. Since the
company I work in relies on the Indian market we weren’t hammered by the world
downturn that happened in 2008. But all my peers who were working in IT were
finished and I think the Liberalisation dream run was reaching its finishing
line then. I look at India now and look back at that crisis and I can only thank
the then Govt for steadying the ship.
So what has
gone wrong now?
Well I
would love to say GST and Demonetisation and stuff but those are just the
straws that broke a camel’s back. Things like GST are badly implemented but
cannot sink business and I refuse to believe it can. Demonetisation, yes. But
it has been a year since it happened and even if it killed the economy it
cannot be stopping its revival – and when I say revival, I am talking about
employee strengths returning back to sane levels.
I will be
more specific, what has gone wrong in Corporations from a Human Resource
perspective?
Well we are
all told that business is down and there is a recession. That has reduced
budgets and therefore we have to fire you and you and you. And then five days later
we hire for the same positions at 50% of the previous cost, usually some newbie
or so. We are of course automating to such a level that we literally have no
developers on the floor anymore. I can’t remember the time that development
happened at the “factory floor” so to speak. Nothing is made in India even. All
the software and hardware used are in a SaaS model. The hardware otherwise can
be fixed and maintained by some Ukrainian coder paid $10 an hour when we pay
$100. The only people that seem to be having it good are the Marketing,
Strategy and Innovation teams. I guess that would be the case of course but if
we are struggling on low sales, how come Sales and Marketing never pay that
price?
So you are
saying that India the “outsourcing capital” is being Bangalored?
It is true.
For a long time since the call center boom what have we essentially been? A
center for cheap labour and that is it. All these damn IT companies that we see
like Wipro, Infy, etc that got their 20 year tax holidays and profited, where
are the “Word, PowerPoint and Excels” that are made in India? That is
essentially the problem. India was either a Call Center or a Coding Center. We
never made the product itself so we lost the labour the minute the rest of the
developing nations could speak English and code. And honestly, India got lucky.
We have the worst work practices and worst quality of products. It had to
collapse someday.
We hear
that 9 million jobs have been lost in the Indian market, what is your take on
that?
I can’t say
I am surprised! I am no fan of Modi or BJP, I have seen both at work but I keep
that aside when it comes to matters of economics. It has been three years of
every other nonsense but serious work with this Govt, really. Let me save you
time by saying that folks like Arun Shourie and Yashwant Sinha have it bang on
with their critique of this Govt. That aside, I can definitely say that there
have been massive layoffs in the IT and Media. But it is not very
straightforward as firing because business is down.
What do you
mean?
Well, none
of these companies are close to sinking or even to a major hit on their bottom
line revenues. Most of the firing of the lower level staff happened with a huge
bang but all those positions have been quietly filled up again. Now, if business
was really down that wouldn’t be the case, so this is a case of companies
burning their budgets somewhere else and the factory floor taking the hit.
But hasn’t
that always been the case?
Well yes.
It has always been the entire point of being in business to increase profits
but there is a difference. When you start out in business you make money by
expanding, producing more and selling more. After that you peak out and then
comes the cut backs and cutting costs to keep the rate of profit continuously
going up. This is the problem. It is not that profit is lacking, it is that the
Company wants more of it. So, instead of starting and chasing new lines of
business and wanting to expand, the company wants to ride the wave.
How does
that make sense in the current Indian context?
Well, take
the case of the IT majors that did their layoffs. Most of those positions have
been filled again with temps or contractual workers. Additionally, projects that
don’t align with the overall company NPV are being dumped – which would be fine
if this was 10 years ago when you could refuse business, not now. Also, a more
nefarious tactic is being seen in the media world were the cost of Content
Acquisition is a major component of the Retail price. What happened is that
companies buy Content, which comes with a Price that is literally pulled out of
the Content owner’s ass. And the cost of content is constantly increasing year
after year, quality is increasingly bullshit, and audiences don’t watch it. So,
instead of kicking the Content Owners out of their “Asset Bubble” broadcasters
are cutting labour costs instead and the net result is that India now has some
of the worst broadcast quality in the world! This at a time when the internet
TV players with the big bucks are already ripping Indian distributors a new
asshole!
So that
means that the Work is there to be done but Companies can’t afford manpower for
whatever reasons?
Not
entirely. They can indeed afford to fill these positions but they have realised
something. With three years of Modi’s disastrous economics, unemployment has
increased to such levels that the labor cost has come down drastically. Worse,
the trend is set to continue so Corporations are waiting for the pool of
unemployed to increase to such a level that wages come down further. It is
basically Wage speculation on right now.
But that
affects business as well, doesn’t it?
This is
India. Indians will lap up any nonsense that is shown on TV. So even if the
quality dips in content or technology by 50%, people will still watch it. This
is the endemic “Baniya” mentality that Indian companies have always had – that instead
of investing in quality, find the market for bad quality.
So, the
future is bleak is it?
Well, if
you are just joining the job market, this is going to be the new normal. For
older generations like me, yes… this is the end of the line. Best to leave India
altogether.