MindTree seems to like what TCS came up with – Reducing salaries in the name of “We think this is right”. One might wonder why they never felt this was not right all these years. Some things which did not matter, does matter when you do not have sufficient growth.
MindTree President and Group CEO for Product Engineering Services, S. Janakiraman mentioned that salaries would be revised and this revision has helped growth of certain divisions within MindTree.
Discussing about the new plans, he mentioned, “”Revising salary is the need of the hour. This will bring a change in mindset of employees, and variable pay should not be linked only to the company’s revenue, but also on productivity of the employee. We have already revised the variables in the R&D division, and this segment has shown great recovery in the last few months.”
The company is planning to reduce the number of jobs to be offered this year comparing the 750 – 780 offers sent to students last year 08 -09.
However, Janakiraman mentioned that they would still pursue campus recruitments with some prominent colleges to maintain their relationship. Doesn’t that sound like “Namesake Recruitment” lol..
This is what he had to say: “”Revising salary is the need of the hour. This will bring a change in mindset of employees, and variable pay should not be linked only to the company’s revenue, but also on productivity of the employee. We have already revised the variables in the R&D division, and this segment has shown great recovery in the last few months.”
One might think now that they are reducing salaries and this would give a bad image on the company. No! not at all. They have some more information to hide the one before. Janakiraman mentioned that they are planning a new bridge office in China by end of third quarter this year.
“We are in the process of registering the subsidiary shortly. The engineers to China centre will be outsourced from India as there is a language barrier for local hiring. The subsidiary will act as a bridge for Chinese customers and global giants who have presence in China.”
Now this all seems like a balanced act. A “negative & a positive” in the name of “what’s good for the company” & “What we do is fair”. Why doesn’t anyone accept the bare truth? – NOT MUCH PROFIT THESE DAYS!!!