Raising the bar in a flat world

Looks like the barons of bangalore are running out of ideas.

Press has it that the Infy management is asking its employees to give an undertaking that they will not join any of its competitors for a period of six months after their job termination at Infosys. It seems that the employees have to sign this when they receive their annual hike letters.

According to the reports, the non-compete agreement specifies Infosys’ competitors as Tata Consultancy Services (TCS), Accenture, IBM Global Services, Cognizant Technology Solutions and Wipro.

In one stroke, the step seems to have spelt out an “us” and “them” divide between the Company (leadership) and the employees. Doesnt sound like good HR at all. One wouldnt expect to find employees falling over each other to sign this pledge of fidelity.

In this day and age, why would a professional company want to take such a step? Surely the company’s intellectual capital comprises far more than just employees. Surely the sum of employees is more than the parts. The corporation’s core competence, knowledge bases, process assets, innovation culture, education infrastructure,organization network, the brand, the customer relationships – these and such are the ones that ensure that business moves ahead despite people moving out – to named competition or elsewhere.

Seems that the Emperor of Electronics city is worried. The usual panache hasnt been spilling out of national and world media screens. Last couple of quarters results have not been super-duper. Facing the music has been coincident, perhaps, with what looks like a game of musical chairs at the helm of affairs. And in the background, the recent instrumental music at mysore…

But then, why would a company zero in on ‘bind the employee’ kind of strategy for protecting its business? It sounds like the old story of searching for the lost coin under the brightest lamppost. Its the easy thing to do – although not the wisest.

Ho-hum…The world doesnt seem so flat after all, does it? At least not as far as employees go.


7 Responses to “Raising the bar in a flat world”

  1. Deepak Says:

    Can’t believe this. Was with Infy for 6 years. On a personal level everyone faces problems but I felt that HR policies were pretty good at org. level. I have lots a friends in Infy. Lemme confirm this news !

  2. krishashok Says:

    The core issue is one of a booming job market. It is fundamentally easier to jump jobs today than it was earlier. How do companies deal with Q-o-Q pressures to deliver and high attrition rates?

  3. M A Prasad Says:

    I also do not think this will be true. But I think HR practices in almost all IT companies is the same. They all work hard not retaining people through motivations, but by other means.

  4. bala Says:

    Welcome to globalization. It is a fairly standard practice in the US

  5. Thomas Says:

    Regarding non-compete clauses – most of them are unenforceable in most states here in the US and most companies know that specially if you can prove that your profession is your only livelihood.

  6. bala Says:

    I know of a specific example of a suit brought between tow companies that was settled before trial, but the parties agreed not to hire each other’s employees

  7. Pavan Says:

    Well the world is flat for the employees. 100% flat, nowhere to go to. nothing moving

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