Neither cheap nor too dear

especially :
"The revenue per employee in the last five years has steadily declined from Rs 3.77 per rupee spent on employee in FY 2001 to Rs 2.90 in FY 2003 and further to Rs 2.31 in FY05. In the first nine months of the FY06, a rupee spent on employees has generated revenue of Rs 2.09.

The attrition level is currently said to be around 35 per cent for the industry as a whole and it varies between 10 and 15 per cent for frontline companies. IT companies always keep a pool of employees (also referred to as benching). Industry estimates of benching stand at 20-25 per cent employees."

Have always maintained that we may be shooting ourselves in the foot - a collective greed if you will. While the short term attractiveness of a 30% jump is undeniable, remember that what you make overall is a factor of longevity, of the industry too. If you can sell a Merc at th eprice of a Honda, why not! Why try killing yourself with a not-yet-premium brand (also niche) and have premium pricing. If there is no Indian industry....

That said, India is beginning to establish that brand, at least in some quarters. There's also a strong domestic demand in some areas - and this will become truer as Indian corporations flex their muscle, both at home and abroad.

Even so, there'll always be a competitor willing to produce the same stuff for half the price. So its in our collective interest to keep the price tags attractive even as the quality and brand shoots up. Hyundai did that in the US market - and it makes a hell of a lot of sense. Its not an either or situation - you're better off with BOTH.

So please negotiate reasonably at the next round of appraisals. (Between you and me, all our salaries are way above the 'need' scenario anyhow). A couple of lakh extra might mean a few years lesser - and that will bite a hell lot more.

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